Draft - 2017 (Pending Approval of 2016 DBE PLAN)

The Georgia Unified Certification Program (GUCP)

DBE Certification Standard Operating Procedures

One Georgia Center, 600 West Peachtree Street, NW Atlanta, Georgia 30308

2424 Piedmont Road, NE Atlanta, GA 30324-3311

(THIS PAGE IS INTENTIONALLY BLANK)

Disclaimer: The following guidelines were drafted by the Georgia Department of Transportation Office of Equal Employment Opportunity, with contributions from the Office of Audits and the Metro Atlanta Rapid Transit Authority. This manual is a living document, and may be modified after publication with unanimous approval between certifying partners. The manual merely documents best practices in processing of DBE applications, submission of analyst recommendations, and final decisions. The manual is supplemental to the GUCP Program Plan, it is not all inclusive, and may duplicate some areas of the GUCP Program Plan. It is not intended to change any regulation or policy. When in conflict, the code of federal regulations will always govern. It is still the reviewer’s responsibility to be knowledgeable about and understand all current federal regulations, and to form an independent unbiased opinion. It is also the responsibility of each partner to develop their own necessary measures to ensure accountability within the program, establish policies that meet minimum standards, and provide adequate training to its reviewers. Creation of this document is in response to Georgia Department of Transportation Internal Audit findings dated June 26, 2012. With the approval of both certifying partners and the inclusion of these guidelines into the GUCP plan, the Partnership between GDOT and MARTA is revised this date______________________.

_______________________________

Kimberly King, EEO Director/Georgia DBE Liaison Georgia Department of Transportation

_______________________________

Ferdinand L. Risco Jr., Executive Director Metro Atlanta Rapid Transit Authority

The Code of federal regulations change periodically, reviewers, researchers, and analyst must be mindful to use the most current

version found electronically at http://www.ecfr.gov/cgi-bin/ECFR?SID=ace0e0bda27ff04bdde2393eb4d5b44f&page=browse

Sources used in developing this manual: 49 Code of Federal Regulations 26 & 23; U.S. SBA Regulations

http://www.sba.gov/content/economic-disadvantage-eligibility ; 2012 GUCP Program Plan; and Texas Department of Transportation program manual ftp://ftp.dot.state.tx.us/pub/txdot-info/bop/tucp_sop.pdf

TABLE OF CONTENTS

SECTION

Introduction…………………………………………………………………………..

I

Definitions…………………………………………………………………………… II SOP #1: Initial Receipt of Application………………………………………………

A. New home state applicant B. Interstate C. Application Intake Process

1. Georgia Department of Transportation Procedures 2. Metro Atlanta rapid Transit Authority Procedures

III

SOP # 2: Initial Review of Application……………………………………………... A. The Desk Audit B. Request for Additional Supporting Documentation C. Onsite Inspection

IV

SOP # 3: Eligibility Analysis………………………………………………………... A. Threshold Requirements B. Business Size C. Social Disadvantage

1. Presumed Socially Disadvantaged 2. Non Presumed Socially Disadvantaged

D. Economic Disadvantage 1. IRS AND FEIN NUMBERS 2. PARENT COMPANY VS. HOLDING COMPANY

E. Review Onsite Inspection Findings F. Ownership

1. Confirming 51% ownership 2. Gifted Ownership 3. Marital Assets

G. Control 1. Independence 2. Restrictions on Control 3. Resumes 4. Professional Licenses 5. Outside Employment 6. Distribution of Responsibilities

V

SOP # 4: ACDBE Analysis………………………………………………………….. VI SOP # 5: Withdrawals and Administrative Closures………………………………... VII SOP # 6: Certification Determination and recommendations……………………….. VIII SOP # 7: DBE Certification and Annual Affidavits………………………………….

A. RECEIPT OF RECORD IX

SOP # 8: Initial Denial………………………………………………………………. X SOP # 9: Removal of DBE Eligibility (Decertification)……………………………. XI SOP #10: Appeals Process…………………………………………………………... XII SOP # 11: Standard Format of Denial Letters………………………………………..

A. THE APPROVAL LETTER B. THE ADMINISTARTIVE CLOSURE C. VOLUNTARY WITHDRAWAL OF EXISTING CERTIFICATION D. HOME STATE DENIAL LETTER E. INTERSTATE DENIAL LETTER

XIII

SOP # 12: Required Analysis Forms, (must be part of the record)………………….. A. Initial Document Checklist and Follow-Up document checklists B. Interstate Applicant review guidance document (when applicable). C. Interstate Affidavit (when applicable) D. Appendix C: DBE Certification Eligibility Worksheet E. Personal Net Worth calculation Excel sheet

XIV

F. All Correspondence documents, including electronic G. Contact Log of phone calls H. Onsite Inspection report

SOP # 13 Training Materials………………………………………………………... A. Intake process: GDOT and MARTA B. Application Evaluation Procedures checklist C. Control Determination Checklist D. Personal Net Worth Guidance Document

XV

Example Letters……………………………………………………………………... A. Denial Examples B. USDOT Appeal Decisions

XVI

SOP # 14 DBE Investigations XVII SOP # 15 CRLMS Data Entry DBE Participation

Process 1- Moving Contracts into CRLMS Process 2- Approving DBE Commitments Process 3- Close-Out Contract DBE Participation Process 4- Entering Subcontractor Payments (Final DBE Report data) Process 5- Correcting common errors

XVIII

SOP # 16 Construction XIX CLOSING

I. Foreword

A Disadvantaged Business Enterprise (DBE) Unified Certification Program (UCP) has been established in the State of Georgia in accordance with Title 49 Part 26 of the Code of Federal Regulations (49 CFR Part 26). Pursuant to a Memorandum of Agreement (MOA) signed by all recipients required to participate in the GUCP, the Georgia Department of Transportation (GDOT), and the Metropolitan Atlanta Rapid Transit Authority (MARTA) are Certifying Partners for the GUCP. The cost of creating and establishing the GUCP electronic DBE Directory is the responsibility of the lead agency, GDOT. Each of the Certifying Partners is required to administer a DBE certification program in accordance with 49 CFR Parts 26 and 23. As part of the GUCP, Certifying Partners will make certification decisions on behalf of all USDOT recipients, sub recipients and grantees in Georgia with respect to participation in the USDOT DBE Program. Certification decisions by the GUCP shall be binding on all USDOT recipients, sub recipients and grantees within Georgia. A thorough certification process ensures that the DBE program benefits only bona fide disadvantaged businesses. In order to ensure consistent application and interpretation of the regulatory requirements for DBE certification and consistent certification determinations, a Standard Operating Procedure (SOP) will be used by all Certifying Partners. The Standard Operating Procedure sets forth the process to be utilized by the Certifying Partners when making determinations of DBE certification eligibility. The procedures outlined herein are consistent with the U.S. Department of Transportation regulations codified at 49 CFR Part 26.

II. Definitions

A. ADMINSTRATIVE CLOSURE: The file is closed due to non-responsiveness or as an

approved time extension on the file, allowing the applicant time to resolve personal issues. Administrative closure provides holding of the file for 1 year in the archives. The applicant may reopen the file anytime during the year, and pick up the process where they left off, by providing updated information. After one year the file, in its entirety, is archived or destroyed.

B. ANALYST: GDOT DBE Coordinators, and Marta’s DBE ANALYST.

C. BURDEN OF PROOF: Measure of persuasion that is required to convince someone that an alleged fact is true. Preponderance of the record.

D. DBE CERTIFICATION: A finding, after a certification eligibility review by a Certifying

GUCP Partner that a business meets the certification eligibility requirements and is a bona fide Disadvantaged Business Enterprise in accordance with 49 CFR Parts 26 and 23.

E. CERTIFICATION INTERVIEW: Face-to-face meeting between the applicant firms

qualifying owner(s) for DBE certification and the Certifying Partner.

F. DECERTIFICATION: The removal of certification based on a determination that a currently certified DBE no longer meets the eligibility criteria and is given due process under 49 CFR Part 26. (Performed by the Lead Agency only).

G. DECISION MEMORANDUM: Written document prepared by Certifying GUCP Partner

detailing certification determination rendered.

H. DENIAL OF CERTIFICATION: A finding that a business is not a bona fide Disadvantaged Business Enterprise. A business that has been denied DBE certification or declared ineligible cannot reapply for DBE certification for one year (12 months) from the date of denial.

I. EXECUTIVE COMMITTEE: A group consisting of representatives from each of the GUCP

Certifying Partner agencies, who shall be designated by the signatories to the Memorandum of Agreement for the Unified Certification Program.

J. GRANTEE: Any public entity that has received USDOT assistance.

K. NON-CERTIFYING GUCP PARTNER: A State of Georgia recipient, sub- recipient, or

grantee with a current DBE Program Plan approved by an appropriate USDOT oversight modal agency. A Non-Certifying GUCP partner can neither issue nor revoke DBE certification.

L. GUCP CERTIFYING PARTNER: A State of Georgia federal aid recipient with a current

DBE Program Plan approved by an appropriate USDOT oversight modal agency. A Certifying Partner can issue DBE certification and renewals. Only the Lead Agency, can issue decertification of existing DBE Certifications based on the recommendations from its partners.

M. GUCP PARTNER: All Georgia State federal-aid recipients, both Certifying and Non-

Certifying, participating in the GUCP.

N. PREPONDERANCE OF EVIDENCE: A standard of proof which is met when the evidence on a fact indicates that it is “more likely than not” true.

O. RECIPIENT: Any public entity, which receives direct USDOT financial assistance.

P. SUB RECIPIENT: Any public entity that receives USDOT financial assistance through

another recipient.

III. SOP #1: Initial Receipt of New Application

Revision No. 0 Effective date __/__/____ Supersedes 0

A. APPLICATION FOR DBE CERTIFICATION: All applicants requesting initial DBE

certification must complete and submit a complete certification application package to either the lead agency- Georgia Department of Transportation or MARTA depending on the county where the business is located. MARTA processes all businesses located in Fulton, Dekalb and Clayton Counties as well as businesses outside of Georgia.

B. APPLICATION FOR INTERSTATE DBE ( MARTA) The GUCP partners have agreed to process interstate applications in accordance with 26.85 Sec. C, as such a DBE interstate applicant will be required to:

1. Complete a GUCP DBE Application, submit all supporting documents and any other

information submitted to the home state or any other state related to the firm's certification. This includes affidavits of no change as referenced in CFR §26.83(j) and any notices of changes as referenced in CFR §26.83(i) that has been submitted to the home state, as well as any correspondence submitted to other UCPS.

2. Provide any notices or correspondence of denied certification in another state or appealed a certification decision with USDOT as referenced in CFR §26.89.

3. Submit an affidavit sworn to by the firm's owners before a person who is authorized by State law to administer oaths or an unsworn declaration executed under penalty of perjury of the laws of the United States.

a) This affidavit must affirm that you have submitted all the information required by

49 CFR 26.85(c) and the information is complete and, in the case of the information required by §26.85(c)(1), is an identical copy of the information submitted to the home state.

b) If the on-site report from the home state is more than three years old, the applicant must also submit an affidavit affirming that the facts in the on-site report remain true and correct. (See Section XIV.C)

C. APPLICATION INTAKE PROCESSES

Partners agree to provide a tracking mechanism to ensure applications are processed within 90 days, record company related pertinent information, record analyst assigned to, date of assignment, Events, and to report when the 90 days has expired for what cause.

1. Georgia Department of Transportation Review of submitted application is a two-stage process beginning with, immediately upon receipt of the application package- it is reviewed for completeness of form, and date stamped. Specifically, the Affidavit of Certification and Personal Financial Statement are reviewed for original signatures and notarization, and to determine whether the basic required supporting documents from the checklist have been submitted. Initial Intake process will organize and assemble the applicant information in a business file and notations made in Follow Transport •CRLMS database instructions. Should there be missing documents, applicant is notified by email and depending on the importance of the missing documents(s), if the requested documents are not received from

SOP 1

the applicant within 15 calendar days after notification has been sent to the applicant the application may be forwarded to the Senior DBE Coordinator for review and or assignment to a Coordinator.

If 4 or more basic required supporting documents are not received with the application at the date stamped, the application may be sent back to the applicant firm by certified mail, with a follow up email to the applicant individual, that the file cannot be processed due to the missing articles.

Depending on the importance of the item(s) or document(s) missing, an application may be processed for in-take and given to the Senior DBE Coordinator or assigned Coordinator who may request that the missing item(s) or document be made available during the on-site interview. The application receipt date is the date stamped. The Lead Agency will notify the applicant firm that their file has been assigned to an analyst for review and follow up. See Program Technician Instructions.

2. Metro Atlanta Rapid Transit Authority (MARTA)

Add MARTA specific guidelines

IV.

SOP # 2: Initial Review of Application

Revision No. 0 Effective date __/__/____ Supersedes 0

A. The DESK AUDIT

The second stage of the DBE application review process is conducted when the application has been assigned to a DBE Coordinator. The DBE Coordinator should uses the Standard Checklist (Appendix C DBE CERTIFICATION ELIGIBILITY WORKSHEET). The assigned analyst should be mindful that all applications are to be processed within ninety (90) days of receipt.. Upon review by the DBE Coordinator, If the DBE certification process takes longer than 90 days, the cause for the delay must be justifiable, and not as a result of dereliction of duty. The 90 day period may be extended once, for no more than an additional 60 days, upon written notice to the firm, explaining fully and specifically the reasons for the extension. You may establish a different time frame in your DBE program, upon showing that this time frame is not feasible, and may be subject to the approval of the concerned operating administration. Your failure to make a decision by the applicable deadline under this paragraph is deemed a constructive denial of the application, on the basis of which the firm may appeal to DOT under § 26.89.

1. The analyst should thoroughly review the application package to determine whether all required supporting documentation have been submitted, and to determine if additional information will be requested. Care should be taken to ensure that any requested documentation/information is actually pertinent to the certification review.

2. The Onsite inspection, if applicable, should be scheduled within 45 days of receipt of

the application. Analyst should provide adequate notice to the applicant.

3. If additional information is required, the analyst should prepare a letter, or email (if email address has been confirmed to be accurate) to the applicant firm requesting additional information. The letter will include a due date for submission of the additional information and advise the applicant that failure to respond will result in the administrative closure of the application. In establishing a due date, analyst should allow sufficient time no less than fifteen (15) business days and no more than thirty (30) days for the applicant to provide the requested information and shall identify the specific days in the entities internal SOP.

4. The analyst will monitor the timely receipt of the requested information. Upon receipt

of the additional information, the analyst should review the submitted information and make a determination as to the completeness of the certification file. The analyst is required to obtain information from the Georgia Secretary of State for “status” of the applicant business and all known affiliates.

B. SUPPORTING DOCUMENTATION • See checklists in section XIV

C. The ON-SITE Inspection

SOP 2

1. The purpose of the on-site review is to verify the firm’s location, personnel and operations; to substantiate information/documentation contained in the applicant file and to review business and financial records. The on-site review is the second phase of the certification review process and may also be conducted on certified firms every three years. An on-site review of the applicant firm and an interview of the socially and economically disadvantaged principals of the firm must be made in accordance with §26.83(c) (1) of the regulations.

2. The following information, if applicable, should be received and reviewed prior to

or during the onsite inspection (but do not delay scheduling or completing the onsite inspection pending receipt of documents):

a) Cash receipts and disbursements

i. Check for entries in the cash receipts journal, which disclose initial

capital contributions.

ii. Verify operational expenditures in the cash disbursements journal. Note questionable/exceptional/unusual entries and the frequency or consistency of such expenditures.

iii. Note payments to and from shareholders, directors, officers and key employees in the cash disbursements journal.

iv. Note payments to similar businesses for possible broker activity or evidence of conduit activity.

v. Cross reference cash disbursements with cancelled checks.

b) Bank statements and cancelled checks i. Verify initial capitalization of firm with the first bank

statement, if available. ii. Verify and document signature authority and consistency in which

DBE owner versus non-DBE owner(s)/offices sign checks. iii. Verify payments to shareholders, key employees and

consultants. iv. Pay particular attention to the “memo” section of checks. v. Determine is there are any additional checking accounts not

disclosed prior to the visit. If so, note the authorized signatories. vi. Cross reference payment to and from clients, suppliers, consultants,

etc.

c) Payroll

i. Determine who is on the firm’s payroll.

ii. Determine if the owner is receiving compensation in accordance with his/her ownership interest.

iii. Determine who receives bonus payments and amounts.

iv. Compare W-2’s and 1099’s to payroll register, to extent possible, for key employees.

v. Pay a t t e n t i o n t o any “memo” notations on any payroll checks. d) Invoices and receipts

i. Check telephone bills to determine if they are addressed to the

DBE firm. ii. Review i n v o i c e s to substantiate method and source of payment.

iii. Check invoices for suggestion of brokering activity or reliance on non-DBE firms.

iv. Examine invoices for resolution of regular dealer issues (freight charges). e)

e) Contract files

i. Determine who executes contracts on behalf of the firm. ii. Verify the services provided by the applicant firm and the terms

and conditions of the provision of their services. iii. Verify consistency in which firm does business with a particular

firm and whether any issues of dependency

f) Inventory and equipment

i. Identify nature and use of equipment possessed by firm. ii. Verify ownership of equipment with invoices.

iii. If equipment is leased, review equipment lease agreements.

iv. Identify inventory maintained by firm. v. Determine whether lack of inventory suggests broker or conduit

activity. vi. If regular dealer, verify inventory, warehouse facility,

transportation equipment, etc. vii. Determine if firm’s name on vehicles (trucks).

g) Bonding and insurance

i. Determine who is guaranteeing/ financing bonding.

ii. Is bond commensurate with size of firm? iii. Are insurance documents in the name of the firm?

