Agenda packet — Corona City Council, May 21, 2025 (part 2 of 4)

the activity is covered by the common-sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely approves the Disadvantaged Business Enterprise (DBE) Program, and there is no possibility that approving this project will have a significant effect on the environment. Therefore, no environmental analysis is required.

PREPARED BY: SUDESH PAUL, TRANSIT PROGRAM MANAGER
REVIEWED BY: SAVAT KHAMPHOU, PUBLIC WORKS DIRECTOR
ATTACHMENTS:

1. Exhibit 1 - Updated Disadvantaged Business Enterprise Program - Redline Version

2. Exhibit 2 - Updated Disadvantaged Business Enterprise Program - Clean Version

3. Exhibit 3 - DBE Final Rule Summary Table

Page 142 of 1035 ends

DISADVANTAGED

BUSINESS

ENTERPRISE
PROGRAM City of Corona Transit Service
Program Update: MayOctober 20235

Page 143 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 1 of 65
Table of Contents
Disadvantaged Business Enterprise Objectives and Policy Statement............... 43 SUBPART A – GENERAL REQUIREMENTS ............................................................................ 54 DBE Program Objectives/Policy Statement (§ 26.1, 26.23) .......................................................... 54 Applicability (§ 26.3) ............................................................................................................................. 54 Definitions (§ 26.5) ............................................................................................................................... 54 Non-discrimination Requirements (§ 26.7) ....................................................................................... 54 Record Keeping, Reporting and Bidder’s List Requirements (§ 26.11 (b)(c)) ............................ 54 Reporting § 26.11 (b) .......................................................................................................................... 54 Bidder’s List § 26.11 (c) ....................................................................................................................... 65 Federal Financial Assistance Agreement and Contract Assurance (§ 26.13 (a)(b)) ................. 75 Federal Financial Assistance Agreement Assurance § 26.13 (a) ......................................................... 75 Contract Assurance § 26.13 (b) ........................................................................................................... 86 SUBPART B - ADMINISTRATIVE REQUIREMENTS ........................................................... 86 DBE Program Updates (§ 26.21) ....................................................................................................... 86 Policy Statement (§ 26.23) ................................................................................................................. 86 DBE Liaison Officer (DBELO) (§ 26.25) ........................................................................................... 96 DBE Financial Institutions (§ 26.27) ................................................................................................ 107 Prompt Payment Mechanisms (§ 26.29 (a)(b)) ............................................................................. 107 Prompt Payment §26.29(a) ............................................................................................................... 107 Retainage §26.29(b) .......................................................................................................................... 108 Monitoring and Enforcement §26.29(d) ........................................................................................... 118 Directory (§ 26.31) ............................................................................................................................. 129 Overconcentration (§ 26.33) ............................................................................................................. 129 Business Development Programs (§ 26.35) .................................................................................. 139 Monitoring and Enforcement Mechanisms (§ 26.37) .................................................................... 139 Small Business Participation (§ 26.39) ......................................................................................... 1713 SUBPART C - GOALS, GOOD FAITH EFFORTS, AND COUNTING .......................... 1814 Set-asides or Quotas (§ 26.43) ...................................................................................................... 1814 Overall Goals (§ 26.45) ................................................................................................................... 1914 Goal Setting and Accountability (§ 26.47) .................................................................................... 2115 Transit Vehicle Manufacturers Goals (§ 26.49) ........................................................................... 2215

Page 144 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 2 of 65
Breakout of Estimated Race-Neutral & Race-Conscious Participation (§ 26.51(a-c)) .......... 2216 Contract Goals (§ 26.51(d-g)) ........................................................................................................ 2416 Good Faith Efforts Procedures (§ 26.53)...................................................................................... 2517 Demonstration of good faith efforts (§ 26.53(a) & (c)) ................................................................... 2517 Information to be submitted (§ 26.53(b)) ....................................................................................... 2617 Administrative reconsideration (§ 26.53(d)) ................................................................................... 2618 Good Faith Efforts when a DBE is replaced on a contract (§ 26.53(f))............................................ 2818 Sample Bid Specification: ................................................................................................................ 3019 Counting DBE Participation (§ 26.55) ............................................................................................. 3119 SUBPART D and E - CERTIFICATION STANDARDS and PROCEDURES ............ 3120 DBE Certification Procedures (§ 26.61 - 26.91) .......................................................................... 3120 SUBPART F - COMPLIANCE AND ENFORCEMENT ....................................................... 3120 Information, Confidentiality, Cooperation (§ 26.109) .................................................................. 3120 Monitoring Payments to DBEs ....................................................................................................... 3220 ATTACHMENTS .............................................................................................................................. 3322 Attachment A – Organizational Chart............................................................................................ 3423 Attachment B – Bidders List Form ................................................................................................. 3625 Attachment C – Statement of Compliance-Self Certification ..................................................... 3928 Attachment D – DBE Utilization Attainment Report .................................................................... 4130 Attachment E – Overall DBE Goal and Methodology ................................................................. 4332 Attachment F – Transit Vehicle Manufacturer’s Certification .................................................... 5750 Attachment G – Roster of Certifying Agencies ............................................................................ 6152 Attachment H – Code of Federal Regulations: Title 49 CFR Part 26....................................... 6556

Page 145 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 3 of 65
City of Corona Transit Service
Background
The Code of Federal Regulations (CFR) Title 49, Part 26 sets forth the requirements for Participation by Disadvantaged Business Enterprises in Department of Transportation Programs.

To ensure firms are not disadvantaged when competing for U.S. Department of Transportation (DOT) assisted contracts, the Disadvantaged Business Enterprise (DBE) Program was established under the authority of Title VI of the Civil Rights Act of 1964 and other nondiscrimination statutes that apply to DOT financial assistance programs.

The DBE program is intended to ensure a “level playing field,” foster equal opportunity in DOTassisted contracts, improve the flexibility and efficiency of the DBE program, and reduce burdens on small businesses.

