ALDOT

The integrity and credibility of the Disadvantaged Business Enterprise Program depends upon the establishment of systematic procedures to ensure that only bonafide firms owned and controlled by socially economically disadvantaged individuals participate in the DOT's DBE program. Therefore, ascertaining the eligibility of prospective DBE's is a critically important component of a State's DBE program. Those procedures established to fulfill this aspect of the DBE program are what is known as the Certification Process. This process consists of three sequential steps to certify that the prospective DBE is eligible to participate in the program.

The three steps are:

1. Collecting the specified and necessary information from the prospective DBE
2. Applying the criteria for eligibility set forth in the State's program
3. Certifying (or denying) that the prospective DBE is eligible to participate in the State DBE program.

Since its inception, the DOT's DBE program has required each State to establish a certification process. It was not until the passage of the 1987 STURAA and the promulgation of the October 21, 1987, regulations that DOT established a uniform certification process. The 1987 STURAA also requires the use of on site reviews and personal interviews as an integral part of the certification effort by the States. The State's certification procedures incorporated into its DBE program document reflects the certification criteria set forth in 49 CFR 26.

DBE Program Objective

1. To ensure that disadvantaged business firms have the maximum opportunity to participate in DOT assisted contracts.

DBE Certification Objective

1. To ensure nondiscrimination in the award and administration of USDOT assisted contracts;
2. To create a level playing field on which DBE's can compete fairly for USDOT assisted contracts;
3. To ensure that only firms that fully meet the requirement of 49 CFR Part 26 eligibility standards are permitted to participate as DBE's;
4. To help remove barriers to the participation of DBE's in USDOT assisted contracts; and
5. To assist the development of firms that can compete successfully in the market place outside the DBE program.

State Role

49 CFR 26 places the primary responsibility for certifying DBE's upon the Alabama Department of Transportation agencies (ALDOT). There are instances, however, in which another State or local agency or authority other than the ALDOT has been assigned this responsibility by State law. Nonetheless, the ALDOT will take the lead role in ensuring that only certifiable DBE's are to participate in federally assisted projects. Knowledge and understanding of the State's DBE program need to permeate other sections within the ALDOT, especially those who are responsible for the administration or the State's construction program.

Federal Highway Administration Role

The FHWA through its Regional and Divisional offices maintains a close liaison with the States in their implementation of the certification process. The FHWA is available to provide technical assistance to the States for clarification and direction necessary to meet the Federal regulatory and administrative directives issued on certification. The FHWA is also required to carry out the oversight and monitoring responsibilities described below:

• Ensure that the State's certification process and actions meet the requirements of 49 CFR 26 and are effectively being implemented through reviews and on site evaluations;
• Ensure that questionable certifications are appropriately handled. There may be times when a question arises as to the eligibility of a certified DBE, either through FHWA's review of a State's program or through other means such as third party complaints. FHWA has the responsibility to investigate in such instances. If there is evidence that a State's approved certification process has not been followed or the evidence on file clearly does not support a decision to certify a firm as eligible, the FHWA shall notify the certifying State in writing of the deficiencies found in the certification action and request a reevaluation of the firm's eligibility.

A thorough, detailed, and complete analysis of the application file with the supporting documents will be conducted on each firm. The applicant is entitled to prompt action on its application and duly informed when any part of the application is deficient and/or incomplete with an acknowledgment that the application will be held pending further action by the applicant. Following complete analysis of the information provided and possible further field review, a formal report is prepared setting forth a recommendation to either approve or deny the application.

To assure that the certification process has been effectively concluded, all available evidence is documented, reviewed and becomes a part of the case file documentation supporting the decision.