(Verify types of insurance maintained by firm. iv. Does firm carry Key Man Insurance (life insurance

on key person in business, should be owner-business is beneficiary)? If so, for whom?

h) Corporate kit or business organization documents

i. Cross reference documents in corporate kit with original submission.

ii. Revise minutes and entries for voting, control, attendance, etc.

i) Corporate kit or business organization documents

i. Review stock transfer ledger. ii. Review cancelled/voided stock certificates and note reasons for

cancellations. iii. Review non-issued stock certificates to determine if there is

numerical continuity. iv. Verify corporate seal. v. Review by-laws for revisions since original submission of

documents.

j) Employment agreements i. Determine the existence of any Employment Agreements for

owner(s) or key personnel. ii. Review terms of Employment Agreements or possible conflict with

qualifying owner’s ability to control operations of firm.

k) Physical characteristics of office/building location

i. Determine if the firm has identifying signs outside or inside of the building/office.

ii. Determine if DBE owner has own office. iii. Request a tour of facilities and observe equipment on premises. iv. Ask questions regarding operation of equipment. v. Determine if office space shared with other companies, and if so,

the nature of the business of the other companies. vi. Determine if equipment, supplies, etc. is shared with other

companies. vii. If shared facilities, equipment, verify arrangement for sharing.

viii. Determine if owner(s) are operating other related or unrelated businesses from the location. If so, identify the business and its owners.

l) Familial-martial relationships between owners and employees that is pertinent

to ownership and control of the company.

i. Information obtained during the on-site review should be compiled in a separate comprehensive written report. The on-site review report is part of the certification file and should be incorporated accordingly.

ii. Depending upon the location of the firm, the analyst may request another analyst or officer to conduct the on- site review. In such instance, a written request must be made to the analyst or officer conducting the review with issues of concern identified. The assigned analyst stays the Owner of the applicant case file and is responsible for the completion the on-site review in a timely manner. If problems occur that may impede the completion of the review, the assigned should make necessary adjustments to the file processing to ensure timely completion. Communication between the analyst and / or officers is key.

iii. An on-site visit to the job-site should be conducted during the applicant firm’s working hours.

V.

SOP #3: Eligibility Analysis Revision No. 0 Effective date __/__/____ Supersedes 0 A. THRESHOLD REQUIREMENTS

1. The analyst will make a determination on each of the threshold requirements.

a) Size standard: In making a determination of size standard, analyst must reference

and adhere to §26.65 and 23.33 of the regulations. Even though the firm may have gross receipts less than 22.41 million dollars, the firm’s gross receipts are secondarily limited to the requested NAICS code cap. (ie, NAICS code 541330 Engineering Services- size standard is $14 Million). Also see ACDBE size standards as they differ from DBE.

b) Social disadvantage: In making a determination of social disadvantage, must reference and adhere to §26.63 and §26.67 of the regulations. For Naturalized and permanent residents, particular attention should be paid to the place of origin (birth). (ie, a naturalized citizen may appear to belong to a presumed disadvantaged group, but was born in Kuwait. The country of birth, in this case, is not recognized by the USSBA as a disadvantaged group. Therefore, the individual must demonstrate disadvantage status in accordance with 29 CFR 26 Appendix E).

c) Economic disadvantage: In making a determination of economic disadvantage analyst must reference and adhere to §26.67 and 23.35 of the regulations. See Personal Net Worth instructions. Personal Assets minus personal liabilities

i. Irrevocable separation of property: When marital assets held jointly

or as community property by both spouses, are used to acquire the ownership interest asserted by one spouse, you must deem the ownership interest in the firm to have been acquired by that spouse with his or her own individual resources, provided that the other spouse irrevocably renounces and transfers all rights in the ownership interest. Joint tax returns imply joint assets, therefore absent a legal renunciation, or some other form of legal separation in assets, assets are held jointly.

2. Suspected Failure to Meet Requirement: If the applicant firm or its

qualifying majority owner for whom the disadvantaged status is relied upon, fails to meet any one of the threshold requirements for DBE certification, the firm is to be deemed ineligible for DBE certification. The firm may appeal the denial determination to the U.S. Department of Transportation in accordance with the procedures set forth in §26.89. See PNW guidelines.

3. Review of Files: If the firm meets the threshold requirements, the analyst

should upon a thorough and careful review of the complete file, prepare a list of firm specific questions to be answered by the qualifying owner(s) of the firm. These questions should be in addition to the standard questions asked of every firm and should address the particulars and unique facts of the applicant firm and its owners. a) In preparing firm specific questions, the analyst should be sufficiently

knowledgeable of the firms primary line of business in which the firm is seeking certification, anticipating issues, which will require close examination. The analyst should have knowledge of the capitalization requirements,

SOP 3

licensing, technical expertise, staffing, and industry practices. In the event the analyst is unfamiliar with the requirements for the applicant business, technical assistance should be obtained from technical personnel within the agency.

b) Citizenship: Each owner(s) qualifying the firm for DBE certification must

demonstrate that he/she is a citizen of the United States or a lawfully admitted permanent resident. Each individual must submit acceptable documentation as proof of citizenship or permanent resident status as referenced in CFR 26.67(a) and indicated in the GUCP Supplemental Information Form. (Naturalized citizens and permanent residents, verify social disadvantaged).

c) Once the applicant file is substantially complete and the questions have been prepared, the analyst should schedule a face-to-face certification on-site review meeting with the qualifying owners at a time convenient for all participants.

B. BUSINESS SIZE ANALYSIS § 49CFR 26.65

1. To be an eligible DBE, a firm (including its affiliates) must be an existing small

business, as defined by Small Business Administration (SBA) standards and be for profit. As a recipient, you must apply current SBA business size standard(s) found in 13 CFR part 121 appropriate to the type(s) of work the firm seeks to perform in DOT-assisted contracts. See NAICS Table

2. Even if it meets the requirements of paragraph (a) of this section, a firm is not an eligible DBE in any Federal fiscal year if the firm (including its affiliates) has had average annual gross receipts, as defined by SBA regulations (see 13 CFR 121.402), over the firm's previous three fiscal years, in excess of $22.41 million.

a) Review Business Tax records, Gross receipts or schedule C of individual tax returns.

b) Airport Concessionaire (ACDBE) requirements differ from DBE. (See ACDBE section VI for guidance).

§ 49CFR 26.65 (c) sates, “ The Department adjusts the number in paragraph (b) of this section annually using the Department of Commerce price deflators for purchases by State and local governments as the basis for this adjustment”.

C. SOCIAL DISADVANTAGE ANALYSIS § 49CFR 26.67

Before GUCP can approve a DBE application, the disadvantaged individual(s) must show that he or she is socially disadvantaged.

1. Presumed Socially Disadvantaged

In the absence of evidence to the contrary, an individual applicant is presumed socially disadvantaged if:

• Holds him or herself out to be a member of a presumed group • Is currently identified by others as a member of a presumed group

Under federal law, socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identification as members of groups without regard to their individual qualities.

• 49th code of federal regulation 26.5 http://www.ecfr.gov/cgi-bin/text-idx?SID=39ad8dd83c7e722c227d938caa5cb4e6&node=49:1.0.1.1.20&rgn=div5#49:1.0.1.1.20.4.18.2

For purposes of the DBE program, the following individuals are presumed socially disadvantaged (called “presumed groups”):

a) Black Americans: having origins in any of the Black racial groups of Africa. b) Hispanic Americans: persons of Mexican, Puerto Rican, Cuban, Dominican,

Central or South American, or other Spanish or Portuguese culture or origin, regardless of race.

c) Native Americans: persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians. Federal and State recognized American Indian tribes are listed with the National Conference of State Legislatures. www.ncsl.org

d) Asian-Pacific Americans: persons whose origins are from Japan, China, Taiwan, Korea, Burma (Myanmar), Vietnam, Laos, Cambodia (Kampuchea), Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, the U.S. Trust Territories of the Pacific Islands (Republic of Palau), the Commonwealth of the Northern Marianas Islands, Macao, Fiji, Tonga, Kiribati, Juvalu, Nauru, Federated States of Micronesia, or Hong Kong.

e) Subcontinent Asian Americans: persons whose origins are from India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal or Sri Lanka.

f) Women.

2. Non Presumed Socially Disadvantaged

An individual who is not a member of one of the presumed groups can be admitted into the DBE program. See 49CFR26 Appendix E. To do so, the business must prove to the Certifying Partner that the individual(s) meeting ownership and control requirements is socially disadvantaged. This process includes showing personal experiences where applicable in education, employment, and business history.

The individual must provide evidence to the Certifying Partner proving one’s individual social disadvantage. Evidence of individual social disadvantage must include:

• At least one objective distinguishing feature such as race, ethnic origin, gender, physical handicap, 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.

• Personal experiences of substantial and chronic social disadvantage in American society, not in other countries.

• Negative impact on the individual’s entrance into the business world or advancement in the business world because of the stated disadvantage(s). Education, Employment, and Business History.

D. ECONOMIC DISADVANTAGE ANALYSIS § 49CFR 26.67

The Certifying Partner cannot determine if an individual is economically disadvantaged unless the individual is already found to be socially disadvantaged. The individual majority owner(s) must be both social and economic disadvantage.

According to DBE regulations , "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. You must require each individual owner of a firm applying to participate as a DBE, whose ownership and control are relied upon for DBE certification to certify that he or she has a personal net worth that does not exceed $1.32 million

To determine if an individual is also economically disadvantaged, each socially disadvantaged individual must provide the following to the Certifying Partner:

• Narrative statement of economic disadvantage • Personal financial information (including tax returns and certain GUCP forms)

o In every case, when married, the socially disadvantaged individual must submit separate financial information to the Certifying Partner for his or her spouse (including tax returns and certain GUCP forms).

In reviewing economic disadvantage, the Certifying Partner takes into account several factors to determine if a socially disadvantaged individual is economically disadvantaged. These factors include:

• All income for the past three years, including any unusual income levels • Fair market value of all assets • Personal net worth (assets and liabilities). See Personal Net Worth Guidance Document. • Transfer of assets to an immediate family member, directly or via trust • Availability of individual retirement account (IRA) funds or other official retirement

accounts • Reinvestments into the applicant firm • Tax payments for the firm

Majority Owner's Spouse's Role

In certain cases, the Certifying Partner may consider a spouse’s financial situation when determining whether the applicant is economically disadvantaged. Particularly whether the spouse:

• has a role in the business • has lent money to the firm • provided credit support to the firm • guaranteed a loan

In every case, when married, the socially disadvantaged individual must submit separate financial information to the Certifying Partner for his or her spouse (including tax returns and certain GUCP forms).

How GUCP calculates IRA or other retirement accounts: In certain circumstances, funds in an IRA or other retirement account may be excluded from GUCP’s calculation of assets and net worth. GUCP recognizes that small business owners often use retirement savings as a means to fund the business. For each application, GUCP looks closely at these assets and may exclude them from the calculation of assets and net worth.

How GUCP calculates home equity and business equity: In every instance, the individual’s primary home equity and firm equity are excluded from GUCP’s calculation of net worth. GUCP recognizes that small business owners often use home equity to fund the business. For every individual applicant, GUCP excludes primary home equity in the calculation of net worth. Still, the full market value of the individual’s home is may be counted as an Asset.

• See Personal Net Worth Guidance Document in Section XV.D

1. The IRS and FEIN numbers (See IRS publication linked: https://www.irs.gov/pub/irs-pdf/p1635.pdf)

a) You do not need a new EIN if any of the following are true: • You change the name of your business

• You change your location or add locations (stores, plants, enterprises or branches of the entity)

• You operate multiple businesses (including stores, plants, enterprises or branches of the entity)

• Note: If you are a sole proprietor who conducts business as a limited liability company (LLC), you do not need a separate EIN for the LLC, unless you are required to file employment or excise tax returns. A limited liability company is an entity formed under state law by filing articles of organization as an LLC. An LLC owned by one individual is automatically treated as a sole proprietorship for federal income tax purposes (referred to as an entity to be disregarded as separate from its owner). Report the business activities of the LLC on your Form 1040 using a Schedule C, Schedule C-EZ or Schedule

b) You will need a new EIN if any of the following are true: • You are a subsidiary of a corporation and currently use the parent’s corporate EIN

• You become a subsidiary of a corporation

• The corporation becomes a partnership or a sole proprietorship

• You create a new corporation after a statutory merger • You receive a new corporate charter

2. Parent vs. Holding Company

a). PARENT COMPANY

If a firm is a parent company or is a subsidiary to a parent firm they have the

option to file a consolidated tax return 1120. The Subsidiaries Must Authorize and

Consent Each subsidiary corporation must authorize and consent to its inclusion in

the consolidated return. This consent requires an officer of each subsidiary to

furnish the parent company with Form 1122. The parent corporation -- the

affiliated group member that's responsible for filing the return -- must attach a

copy of each subsidiary's Form 1122 to its initial consolidated return. In future tax

years, Form 1122 is only required for new affiliated group member corporations

that are included on the consolidated return for the first time.

A Parent company can be either hands-on or hands-off with subsidiaries, depending on

the amount of managerial control given to subsidiary managers. Each entity stands alone.

The Assets of the other firms would apply to the PNW of the applicant firm’s

owners. On a consolidated tax return 1120, the Gross receipts of each firm may be

recorded on attached spreadsheets for Income and Deductions. If not a breakdown

will be necessary from the applicant.

b). HOLDING COMPANY

If a firm is a holding company form 1120 Schedule PH would be filed. The term

“Holding Company” usually refers to a company that does not produce goods or

services itself; rather, its purpose is to own shares of other companies to form a

corporate group, thereby a holding firm typically would not meet the requirements

for DBE certification.

E. THE OWNERSHIP ANALYSIS §49CFR 26.69

All firms approved, and remaining in the GUCP Disadvantaged Business Enterprise (DBE) program must be owned by a disadvantaged individual/s. The disadvantaged individual/s must show at least 51 % ownership in the firm. Control and ownership are not the same and GUCP evaluates each differently.

To determine ownership, GUCP scrutinizes multiple factors from several different supporting documents the firm provides in the application package. To be approved and remain in the DBE program, the firm must show that one or more socially and economically disadvantaged individuals:

• Owns at least 51 percent or more of the firm • Possesses direct ownership, meaning the firm is neither owned through another firm nor

trust (with the exception of certain living trusts)

• Has unconditional ownership, without restrictions or conditions • Is entitled to receive distributions commensurate with ownership percentages – both

annually and when stock is sold or firm is dissolved. • Is subject to risks of the business. (Profits and loss).

The following list includes, but is not limited to, certain documents the GUCP analysts review to determine whether the firm is unconditionally and directly owned by disadvantaged individuals:

• Articles of incorporation, Corporate bylaws, operating agreements and partnership agreements

• Stock certificates, stock options, outstanding shares, unexercised and exercised stock options, and types and class of voting stock in a corporation

• Types and classes of member interest in a limited liability company (LLC) • Types and classes of partners in a partnership • Prior owners of the firm and future proposed changes • Ownership in other businesses by the disadvantaged individuals, by non-disadvantaged

owners, and immediate family members of both • Ownership of the firm by other businesses or a trust • Ownership changes (to or from immediate family members, a spouse, another firm, other

individuals, etc.)

If any of these documents, in comparison to the regulations, indicate someone other than the 51% disadvantaged owner is the actual owner of the applicant firm, the firm is considered ineligible. Consult the DBE regulations to learn more about ownership requirements and see the checklist for required supporting documents.

Confirming 51% ownership

First determine structure of Firm (ie, Corporation, Partnership, Limited Liability)

Corporation: Individual at least 51 percent of the each class of voting stock outstanding and 51 percent of the aggregate of all stock outstanding. Review stock certificates, compared to total allowable shares as recorded in the corporate bylaws.

Partnership: individual must own 51 percent of each class of partnership interest. Such ownership must be reflected in the firm's partnership agreement.