The Federal Transportation Administration (FTA) is one of the three DOT operating administrations with DBE program responsibilities and, as such, may provide additional guidance for program matters that are specific to their programs. The FTA requires that every recipient that has received Federal financial assistance from the Department of Transportation, and as a condition of receiving continued assistance, the recipient must sign an assurance that it will comply with 49 CFR Part 26.

In preparing the DBE Program, staff chose to very closely match a DBE sample program provided by the DOT. The General Counsel of the Department of Transportation reviewed the DOT sample program and approved it as consistent with the language and intent of 49 CFR Part 26, the DOT DBE rule. The sample DBE Program was obtained by downloading it along with the DBE regulations themselves, and other DOT guidance from DOT’s DBE website located at: Sample Disadvantaged Business Enterprise Program | US Department of Transportation According to DOT and FTA requirements, CCTS has revised its DBE Program according to the DBE final rule (April 9, 2024, 89 FR 24898).

Page 146 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 4 of 65
Disadvantaged Business Enterprise Objectives and Policy Statement The City of Corona, City of Corona Transit Service (CCTS) has established a Disadvantaged Business Enterprise (DBE) program in accordance with regulations of the U.S. Department of Transportation (DOT), 49 Code of Federal Regulation Part 26. The City of Corona Transit ServiceCCTS has will received Federal financial assistance from the Department of TransportationDOT, and as a condition of receiving this assistance, the City of Corona will signhas signed an assurance that it will comply with 49 CFR Part 26.

1. To ensure nondiscrimination in the award and administration of DOT - assisted contracts;

2. To create a level playing field on which DBEs can compete fairly for DOT-assisted contracts;

3. To ensure that the DBE Program is narrowly tailored in accordance with applicable law;

4. To ensure that only firms that fully meet 49 CFR Part 26 eligibility standards are permitted to participate as DBEs;

5. To help remove barriers to the participation of DBEs in DOT- assisted contracts;

6. To promote the use of DBEs in all types of federally assisted contracts and procurement activities conducted by recipients;

6.7. To assist the development of firms that can compete successfully in the market place outside the DBE Program; and.

7.8. To provide appropriate flexibility to Facilitate the implementation of the DBE Program using race-neutral measures to the maximum extent feasiblerecipients of federal financial assistance in establishing and providing opportunities for DBEs.

This policy applies to all City of Corona employees in administering 49 CFR Part 26, and to contractors, bidders/offerors and subcontractors. To ensure adherence to this policy, the responsibilities of the DBE Liaison Officer have been delegated to the Transit Program Manager, who is responsible for implementing all aspects of the DBE program.

Page 147 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 5 of 65

Jacob Ellis, City Manager Date
SUBPART A – GENERAL REQUIREMENTS
DBE Program Objectives/Policy Statement (§ 26.1, 26.23) The objectives are found in the policy statement on the first second page of this program.

Applicability (§ 26.3)
The City of Corona, City of Corona Transit System (CCTS) is the recipient of Federal Transit Administration (FTA) funds authorized by Federal transit laws in Title 49, U.S. Code. Under Title 49 CFR Part 26 the City of Corona is required to establish a Disadvantaged Business Enterprise Program. This document sets forth the policies and procedures to be implemented by the City of Corona to ensure that DBEs have an equitable opportunity to participate in the City's U.S. DOTassisted contracting opportunities Definitions (§ 26.5)
The City of Corona will adopt the definitions contained in 49 CFR Section 26.5 for this program.

Non-discrimination Requirements (§ 26.7)
The City of Corona will never exclude any person from participation in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of any contract covered by 49 CFR part 26 on the basis of race, color, sex, or national origin.

In administering its DBE program, the City of Corona will not, directly or through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating or substantially impairing accomplishment of the objectives of the DBE program with respect to individuals of a particular race, color, sex, or national origin.

Record Keeping, Reporting and Bidder’s List Requirements (§ 26.11 (b)(c)) Reporting § 26.11 (b)
The City of Corona will report DBE participation to DOT as follows:

Page 148 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 6 of 65
Report DBE participation to the relevant operating administration at the Federal Transit Administration using the Uniform Report of DBE Awards or Commitments and Payments, found in the DBE regulation. The report will be submitted at the intervals required by and in the format acceptable to the concerned Operating Administration. The report will cover all information described in the Uniform Report.

Report data about its DBE program to the Department as directed by DOT Operating Administrations.

The report due June 1 will cover data from October 1 to March 31 and the report due December 1 will cover data from April 1 to September 30. All dollar amounts reported will reflect the federal share of such contracts. The report will separate the dollar amount awarded to certified DBEs through the use of race conscious methods and race neutral methods.

Bidder’s List § 26.11 (c)
City of Corona will maintain information about all DBE and non-DBE firms that bid or quote on DOT-assisted contracts and enter it into a system designated by the Department. The bidders list will include the following information about all DBE and non-DBEs who bid as prime contractors and subcontractors on every federally-assisted contract:
i. Firm name;
ii. Firm address including ZIP code;
iii. Firm’s status as a DBE or non-DBE;
iv. Race and gender information for the firm’s majority owner; v. NAICS code applicable to each scope of work the firm sought to perform in its bid; vi. Age of firm; and
vii. The annual gross receipts of the firm. The City may obtain this information by asking each firm to indicate into what gross receipts bracket they fit (e.g., less than $ million; $1-3 million; $3-6 million; $6-10 million; etc.) rather than requesting an exact figure from the firm.

City of Corona will collect this information from all bidders for all federally assisted contracts by requiring the information in this section to be submitted with the their bids or initial responses to negotiated procurements. See Attachment B – Bidders List Form. City of Corona will enter this data in the Department’s designated system no later than December 1 following the fiscal year in which the relevant contract was awarded. In the case of a “design-build” contracting situation where subcontracts will be solicited throughout the contract period as defined in a DBE Commented [SP1]: Include attachment.

Page 149 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 7 of 65
Performance Plan, the data must be entered no later than December 1 following the fiscal year in which the design-build contractor awards the relevant subcontract(s).

