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Learn about the five small and minority business public contracting programs implemented by MDOT and how they promote inclusion and provide opportunities for disadvantaged business owners.
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MWRTBA Metropolitan Transportation Opportunities Conference MDOT Assistant Secretary Charles C. Glass, Ph.D., P.E. April 27, 2018
GOVERNOR LARRY HOGAN Preaches and Practices Inclusion!
MDOT SMALL & MINORITY BUSINESS PROGRAMS The following five small and minority business public contracting programs are implemented by MDOT: State Programs • MBE Program – Minority Business Enterprise • SBR Program – Small Business Reserve Federal Programs • DBE Program – Disadvantaged Business Enterprise • ACDBE Program – Airport Concession Disadvantaged Business Enterprise • SBE Program – Small Business Enterprise
MBE PROGRAM In 1978, Maryland's General Assembly enacted legislation creating the MBE Program to ensure that socially and economically disadvantaged small business owners are included in the State’s procurement and contracting opportunities. • All State agencies subject to the State Finance and Procurement Article are required to make every effort to award an overall minimum goal of 29% of the total dollar value of their procurement contracts directly (prime contractors) or indirectly (subcontractors) to certified MBE firms. • The MBE Program Goal is evaluated about every five years.
SBR PROGRAM In 2004, the state created the Small Business Reserve (SBR) Program, providing small businesses with the opportunity to participate as prime contractors on state contracts by establishing a unique marketplace where small businesses compete against other small businesses instead of larger, more established companies. The SBR Program requires 70 state agencies to designate 15% of its expenditures to be spent with SBR firms. This is a race-and-gender-neutral program. Minority status is not a criteria for participation. Business eligibility standards are industry specific and based upon number of employees and gross sales.
DBE PROGRAM • The U.S. Department of Transportation's (USDOT) DBE Program provides a vehicle for increasing the participation by certified DBE firms in State and local procurements that are funded with assistance from USDOT. • Each state and local transportation agency that receives financial assistance from the USDOT is required to establish tri-annual DBE goals for the participation of DBE firms on USDOT-assisted federally funded procurements. • For MDOT, three transportation business units (TBUs) participate in the DBE program: State Highway Administration (MDOT SHA), Maryland Aviation Administration (MDOT MAA) and Maryland Transit Administration (MDOT MTA). • Current DBE Program participation goals are as follows: • MDOT MAA 25.0 % (FFYs 2017-2019) • MDOT MTA 30.0 % (FFYs 2017-2019) • MDOT SHA 27.16 % (FFYs 2016-2018)
ACDBE PROGRAM • The ACDBE Program is similar to the DBE program in that it is a USDOT initiative designed to level the playing field for disadvantaged business owners who wish to participate in contracting opportunities at airports. • Program is only applicable to airport concessions contracts administered by MAA. • Current DBE Program participation goals are as follows: (FFYs 2018-2020) Car Rental Concessions 3.70% Non-Car Rental Concessions 30.32%
The SBE Program is a race-and-gender-neutral program designed to provide contracting opportunities to small businesses on USDOT federally-funded projects with the State Highway Administration (MDOT SHA), Maryland Transit Administration (MDOT MTA), and Maryland Aviation Administration (MDOT MAA). SBE Program Eligibility: • The firm must be a small business, as defined by the U.S. Small Business Administration (SBA), by applying current SBA business size standards applicable to the type of work the firm seeks to perform. • Size standards are measured by a three-year average of annual gross receipts or number of employees. SBE PROGRAM
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