Limited Liability Company (LLC): individual must own at least 51 percent of each class of member interest. May be found in firm’s tax documents Schedule K-1.

Review compensation of the individual. The individual must enjoy the customary incidents of ownership, and share in the risks and profits commensurate with their ownership interests, as demonstrated by the substance, not merely the form, of arrangements. An individual that receives a salary, while another’s wages are dependent upon profits is inconsistent with this regulation.

See regulations in examining securities.

Examine the individual’s contributions to the firm. When the individual’s contributions are monetary, they must be real and substantial. Insufficient contributions include a promise to contribute capital, an unsecured note payable to the firm or an owner who is not a disadvantaged individual, or mere participation in a firm's activities as an employee. However a Debt instruments from financial institutions or other organizations that lend funds in the normal course of their

business do not render a firm ineligible, even if the debtor's ownership interest is security for the loan.

When the Contribution to the company is the individual’s experience, review the resume in comparison to the firm’s operations, or function. Is the individual’s expertise (i) In a specialized field, Of outstanding quality, In areas critical to the firm's operations, Indispensable to the firm's potential success, etc.

Gifted Ownership

Ownership obtained as a result of a gift or transfer must be scrutinized closely. The transfer must be for a reason other than to obtain DBE certification. First, determine if the transfer was from any non-disadvantaged individual or non-DBE firm who is—(i) Involved in the same firm for which the individual is seeking certification, or an affiliate of that firm;(ii) Involved in the same or a similar line of business; or(iii) Engaged in an ongoing business relationship with the firm, or an affiliate of the firm, for which the individual is seeking certification. Secondly, is the explanation for the transfer reasonable and a customary (common industry) practice? Example: the original owner retires, and the firm is bequeathed to the child, may constitute a reason other than DBE certification. So long as the individual retires and does not continue working for the firm. If the individual does not retire the transfer may not be real.

Marital Assets

You do not count a greater portion of joint or community property assets toward ownership than state law would recognize as belonging to the socially and economically disadvantaged owner of the applicant firm.

Georgia is not a community property state, that is, property is not automatically owned by both husband and wife in a marriage. The GUCP analyst must determine if marital assets were used to start the business. Marital assets are held jointly between husband and wife. Examples of marital assets can be a joint checking account, and/ or joint tax returns. If joint assets were not used, then we shall assume the assets are from the individuals own resources. If joint assets were used, and a renunciation from the other spouse is not provided, the ownership may be no greater than 50%. A copy of the renunciation must be obtained.

Marital Assets may also be contractual as noted below taken from a firm’s operating agreement provisions, "In the event of a divorce, the LLC interests owned jointly or severally by a married couple (or the revocable trust) shall go to Adrian Smith, with equivalent going to Jessica Smith. If there are not enough other assets to equal the LLC interest, Jessica Smith will have a lien on the LLC interest, but not an equivalent interest that would permit her to attend LLC meetings subsequent to the divorce”. In this scenario the presumed disadvantaged individual, Jessica, and reported majority owner does not have majority ownership or control.

Note: Contributions, Gifted Ownership, or Marital Assets cannot be the only reason for a denial. Control must also be a factor. 49CFR26.69(j)

Once approved, Certifying Partner shall monitor the firm to ensure that the firm is still at least 51 percent owned by disadvantaged individuals. The Certifying Partner should evaluate a firm once it is notified of changes in the ownership of a DBE or ACDBE firm and advise the firm of its decision within ninety (90) days of the notification.

F. THE CONTROL ANALYSIS §49CFR 26.71

Disadvantaged individual/s must Own and Control the applicant firm. In circumstances where a firm’s ownership is made up of two (2) disadvantaged individuals, one may be majority owner while the other controls the daily operations. In this case the firm is ultimately owned and controlled 100% by disadvantage individuals. But when only one (1) owner is disadvantaged, the individual must be at least 51% owner and have unrestricted control of the firm. In yet another example, a firm is 100% owned by one (1) disadvantaged individual, while the firm is controlled by a disadvantaged individual that is not part owner. The firm is not owned and controlled by a disadvantaged individual; therefore, not eligible for certification..

To determine control, GUCP looks at multiple factors from several different supporting documents the firm provides in the application package. To be approved and remain in the DBE program, the firm must show that the disadvantaged owner:

o Serves as the highest officer o Controls the board o Makes long-term decisions o Runs the firm’s day-to-day business operations o Compensation is comparable with the highest position, or individual’s pay is based

on the highest share of profits or losses. o Possesses the appropriate amount and type of management experience needed to

run the firm o Must possess the needed technical experience or critical licenses the firm needs or

show ultimate managerial and supervisory authority over those who do o Works full-time at the applicant firm if firm operates full time.

Additionally, the firm must show unconditional control by disadvantaged individuals. Otherwise, GUCP may find that the firm is controlled by non-disadvantaged individuals; or controlled by another business; or even controlled by a large firm. In either instance, the firm will be declined or removed from the program.

When examining control, GUCP shall look at the following:

• Income and compensation to all principals • Compensation and distributions (including wages, dividends, interest, etc.) from the firm • Terms, conditions, and restrictions of financial agreements (loans, bonding, contracts, buy-

sell agreements, bank signature cards, etc.) • Prior, current, and proposed business relationships such as teaming arrangements, joint

ventures and loans • Board/member voting and composition (e.g. weighted voting, super majority requirements,

quorum requirements, executive committees, election of officers, types of officers, authority of officers)

• Terms in operating agreements, bylaws, and partnership agreements • Ownership changes (to or from immediate family members, a spouse, an entity, other

individuals, etc.)

Once approved, Certifying Partner shall monitor the firm (Review its ANOC affidavit and corporate taxes) to ensure that the firm is still controlled by disadvantaged individuals.

Firm’s Independence From records obtained and observations made during the onsite inspection, DBE Coordinator or Analyst shall determine if the applicant firm is an independent business. DBE Analyst shall look for relationships with non-DBE firms, in such areas as personnel, facilities, equipment, financial and/or bonding support, and other resources. If the applicant firm is dependent upon another firm, it may not be independent. Fronts and shams must not be tolerated. Passing work through to a non-DBE firm undermines the program. Restrictions on Control DBE Coordinator/Analyst shall review the firm’s corporate charter provisions, by-law provisions, contracts or any other formal or informal devices. If any document limits the owner’s ability to make a decision, the owner does not ultimately control the firm. One example may be: the firm has 2 or more Directors, the by-laws have a quorum provision not subject to the number of shares. Meaning the decisions are made by majority of directors, not by the individual with the greatest shares of stock. There are numerous examples that could limit the individual’s ability to control, corporate charters and other legal documents must be scrutinized. Look for red flags. Any finding of a restriction on control from a legal document is in most all likelihood grounds for a denial without the need for other support for the denial. (But still record all supportive findings in the final decision). Resume DBE Coordinator/Analyst shall review the individual’s resume. Of importance is the owners experience directly related to the type of business in which the firm is engaged and the firm's operations. The socially and economically disadvantaged owners are not required to have experience or expertise in every critical area of the firm's operations, or to have greater experience or expertise in a given field than managers or key employees. However, expertise limited to office management, administration, or bookkeeping may be insufficient to demonstrate control. Professional License It is not mandatory, in the State of Georgia, that the individual have an occupational license to own a firm, except in the case of sole proprietorships. However, the DBE Coordinator/Analyst may take into account the absence of the license or credential as one factor in determining whether the owner/s actually controls the firm. Outside employment DBE Coordinator/Analyst shall review the latest personal tax documents. If Form 1040 Line 7 is populated, compare to W2 or 1099s received. If the W2’s indicate outside employment for the disadvantaged individual, determine if it is a fulltime employment or part time. (Note: if the W2 and 1099s do not add up to the value indicated, the applicant may not have provided all documents). Consider if the employment conflicts with the management of the firm or prevents the individual from devoting sufficient time and attention to the affairs of the firm to control its activities. Distribution of Responsibilities DBE Coordinator shall consider the individual’s responsibilities as recorded on the GUCP application and during the onsite inspection. The regulations do not require the disadvantaged owner to control every aspect of the firm, but responsibilities limited to bookkeeping and administrative is not sufficient to demonstrate control. Is there a disparity in comparison to other individuals within

the firm? Identify the specific individual/s that controls the firm, and how the record supports the conclusion.

VI.

SOP # 4: ACDBE Analysis Revision No. 0 Effective date __/__/____ Supersedes____

See 49CFR23 Size Standards for Airport Concessionaires (23.3)

When a firm is a potential ACDBE

To receive ACDBE certification consideration, the applicant firm must specifically request ACDBE certification in the GUCP application (DBR Coordinator/Analyst should not suggest ACDBE certification if the applicant has not requested it on their own accord), firm shall already be in business, have an existing place of business, and seeking to be a concessionaire at an airport.

A Concession means a business located on an airport that is engaged in the sale of consumer goods or services to the public under an agreement with the recipient, another concessionaire, or the owner or lessee of a terminal.

A Concession could also be a business conducting one or more of the following activities even if it does not maintain an office, store or other business location on an airport as long as the activities take place on the airport.

Management contracts and subcontracts

Web-based or other electronic business in a terminal or which passengers can access at the terminal

Advertising Business that provides advertising displays or messages to the public on the airport

Business that provides goods and services to concessionaires

Forms of Concessionaire Agreements

Any business meeting the definition of concession is covered by this subpart, regardless of the name given to the agreement with the recipient, concessionaire, or airport terminal owner or lessee. A concession may be operated under various types of agreements, including but not limited to the following: (i) Leases, (ii) Subleases. (iii) Permits, (iv) Contracts or subcontracts, (v) Other instruments or arrangements.

Concessionaire is a firm that owns and controls a concession or a portion of a concession.

Businesses that are not ACDBE

A business is not considered to be located on the airport solely because it picks up and or delivers customers under a permit, license or other agreement. The conduct of an aeronautical activity is not considered a concession for purposes of this subpart. Aeronautical activities include scheduled and non-scheduled air carriers, air taxis, air charters, and air couriers, in their normal passenger or

SOP 4

freight carrying capacities; fixed base operators; flight schools; recreational service providers (e.g., sky-diving, parachute-jumping, flying guides); and air tour services.

Other examples of entities that do not meet the definition of a concession include flight kitchens and in-flight caterers servicing air carriers, government agencies, industrial plants, farm leases, individuals leasing hangar space, custodial and security contracts, telephone and electric service to the airport facility, holding companies, and skycap services under contract with an air carrier or airport. Taxis, limousine or car rental or hotel services are not considered located at the airport unless they have an airport facility- Such facilities include eg. Taxi operator- a dispatcher, in case of a limousine, a booth selling tickets to the public and in the case of a car rental, a counter at which its services are sold or a ready return facility and in the case of a hotel that located anywhere on the airport property

ACDBE onsite inspections are required to be conducted at the place of business. ie, restaurants and stores.

VII.

SOP# 5: Withdrawals & Administrative Closures Revision No. 0 Effective date __/__/____ Supersedes____

A. An applicant’s failure to permit an on-site and/or job site inspection shall be grounds for denial of DBE certification for failure to cooperate. The firm will be denied certification and cannot reapply for twelve 12 months. The firm may appeal the denial determination to U.S. DOT in accordance with the procedures set forth in §26.89.

B. An applicant may withdraw its certification application prior to the certification determination and may reapply at any time in accordance with the procedures set forth in §26.83. The GUCP may Administratively Close the file. As a recipient or UCP, you may not apply the waiting period provided, however, you may place the reapplication at the “end of the line,” behind other applications that have been made since the firm's previous application was withdrawn. You may also apply the waiting period provided under §26.86(c) of this part to a firm that has established a pattern of frequently withdrawing applications before you make a decision.

C. An existing certified firm may withdrawal from the program at any time by submitting a

notarized statement. (See Withdrawal notice form section VII).or letter signed by the owner indicating his/her wish to withdraw from the DBE program.

D. A firm decertified by the Lead Agency for cause may not apply again for DBE certification with the GUCP for a period of one year (12 months).

SOP 5

VIII.

SOP # 6: CERTIFICATION DETERMINATION AND RECOMMENDATION

Revision No. 0 Effective date __/__/____ Supersedes____

A. GUCP’s failure to make a decision within 90 days is deemed a constructive denial of the application, on the basis of which the firm may appeal to DOT under §26.89.

B. DBE Certification simply endorses the firm as owned and controlled by a disadvantaged

individual, it does not endorse the firm’s capabilities or readiness. Regulations associated with Commercial Useful Function (CUF) cannot be used as support for a denial. CUF is used to determine allowable participation toward a DBE goal. (49CFR 26.55)

C. Decision Memorandum: The certification recommendation is the final product of all information, which has been reviewed, and is an evaluation of the firm’s compliance with the certification eligibility standards set forth in the regulations. The written recommendation must be sufficiently comprehensive to persuade an objective party of the merits of the recommendation. The record must document findings related to both approvals and denials. All Red flags must be addressed in the record, for approval and denial decisions alike. GDOT’s DBE Coordinator/Analyst must draft the Final recommendation letter using the standard letter template on office share folder. In the event the onsite inspection was performed by another person other than the assigned DBE Coordinator/Analyst, and the assigned analyst’s recommendation differs from the onsite findings, a detail explanation of why the onsite inspection recommendation was not concurred with must be documented.

D. Management Review: The certification recommendation must be submitted to the supervisor (Lead Coordinator/ Analyst) responsible for certification review. The complete file must accompany the submission of the certification recommendation. The supervisor responsible for the certification review shall provide written concurrence with the recommendation for certification or denial of certification before a letter can be forwarded to Management. Supervisor (Lead Coordinator/ Analyst) may revise a recommendation if necessary, and have letter ready for Management signatures. If supervisor’s recommendation differs from the assigned analyst’s, a detail explanation of why the Analysts recommendation was not concurred with must be documented. Opposing opinions, and Denied certifications will be further reviewed by Management, and changes may be made prior to sending the letter to the applicant firm.

E. The Final decision must measure whether the evidence obtained is “clear and convincing” and establishes the truth of a disputed fact by a high probability. A matter that “appears to” or “may indicate” is not convincing therefore not a “high probability”.

SOP 6

IX.

SOP # 7: DBE CERTIFICATION AND ANNUAL AFFIDAVIT

Revision No. 0 Effective date __/__/____ Supersedes____

A. Written Notification: A firm will be notified in writing by the GUCP Certifying Partner that it has been granted or denied DBE certification.

B. Length of Certification: Once a firm is certified as a DBE by the GUCP, it shall remain certified, unless and until its certification has been removed in accordance with procedures set forth in 49 CFR §26.87.

C. Change of Circumstance: A certified DBE firm has an affirmative responsibility to notify the GUCP Certifying Partner in writing, of any change(s) in circumstances affecting size, disadvantaged status, ownership, or control requirements of the regulation, or any material change(s) in the information provided in its application for DBE certification. Such notice should be made within thirty (30) days of the change-taking place.

D. No Change Affidavit: A certified DBE firm shall submit annually, on the anniversary of DBE certification, A No Change Affidavit (ANOC). A No Change Affidavit is a sworn affidavit affirming that there have been no changes in the firm’s circumstances affecting its size, disadvantaged status, ownership or the control requirements of the regulation, or any material change in the information provided in its application for DBE certification, including the support documentation.

1. Each firm may be notified by the GUCP Certifying Partner at least thirty

(30) days in advance of its anniversary date, of the annual submission requirement and shall be provided with the necessary affidavits to complete and return.

2. Any firm failing to comply with the annual submission requirement shall be notified in writing thirty (30) days from the date that the submission was due, of the GUCP’s intent to decertify the DBE in accordance with §26.87 of the regulation.

3. Any firm failing to comply with the annual submission requirement shall be decertified under the procedures of §26.87.GUCP shall make reasonable attempts to notify firm prior to decertification in accordance with applicable regulations

4. Certification reviews: Per 49 CFR Part 26.83 (h) each GUCP Member has the option of conducting on-site reviews of any firm at any time or if any changes occur in operational control, management or ownership. Corporations and partnerships that have not indicated any changes in the Annual Update Affidavit or no other information received indicating of any change(s) may be reviewed every five (5) years while sole proprietorships may be reviewed every ten (10) years. More frequent reviews may be conducted based on risk and the DBE firm’s contracting success on GDOT/GUCP contracts with DBE goals. Firms that have numerous contracting activities shall be given priority over those DBE firms that have few or no contracts or subcontracts on GDOT/GUCP projects.

SOP 7

A. RECEIPT OF RECORD

Effective January 3, 2017, all previously certified DBE’s shall be held to the letter of the regulations.