City of Corona will create a bidders list, consisting of information about all DBE and non-DBE firms that bid or quote on DOT-assisted contracts. The purpose of this requirement is to allow use of the bidders list approach to calculating overall goals. The bidder list will include the name, address, DBE non-DBE status, age, and annual gross receipts of firms.

We will collect this information in the following ways:
 City of Corona Transit Service will require all bidders and proposers to identify their DBE status and identify all DBE subcontractors. See Attachment B – Bidders List Form.

Federal Financial Assistance Agreement and Contract Assurance (§ 26.13 (a)(b))
Federal Financial Assistance Agreement Assurance § 26.13 (a) Each financial assistance agreement the City of Corona signs with a DOT operating administration (or a primary recipient), must include the following assurance statement verbatim:

City of Corona will provide the following assurances statement verbatim on each federal finance assistance agreement it obtains:

City of Corona shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any DOT assisted contract or in the administration of its DBE Program or the requirements of 49 CFR part 26. The recipient shall take all necessary and reasonable steps under 49 CFR part 26 to ensure nondiscrimination in the award and administration of DOT- assisted contracts. The recipient's DBE Program, as required by 49 CFR part 26 and as approved by DOT, is incorporated by reference in this agreement. Implementation of this program is a legal obligation, and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the City of Corona its failure to carry out its approved program, the Department may impose sanction as provided for under Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).

Page 150 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 8 of 65
Contract Assurance § 26.13 (b)
Each contract that the City of Corona signs with a contractor (and each subcontract the prime contractor signs with a subcontractor) will include the following assurance:

City of Corona will ensure that the following assurance clause is placed verbatim in every federally-assisted contracts and subcontract:

The contractor, sub-recipient, or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of DOT- assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate, which may include, but not limited to:, (1) withholding monthly progress payments; , (2) assessing sanctions; , (3) liquidated damages;, and/or (4) disqualifying the contractor from future bidding as non-responsive.

SUBPART B - ADMINISTRATIVE REQUIREMENTS
DBE Program Updates (§ 26.21)
Since the City of Corona Transit Service is an FTA Tier I recipient expecting to receive a grant of $670,000 or more in FTA planning capital and/orSince the City of Corona Transit Service expects to receive a grant of $250,000 or more in FTA planning capital, and or operating assistance in a federal fiscal year, City of Corona will carry out the program until all funds from DOT financial assistance have been expended. The City of Corona will provide updates to the DOT, updates representing significant changes in the program.

Policy Statement (§ 26.23)
The City of Corona will have a signed and dated policy statement that expresses our commitment to the DBE program, states its objectives, and outlines responsibilities for its implementation.

The City will circulate the statement throughout the organization and the DBE and non-DBE business communities that perform work on DOT-assisted contracts.

The Policy Statement is elaborated on the first page of this program.

Page 151 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 9 of 65
DBE Liaison Officer (DBELO) (§ 26.25)
The City of Corona has designated the following individual as the DBE Liaison Officer:

26. The DBELO reports to the Public Works Director concerning DBE program matters. An organization chart displaying the DBELO's position in the organization is found in Attachment A to this program.

The DBELO is responsible for developing, implementing and monitoring the DBE program, in coordination with other appropriate officials. The DBELO may assign other personnel who will be responsible for any portion of developing, implementing, and monitoring the DBE program in coordination with the DBELO. The DBELO has a staff of one (1) to assist in the administration of the program. The duties and responsibilities include the following:

1. Gathers and reports statistical data and other information as required by DOT.

2. Reviews third party contracts and purchase requisitions for compliance with this program.

3. Works with all departments to set overall annual goals.

4. Ensures that bid notices and requests for proposals are available to DBEs in a timely manner.

5. Identifies contracts and procurements so that DBE goals are included in solicitations (both race-neutral methods and contract specific goals attainment and identifies ways to improve progress.

6. Analyzes City of Corona Transit Service’s progress toward attainment and identifies ways to improve progress.

7. Participates in pre-bid meetings.

8. Advises the CEO\governing body on DBE matters and achievement.

9. Participates with the legal counsel and project director to determine contractor compliance with good faith efforts.

10. Provides DBEs with information and assistance in preparing bids, obtaining bonding and insurance.

11. Plans and participates in DBE training seminars.

12. Provides outreach to DBEs and community organizations to advise them of opportunities.

13. Maintains the City of Corona Transit Service's updated directory on certified DBEs.

Commented [SP2]: Add Attachment; confirm the order of
the attachment is still “A”

Page 152 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 10 of 65
DBE Financial Institutions (§ 26.27)
City of Corona will investigate the full extent of services offered by financial institutions owned and controlled by socially and economically disadvantaged individuals in the community, and to make reasonable efforts to use these institutions. The City will also , and to encourage prime contractors on DOT-assisted contract to make use of these institutions. We will make the following efforts to identify and use such institutions:
 The DBELO will periodically review the availability of such financial institutions from the US DOT, Office of Small and Disadvantaged Business Utilization website at:
https://www.state.gov/s/dmr/sdbu/index.htm
Prompt Payment Mechanisms (§ 26.29 (a)(b))
Prompt Payment §26.29(a)
The City of Corona has established as part of its DBE program, the following contract clause to require prime contractors to pay subcontractors for satisfactory performance of their contract no later than 30 days from receipt of each payment made to the prime contractor:

The City of Corona will include the following clauses in each DOT-assisted prime contract:

The prime contractor agrees to pay each subcontractor under this prime contract for satisfactory performance of its contract no later than 30 days from the receipt of each payment the prime contract receives from the City of Corona. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of City of Corona. This clause applies to both DBE and non-DBE subcontracts. For Public Works projects the payment shall occur no later than 7 days after payment to the prime contractor.

Retainage §26.29(b)
The City of Corona has established the following contract clause to ensure prompt and full payment of retainage from the prime contractor to the subcontractors within 30 days after the subcontractor's work is satisfactorily completed:

Page 153 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 11 of 65
The prime contractor agrees further to return retainage payments to each subcontractor within 30 days after the subcontractors work is satisfactorily completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of City of Corona.

