DBE Certification Eligibility Requirements

Overview

The State of Texas has established a Unified Certification Program under 49 CFR Part 26.81. The Texas Unified Certification Program (TUCP) provides “one-stop shopping” to applications for certification, such that an applicant is required to apply only once for a Disadvantaged Business Enterprise (DBE) or Airport Concessionaire Disadvantaged Business Enterprise (ACDBE) certification that is honored by all recipient agencies in the state. Therefore, certifications by all TUCP Partner agencies are binding on all agencies receiving federal USDOT funds in the State of Texas.

CCRTA is a member of the TUCP.  The TUCP consolidates all DBE/ACDBE firms certified by six agencies into one centralized TUCP DBE Directory for USDOT-funded airport, highway, and public transportation contracts. 

Certifying Agencies

The following are the certifying agencies of the TUCP:

• City of Austin (CoA)
• City of Houston (CoH)
• Corpus Christi Regional Transportation Authority (CCRTA)
• North Central Texas Regional Certification Agency (NCTRCA)
• South Central Texas Regional Certification Agency (SCTRCA)
• Texas Department of Transportation (TxDOT)

CCRTA is responsible for processing DBE/ACDBE certification applications for businesses located in the following counties: Aransas, Bee, Goliad, Jim Wells, Karnes, Kleberg, Live Oak, Nueces, Refugio, and San Patricio.

Business Size (§26.65)

• A firm (including its affiliates) must be a small business as defined by SBA size standards (13 CFR 121). The business size limit for applicant firms and certified DBEs seeking to participate in Federal Transit Administration (FTA) and Federal Highway Administration (FHWA) assisted contracts must meet two standards:
  • By NAICS code, size calculation is based on a five-year average and
  • By DOT statutory size cap not to exceed $31.84 million; size calculation is based on a three-year average.

• A DBE firm must still meet the size standard(s) appropriate to the type(s) of work the firm seeks to perform in DOT-assisted contracts. These standards vary by industry according to the NAICS code(s) defined by the Small Business Administration (SBA). 

• For Airport Concession Disadvantaged Business Enterprise (ACDBE), gross receipts must not exceed $56.42 based on a three-year average.

Socially and Economically Disadvantaged (§26.67)

Disadvantaged individual must be U.S. citizen or lawfully admitted permanent resident and a member of a socially disadvantaged group:

• Women
• Black Americans
• Hispanic Americans
• Native Americans
• Asian-Pacific Americans
• Subcontinent Asian American
• Other minorities found to be disadvantaged by the SBA
• Disadvantaged individuals must have a Personal Net Worth (PNW) not to exceed $2,047,000. Items excluded from PNW calculation include an individual’s ownership interest in the applicant firm, his/her equity in the primary residence, and retirement assets.(§26.68)

Ownership (§26.69)

• The socially and economically disadvantaged owner (SEDO) must own at least 51% of each class of ownership of the firm. 

• A SEDO may acquire ownership by purchase, capital contribution, or gift. Each is considered an “investment” in the firm if it meets specified standards under 49 CFR §26.69
  .
  • Investments include a significant outlay of SEDO’s own money.
  • Title determines the ownership of assets used for investments.
  • Contributions of time, labor, services, and the like are not investments or components of investments.

Control (§26.71)

• One or more SEDOs of the firm must control it.
• A firm must have operations in the business for which it seeks certification at the time it applies.

A SEDO must be the ultimate decision maker in fact, regardless of operational, policy, or delegation arrangements.