1. When processing any ANOC, staff shall upon receipt do the following: a. Review package(s) for accuracy and completion

i. If package is incomplete, do the following: 1. Notify applicant immediately upon receipt via email and

document action taken in CRLMS, print and attach copy of email to applicant’s file

2. After 5 business days(1 week) and no response, follow up with applicant via Phone call, record date and time of phone call in CRLMS

3. After 10 business days (2 weeks) from the date of initial contact, and no response, send a letter (standard letter in EO Commons) to applicant. Record date letter was sent in CRLMS and attach copy of letter to applicant’s file and notify your supervisor

b. If package is complete do the following: 1. Review prior year’s financial information for completeness

a. We shall ensure that we have (3) three consecutive years financial information on all firms

2. If we do not have (3) three consecutive years financial information follow the same procedure as with incomplete package.

This procedure will enable us clean our data of ineligible firms and de-certify where applicable.

X.

SOP # 8: INITIAL DENIAL OF DBE CERTIFICATION Revision No. 0 Effective date __/__/____ Supersedes____

A. A firm shall be notified in writing by the Certifying Partner that it has been denied DBE certification by the GUCP.

B. The firm shall be provided with a written explanation of the reasons for denial, specifically referencing the evidence(s) in the record that supports each reason for the denial.

C. All documents and information used to render a determination of denial shall be made available for inspection by the applicant, upon written request.

D. A firm that is denied DBE certification may not re- apply for certification with the GUCP for a period of one year (12 months).

E. A firm that has been denied DBE certification may appeal the denial to the USDOT in accordance with §26.89 of the regulation.

F. Coordination of Denial Hearings and request for certification appeals, hearings and or

meetings shall be coordinated and administratively handled the certifying GUCP Partner.

SOP 8

XI.

SOP # 9: REMOVAL OF DBE ELIGIBILITY (DECERTIFICATION)

Revision No. 0 Effective date __/__/____ Supersedes____

A. The GUCP members agree to follow the eligibility removal procedures set forth in 49 CFR §26.87 including:

1. Ineligibility complaints: Any person, including another GUCP member, may file

a written complaint to a GUCP certifying partner alleging that a currently-certified firm is ineligible and specifying the alleged reasons why the firm is ineligible.

2. Recipient initiated proceedings: If a direct recipient of federal funds determines that there is reasonable cause to believe that a currently certified firm is ineligible based on notification by that DBE firm of a change in its circumstances or any other information that becomes available, they must provide written notice to the firm that it proposes to find them ineligible for the DBE program setting forth the reasons for the proposed determination. The statement of reasons for the finding of reasonable cause must specifically reference the evidence in the record on which each reason is based.

3. DOT directive to initiate proceeding: If the concerned operating administration (FHWA, FTA, FAA) determines that information in the certification records, or other information available to the concerned operating administration, provides reasonable cause to believe that a firm previously certified does not meet the eligibility criteria of this part, the concerned operating administration may direct the GUCP to initiate a proceeding to remove the firm's certification.

4. When a firm is notified that there is reasonable cause to remove its eligibility, as provided in paragraph (a), (b), or (c) of this section, the firm shall be provided the opportunity for an informal hearing, at which the firm may respond to the reasons for the proposal to remove its eligibility in person and provide information and arguments concerning why it should remain certified.

5. A DBE firm whose eligibility has been removed (decertified) for any of the following reasons shall be afforded an Appeal Process as stated in Section J(2):

a) The business has changed to the extent that it is no longer owned or

controlled by socially and economically disadvantaged individual(s). b) The DBE firm is no longer an ongoing business entity. c) The socially and economically disadvantaged owners falsified a

sworn statement. This action may also result in more punitive action such as debarment.

d) The DBE fails to notify the GUCP Certifying Partner, within 30 days, of changes in ownership, control, independence or status as an ongoing concern.

e) A determination by the GUCP Certifying Partner that the firm no longer meets the DBE certification eligibility standards.

f) The DBE exhibits a pattern of conduct indicating its involvement in

SOP 9

attempts to evade or subvert the intent or requirement of the regulations. This action may also result in more punitive action such as debarment.

g) Decertified firms shall be removed from the GUCP directory.

h) A firm decertified for cause may not apply again for DBE certification with the GUCP for a period of one year (12 months).

XII.

SOP # 10: APPEAL PROCESS

Revision No. 0 Effective date __/__/____ Supersedes____

A. INIITAL DENIAL

1. A firm denied DBE certification may appeal the denial of DBE certification to the United States Department of Transportation (USDOT) in accordance with §26.89 of the regulation. Such appeal must be filed within ninety (90) days of the date of the determination letter.

2. Pending a determination by USDOT, the decision rendered by the Certifying Partner remains in effect for the GUCP. Upon notification by USDOT, the GUCP Certifying Partner will forward a copy of the complete administrative record for review with in fifteen (15) business days.

3. All appeal decisions rendered by USDOT are administratively final and are not subject to petitions for reconsideration

4. A firm that is denied DBE certification may not re-apply for certification with the GUCP for a period of one year (12 months)..

B. REMOVAL OF CERTIFICATION

1. Any firm that was certified under 49 CFR Part 26 and has had their certification removed may file a written rebuttal or appear in person at an informal hearing.

2. All requests for an informal hearing must be filed with the GUCP Lead Agency responsible for the removal of DBE certification. The firm will have the opportunity to present information in person or in writing and all aspects of the hearing shall be coordinated by the GUCP certifying partner.

3. The Lead Agency must maintain a complete record of the hearing, by a means acceptable under State law for the retention of a verbatim record of an Administrative Hearing.

4. Separations of Functions: The Lead Agency must ensure that the decision in a proceeding to remove a firm’s eligibility (decertification) is made by an office and personnel that did not take part in actions leading to or seeking to implement the proposal to remove the firm’s eligibility and are not subject, with respect to the matter, to direction from the office or personnel who did take part in these actions.

5. Any firm may appeal directly to the United States Department of Transportation (USDOT). Such appeal must be filed within 90 days of the date of the denial letter from the Certifying Partner.

6. Pending a determination by the USDOT, the decision rendered by the Lead Agency remains in effect for the GUCP.

7. Upon notification by USDOT, the Lead Agency will forward a copy of the complete administrative record for review. USDOT will make a determination based solely on the administrative record.

8. USDOT will provide written notice of its decision to the GUCP and the appellant. 9. It is the policy of USDOT to make its determination within 180 days of receiving the

complete administrative record. If a determination is not made within this period, USDOT will provide written notice to the parties explaining the reason for the delay and a date by which the appeal decision may be made.

10. All appeal decisions rendered by the USDOT are administratively final and are not subject to petitions for reconsideration.

SOP 10

C. DECERTIFICATION PROCEDURES

1. In compliance with §26.87 the Lead Agency shall accept written complaints from any person, including Non-Certifying Partners, USDOT, and or a GUCP Certifying Partner alleging that a currently certified DBE firm is ineligible.

2. The complainant must state the specific reasons for the challenge and submit documentation in support of the complaint. The complainant’s identity shall be protected as provided for in §26.109 (b).

3. The challenged firm shall be notified, in writing, by the original GUCP Certifying Partner within five (5) business days of the challenge, the basis for the challenge and the relevant regulations.

4. The GUCP Certifying Partner responsible for the original certification shall thoroughly investigate the complaint within a reasonable time not to exceed sixty (60) days.

5. A GUCP Certifying Partner may accompany and or conduct an investigation when a complaint is filed by another certifying partner. The GUCP Partner who receives the certification challenge has fifteen (15) days to respond in writing indicating the certification decision or indicate wishes for the challenger to proceed with the eligibility review.

6. When GUCP Certifying Partners cannot reach a consensus regarding the eligibility of a DBE certification as a result of an investigation, the information will be forwarded to an independent certifying partner or to FHWA-Georgia Division for a final determination.

7. The GUCP Certifying Partner shall notify the challenged firm in writing via certified mail of the preliminary findings of the complaint.

D. REMOVING DBE ELIGIBILITY:

The GUCP members agree to follow the eligibility removal procedures set forth in 49 CFR 26.87 including:

1. Ineligibility Complaints: Any person, including another GUCP member, may

file a written complaint to a GUCP certifying partner alleging that a currently certified firm is ineligible and specifying the alleged reasons why the firm is ineligible.

2. Recipient initiated proceedings: If a direct recipient of federal funds determines that there is reasonable cause to believe that a currently certified firm is ineligible based on notification that a DBE firm has had a change in its circumstances or any other information that becomes available, they must provide written notice to the firm that it proposes to find them ineligible for the DBE program setting forth the reasons for the proposed determination. The statement of reasons for the finding of reasonable cause must specifically reference the evidence in the record on which each reason is based.

3. DOT directive to initiate proceeding: If the concerned operating administration (FHWA, FTA, FAA) determines that information in your certification records, or other information available to the concerned operating administration, provides reasonable cause to believe that a firm previously certified does not meet the eligibility criteria of this part, the concerned operating administration may direct to initiate a proceeding to remove the firm's certification.

4. When a firm is notified that there is reasonable cause to remove its eligibility, as provided in paragraph (a), (b), or (c) of this section, it will be provided the opportunity for an informal hearing, at which the firm may respond to the reasons for the proposal to remove its eligibility in person and provide information and arguments concerning why it should remain certified.

5. If reasonable cause to remove DBE certification eligibility is found, the original Certifying Partner will notify the complainant and DBE firm of the specific grounds for removal and will inform the DBE firm of its right to an informal hearing to address the preliminary findings.

6. The challenged firm may request reconsideration in writing, of the intent to remove certification eligibility, within fifteen (15) days of the date of the notice.

7. The request for an appeal must be made to the investigating GUCP Certifying Partner and must indicate whether the firm wishes to file a written appeal or appear in person for a hearing to be conducted by the certifying entity.

8. USDOT may also notify the GUCP of reasonable cause to find a certified DBE firm to be ineligible. In such cases, the GUCP shall without delay begin a proceeding to determine whether the firm’s eligibility should be removed, as provided in §26.87.

E. AGENCY COMPLIANCE

1. GUCP Certifying partners agree to participate in GUCP Partner Reviews to assure the quality and consistency of GUCP certification procedures.

F. PROCEDURES FOR APPEALS HEARING AT GDOT – GUCP 1. Schedule Administrative hearings, reserve date – call 1990 2. Confirm availability of (Information Technology) Elder Markell to record the sessions-

Request three copies of each hearing being recorded (audio recording only) 3. Notify applicants of hearing no later than 3 weeks in advance – via regulation certified mail 4. Notify the following individuals of the hearing at least 3 weeks in advance:

A. (GDOT Legal) Matt Cline & Angela Jones B. Director of Construction (Marc Mastronardi) C. Office of Equal Opportunity Directory (Kimberly King) D. DBE Coordinator or Analyst Reviewing the File (MARTA, if appropriate) E. Applicant & legal representation (If applicable)

The Hearing:

1. Angela makes a presentation discussing the panel of her role in the informal hearing process.

2. GDOT’s Office of Equal Opportunity presents their arguments and exhibits as it relates to removing the firm’s eligibility.

3. The Applicant firm makes their presentation with exhibits. 4. Both parties exchange the necessary dialogue to answer questionable items – informal

hearing process; 5. Legal explains the administrative process and advises applicant that a decision will be

rendered in 30 days. 6. See DBE Program Plan and TOPPS Policy Statement for additional information

VIII.

SOP # 11: Standard Format of letters

Revision No. 0 Effective date __/__/____ Supersedes____

A. THE APPROVAL LETTER ON GUCP LETTER HEAD

Date Month, Day, year

CERTIFIED MAIL Return Receipt Requested COMPANY NAME OWNER’S NAME AND TITLE ADDRESS

ANNIVERSARY DATE: Annually on March 26

Owner’s Name:

The [insert: Georgia Department of Transportation or Metro Atlanta Rapid Transit Authority] has reviewed your Georgia Uniform Certification Disadvantaged Business Enterprise (DBE) application. Our evaluation of the information submitted with your request for certification indicates that your firm has met the criteria outlined in Federal Regulations 49 CFR, Part 26.

DBE Certification will be continuous; however; it is contingent upon the firm maintaining its eligibility annually through this office. You will receive an Annual Affidavit for Continuing Eligibility (AACE) and request for Personal Financial Statement (PFS) approximately thirty days prior to your firm’s certification anniversary date. The Annual Affidavit for Continuing Eligibility and PFS document must be completed, signed and returned to our office before your anniversary date in order to continue your firm’s eligibility as a DBE.

Your firm will be listed in Georgia’s UCP DBE Directory which can be accessed through the Georgia Department of Transportation’s website: www.dot.ga.gov. Prime contractors and consultants can verify your firm’s DBE certification status and identify the work area(s) for which the firm is DBE eligible through this Directory.

Your Vendor ID Code is: 13312

Your firm has been certified to provide the following services as outlined in the North American Industry Classification System (NAICS):

NAICS Code 541110 Offices of Lawyers

It is your obligation to notify GUCP of any changes in ownership and/or control of your company. If at any time during the year there is a change in ownership and/or control of your firm, you are required to notify this office of such change in writing by sworn affidavit

SOP 11

and with supporting documents within thirty (30) days. Changes also include but are not limited to officers, directors, management, key personnel, scope of work performed, daily operations, ongoing business relationships with other firms or individuals, or the physical location of your firm.

Failure to do so will be deemed a failure, on your part, to cooperate and will result in immediate actions to remove DBE certification in accordance with 49 CFR Part 26, Section 26.83 (j) of the Federal DOT Regulation.

Questions and concerns should be directed to this office by mail or telephone. Our telephone number is (404) xxx-xxxx. Our fax number is (404) xxx-xxxx.

Sincerely,

_______________________________

Signature, Printed Name and Title of authorized Program Manager

_______________________________

Signature, Printed Name and Title of authorized Department Manager

Manager Initials/ Drafter Initials

B. THE ADMINISTRATIVE CLOSURE LETTER ON GUCP LETTER HEAD Note multiple documented attempts, including email, and phone calls, must have been made prior to an administrative closure with a warning that the file is subject to a closure if a response is not received by a certain date and provide a notice that the file shall be held in archive for one year, the applicant may reopen the file any time during the year with all necessary updates. After one year, the file may be destroyed in its entirety.

Date Month, Day, year

CERTIFIED MAIL Return Receipt Requested

CERTIFIED MAIL Return Receipt Requested COMPANY NAME OWNER’S NAME AND TITLE ADDRESS Owner’s Name:

On September 4, 2013 your firm submitted an application seeking Disadvantaged Business Enterprise (DBE) Certification with the Georgia Uniform Certification Program (GUCP). In order to process your application, attempts to contact your firm were made via email, phone calls, and US Mail. As of this date, the requested documentation has not been received.

Federal Regulations 49 CFR Parts 27.73(c) states, “DBE firms and firms seeking DBE certification shall cooperate fully with your requests (and DOT requests) for information relevant to the certification process. Failure or refusal to provide such information is grounds for a denial or removal of certification.”

This letter is to advise you that the Disadvantaged Business Enterprise application is being administratively closed for failure to submit the necessary documentation. However, the file may be stored in our archives for one year, after one year the file will be destroyed. If, during the year you wish to reopen the application, you may do so by notifying us in writing and providing the necessary updated information.

Sincerely,

Signature, Printed Name and Title of authorized Department Manager

C. Voluntary Withdrawal of existing DBE Certification

Form is available on GDOT DBE webpage. An existing DBE may choose to voluntarily remove itself in lieu of an investigation.

D. THE HOME STATE DENIAL LETTER ON GUCP LETTER HEAD • Note: Burden of proof to become certified is the applicants, but on Appeal the Burden of

proof of why they were not certified is ours.

Date Month, Day Year

CERTIFIED MAIL Return Receipt Requested COMPANY NAME OWNER’S NAME AND TITLE ADDRESS

RE: Denial of Disadvantaged Business Enterprise (DBE) Certification

OWNER’S NAME:

The State of Georgia Unified Certification Program (GUCP) has reviewed your application for certification as a Disadvantaged Business Enterprise (DBE) and conducted an on-site review at your business. Based on our review it has been determined that COMPANY NAME does not meet the criteria for certification as a DBE and is therefore denied certification. This denial is based on the provisions of the Department of Transportation (USDOT) Rules and Regulations set forth in Title 49 Code of Federal Regulations (49CFR) Part 26 as follows:

Burden of Proof:

• CFR US Citizen or permanent resident:

• Quote CFR used for denial

US Citizen or permanent resident findings:

• Specific findings related to quoted CFR. Identify document and specific language within that supports finding.

Social Disadvantage: Group Status if applicable

• Quote CFR used for denial

Social Disadvantage finding:

• Specifically related to the quoted CFR. Identify document and specific language within that

supports finding.

Economic Disadvantage: PNW, if applicable:

• Quote CFRs used for denial

Economic Disadvantage: PNW findings, if applicable:

• PFS, Tax records, Public Property records. Specifically related to the quoted CFR/s. Identify document and specific language within that supports finding.