This clause applies to both DBE and non-DBE subcontracts.

The City will use one of the following methods to comply with this requirement:
1) The City may decline to hold retainage from prime contractors and prohibit prime contractors from holding retainage from subcontractors. 2) The City may decline to hold retainage from prime contractors and require a contract clause obligating prime contractors to make prompt and full payment of any retainage kept by prime contractor to the subcontractor within 30 days after the subcontractor's work is satisfactorily completed.
3) The City may hold retainage from prime contractors and provide for prompt and regular incremental acceptances of portions of the prime contract, pay retainage to prime contractors based on these acceptances, and require a contract clause obligating the prime contractor to pay all retainage owed to the subcontractor for satisfactory completion of the accepted work within 30 days after your payment to the prime contractor.

Monitoring and Enforcement §26.29(d)
City of Corona Transit Service may perform interim audits of contract payments to DBEs. The audit will review payments to DBEs to ensure that the actual amount paid to DBEs equals or exceeds the dollar amounts stated in the schedule of DBE participation.

Evidence of payment made to subcontractors must be provided to verify compliance. Credit toward overall or individual contract goals will only be given upon satisfactory evidence that payments were actually made to DBEs. Such evidence shall be provided by the prime contractor through the submission of a progress report on DBE utilization to the City of Corona Transit Service directed by the City of Corona Transit Service staff. The information collected includes:

1. Name of each DBE and Subcontractor.

2. Type of work assignment for each DBE or Subcontractor.

3. The dollars committed to each firm.

4. The dollars paid to each firm during the reporting period.

5. The dollars paid to the firm as a result of a change order or other cost modification.

Page 154 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 12 of 65

6. Contractor signature under penalty of perjury that it has complied with all prompt payment requirements per State laws and 49 CFR 26.29.

If City of Corona determines that the prime contractor has failed to comply with the prompt payment provisions set forth, City of Corona may give written notice to the prime contractor and the prime contractor’s surety that, if the default is not remedied within a specified period of time (at least 10 days), the contract may be terminated. The contract may be terminated for cause in accordance with the contract terms and conditions for failing to meet the prompt payment provisions.

Directory (§ 26.31)
City of Corona is a non-certifying member of the California Unified Certification Program (CUCP) , therefore, will utilize the California Unified Certification Program (CUCP) DBE Directory to identify certified DBEs eligible to participate as DBEs on federal assisted projects. City of Corona will make certain it identifies in the contract specification the availability of the CUCP DBE Directory for prime contractors to use in soliciting DBE subbids. The CUCP DBE Directory can be found at California Unified Certification Program (dbesystem.com). The CUCP directory lists the firm’s name, address, phone number, fax number, on-site visit date, North American Industry Classification System (NAICS) code, ethnicity and gender of ownership, and the type of work the firm has been certified to perform as a DBE under which the firm has been certified to perform as a DBE. A listing in the DBE directory does not in any way guarantee a firm’s capacity or ability to perform specific tasks or services, nor does a listing in the DBE directory pre-qualify the identified DBE firms with respect to licensing, bonding ability, competence, or financial responsibility. Users of DBE directory information are advised to conduct their own due diligence when engaging DBE-listed entities.

Overconcentration (§ 26.33)
While the City of Corona has not identified that overconcentration exists in the types of work that DBE’s perform, staff will monitor and analyze the type of contracts/subcontracts awarded to DBE’s to determine if there is an overconcentration in particular fields. If overconcentration is found to exist, the City of Corona will inform the FTADOT operating administration. The City will also take measures to encourage DBEs within the area of overconcentration to expand into other fields, and enhance its communication with its prime contractors and its outreach within the network of DBE vendors to address the overconcentration.

Page 155 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 13 of 65
Business Development Programs (§ 26.35)
City of Corona has not established a business development program. However, if City of Corona identifies the need for such a program in the future, the rationale for adopting such a program and a comprehensive description of the program, will be submitted as a significant update to the DBE Program Plan.

Monitoring and Enforcement Mechanisms (§ 26.37)
City of Corona will implement appropriate mechanisms to ensure compliance with the requirements in this part by all program participants.

City of Corona will implement monitoring and enforcement mechanism to ensure that work committed, or in the case of race-neutral participation, the work subcontracted, to all DBEs at contract award or subsequently is performed by the DBEs to which the work was committed or subcontracted to, and such work is counted according to the requirements of §26.55. The mechanism will include a written verification that the City has reviewed contracting records and monitored the work site to ensure the counting of each DBE's participation is consistent with its function on the contract.

City of Corona will implement the following running tally mechanisms:
1) With respect to achieving the overall goal, City of Corona will use a running tally that provides for a frequent comparison of cumulative DBE awards/commitments to DOTassisted prime contract awards to determine whether the current implementation of contract goals is projected to be sufficient to meet the annual goal. This mechanism will inform the City’s decisions to implement goals on contracts to be advertised according to the City’s established contract goal-setting process.
2) With respect to each DBE commitment, the City will use a running tally that provides for a frequent comparison of payments made to each listed DBE relative to the progress of work, including payments for such work to the prime contractor to determine whether the contractor is on track with meeting its DBE commitment and whether any projected shortfall exists that requires the prime contractor's good faith efforts to address to meet the contract goal pursuant to § 26.53(g).

See Attachment C – Monitoring and Enforcement Mechanisms for details.