Business Size: if applicable

• Quote CFR used for denial • Or Quote NAICS table numbers

Business Size Findings: if applicable

• Tax records Gross receipts, specifically related to the quoted CFR

Group status, if applicable:

• CFR used for denial .

Group status Findings, if applicable:

• Birth certificate, passport, or naturalization form. Identify document and specific language within that supports finding.

Ownership- if applicable:

• CFRs used for denial

Ownership Findings, if applicable:

• Open with Business description, established date, percent ownership, and how it was capitalized.

• Address findings related to each referenced CFR. • List facts only from a supported document. Direct the reader’s attention to the document.

Do not use “appears”. • Contributions, Gifted Ownership, or Marital Assets cannot be the only reason for a denial.

Control must also be a factor. 49CFR26.69(j)

Control:

• CFRs used for denial

Control Findings:

• If ownership is not applicable: Open with Business description, established date, percent ownership, and how it was capitalized.

• Address findings related to each referenced CFR • List facts only. Must be supported by a document of some sort. Do not use “appears”. • Identify document and specific language within that supports finding.

Other Closing:

Based upon the owner’s failure to demonstrate [disadvantaged status, ownership, and/ or control] required by the Code, we have determined that you have failed to meet your burden of proof, and the firm does not meet the requirements for certification as a Disadvantaged Business Enterprise as defined by 49 CFR Part 26. FIRMS NAME is therefore denied certification with the Georgia Uniform Certification Program (GUCP).

This decision may be appealed by following the attached Policy and Procedure 5165-1. The appeal must be filed in writing with the U.S. Department of Transportation within ninety (90) calendar days of this letter. All appeal letters must be sent to:

U.S. Department of Transportation Departmental Office of Civil Rights W78 338

External Civil Rights Programs Attn: Marc Pertino

1200 New Jersey Ave, SE 7th Floor Washington, DC 20590

Should you wish to do so, you can reapply to the DBE program after one (1) year from the date of this letter.

Sincerely,

_______________________________

Signature, Printed Name and Title of authorized Program Manager

_______________________________

Signature, Printed Name and Title of authorized Department Manager

C: MARTA/ GDOT EXECUTIVE MANAGEMENT Vanessa Ross, Civil Rights Specialist U.S. Department of Transportation Federal Highway Administration 61 Forsyth Street, SW, Suite 17T100 Atlanta, GA 30303-3104

D. THE INTERSTATE DENIAL LETTER

Opening and Body: Same as home state denial Add:

State A Certification

49 CFR 26.85(d), states in part, “As State B, when you receive from an applicant firm all the information required by paragraph (c) of this section, you must take the following actions:

(2). Determine whether there is good cause to believe that State A’s certification of the firm is erroneous or should not apply in your State. Reasons for making such a determination may include the following:

(i) Evidence that State A’s certification was obtained by fraud (ii) New information, not available to State A at the time of its certification,

showing that the firm does not meet all eligibility criteria; (iii) State A’s certification was factually erroneous or was inconsistent with the

requirements of this part. (iv) The State law of State B requires a result different from that of the State

law of State A (v) The information provided by the applicant firm did not meet the

requirements of paragraph (c) of this section.”

State A Certification Findings

Identify at least one of the bullets (i) thru (v) for the denial decision. Identify which bullets and explain how it applies.

Closing: Based upon the owner’s failure to demonstrate [disadvantaged status, ownership, and/or control] required by the Code, we have determined that you have failed to meet your burden of proof, and the firm does not meet the requirements for certification as a Disadvantaged Business Enterprise as defined by 49 49CFR Part 26. FIRMS NAME is therefore denied certification with the Georgia Uniform Certification Program (GUCP).

In accordance with 49CFR 26.85(d)(4)(ii), you may elect to respond in writing, to request an in-person meeting with State B's decision maker to discuss State B's objections to the firm's eligibility, or both. If you request a meeting, as State B we will schedule the meeting to take place within 30 days of receiving your request.

This decision may be appealed by following the attached Policy and Procedure 5165-1. The appeal must be filed in writing with the U.S. Department of Transportation within ninety (90) calendar days of this letter. All appeal letters must be sent to:

U.S. Department of Transportation

Departmental Office of Civil Rights W78 338 External Civil Rights Programs

Attn: Marc Pertino 1200 New Jersey Ave, SE 7th Floor

Washington, DC 20590

Should you wish to do so, you can reapply to the DBE program after one (1) year from the date of this letter.

Sincerely,

_______________________________

Signature, Printed Name and Title of authorized Program Manager

_______________________________

Signature, Printed Name and Title of authorized Department Manager

C: MARTA / GDOT Vanessa Ross, Civil Rights Specialist U.S. Department of Transportation Federal Highway Administration 61 Forsyth Street, SW, Suite 17T100 Atlanta, GA 30303-3104

XIV.

SOP # 12: Required Analysis Forms

Revision No. 0 Effective date __/__/____ Supersedes____

A. Initial review and Follow up document request

All Applicants

Work experience resumes (that include places of ownership/employment with corresponding dates), for all owners and officers of your firm

Personal Financial Statement (form available with this application) Personal tax returns for the past three years, if applicable, for each owner claiming disadvantaged status

(complete signed copies) Your firms tax returns (gross receipts) and all related schedules for the past three years (complete signed copies) Documented proof of contributions used to acquire ownership for each owner (e.g. both sides of cancelled check or

statement on company letterhead) Your firm’s signed loan agreements, security agreements, and bonding forms Descriptions of all real estate (including office/storage space, etc.) owned/leased by your firm and documented

proof of ownership/signed leases List of equipment leased and signed lease agreements if applicable List of construction equipment and/or vehicles owned and titles/proof of ownership Documented proof of any transfers of assets to/from your firm and/or to/from any of its owners over the past two

years if applicable Year-end balance sheets and income statements for the past three years (or life of firm, if less than three years); a new

business must provide a current balance sheet All relevant licenses, license renewal forms, permits, and haul authority forms DBE and SBA 8(a) or SDB certifications denials, and/or decertifications, if applicable Bank authorization and signatory cards Schedule of salaries (or other compensation or remuneration) paid to all officers, managers, owners, and/or

directors of the firm Trust agreements held by any owner claiming disadvantaged status, if any

Partnership or Joint Venture

Original and any amended Partnership or Joint Venture Agreements Corporation or LLC

Official Articles of Incorporation (signed by the state official) Both sides of all corporate stock certificates and your firms stock transfer ledger Shareholders’ Agreement Minutes of all stockholders and board of directors meetings Corporate by-laws and any amendments Corporate bank resolution and bank signature cards Official certificate of Formation and Operating Agreement with any amendments (for LLCs)

Trucking Company

Documented proof of ownership of the company Insurance agreements for each truck owned or operated by your firm Title(s) and registration certificate(s) for each truck owned or operated by your firm List of U.S. DOT numbers for each truck owned or operated by your firm

SOP 12

Regular Dealer Proof of warehouse ownership or lease List of product lines carried List distribution equipment owned and/ or leased

Note: The specific state UCP to which you are applying may have additional required documents that you must also supply with your application. Contact the appropriate certifying agency to which you are applying to find out if more is required.

CERTIFICATION DOCUMENT REQUEST

Company: Date: Mailing Address: City/State/Zip: Physical Address: City/State/Zip: Contact Person: Email: Phone: Fax: PLEASE PROVIDE COPIES OF THE FOLLOWING DOCUMENTS (X) AT TIME OF THE ON-SITE VISIT 1. Articles of Incorporation 16. Minutes of Stockholders and Board of Directors

Meetings 2. Corporate By-laws or Operating Agreement 17. Vehicles (Titles, if owned, or Purchasing Agreement) 3. Corporate Annual Registration 18. Organizational Chart 4. Stock Ledger 19. Partnership Agreement 5. Stock Certificates 20. Other Agency Certification 6. Business License & Professional License 21. Insurance (Auto, Business, Equipment Liability) 7. Personal Financial Statement 22. Resumé of Principals 8. Income Tax (Personal-last three years) 23. Cancelled Checks (last two months) 9. Income Tax (Corporate-last three years) 24. Bank Signature Card or Corporate Resolution 10. Lease Agreements (Building/Office & Equipment) (if any)

25. Copy of Supplier Listing (Vendor List)

11. Loan Agreements (if any) 26. Copy of Correspondence on Company Letterhead 12. End of year Balance Sheet (3 years) 27. Proof of Citizenship 13. Schedule of Salaries 28. Copies of Employees’ W2s 14. 3 Copies of Recent Contracts or Estimates of Work Performed

29. Federal ID#

15. List of Equipment Owned or Leased 30. Health Insurance (Employees) Statement listing names

B. Interstate Application Review Guidance Document

Whereas, 49 CFR 26.85(d), states in part, “As State B, when you receive from an applicant firm all the information required by paragraph (c) of this section, you must take the following actions:

(2). Determine whether there is good cause to believe that State A’s certification of the firm is erroneous or should not apply in your State. Reasons for making such a determination may include the following:

RULE Response Comments (i) Evidence that State A’s certification was obtained by fraud

(ii) New information, not available to State A at the time of its certification, showing that the firm does not meet all eligibility criteria;

(iii) State A’s certification was factually erroneous or was inconsistent with the requirements of this part

(iv)The State law of State B requires a result different from that of the State law of State A

(v) The information provided by the applicant firm did not meet the requirements of paragraph (c) of this section.”

Part (c) establishes what documents must be submitted to State B.

If all Responses are “No”, then the decision should be “yes” to approve.

If your recommendation is a DENIAL, your letter must identify and explain which of the bullets apply to the home states’ assessment.

INTERSTATE APPLICANT REVIEW CHECKLIST Applicant Firm from State A must provide the following informant ion: Complete copy of application form, all supporting documents, and any other

information that was submitted to State A or any other State related to firm’s certification. Includes, but is not limited to:

1. Affidavits of no change 2. Any notices of change that have been submitted to State A 3. Any correspondence with State A’s UCP or any other recipient concerning the

Firm’s application or status as a DBE firm Notices or correspondence from states other than State A relating to status as a DBE applicant

or DBE certification in those states. Example:

• Certification denials • Decertification actions

Discloser of any DOT certification appeals with copy of the letter of appeal and DOTs

response. An affidavit sworn to by the Firm’s owners or an unsworn declaration executed under penalty

of perjury of the laws of the United States. Affidavit must adhere to the following:

a. Affidavit must affirm that firm has submitted all the information required by 49 CFR 26.85(c) and the information is complete and, in the case of the information required by 26.85 (c)(1), is an identical copy of the information submitted to State A

b. If the on-site report from State A supporting firm’s DBE certification in State A is more than three years old, as of the date of firm’s application to State B the affidavit also affirms that the facts in the on-site report remain true and correct.

C. GEORGIA UNIFIED CERTIFICATION PROGRAM (GUCP) INTERSTATE

DISADVANTAGED BUSINESS ENTERPRISE (DBE) AFFIDAVIT

Name of Firm I affirm, as evidenced by my signature below, I have provided all information required by 49 CFR 26.85I to GUCP Agency for inspection and review to determine eligibility for the Georgia Unified Certification Program (GUCP).

I affirm the information is complete and, in the case of the information required by §26.85I(1), is an identical copy of the information submitted to (home state agency).

I further affirm all information and statements I have provided are true and correct. I understand all documents may be subject to review at any time by representatives of the GUCP. If such a request is made, I understand these documents must be provided within 10 business days.

Printed Name of Eligible Applicant Signature of Eligible Applicant

Subscribed and sworn to before me, the undersigned notary public, on this date: .

Notary Public’s Signature/ Seal

The Georgia Unified Certification Program (GUCP) consists of two (2) certifying agencies and adheres to the Department of Transportation DBE standards set forth in 49 CFR Part 26 and Part 23. The following entities are members of the Georgia Unified Certification Program (GUCP): the Georgia Department of Transportation and Metropolitan Atlanta Rapid Transit Authority. DBE certification is valid at any Georgia entity that receives U.S. Department of Transportation (DOT) funds and has a DBE Program

D. Appendix C

DBE CERTIFICATION ELIGIBILITY WORKSHEET

Name of Applicant Firm:

Reviewer: Date:

Certifying Agency: GDOT

Indicate whether the firm does or does not meet the standards set out below or whether there is insufficient information for you to make a determination, or not applicable. Your determination in each area must be clearly supported by documentation on file.

Eligibility Requirements

YES

NO

Insufficient Information

Group Membership Determination (49 DFR 26.63) Demonstration by preponderance of evidence, if questioned. Held himself/herself out to be over long period of time Regarded as a group member Socially and Economically Disadvantaged Status (49 CFR 26.5, 26.67 Owner’s Personal Net Worth Exceeds $1.32 Million Affidavit of Social/Economic Disadvantage Minority Status Female SBA 8(a) or SDB Certified Other Small Business Size (3 -Year Average of Gross Receipts (49 CFR 26.65) Existing Small Business (Functional and Operational) Contract or Services Completed Verified Sufficient Resources and/or Expertise to Operate General Contractor Special Trade Engineering, Architectural and Surveying Other: Insurance Brokerage and Consulting Ownership (Real and Substantial Contribution) (49 CFR 26.69) Contribution Commensurate with Ownership Independently Owned Assets Value 51% or Greater Ownership:

- If Partnership, 51% Ownership Specified: - If Corporation, 51% of Each and Aggregate Stock Issued -

Expertise: Monetary Value Assigned - Expertise in Firm’s Field of Operations Control (49 CFR 26.71) Independence Independently Possesses Sufficient Assets/Resources to Operate Contracts with Various Firms

Recommendation Concurrence: _________________________________ Date: _____________________________

Independently able to Perform Work, Service or Supply Relationship with non-DBE firms (personnel, facilities, equipment, etc.) Disadvantaged Owner(s) Control Board of Directors Controls Overall Destiny of the Firm Restrictions To Limit Voting Power or Control of Owners Third Party Agreement Restricts Control of Owners Firm is a Franchise

DBE CERTIFICATION ELIGIBILITY WORKSHEET

Name of Applicant Firm: (Page 2 of 2)

Eligibility Requirements

YES

NO

Insufficient Information

Control (49 CFR 26.71) Expertise Possesses Technical Competence and Experience directly related to firm’s type of work Disadvantaged Owner has license or other required credentials Salary Profits Commensurate with Ownership Sufficient Assets/Resources to Operate

- Financial - Bonding - Supervision - Workforce - Equipment - Materials - Facilities

Affiliation With Another Firm Through (49 CFR 26.5) Common Ownership Common Management Sharing of Facilities Sharing of Employees Sharing of Equipment Sharing of Services Other Certification Issues For Profit (49 CFR 26.73) Certified by Home State USDOT Recipient (49 CFR 26.81) - Type of Work or Specialty (49 CFR 26.83, 26.5) Equipment Sufficient for Area of Work or Specialty NAICS Codes Verified

NAICS #: Description: NAICS #: Description: NAICS #: Description: NAICS #: Description: NAICS #: Description: NAICS #: Description: Additional Comments:

• Owner(s)/% of ownership:

• Personal Net Worth: • Average 3 yr Gross Receipts: • # of Employees: • FEIN Number: • Status: • Last Site Visit:

Overall Eligibility Recommendation: ___ Certify ___Deny ___Need Additional Information

Signature of Reviewer: ______________________________________________ Date: __________________

D. PERSONAL NET WORTH CALCULATION (EXCEL SPREADSHEET). • Provided electronically, used to verify math and to document adjustments made during

review.

E. All correspondence documents, including emails.

F. Contact Log of phone calls.

G. Voluntary Withdrawal Notarized Form

H. REGION IV

UNIFORM ON-SITE INSPECTION AND OWNER INTERVIEW REPORT State of Georgia

SEE REVISED FORM

Purpose The purpose of this on-site inspection is to solicit information from the owner(s) of record of the below named company to determine if his/her ownership and control is real, substantial, and continuing and is consistent with the day to day control requirement contained in the governing federal regulation of 49 CFR, Part 23. General Information

Review Conducted By: Date:

Location: Time:

Name of Firm:

Mailing Address:

How Long at Present Location:

Telephone No.:

Contact Person:

Type of Company

Corporation Partnership Sole Proprietorship

Joint Venture Other: (Specify)

Type of Review

New Application Recertification Challenge

Date of Last Review: Interviewer:

Disadvantaged Status: WBE DBE

Employee

Applicant/Representative

List Board of Directors by name, title, race and sex.

Name Title Race/Sex Percentage of Ownership

Participants at the Review (List all owners and check the names of any not present)

Name Title Race/Sex Percentage of Ownership

1. What is the company’s primary line of business? Please be specific.

2. Do any of the owner(s) of the company have any stock, management, or ownership interest in another company? If so, identify the company and state the percent of interest.

3. Date company was established and by whom?

Employee

Applicant/Representative Pg. 2 of 10

4. Detail in specific terms how the company was initially capitalized.

5. Has the company made any changes in ownership since the Schedule A (application form) was submitted? If so, what changes have been made?

6. Is the company a successor of any other company or has it conducted business under any other name? If so, identify that company, and indicate if it is till conduction business, or has been dissolved.

7. Is the company operating under a license issued to a previous owner? If so, please describe the circumstances.

8. Describe all real estate owned by the firm and provide proof of ownership.

9. How are stockholders, directors and key personnel of the firm compensated?

Management of Applicant’s Company

10. Indicate how each owner received his/her share of ownership in the business.

11. List the current positions held by management and owners of the company. Identify the task and responsibility of each. Be specific in defining day to day management activity. Attach an organizational chart if helpful in expressing these activities.

12. How many hours per day do either owner devotes to the business?

Identify the individuals responsible for the following:

13. Who negotiates financing, contracts, bonding, and insurance for the company?

Employee

Applicant/Representative Pg. 3 of 10

14. Who is authorized to make loans for the firm and sign the loan agreement? 15. Who has the authority to sign payroll and creditor checks? 16. Who actually signs payroll and creditor checks? 17. Who monitors job sites and administrative functions? 18. Who sets salaries for personnel? 19. Who hires and terminates employees? 20. When was the last time an employee was hired and fired and by whom? 21. How does the firm learn of projects to bid? 22. Who signs contracts to perform work and subcontracts work for the company? 23. Describe the day to day operations of the firm. 24. What material suppliers do the firm use? (Include names and telephone numbers of

suppliers for verification.) 25. Who decides and signs notes and leases for equipment? 26. Is there a business relationship between the two firms other than the equipment leasing?

If so, explain. 27. Who estimates work in preparation of submitting a bid or quotation in the firm’s name? 28. Is the company being assisted financially or otherwise by anyone other that the owner? 29. Who establishes policy and procedure for the company? Explain 30. If a major problem occurs on a project, who has responsibility for deciding whether the job

is halted and how is the decision made? 31. Does any member of you firm work part time for any other company? If so, name

company, position, hours per week. 32. Is the company currently operating under a license? If so, please specify.

Employee

Applicant/Representative Pg. 4 of 10

33. What bank or financial institutions does the firm have accounts with as well as loans?

34. Does the company have a financial line of credit? If the applicant is a new firm without a line of credit, what sources have you used to procure equipment and materials?

35. Has the firm subcontracted jobs with other subcontractors? To whom and why?

36. Did the company have any contract on which it had a joint agreement with the prime contractor to provide financial procurement of material, equipment, manpower, use of office or warehouse space necessary to perform on the job? If yes, please state circumstances and review contracts.

37. Do you work primarily as a prime or subcontractor?

Reviewer’s Comments on Physical Environment of Company

38. Is the firm identified by name on a sign at its location and listed in a phone book and/or yellow pages?

Yes No

39. Does the firm conduct business from any other office location or share any facilities with a non-disadvantaged firm?

Yes No

40. Is the owner(s) office distinct? Yes No

41. Are persons working in the office during the on-site interview employed by the firm?

Yes No

42. Was job site visited and employees interviewed on the job site? Yes No

43. Was a sample of correspondence file reviewed? Yes No

Correspondence addressed to: Signed by:

44. Review all lease agreements and secure copies for certification file? Yes No

Employee

Applicant/Representative Pg. 5 of 10

45. Review the equipment listing furnished with the application and secure copies of titles, notes, bill of sales, and lease-rental agreement if required by Department. Also, ascertain ownership and state motor vehicle tag numbers.

Yes No

46. Where does firm store its equipment?

47. Is office space owned or leased? By whom?

48. Identify any other structures or other businesses that share the premises or facility and give address.

49. What items of equipment have been purchased during the past year?

50. Does the company own or lease, if so, state the nature of the lease agreement and whose signature appears on the lease.

51. What equipment was seen on premises and did it have firm’s logo?

52. Are there any liens or notes on the firm’s equipment, if so, with whom?

53. Review a sample of W2s and W4s of current and past employees and record findings.

54. Does the firm maintain a life insurance on the principal(s) of the firm?

55. Does the firm own equipment necessary to perform work under the scope of services listed under type of business? Yes No If not, please state the sources used to secure adequate equipment and the type

necessary.

56. Are there any current loans made to the business, which are outstanding?

57. Please review the company insurance. What type of insurance does the company have and who is the agent?

58. Who obtained insurance for the company?

59. Is equipment insured? What company? Coverage?

Employee

Applicant/Representative Pg. 6 of 10

60. Does the company provide company insurance, and are employees listed on the billing forms compatible with the employee payroll list of firm?

61. Does the company have a bond? If so, specify the bond limit and name of company and agent.

62. Review canceled checks (minimum of two months on all accounts).

Accounts Signature on Checks Month Reviewed

(a) List any other authorized signatures.

(b) List the amounts paid to owners.

(c) Who approves the rate of pay for new employees?

Job Estimates and Contracts 63. Explain and describe the negotiation process.

64. Review job estimates and list those reviewed.

Firm Location Prepared by Date

Employee

Applicant/Representative Pg. 7 of 10

65. Review contracts, list the following information.

Firm Location Signature and Title on Contract Date

66. If this request if for certification by an out-of-state corporation, is the firm registered with the Secretary of State? If an out-of-state corporation, is it certified on its home state?

Yes No If no, please state why.

67. Has your firm or any principal of your firm ever failed to complete any contract awarded to you? Describe circumstances.

68. Is the firm certified in any other state, jurisdiction, SBA 8(a) or Subchapter(s) of the IRS Act?

69. Who negotiates disputed billings with prime contractors?

70. Is the firm bidding work with local DOT or other agencies?

71. How many supervisors does the company employ? Explain their duties and responsibilities.

Materials 72. Are materials stored on premises? Yes No If not, then where?

(a) What materials were viewed? (b) Who owns office equipment used by firm?

73. Who orders and purchases materials? 74. Review and verify signatures on purchase orders and checks for material purchases.

Employee

Applicant/Representative Pg. 8 of 10

Supplier Information 75. If the firm is a supplier, indicate the lines of products supplied.

76. Does the firm keep the goods supplied to its customers on property owned or leased by the company? Yes No

77. Does the firm take ownership title to the goods supplied? Yes No

78. Indicate how each owner received his/her share of ownership in the business.

79. If the firm is a corporation, how many shares of stock does each owner own?

80. If the firm is a sole proprietorship, what was the amount and/or form of investment?

81. Who performs accounting functions for the firm?

82. Does the firm hire a CPA? Who?

Employee

Applicant/Representative Pg. 9 of 10

Company Interviewed:

Date: Time: Notes and Comments:

Pg. 10 of 10

XV.

SOP # 13: Training Materials Revision No. 0 Effective date __/__/____ Supersedes____

A. Intake Process

GDOT PROGRAM TECHNICIAN INSTRUCTIONS

1). Intake and General Office System Administration. We strive to finish the application process within 90 days of initial receipt of the application. 49 CFR 26.83. (k).

a. New Applicants / Pending (Red Label) Date stamp Application and Personal Financial Statement (PFS)

• Check against the checklist for all supporting documents i. Disadvantaged Ownership must be @ least 51%

ii. If individual ownership is < 51% need a PFS for each person to make up @ least 51% disadvantage ownership.

iii. If missing up to 3 items then call or email the firm and ask them to send the info.

iv. If missing more than 4 or more items return (certified mail) entire package with return letter and highlighted checklist of what’s needed.

• Once all supporting documents are received, give the firm name and tax ID number to the Senior DBE Coordinator for vendor ID assignment. If after 2 weeks, all supporting documentation has not been received, note what is lacking on the checklist, and proceed with giving the file to the Senior DBE Coordinator. Make a folder with the firm’s name, pending, and the date on the label

• Give the file to the Senior DBE Coordinator for assignment. • Once assigned to a coordinator enter the firm’s information (including the assigned

coordinator) into CRLMS • Add all information into the CRLMS database. Complete the General, Events,

Addresses, and Officers tabs. Then select the DBE link at the top and complete the Officer Net Worth and Annual Data tabs.

• Give folder to assigned coordinator for review and processing

b. When approved for certification (DBE – Blue Label) / (WBE – Green Label) / (MARTA – Purple Label)

Type the “Certification” letter located in the “Letters” file

• Put a copy of letter in the file and send a copy to Julian Bailey at Julian.bailey@doas.ga.gov each month (Governor’s Small Bs w/copy of the 1st page of Application)

• Make the change to CRLMS by selecting the DBE link and completing the Certification and Work Codes tabs

SOP 13

• Add the firm information to the excel spreadsheet under the current month

c. Annual Updates (DBE – Blue Label) / (WBE – Green Label) / (MARTA – Purple Label)

No Change Letter, No Change Affidavit may be mailed out one month prior to the yearly anniversary date of actual certification. If needed send a second notice 1 week after the original due date.

• Date stamp the No Change Affidavit and the PFS • Check to ensure the forms are complete and check for the income requirements • If all information is complete and on-site is updated • Add the date into the monthly tab for annual updates • File the folder back

d. Decertified Files (Orange Label) Files may be decertified when they do not send in their supporting document within the allotted time (90 days after receiving the initial request)

• Go through the monthly tabs to see which firms have not sent in their information • If a second notice has been sent with no response and it has been 90 days, decertify

the firm. (Utilize Email, and/ or US Mail) i. Make a new label with DECERTIFIED and the date and file in the

decertified files ii. Make changes in CRLMS

iii. Add the firm to the De-Certification List iv. Prior to Decertifying, follow up with a phone call and email as a good faith

effort.

e. Interstate Applicants

• Check the on-site review date on all incoming files.

• If over 5 years old, call or fax the home state to request an updated on-site review

• When other states request an on-site pull file and fax (date doesn’t matter)

f. Marta Files (Purple Label) MARTA sends files for certification, recertification and denials

• Give to Director or EEO Assistant Administrator for approval

• If approved, copy the application, PFS, letters of acceptance with NAICS codes and the on-site to make a file for our office

• Add information to CRLMS with all the pertinent information

• If a denial, we keep the entire file at GDOT in case the firm appeals

g. Denials (Yellow Label)

• Transfer letter given by the coordinator, Director or EEO Assistant Administrator to letter head (if necessary)

• Make changes in the “CRLMS” with the new status and the date

• Send the denial letter (w/appeals policy) via certified mail (remember to go back and print signature page)

• Add to the Denials list in the “Database”

• Letter distribution is as follows: i. 1 copy to the file

ii. 1 copy to Matt Cline iii. 1 copy to Vanessa Ross (FHWA) iv. 1 copy to MARTA (If a Marta File)

• Change the file label and file with the Denials

2). File assignments and Coordinator’s initial actions.

Coordinator should strive to have the process including onsite inspection, complete within 90 days. The Coordinators are responsible for the timeliness of the process, tracking, and status of the file. The Coordinators are responsible for maintaining up to date information on the Certification spreadsheet located in the EO Common Folder.

a. All files come to GDOT for assignment. Files are assigned by the Senior DBE Coordinator on a weekly basis. They are distributed across two parties. GDOT Coordinators and DBE Supportive Services when needed

• MARTA will only review applications from firms located in Clayton, Dekalb and Fulton counties and Interstate applications. Marta assigns the files to their coordinators.

• DBE supportive services aid in backlog applications, overflow, and financial audits.

• Internal GDOT Coordinators receive files in consideration of their existing work load.

o Internal Coordinators assign files to the District Officers for Onsite inspections located within that District office.

b. Coordinator completes the initial review. • Interstate applicants must be certified in their home state. If they are not,

the application must be denied. • Print emails and maintain correspondence log with each applicant. • Ensure all needed supporting documentation has been received. Note

missing documentation during initial review. Notify applicant by email that documentation is needed.

• Conduct the onsite review or assign to a District Officer for an onsite inspection. While scheduling the Onsite inspection, request any missing documents to be collected and provided during the inspection. Documents may be received prior to, during, and after the onsite inspection. Note any documents not collected during the onsite inspection.

• The coordinator should not stop the process to wait for documents. Should strive to complete the certification tasks prior to the 90 day window. Don’t start and stop, keep the process moving. Take pictures of equipment, supplies, etc.

3). Onsite inspections. Refer to 49 CFR 26.83. (c). (1)

The DBE Coordinator communicates and assigns files to the District Officers. Officers should have an onsite inspection complete and returned to the assigned coordinator within 30 days of receipt of the assignment. If the process is delayed for any reason, the officer must immediately notify the Coordinator. The coordinator in turn will record the delay on the DBE Certification status report in the EO Common Folder.

a. District Officers- Review the file received. The packet should contain the date stamped application, and a list of needed documents.

b. Follow up with the applicant as soon as possible to schedule the onsite inspection. Email and phone call. Print emails, and log all correspondence. If the applicant will not be available for the onsite inspection within 2 weeks, let them know the process is time sensitive and after 30 days you may have to administratively close their file. (However, be very sensitive to any delay not caused by the applicant).

c. District Officers- Notify the Coordinator when the onsite has been scheduled. Copy the coordinator on email correspondence with the applicant. Immediately communicate all issues and/or problems to the DBE Coordinator that could impact the timely completion of the onsite inspection.

c. Complete onsite inspection. Use onsite inspection form. Make certain that the on-site inspection form is signed by the Officer and Applicant. Record all responses as much detail as possible. Use the notes page for findings when necessary.. Take pictures of equipment, supplies, etc.

e. Document findings that impact group membership, ownership and/or control. Keep in mind, findings or comments not supported by the onsite inspection responses may not be used in the final decision. Findings must be supported by some sort of document that can be submitted as an exhibit during an administrative hearing. Although, personal opinions are helpful to the Coordinator in identifying potential red flags that should be investigated, or analyzed, they are not admissible in a hearing.

f. Send the inspection report, findings, and any collected documents to the DBE coordinator.

4). Application Analysis

a. DBE Coordinator/Analyst should conduct a desk review upon receipt of an assigned file using the standard Desk Audit, and Control Determination Checklist: During review of documents note findings to support decision. If all documents have been timely received, the analysis process should be completed within 2 weeks after onsite inspection is complete and a final recommendation drafted.

• Make certain all required documents have been received. If after 90 days from initial receipt of the application, critical documents still have not been received and reasonable effort has been recorded to receive such

documents, the coordinator shall begin the process to administratively close the file with approval from the Senior DBE Coordinator.

• Review onsite findings. Do not mark on finished document. Do not make any changes to the document after it has been signed by the applicant.

• Evaluate Business primary activities. Assign a NAICS code. • Determine if applicant is a socially and economically disadvantaged

individual, and a US citizen or permanent resident. • Review Business Tax records to ensure average gross receipts are within

NAICS and CFR cap. • Review the Personal Financial Statement. Compare PFS to the Personal

Tax records for missing assets (Property and Businesses). Determine PNW. b. Prepare memo recommending certification.

Address Group Membership, Personal Net Worth, Business Size, Ownership, and Control. Note NAICS code.

c. Draft a Denial of Certification letter. Use template to draft denial response. Follow layout of template. Do not combine Ownership and Control CFR or

findings. There are no shortcuts to providing a decision that will hold up to an appeal. USDOT evaluates the letter against documentation cited in the letter.

Include every CFR for which the applicant has not met the burden of proof.

Address every finding that supports the denial decision. Check and double check dates if they are quoted in the findings. Don’t state a fact without stating where it came from. (Example:

Application, Onsite, bank records, tax records, bylaws, promissory note, etc).

Save to the EO Common denial letter folder. d. Submit file to Senior DBE Coordinator for concurrence on final recommendation.

Asst. Administrator may review recommendations and may follow up with the coordinator on any concerns that need to be evaluated further. Asst. Administrator may revise final recommendation and submits to the Director.

(INSERT MARTA INTAKE PROCESS INSTRUCTIONS)

A.

Control Determination Checklist

Firm Name:

DBE Analysts/Coordinator Assigned:

Record Date DBE Analysts/Coordinator Received this File:

Record Date DBE Analysts/Coordinator Received ALL DOCUMENTS:

Record Date DBE Analysts/Coordinator Prepared Recommendation of Action Letter:

Record On-Site Review Date:

Directions: Answer the questions below based on the information provided by the socially and economically disadvantaged individual and your personal observations. Explain any ‘Yes” answers in the Comments Section.

Overarching Guidance 49 CFR Part 26 Section 26.71 In determining whether socially and economically

disadvantaged owners control a firm, you must consider all the facts in the record, viewed as a whole.

Independence (Firm viability does not depend on relationships with another firm)

Yes No Comments

Does Firm have relationships with non-DBE firms in areas such as personnel, facilities, equipment, financial and/or bonding support, and other resources; that if removed would hinder viability? 26.71 (b)(1)

[Replace this text with comments.]