City of Corona will implement appropriate mechanisms, including sanctions, suspension, debarment, and application of legal and contractual remedies available under Federal, state, and local laws, as deemed appropriate and necessary, to ensure compliance with the requirements

Page 156 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 14 of 65
by all program participants. Specifically, City of Corona will take the following monitoring and enforcement steps to ensure compliance with 49 CFR Part 26:
 Bring to the attention of the Department of Transportation any false, fraudulent, or dishonest conduct in connection with the program, so that DOT can take the steps (e.g., referral to the Department of Justice for criminal prosecution, referral to the DOT Inspector General, action under suspension and debarment or Program Fraud and Civil Penalties rules) provided in 26.109. Consider similar action under our own legal authorities, including responsibility determinations in future contracts.  Implement enforcement and monitoring processes/procedures outlined in DBE Contract Provisions contained in all engineering design/professional services, construction, transit and DOT-assisted contracts and this DBE Program Plan. This includes processes for Good Faith Efforts review and approval, counting DBE participation, monitoring and enforcing prompt payment, review and approval of substitutions and termination of DBEs on projects, requiring payment certifications from DBEs and Prime contractors attesting to total amounts paid to DBE firms, and contract closeout procedures that evaluate whether DBE goals have been met on each contract.
 Implement procedures to verify that work committed to DBEs at contract award is actually performed by the DBEs. This will be accomplished by document reviews of contracting records, project onsite visits and interviews conducted by CCTS staff and construction inspectors, review of payroll records for public work activity and a thorough review of invoices provided for services, as applicable. This will occur for each contract/project on which DBE’s are participating.
 Compile and maintain a report of awards/commitments and attainment, which is reported semi-annually to FTA.
 Keep a running tally of DBE utilization/attainment, including race-neutral DBE participation, as well as payments to DBE firms for work committed to them at the time of contract award. See Attachment D – DBE Utilization Attainment Report.  Track and delineate state/federal funding split to ensure that only the federal share is reported on Uniform Reports to US. DOT. This information is tracked in Excel spreadsheet and compared to City of Corona’s OneSolution System.
 Compare DBE commitment submitted at the beginning of each project with Written Certification at the end of the project to determine if DBE goal was met.

Page 157 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 15 of 65
written certification that this compliance monitoring effort took place in accordance with the Contract Close-Out Report. Refer to Attachment C – Self Certification Statement of Compliance.

The mechanisms include comparing the DBE commitments to actual DBE attainments.

Procedures to Monitor Compliance
Monitoring will occur after contract award and will be assigned to the City of Corona Transit Staff to monitor actual DBE participation through contractor and subcontractor reports. After the contract award, City of Corona Transit Staff will review the award documents for the portion of work each DBE and/or subcontractor will be performing and the dollar value of that work. With these documents, City of Corona Transit Staff will be able to determine the work to be performed by the listed DBE’s or subcontractors.

Construction Contract On-Site Monitoring
City of Corona will ensure that City of Corona Transit Staff and inspectors know what items of work each DBE is responsible for performing. Inspectors will notify City of Corona Transit Staff immediately of apparent violations. When a firm other than the listed DBE subcontractor is found performing the work, the City of Corona Transit Staff will notify the Contractor of the apparent discrepancy and potential loss of payment. Based on the Contractor’s response, City of Corona will take appropriate action. If the Contractor fails to adequately explain why there is a discrepancy, payment for the work will be withheld and a letter will be sent to the contractor referencing the applicable specification violation and the required withholding of payment.

This monitoring effort is fully incorporated into DBE On-site Monitoring process. The observed work will be reconciled against the DBE commitment.

Record Keeping and Final Utilization Report of DBE
The Contractor shall maintain records showing each listed DBE and first-tier subcontractor. These records will be made available for inspection upon request by any authorized representative of City of Corona, or FTA. The records shall include:

1. Contract number, DBE goal commitment and brief description of the work.

2. Name and address of each DBE listed and certifications held.

3. The dollar amount of each subcontract, including supplies and services.

4. Reports from Contractor with an accounting of actual expenditures to DBEs and the progress to date in meeting the DBE participation commitment.

5. Evidence to support subcontractor substitution requests, where appropriate.

6. Evidence to support prompt payments made, with date of payment and total dollar figure paid to each DBE, subcontractor and suppliers.

7. The DBE prime contractor shall also show the date of work performed by their own forces along with the corresponding dollar value of the work claimed toward DBE goals.

Page 158 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 16 of 65
Contract Close-Out Report
When a contract has been completed, the Contractor will provide a summary of the records stated above. The DBE utilization information will be documented on the form "Final ReportUtilization of Disadvantaged Business Enterprises (DBE), First-Tier Subcontractors" will be submitted to City of Corona. City of Corona Transit Staff will compare the completed form to the contractor’s completed "Designation of Subcontractors". The DBE’s shown on the completed "Final Report-Utilization of Disadvantaged Business Enterprises (DBE), First-Tier Subcontractors" form should be the same as those originally listed unless an authorized substitution was allowed, or the contractor used more DBE’s and they were added. The dollar amount should reflect any changes made in planned work done by the DBE. The Contractor will be required to explain in writing why the names of the subcontractors, the work items or dollar figures are different from what was originally shown on the completed "Designation of Subcontractors" form when:
 There have been no changes made by the RE.
 The Contractor has not provided a sufficient explanation in the comments section of the completed "Final Report-Utilization of Disadvantaged Business Enterprises (DBE), FirstTier Subcontractors" form.

The explanation will be attached to the completed "Final Report-Utilization of Disadvantaged Business Enterprises (DBE), First-Tier Subcontractors" form for submittal. The City of Corona staff will file this report in the project records. The "Final Report-Utilization of Disadvantaged Business Enterprises (DBE), First-Tier Subcontractors" form is available on the California Department of Transportation, Local Agency Program Manual Forms, Chapter 17 website at Forms | Caltrans.

Administrative Remedies for Non-Compliance
A Contractor deemed to be in non-compliance shall be informed in writing, by certified mail, by the DBELO or designee, that administrative remedies shall be imposed for failure to meet DBE committed goal and/or submit evidence of good faith efforts to the satisfaction of the City of Corona. The Contractor shall be given five (5) working days from the date of the notice to file a written appeal to the DBELO. Failure to respond within the five (5) day period shall constitute a waiver of appeal. The notice shall state the specific administrative remedy to be imposed.

The City of Corona may schedule an informal hearing to gather additional facts and evidence and shall issue a final determination on the matter within five (5) working days of receipt of the written appeal. The written decision of the CITY OF CORONA TRANSIT SERVICE or designee is final and there is no further appeal.

The CITY OF CORONA TRANSIT SERVICE reserves the right to initiate Administrative Remedies, which may include but are not limited to:

Page 159 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 17 of 65
 Withholding of payments due equivalent to the difference between the actual DBE attainment and the overall project and/or contract specific DBE goal.  Suspension of payment to the Contractor of any other monies held by the City of Corona; and
 Termination of the Contract in part or in whole.

The Administrative Remedies shall not apply if the Contractor is able to demonstrate to the satisfaction of the City of Corona that it exercised good faith efforts in an attempt to meet the contract-specific DBE goal, where applicable.

The City of Corona will bring to the attention of the FTA any false, fraudulent, or dishonest conduct in connection with the program, so that FTA can take the steps (e.g., referral to the U.S.

Department of Justice for criminal prosecution, referral to the USDOT Inspector General, action under suspension and debarment or Program Fraud and Civil Penalties rules) provided in §26.109.

The City of Corona will also consider similar action under its own legal authorities, including responsibility determinations in future contracts.

The requirements of this section equally apply to a DBE operating as a prime contractor.

Fostering Small Business Participation (§ 26.39)
City of Corona’s DBE program includes an element to structure contracting requirements to facilitate competition by small business concerns, taking all reasonable steps to eliminate obstacles to their participation, including unnecessary and unjustified bundling of contract requirements that may preclude small business participation in procurements as prime contractors or subcontractors.

This element will be submitted to the appropriate DOT operating administration for approval as part of the City’s DBE program. As part of this program, the City may include, but is not limited to, the following strategies:
1) Establishing a race-neutral small business set-aside for prime contracts under a stated amount (e.g., $1 million).
2) In multi-year design-build contracts or other large contracts (e.g., for “megaprojects”) requiring bidders on the prime contract to specify elements of the contract or specific

Page 160 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 18 of 65
subcontracts that are of a size that small businesses, including DBEs, can reasonably perform.
3) On prime contracts not having DBE contract goals, requiring the prime contractor to provide subcontracting opportunities of a size that small businesses, including DBEs, can reasonably perform, rather than self-performing all the work involved. 4) Identifying alternative acquisition strategies and structuring procurements to facilitate the ability of consortia or joint ventures consisting of small businesses, including DBEs, to compete for and perform prime contracts.
5) To meet the portion of the City’s overall goal, the City will project to meet through raceneutral measures, ensuring that a reasonable number of prime contracts are of a size that small businesses, including DBEs, can reasonably perform.

The City will actively implement its program elements to foster small business participation to ensure the City meets the requirement of good faith implementation of its DBE program.

City of Corona will incorporate the following non-discriminatory element to its DBE program, in order to facilitate competition on DOT-assisted public works projects by small business concerns (both DBEs and non-DBE small businesses):
 Breaking out procurements or unbundling procurement actions to provide greater opportunities for Disadvantaged Business Enterprises (DBEs), small and minority firms, and women’s business enterprises to participate.
 For procurements that require competition, City of Corona will seek out small businesses to compete for these procurement actions by actively including DBE and non-DBE small business firms on the solicitation lists.
 For micro purchases that do not require competition, seeking out DBE and non-DBE small business firms to satisfy these requirements.

For the purpose of this program, small businesses are as defined in the Code of Federal Regulations, Title 49, Part 26.65 (Attachment I) and the Small Business Act and Small Busines Administration regulations under Title 13, part 121

SUBPART C - GOALS, GOOD FAITH EFFORTS, AND COUNTING
Set-asides or Quotas (§ 26.43)
City of Corona does will not use quotas in any way in the administration of this DBE program.

Page 161 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 19 of 65
City of Corona will not set-aside contracts for DBEs on DOT-assisted contracts subject to this part, except that, in limited and extreme circumstances, the City may use set-asides when no other method could be reasonably expected to redress egregious instances of discrimination.

City of Corona may consider establishing a Small Business set-aside program as allowed in §26.39 – Foster Small Business Participation. If City of Corona selects to implement a small business setaside program, it will follow the requirements under §26.21 - DBE Program Updates.

Overall Goals (§ 26.45)
A description of the methodology to calculate the overall goal and the goal calculations can be found on the City’s website at: in Attachment E – Overall DBE Goal and Methodology, to this program. Public Transit | City of Corona
In accordance with Section 26.45(f), City of Corona will submit its Triennial DBE overall goal by August 1 at three (3) year intervals, based on the FTA schedule. The City of Corona will express the overall contract goal as a percentage of the total amount of the federal assistance received.

The process generally used to establish the overall DBE goal is as follows:

1. The overall DBE goal represents the amount of FTA-assisted funds the City anticipates expending over three Federal Fiscal year;, therefore, tThe City establishesd a reasonable estimate of FTA- funded contracting activities for the covered federal fiscal years.

2. Thethe two-step goal setting process required by the 49 CFR Part 26; Section 26.45 will be used to determine the City’s base figure. The two steps for setting an overall goal are:
i. Step One: Establish a base figure for the relative availability of DBEs. The base figure is intended to be a measurement of the current ready, willing and able DBEs as a percentage of all ready, willing and able businesses to perform the Citys anticipated FTA-assisted contracts in the City’s market area. The City uses the following method to determining the base figure:

1. City categorized these contracting opportunities by NAICS Code.

2. The City reviewed its contracting database and established the Counties of Riverside, San Bernardino & Orange as its market area, where the majority of contracting occurs.

3. The City then developed an estimate of ready, willing, and able DBE’s based on the State of California Unified Contracting Database for the Market Area.

4. The City developed the number of overall firms ready, willing, and available, by NAICS Code, utilizing US Census Data.

Page 162 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 20 of 65

5. When necessary, the City evaluated both DBE’s and Non-DBE’s to ensure the accuracy of the NAICS code area, and the firms ready, willing, and able, to satisfy the City’s requirements.

6. The City then multiplied the dollar value of the opportunities by the result of dividing the number of DBE firms by the number of total firms.