Does disadvantaged owner(s) have a present or recent employer/employee relationship with a non-DBE firm that compromises the independence of the DBE firm? 26.71 (b)(2)

[Replace this text with comments.]

Is there a pattern of exclusive or primary dealings with a prime contractor that compromises the independence of the potential DBE firm? 26.71 (b)(3)

[Replace this text with comments.]

Are the relationships between the potential DBE and non-DBE firms inconsistent with normal industry practice? 26.71 (b)(4)

[Replace this text with comments.]

Restrictions

Yes No Comments

Is the socially and economically disadvantaged owner(s) subject to any formal or informal restrictions which limit the customary discretion of the owner(s)? (Does not apply to spousal co-signature on documents) 26.71 (c)

[Replace this text with comments.]

Power to direct the management and policies of the firm

Yes No Comments

Does any individual other than the disadvantaged owner hold the highest officer position in the company? 26.71 (d)(1)

[Replace this text with the comment.]

In a corporation, does any individual other than the disadvantaged owner control the board of directors? 26.71 (d)(2)

[Replace this text with comments.]

In a partnership, do any individual other than the disadvantaged owner serve as a general partner with control over all partnership decisions? 26.71 (d)(3)

[Replace this text with comments.]

Non-disadvantaged owner power

Yes No Comments

Does any individual who are not socially and economically disadvantaged possess or exercise the power to control the company? 26.71 (e)

[Replace this text with comments.]

Is any individual who is not socially and economically disadvantaged disproportionately responsible for the operation of the company? 26.71 (e)

[Replace this text with comments.]

Delegation of authority

Yes No Comments

Has the socially and economically disadvantaged owner delegated any areas of the management, policymaking, or daily operations to other participants in the firm? If so, these delegations must be revocable and the owner must maintain the power to hire and fire any person to whom such authority is delegated. 26.71 (f)

[Replace this text with comments.]

Owner’s overall understanding of the firm’s operations

Yes No Comments

Does the socially and economically disadvantaged owner(s) lack 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 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. 26.71 (g)

[Replace this text with comments.]

License requirements

Yes No Comments

If state or local law requires the persons to have a particular license or other credentials in order to own and/or control a certain type of firm, does the socially

[Replace this text with comments.]

and economically disadvantaged owner(s) lack the required license or credential? 26.71 (h) Remuneration differences

Yes No Comments

Is the highest paid member of the firm someone other than the socially and economically disadvantaged owner? 26.71 (i)(1)

[Replace this text with comments.]

Does a non-disadvantaged former owner receive greater compensation than the current socially and economically disadvantaged owner? 26.71 (i)(2)

[Replace this text with comments.]

Outside employment

Yes No Comments

Does the socially and economically disadvantaged owner engage in outside employment or other business interest that conflict with the management of the firm or prevent the individual from devoting sufficient time and attention to the affairs of the firm to control its activities? (A determination as to whether the business is full or part-time is critical) 26.71 (j)

[Replace this text with comments.]

Immediate Family Members

Yes No Comments

Do any non-disadvantaged immediate family members participate in the firm as a manager, employee, owner, or in another capacity? 26.71 (k)(1)

[Replace this text with comments.]

Does it appear the family as a whole controls the firm? 26.71 (k)(2)

[Replace this text with comments.]

Transfer of ownership

Yes No Comments

Does it appear that the transfer of ownership from a non-disadvantaged individual, who remains involved with the firm, to a socially and economically disadvantaged individual for the sole purpose of obtaining certification as a DBE? (Owner must demonstrate clear and convincing evidence) 26.71(l)(1)

[Replace this text with comments.]

Does it appear that the non-disadvantaged individual who formerly owned and/or controlled the firm actually still controls the management, policy, and operations of the firm? (Burden of proof relies with owner) 26.71(l)(2)

[Replace this text with comments]

Owns equipment necessary to perform work

Yes No Comments

Does the firm lease rather than own equipment necessary to perform its work? (If yes, is leasing a normal industry practice; or does lease involve a relationship with prime contractor that compromises independence?) 26.71 (m)

[Replace this text with comments.]

NAICS codes

Yes No Comments

Has the firm applied for NAICS codes that are not specific types of work in which the socially and economically disadvantaged owner(s) have the ability to control? (A correct NAICS code is one that describes, as specifically as possible, the principal goods or services which the firm would provide.) 26.71 (n)(1)

[Replace this text with comments.]

Is there cause for changing a certification classification or description due to a factual basis in the record? 26.71 (n)(4)

[Replace this text with comments.]

Franchise or License Agreement

Yes No Comments

Is the franchiser or licenser affiliated with the franchisee or licensee (DBE firm)? (In determining affiliation you should generally not consider the restraints relating to standardized quality, advertising, accounting format, and other provisions imposed on the franchisee or licensee by the franchise agreement or license.) 26.71 (o)

[Replace this text with comments.]

Partnerships

Yes No Comments

Does any non-disadvantaged partner, without the specific written concurrence of the socially and economically disadvantaged partner(s), have the power to contractually bind the partnership or subject the partnership to contract or tort liability? 26.71 (p)

[Replace this text with comments.]

Employee Leasing Company

Yes No Comments

Does the socially and economically disadvantaged individuals controlling the firm use an employee leasing company? (If yes then an employer-employee relationship must be maintained with the leased employees. This includes being responsible for hiring, firing, training, assigning, and otherwise controlling the on-the-job activities of the employees.) 26.71 (q)

[Replace this text with comments.]

General Observations

[Replace this text with any other relevant information regarding the overall control by the socially and economically disadvantaged owner(s). Remember to add dates of events for general observations. ]

Determination

Based on all the available facts in the record, viewed as a whole, [Replace this text with Socially and disadvantaged owner(s)'s name(s).] has or has not demonstrated control of [Replace this text with name of DBE firm.] [Replace this text with explanation when a firm has failed to demonstrate control.]

B.

Personal Net-Worth Guidance Document

The intent of this policy is to reasonably confirm accuracy in reporting, not to audit the applicant’s personal net worth. The policy is a cursory-review-guideline used for support to request an independent CPA audit or cross verify the applicant’s PFS. See instructions at the end of this policy to address PNW estimate findings over $1.2 million.

Whereas, USDOT provided guidance states: Recipients should first review a PNW statement to determine whether the individual's PNW is more than $1,320,000. In addition, recipients should review each PNW statement to determine if there are any obvious mistakes, omissions, or suspicious information. Where the recipient has a reasonable basis to believe that the PNW statement is incomplete or inaccurate, the recipient may "look behind" it, by seeking further information or conducting an investigation to clear up the issues. Recipients have discretion to devise procedures to obtain needed information in these cases.

In determining net worth, the GUCP must exclude an individual's ownership interest in the applicant firm and the individual's equity in his or her primary residence (except any portion of such equity that is attributable to excessive withdrawals from the applicant firm). A contingent liability does not reduce an individual's net worth. The personal net worth of an individual claiming to be an Alaska Native will include assets and income from sources other than an Alaska Native Corporation and exclude any of the following which the individual receives from any Alaska Native Corporation: cash (including cash dividends on stock received from an ANC) to the extent that it does not, in the aggregate, exceed $2,000 per individual per annum; stock (including stock issued or distributed by an ANC as a dividend or distribution on stock); a partnership interest; land or an interest in land (including land or an interest in land received from an ANC as a dividend or distribution on stock); and an interest in a settlement trust.

Personal Net Worth: Assets minus Liabilities

• Income does not equate to Assets. Permanent Investments are assets. • Applies to Disadvantaged 51% owner/s only.

Mandatory items used in review:

• Personal Financial Statement (PFS) • Most recent Individual Tax returns (ITR)-Signed copies or evidence of electronic filing • Most recent Corporate Tax returns (CTR)- Signed copies or evidence of electronic filing • Other articles may be requested (i.e., 1098 Home mortgage Interest paid on secondary

home, life insurance policy, etc) Some values on the PFS are subjective, and may be accepted on its face value. Such as, money in the Checking Account.

When questions arise about a particular article, we should wait until the PNW analysis is complete before following up with the applicant. If the item value has no ultimate consequence to the PNW

cap, there is no need to follow up with the applicant. Ask all necessary questions at one time, preferably by email with a phone call to establish that the questions are forthcoming, and they should expect the email.

Begin by comparing PFS to ITR, and then PFS to CTR for “Other Assets”.

• Divide jointly owned assets and liabilities 50/50. All assets may be considered as joint property when married couples file a joint tax return, have joint banking accounts, etc. However, Georgia is not a community property state, so if taxes, banking, etc are separate, only those items with specific shared ownership are joint assets.

• All boxes on the PFS must be populated. If Not applicable, it should be noted “NA” or “0”. A blank box is incomplete. Explanation may be requested.

ASSETS

Personal Financial Statement Tax returns Comments

Savings Account: $

ITR: Form 1040 Taxable Interest (Line 8a-b) : $

Estimate savings. Add lines 8a & b together, divide total by 0.03 or the prevailing savings interest rate. If the total value is a lot higher than the PFS savings account line, the applicant may have not provided the total value of their savings.

ITR: Form 1040, Ordinary and Qualified Dividends. (Line 9a-b) and Schedule B

Add line 9a & b. Divide value by the prevailing dividend interest rate. Add total value to the Savings number. Note total Savings estimated value in your worksheet. A Follow up with the applicant may be necessary, but wait until the entire PNW review is complete to begin asking questions.

IRA or Other Retirement Accounts

ITR: Form 1040, IRA Distributions, Pensions and Annuities Line 15b- 16b

Do not include Social Security- payment/benefit. Request documentation indicating value of account.

Accounts and Notes Receivable

Life Insurance- Cash Surrender Value

Record Whole life insurance policy value. Do not confuse Whole life w/ Term Life Insurance. Term Insurance

does not have a cash surrender.

Stocks and Bonds ITR: If Form 1040, Capital Gains. (losses) line 13 – 14 other gains is populated see schedule D

Example of Other gains may be a sale of a house. If 14 is less than 5% of total income (line 22) move on, don’t dwell upon it.

Real Estate ITR: If Form 1040, line 17 is populated see Schedule E Part 1—rental property addresses. Schedule A- itemized deductions, taxes and mortgage interest.

Real estate owned by individual. Look up value of Primary residence, rental, and secondary homes. Do a property search using the individual’s name to find unrecorded properties. Primary residence is exempt, but value should still be confirmed. Look Up value of property on county property records. Use fair market value, not assessed value. Do a property search using the individual’s name to find unrecorded properties. Total Fair Market Value, include house and land.

Automobiles ITR: Form 1040 Itemized Deduction Schedule A, (Line 7) or Kelly Blue Book

This item is subjective. The PFS does not require the applicant to list the make and model of the vehicles. Personal Property Taxes, the vehicle taxes should be comparable to the vehicles list as an asset. New purchase after 03/01/2013 has a 6.5% onetime tax of the fair market value. (Also One-time tax deduction). Pre 03/01/2013 assessed value is multiplied by an approximate tax of 3%. So divide line 7 by 0.065 or 0.03 whichever may seem most

appropriate, for a guesstimate. If not reported on Schedule A, Use Kelley blue book at the mid-grade value rating http://www.kbb.com/

Other personal Property This item is subjective and not provable. Furniture, jewelry, etc should be somewhat comparable with individual’s lifestyle, income, home value, etc. But do not dwell on this item too much. If you believe the number is too low or isn’t present at all, one follow up question should be sufficient. May ask for insurance documentation.

Other Assets ITR: Form 1040 Schedule B Part 1, Schedule E- Part II, Schedule C, CTR: Form 1120, schedule K, &1120S, and 1065

Other businesses (C, S Corp and Partnerships) owned by the Individual. Net worth of the applicant firm is not considered. Identifying other businesses: Review Form 1040 Schedule B Part I, and Schedule E part II. And do a search of the Georgia SOS website and/or any related states, to reasonably confirm--- other businesses do not exist under the applicant’s ownership. To assess the other firms’ value you must review the firms’ taxes.

Note: Corporations may own other businesses referred to as subsidiaries. The net worth of the subsidiaries must not be considered in the PNW of the

individual. Only the net worth of additional businesses owned by the individual, which are unrelated to the applicant firm, should be included in the calculation of the individuals PNW. [Example, Assume there are four companies: A, B, C and D. All four companies only have common stock. Company A directly owns all of Company B’s stock. Company C’s stock is only owned by Companies A and B. Company D's stock is entirely owned by Companies C and D. In this group, Company A is the parent and Companies B, C and D are subsidiaries]. Corporations may consolidate tax returns of the subsidiaries or do a spin-off (separate returns). Ownership is reported on Form 1120 Schedule K.

Sole Proprietor: form 1040 line 12 Business Income, and Schedule C –Profits and Loss. (Gross Receipts & net profits.) Business is not a separate entity; business net worth is not computed. C Corporations See Net Worth 1120 Schedule L; add Column (d) lines 22 thru 27, multiplied by ownership interest from Schedule G, part II. S & P Corporations- default forms If Form 1040, Line 12 is populated, review Schedule E, Part II. Line 28 Column (b).

“S” or “P”. If “S”, form 1120S may have been filed. If “P” form 1065 may have been filed. However, the individual may have elected to be taxed differently by completing form 8832. S Corporation (Shareholder Corp): Form 1120S Schedule K-1 ownership interest and Schedule L net worth; add Column (d) lines 23 thru 25, multiplied by ownership share from K-1. P Corporation (Partnership Corp): Form 1065, Schedule L, Column D Total Assets minus Total Liabilities = Partner’s capital Accounts multiplied by ownership interest from K-1. Joint Venture Companies: (two companies come together to make one primary business temporarily for a project). JVs are not illegible for the program. However, request Joint venture agreements to assess applicants control in the agreement

LIA

BILITIES

Accounts payable Subjective. The PFS does not require the applicant to list accounts.

Notes Payable to Bank and Others

If not extraordinary in comparison to the assets, accept the number at face value. If liabilities are very high in comparison to income, and there’s money in the savings account, another source of income may not be

listed. Or the individual may simply have overextended their credit. Note on the worksheet - the liability/ asset ratio is unbalanced. If the Assets’ total value is large enough that if the liabilities did not exist, the applicant’s PNW would be over $1.32 million, a follow up to verify liabilities may be needed.

Installment Account (Auto) Same as notes payable Installment Account (other) Same as notes payable Loan on Life Insurance Subjective. The PFS does not

require the applicant to supply documentation. However, If the Assets’ total value is large enough that if the liability did not exist, the applicant’s PNW would be over $1.32 million, a follow up to verify the loan may be necessary.

Mortgage on Real-estate Itemized Deductions- schedule A. And Schedule E Part 1 Suppl. Income.

Main & secondary Home. Secondary home applies toward the PNW, the main home does not. The following will require a determination of how much interest paid was reported on the tax document for the secondary home. The 1098s may be requested. Schedule A (line 10 – 11). Interest paid should be comparable to current value. (Ball park Guess estimate: Divide Interest paid, by 0.05 or prevailing mortgage rate= rough estimate on mortgage owed). Secondary / rental properties- schedule E, Line 12. County

Property searches. Note: due to economic down turns, some mortgages may be more than the current fair market value of the property.

Unpaid Taxes If the tax value impacts the overall PNW, request documentation.

Other Liabilities Subjective. The PFS does not require the applicant to supply documentation. However, If the Assets’ total value is large enough that if the other liabilities did not exist, the applicant’s PNW would be over $1.32 million, a follow up to verify the liabilities may be necessary.

Also note Form 1120 Compensation of Officer’s line 7 or 12 (see form 1125 Schedule E for breakdown) used in considering ownership and control.

Assets Minus Liabilities= PNW

If a cursory review indicates the Personal Net Worth is greater than $1.2 million, notify applicant that our findings indicate their PNW may be over the Cap of $1.32 million. Provide the applicant the opportunity to dispute the finding prior to the final decision. USDOT has provided further guidance that a primary residence may be considered in a decision to deny if it would imply the applicant is wealthy in the current geographic area. Applicant must provide a CPA stamped determination of PNW, dated after the date of our finding notice, and in response to our finding. A revised or updated PFS must be resubmitted with the CPA report.

If the PNW appears greater than $1 million, and the value of the applicant’s primary residence would appear to indicate wealth, follow the procedures established to request a CPA audit.

Do not stop the review process on control and ownership. Continue with your analysis. Findings must report on all considerations from-disadvantage status, business size, PNW, ownership and control.

Full Disclosure

49 CFR 26.73(a)(2) You may consider, in making certification decisions, whether a firm has

exhibited a pattern of conduct indicating its involvement in attempts to evade or subvert the intent or requirements of the DBE program.

Full Disclosure Findings Example

The applicant was not forthcoming with accurate information. In the GUCP Application and during the onsite inspection, the applicant stated he did not have outside employment, but the tax records indicated that the individual works full time. Further research revealed the individual works for _____ as a _____. The applicant also neglected to disclose real estate property at ________, valued by the City as _______ in his personal financial statement. The applicant neglected to disclose ownership interest in other firms in his personal financial statement. The individual failed to disclose a relationship with another firm in the same line of work> the firm failed to disclose that it shares a facility, employees, equipment, etc…..