7. The City then totaled these amounts to arrive at the step one goal. ii. Step Two: Determine the base figure adjustment, if necessary. During this step, the City will examine relevant and reliable data in the City’s market area to determine if an adjustment to the base figure is warranted. The consideration of an adjustment is intended to account for any impact the relevant factors may have on DBEs contracting opportunities with the City. The following factors will be considered for the Step Two adjustment:

1. Past DBE goal attainment

2. Evidence from Disparity Studies

3. The City’s Bidder List

2. City categorized these contracting opportunities by NAICS Code.

3.1. The City reviewed its contracting database and established the Counties of Riverside, San Bernardino & Orange as its market area, where the majority of contracting occurs.

4.1. The City then developed an estimate of ready, willing, and able DBE’s based on the State of California Unified Contracting Database for the Market Area.

5.1. The City developed the number of overall firms ready, willing, and available, by NAICS Code, utilizing US Census Data.

6.1. When necessary, the City evaluated both DBE’s and Non-DBE’s to ensure the accuracy of the NAICS code area, and the firms ready, willing, and able, to satisfy the City’s requirements.

7.1. The City then multiplied the dollar value of the opportunities by the result of dividing the number of DBE firms by the number of total firms.

8.1. The City then totaled these amounts to arrive at the step one goal.

Before establishing the overall goal, the DBELO or staff designated by the DBELO City of Corona will consult with the various organizations in the market area, such as Chamber of Commerce, minority, women-owned and small business groups, community organizations, the U.S. Census Bureau, and the CUCP to obtain information concerning the relative availability of disadvantaged DBE and non-DBE firms, and non-disadvantaged businesses, the effects of discrimination on

Page 163 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 21 of 65
opportunities for DBEs, and City of Corona’sthe City’s efforts to establish a level playing field for the participation of DBEs.

Following this consultation, City of Coronathe City will publish a notice of the proposed overall goal, informing the public that the proposed goal and its rationale are available for inspection during normal business hours at the City Clerk’s office for 30 days following the date of the notice.

The notice will be posted on City’s official Internet Website. The notice informs the public that the City and DOT will accept comments on the goals for 30 days from the date of the notice. If the proposed goal changes following review, the revised goal will be posted on the City’s official Internet Web site.

In accordance with Section 26.45(f), the City will submit its overall goal to DOT on August 1 at three-year intervals based on the schedule established by the FTA. City of Corona’s overall goal submission to DOT will include: the goal (including the breakout of estimated race-neutral and race-conscious participation, as appropriate); a copy of the methodology, worksheets, etc., used to develop the goal; a summary of information and comments received during the consultation period and proof of publication of the goal on the City’s website.

While the City is required to submit an overall goal to FTA every three years, the overall goal the provisions of Section 26.47© apply to each fiscal year during the three-year period. City of Corona will begin using the overall goal on October 1 of each year, unless we have received other instructions from DOT. If a project- based goal is established, then the goal will be utilized by the time of the first solicitation for a DOT-assisted contract for the project. The overall DBE goal will remain effective for the duration of the three-year period established and approved by the FTA.

1. Analyze in detail the reason for the difference between the overall goal and the actual awards/commitments;

2. Establish specific steps and milestones to correct the problems identified in the analysis; and

3. Establish and implement a corrective action plan, and maintain information/records regarding the analysis and efforts made and make available to FTA on request for their review.

Page 164 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 22 of 65
Transit Vehicle Manufacturers Goals (§ 26.49)
City of Corona will require each transit vehicle manufacturer, as a condition of being authorized to bid or propose on FTA-assisted transit vehicle procurements, to certify that it has complied with the requirements of this section. The City will not include FTA assistance used in transit vehicle procurements in the base amount from which the City’s overall goal was calculated.

Alternatively, City of Corona may, at its discretion and with FTA approval, establish projectspecific goals for DBE participation in the procurement of transit vehicles in lieu of the TVM complying with this element of the program.

Within 30 days of becoming contractually required to procure a transit vehicle, the City will report to FTA the following:

1. The name of the TVM that was the sucessful biddger; and

2. The Federal share of the contractual commitment at that time.

CCTS will submit within 30 days of making an award, the name of the successful bidder, and the total dollar value of the contract.

See Attachment DF: The TVM Certification is attached hereto Breakout of Estimated Race-Neutral & Race-Conscious Participation (§

26.51(a-c))
City of Corona will make efforts to meet the maximum feasible portion of the overall goal by using race-neutral means of facilitating race-neutral DBE participation. Race-neutral DBE participation includes any time a DBE wins a prime contract through customary competitive procurement procedures, or is awarded a subcontract on a prime contract that does not carry a DBE contract goal. , or even if there is a DBE goal, wins a subcontract from a prime contractor that did not consider its DBE status in making the award (e.g., a prime contractor that uses a strict low bid system to award subcontracts).

The City will implement the following race-neutral measures, which are aimed at increasing DBE and other small business participation:

1. Arranging solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate participation by DBEs and other small businesses and by making contracts more accessible to small businesses, by means such as those provided under § 26.39;
Commented [SP3]: Check order number

Page 165 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 23 of 65

2. Providing assistance in overcoming limitations such as inability to obtain bonding or financing (e.g., by such means as simplifying the bonding process, reducing bonding requirements, eliminating the impact of surety costs from bids, and providing services to help DBEs, and other small businesses, obtain bonding and financing);

3. Providing technical assistance and other services;

4. Carrying out information and communications programs on contracting procedures and specific contract opportunities (e.g., ensuring the inclusion of DBEs, and other small businesses, on recipient mailing lists for bidders; ensuring the dissemination to bidders on prime contracts of lists of potential subcontractors; provision of information in languages other than English, where appropriate);

5. Implementing a supportive services program to develop and improve immediate and long-term business management, record keeping, and financial and accounting capability for DBEs and other small businesses;

6. Providing services to help DBEs, and other small businesses, improve long-term development, increase opportunities to participate in a variety of kinds of work, handle increasingly significant projects, and achieve eventual self-sufficiency;

7. Establishing a program to assist new, start-up firms, particularly in fields in which DBE participation has historically been low;

8. Ensuring distribution of your DBE directory, through print and electronic means, to the widest feasible universe of potential prime contractors; and

9. Assisting DBEs, and other small businesses, to develop their capability to utilize emerging technology and conduct business through electronic media.