XVI

EXAMPLE LETTERS

A. Denial Letter: INSERT 1. Cause: Firm Size 2. Cause: Personal Net Worth 3. Cause: Ownerhsip 4. Cause: Control

B. USDOT Appeal Decisions: INSERT

1. Overturned decision 2. Upheld decision

XVII

SOP # 14 DBE INVESTIGATIONS

I. RECEIPT OF COMPLAINT

A. Complaint Format: Letter • Immediately make a working copy of the letter and the envelope the letter was received

in. Place the original in the accused DBE File. • Continue to “Review the DBE File” section.

B. Complaint Format: Verbal complaints: • Person making Complaint, Time and date. • The accused DBE firm • Substantive complaint w/ details- ownership, control, and/or NAICS code • Place a copy of the notes in the DBE File.

C. Review the DBE file: • Note any documents that may lend credence to the complaint • Note any documents that contradicts the complaint • Record the owner/s, address and phone numbers for later use.

D. Start a file and record receipt of the Complaint Investigation in the CRLMS Vendor Portal. • Under EVENTS- “CUF Special Reviews”. Record all notations. Update the notes and

results at completion of the review.

II. ON-SITE INSPECTION

Depending on the content of the complaint received, an unannounced inspection is permissible. [49 CFR 26.83(h)(2)] If information comes to our attention that leads us to question the firm's eligibility, we may conduct an on-site review on an unannounced basis, at the firm's offices and job sites.

A. Control: an unannounced CUF Inspection should be performed at a project job-site. • CUF inspection may be assigned to the District CEI Compliance Officer. Complete a

CUF Inspection, pay particular attention to any information that would validate the complaint.

B. Ownership: a DBE onsite inspection should be performed. • On-Site may be assigned to the District EEO Officer. Specifically ask for documents

that would be related to the complaint. C. NAICS code: both a CUF and an on-site may be necessary to make a reasonable

determination.

III. Conclusion

A. Develop an opinion. • Opinion must be centered on facts, regulations, and contract provisions.

B. Prepare a formal report. Provide the report to the Assistant Administrator over external programs.

SOP 14

• Report format shall identify the Investigative Officer, the DBE Firm, the Complainant, and the Complaint details.

• The Opinion shall be identified in the first paragraph, and must identify federal codes or contract provision that supports the opinion.

• The body of the report shall List the Chain of Events: what, when, where. • The end shall index the attached supporting documents, including inspections, emails,

pictures and documents received.

IV. Final Recommendation: The Assistant Administrator will provide a recommendation to the Director of EEO, considering the record as fact and the following codes:

XVIII

SOP # 15

ENTERING REPORTING DATA INTO CRLMS

Process No. 1 MOVING CONTRACTS INTO CRLMS Transitioning a Proposal to Construction After a proposal has been let and awarded to the winning bidder, it then becomes a contract in the agency workflow. This transition process moves the proposal from the Preconstruction workflow into the Construction workflow. When you transition a proposal to Construction, the system transfers all the information in the proposal record to the new contract record. This ensures that the contract record contains all the information needed to manage the construction work, including project locations and surety information. Proposal item line numbers become contract item line numbers and, if your agency uses breakdowns, any breakdowns and breakdown items associated with the proposal are also transitioned. You can only transition a proposal if the workflow for the proposal record is set to a phase with the rule Preconstruction has Ended. Follow these steps to transition proposals to CRLMS: Log in CRLMS. Go to GDOT internal homepage applications- Transportation Management

Solution Preconstruction (TrnsPort). CRLMS is a component of Transport. Change “ROLE” to Admin Planning and Preparation

Select Execute Process from the Actions menu on the Menu Bar. The system takes you to

the Select Process component. In the list of processes, select Transition Proposal to Construction. The system adds a

green check mark beside the selection and shades the row blue. To select proposals for transition, choose Select Data from the Settings menu on the

component subheader. The system displays options for selecting data. In the Proposal search area, type criteria in the Quick Find search box or click Show first

10. The system displays a list of all the proposals in the system that match your search criteria.

Select all proposals you want to transition.

Click the Execute button on the component header. Before beginning the transition

process, the system validates a number of conditions for all selected proposals. If any of

SOP 15

the following conditions are found to be true for any of the selected proposals, the system will not start the transition process:

- a proposal is locked

- a proposal is already transitioned - the workflow for a proposal is set to a phase without the Preconstruction has Ended rule - the workflow for a proposal does not contain a phase with the Active Contract rule

If all validations pass, the system runs the transition process. You can monitor the status of the process on the Process History Overview component. To undo the transition process and return a contract to its proposal status, navigate to the Contract Overview component and select Undo Transition from the Actions menu on the contract's row. Once complete, transition is complete change “Role” Back to General Office EEO

Follow instructions to approve DBE Commitments.

Process 2. Instructions for Approving DBE Commitments in CRLMS

Pull the contracts list from the transition history record.

ACTIONS PROCESS HISTORY

Open Contract from CRLMS

DBE. (Confirm DBE Goal).

Current DBE Commitments

Enter Approval date: (must be the same or a later date than the DBE Vendor review date).

• Locate Vendor review date. Scroll to the bottom of the page. Committed-to firms are identified under PRIME. Choose a vendor.

Open “REVIEW”. DBE Vendor review date is entered by Bidding Administration (David Patterson). If the review date is not populated insert the Award date into the review date and save.

Check the DBE Commitment Approval box

Save

Local Government contract Commitments are not entered by Bidding Admin. EEO must enter each vendor.

Obtain Commitments from District EEO Officers. (EEO Officers will get the Commitments from either the Area or District Contracts Manager).

Click Actions button. (Circled Diamond Button on the “PRIME” tool bar).

Click Add.

Enter required data.

Enter Review date

Click Save

Process 3 Instructions to Close out DBE Project Participation in CRLMS

Receive List and Final DBE reports from Office of Construction – Assistant Administrator (Mike Lankford)

I. Update Contract information from SiteManager.

Click Action Button. (Top Tool Bar, circled diamond)

Choose “Execute System Interface”

Click “Update from SiteManager”

Enter Contract ID number in search field from the Final DBE Report

Choose Contract

Click “Execute”

II. Final DBE Close out

Open Contract in CRLMS from the Final DBE report

From the Vendor’s General Tab:

Enter Closed to CRLMS date (Today’s date)

Save

Check Current DBE Commitments

Approval (If approval date is blank, enter the same date as the DBE Vendor review date. If review date is blank, enter the award date in the review date and Approval Date. If the Project does not have any DBE shown in the commitment area, See instructions for entering DBE Commitments – Process 2).

Save

III. Enter Final DBE Payments.

See Process 4

IV. Initial and date DBE reports (Note: Closed to CRLMS). Scan and email completed (closed out)

DBE reports back to Mike Lankford so he may proceed with the final voucher. Note any hold backs.

Run Semi Annual report once a month. Follow instructions to correct close-out errors.

Process 4. Instructions for entering (DBE) Subcontractor Payments Open contract from CRLMS Web transport

Payments (top tool bar)

Progress Estimate

Subcontract Payments

Add Subcontract Payment from Prime

Type in Payee

Payee Payment number (use the DBE report # or Estimate #)

Date Paid (DBE report date or Estimate date)

Payment Type (Progress or Final).

Paid Amount

Save

---- Repeat for every subcontractor----

Process 5. CRLMS DBE report errors Line 8 and 9- DBE Commitments / Contracts not showing up

The Fix---- Move Contracts over from SiteManager . See Process 1

Line 10 DBE Total counts not matching line 9 total.

The Fix---- Manual identification

Line 12, 13, 14- Prime , error Zero “$0.00” in Federal Contract Payments column

The Fix-----Update Contract information from SiteManager. See process 3

SOP #16

GDOT DBE Program

(Construction Contracts)

I. Purpose

To establish the necessary steps to be taken in implementation and administration of the DBE program during the construction phase of a Project.

II. Authority

49 CFR 26 , FHWA 1273, and DBE Special Provision “Criteria for

Acceptability”.

III. Scope

Policy applies to the Department of Transportation Office of EEO, Office of Construction, and District Construction Offices.

IV. Responsibilities

Office of Construction (404-631-1970)

• Serve as a resource to the Districts

• Manage the Department’s Construction Manual

• Complete Project System Closeouts

District/ Area Construction Office:

A. Determine Contractor’s Compliance with the Contract Specifications

B. Approve DBE Substitution and Removals

C. Review DBE Participation Shortfall

D. Process Prompt Payment Complaints

SOP 16

Office of EEO (404-631-1972)

A. Serve as a resource to the Districts and Office of Construction

B. Certify Participating firms

C. Approve DBE Commitments

D. Approve DBE Participation Shortfalls

E. Review District Inspection Documents

F. Provide Training

G. Conduct DBE Investigations

H. Provide DBE Supportive Services to DBE firms and the Contracting

Industry

V. Procedures

District/ Area Construction Office:

A. Approval of all DBE subcontract and supply agreements.

i. Payment to the Contractor under the contract may be withheld until final

approval of the listed DBEs is granted by the Department through the

subcontract/supply (485) approval process.

B. Determine Contractor’s Compliance with the Contract Specifications.

i. Inspect the DBE firm’s work to ensure the items and materials meet

GDOT Specifications.

ii. Inspect and Process Subcontract Agreements to ensure federal

regulations, prompt payment and no retainage provision are

properly incorporated.

iii. Monitor DBE participation. Identify red-flags in meeting a

Commercially Useful Inspection on the project using the EEO

approved CUF inspection form. Report items of concern to the

Contractor for follow-up in writing. Require removal of any reported

participation from the DBE report not meeting the DBE Special

Provision requirements.

C. Approval of DBE Substitution and Removals.

i. If the Contractor wishes to substitute a DBE firm identified in the Contract

Commitment Plan for another DBE, the District Engineer may approve the

request and send a copy to the Office of Construction and the EEO Office.

ii. Prior to requesting a substitution, the prime contractor must send a “return

receipt” letter to the DBE firm. And give the DBE five days to respond to the

notice. If required in a particular case as a matter of public necessity (e.g.,

safety), the Engineer may provide a response period shorter than five days.

iii. After 5 days, the Contractor must submit a written request to substitute or

remove a DBE firm identified in the Contract DBE Commitment Plan.

iv. The Engineer may approve the substitutions if acceptable documentation is

provided. Supporting documentation may be a release from the original

DBE. If a release is not provided, good cause to approve substitution may be:

a) The listed DBE subcontractor fails or refuses to execute a written

contract;

b) The listed DBE subcontractor fails or refuses to perform the work

of its subcontract in a way consistent with normal industry standards.

Provided, however, that good cause does not exist if the failure or

refusal of the DBE subcontractor to perform its work on the

subcontract results from the bad faith or discriminatory action of the

prime contractor;

c) The listed DBE subcontractor fails or refuses to meet the prime

contractor's reasonable, nondiscriminatory bond requirements.

d) The listed DBE subcontractor becomes bankrupt, insolvent, or

exhibits credit unworthiness;

e) The listed DBE subcontractor is ineligible to work on public works

projects because of suspension and debarment proceedings pursuant 2

CFR Parts 180, 215 and 1,200 or applicable state law;

f) A determination that the listed DBE subcontractor is not a

responsible contractor;

g) The listed DBE subcontractor voluntarily withdraws from the

project and provides to you written notice of its withdrawal;

h) The listed DBE is ineligible to receive DBE credit for the type of

work required;

i) A DBE owner dies or becomes disabled with the result that the

listed DBE contractor is unable to complete its work on the contract;

j) Other documented good cause that compels the termination of the

DBE subcontractor.

v. Good cause does not exist if:

a) The prime contractor merely seeks to perform work originally

designated for a DBE subcontractor with its own forces or those of an

affiliate, a non-DBE firm, or with another DBE firm.

D. Review DBE Participation Shortfall.

Monitoring DBE participation and progress is necessary throughout contract time.

However, Demonstrating Good Faith Efforts are the responsibility of the Prime

Contractor. When the contract items are substantially complete (typically 80%)

complete a DBE close-out analysis.

i. If the items of work assigned to the DBE listed in contract are not

complete, you may send a letter to the Prime Contractor requesting

the status on the DBE Goal. Provide 7 calendar days for a response.

a. If the Contractor’s response indicates the goal will be met and

how, no further action is required.

b. If the Contractor’s response indicates a shortfall is probable,

forward the letter to the Office of EEO to begin a Good Faith

Effort assessment.

ii. If the items of work assigned to the DBE listed in the contract are

complete, and the DBE goal has not been met, a letter should be sent

notifying the Prime Contractor a shortfall Good Faith Effort

assessment is necessary, and a waiver request must be approved by

the Office of EEO to avoid liquidated damages. A Good Faith Effort

waiver will not be granted after completion of the contract. Provide 7

calendar days for a response. If a response is not received in 7

calendar days, send a copy of the letter, and the final DBE Report to

the Office of EEO. The Office of EEO will assess the record and will

propose Liquidated Damages, if applicable.

E. Process Prompt Payment Complaints. (See Office of Construction’s Prompt

Payment Policy).

Office of EEO

a) Firms are certified in accordance with the GDOT DBE Plan

(http://www.dot.ga.gov/PS/Business/DBE#tab-5) and GDOT Policy 5165-1

b) DBE Commitments are approved in accordance with GDOT Policy 8201-1

c) Analyze DBE Participation Shortfalls / Good Faith effort Assessments.

i. Good Faith Effort (GFE) Assessments shall consider all documented

bona fide good faith efforts, which may include:

a. If the shortfall was due to a general underrun of items, not

caused by a change in the project.

b. If the shortfall was due to a change in the contract (ie,

Supplemental Agreement), that deleted some or all of the

DBEs work committed to in the contract, and the Prime

Contractor did seek to substitute or replace the fallen off

work toward meeting the goal, and/or all available

subcontract work was already bound to other

subcontractors at the time.

c. If the prime contractor was unable to find a DBE

replacement for a terminated firm, but followed GDOT

DBE substitution/replacement procedures, and used the

services of minority/women community organizations;

minority/women contractors' groups; local, State, or

Federal minority/women business assistance offices; or

other organizations to provide assistance in the

recruitment and placement of DBEs.

d. If the shortfall is due in part for unallowable DBE credits

related to providing assistance to DBEs in obtaining

necessary equipment, supplies, materials, or related

assistance or services.

e. If the shortfall was due to work performed by the Prime or

another non-DBE firm in an emergency situation (traffic

control, erosion control, public safety etc.), approved by the

Department.

ii. Examples of Non Bona-fide Good Faith Efforts may include:

a. The shortfall was due to removal of a DBE, after award of

the contract, because its quotation for the work was not the

lowest received.

b. The shortfall was caused when the Prime Contractor was

unable to find a replacement DBE at the same price quote

as the original DBE.

c. The shortfall was due to the Prime Contractor desired to

perform the contract work with its own forces

d. Shortfall was due to a change in the contract (ie,

Supplemental Agreement), that deleted some or all of the

DBEs work committed to in the contract, and the Prime

Contractor did not seek to substitute or replace the fallen

off work toward meeting the goal.

d) Propose Liquidated Damages

The Office of EEO may propose the District/ Area Engineer reduction of payments to

the Contractor as a liquidated damage and not as a penalty, by an amount according to

the following schedule:

1) For the first $1,000 DBE deficiency, one hundred percent (100%) of the

deficiency.

2) For the next $9,000 DBE deficiency, fifty percent (50%) of the deficiency.

3) For the next $10,000 DBE deficiency, twenty five percent (25%) of the

deficiency.

4) For any remaining DBE deficiency, ten percent (10%) of the deficiency.

Liquidated damages shall not be applicable where actual payment to a DBE is within

ninety percent (90%) of the commitment, or where there are good and sufficient

reasons, properly documented, for the deficiency such as quantity under-runs, project

changes, etc.

e) Review District Inspection Documents. (See District Construction

Engineering Contract Documents).

f) Training is provided upon request from any party.

g) DBE Investigations are conducted by the Office of EEO- Contract

Compliance Officer in partnership with the District EEO Officer.

h) Provide DBE Supportive Services to DBE firms and the Contracting

Industry. (Refer contractors and DBE firms to the Help Desk 404-631-1273).

Closing

This document is a living document, and subject to change. Any party of a Certifying partner may submit a revision. Any suggested revisions will be discussed at a GUCP meeting. A revision must be important, not from an

isolated instance, and must be supported by a federal regulation or USDOT guidance document. The lead agency will have the final decision on the

revision. The procedures should purposefully be reviewed annually in the last month of each calendar year, and the manual adjusted appropriately.