Each time the City submits the overall goal for review by the concerned operating administration, RTA will also submit its projection of the portion of the goal that it expects to meet through raceneutral means and the basis for that projection. This projection is subject to approval by the concerned operating administration, in conjunction with its review of the City’s overall goal.

Race-neutral measures, as described in City of Corona’s Overall DBE Goal and Methodology states, “In conformance with Title 49 CFR Part 26; “Participation by Disadvantaged Business Enterprises in Department of Transportation Programs” and in further response to FTA Notices issued to Public Transportation Providers regarding DOT’s DBE Program and Race-Neutral Policy Implementation Guidance, City of Corona is required to submit and implement a strictly RaceNeutral Overall DBE Goal for FFY 2018-2020, due to the absence of readily available evidence of discrimination and its effects in its marketplace. (Refer to Attachment E - Overall DBE Goal and Methodology for FFY 2018-2020).

This section of the program will be updated annually when and if the goal calculation is updated.

Page 166 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 24 of 65
Contract Goals (§ 26.51(d-g))
The City will use contract goals to meet any portion of the overall goal that the City does not project being able to meet using race-neutral means.

The following provisions apply to the use of contract goals:

1. The City may use contract goals only on those DOT-assisted contracts that have subcontracting possibilities.

2. The City is not required to set a contract goal on every DOT-assisted contract. The city is not required to set each contract goal at the same percentage level as the overall goal.

The goal for a specific contract may be higher or lower than that percentage level of the overall goal, depending on such factors as the type of work involved, the location of the work, and the availability of DBEs for the work of the particular contract. However, over the period covered by the overall goal, the City will set contract goals so that they will cumulatively result in meeting any portion of the overall goal that the City does not project being able to meet through the use of race-neutral means.

3. Operating administration approval of each contract goal is not necessarily required.

However, operating administrations may review and approve or disapprove any contract goal that the City establishes.

4. The City’s contract goals must provide for participation by all certified DBEs and must not be subdivided into group-specific goals.

Contract goals are established so that, over the period to which the overall goal applies, they will cumulatively result in meeting any portion of our overall goal that is not projected to be met through the use of race-neutral means. We will establish contract goals only on those DOTassisted contracts that have subcontracting possibilities. We need not establish a contract goal on every such contract, and the size of contract goals will be adapted to the circumstances of each such contract (e.g., type and location of work, availability of DBEs to perform the particular type of work.) We will express our contract goals as a percentage of [total amount of a DOTassisted contract] or [the Federal share of a DOT-assisted contract]. [Note: Recipients can choose either approach; program should mention which choice the recipient made].

City of Corona will meet the maximum feasible portion of its overall goal using race-neutral means of facilitating DBE participation. In order to do so, City of Corona will participate in:

2.1. Providing assistance in overcoming limitations such as inability to obtain bonding or financing (e.g., by such means as simplifying the bonding process, reducing bonding

Page 167 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 25 of 65
requirements, eliminating the impact of surety costs from bids, and providing services to help DBEs, and other small businesses, obtain bonding and financing);

3.1. Providing technical assistance and other services;

4.1. Carrying out information and communications programs on contracting procedures and specific contract opportunities (e.g., ensuring the inclusion of DBEs, and other small businesses, on recipient mailing lists for bidders; ensuring the dissemination to bidders on prime contracts of lists of potential subcontractors; provision of information in languages other than English, where appropriate);

5.1. Implementing a supportive services program to develop and improve immediate and long-term business management, record keeping, and financial and accounting capability for DBEs and other small businesses;

6.1. Providing services to help DBEs, and other small businesses, improve long-term development, increase opportunities to participate in a variety of kinds of work, handle increasingly significant projects, and achieve eventual self-sufficiency;

7.1. Establishing a program to assist new, start-up firms, particularly in fields in which DBE participation has historically been low;

8.1. Ensuring distribution of your DBE directory, through print and electronic means, to the widest feasible universe of potential prime contractors; and

9.1. Assisting DBEs, and other small businesses, to develop their capability to utilize emerging technology and conduct business through electronic media.

Good Faith Efforts Procedures (§ 26.53)
Demonstration of good faith efforts (§ 26.53(a) & (c))
When the City In the event the City of Corona Transit Service establishes an individual DBE contract goal, the City will not award the contract only to a bidder/offeror who makes good faith efforts to meet it. The City will determine that a bidder/offeror has made good faith efforts if the bidder/offeror does either of the following things:to a bidder who does not either: 1) meet the contract goal with verified, countable DBE participation; or 2) documents it has made adequate good faith efforts to meet the DBE contract goal. It is the obligation of the bidder/offeror to demonstrate it has made sufficient good faith efforts prior to submission of its bid. Examples of good faith efforts are found in Appendix A of 49 CFR Part 26 (Attachment H).

1. Documents that it has obtained enough DBE participation to meet the goal; or

Page 168 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 26 of 65
basis that the bidder/offeror failed to meet the goal. See Appendix A Title 49 Part 26 (Attachment E) for guidance in determining the adequacy of a bidder/offeror's good faith efforts.

The Department Coordinator will be responsible for determining whether a bidder/offeror who has not met the contract goal has documented sufficient good faith efforts to be regarded as responsive.

City of Corona Transit Service staffThe City will ensure that all information is complete and accurate and adequately documents the bidder/offeror's good faith efforts before we committing to the performance of the contract by the bidder/offeror.

Information to be submitted (§ 26.53(b))
City of Corona Transit ServiceThe City treats bidder/offers' compliance with good faith efforts' requirements as a matter of responsivenessresponsibility.

Each solicitation for which a contract goal has been established will require the bidders/offerors to submit the following information by the time the bid or proposal is due:

1. The names and addresses of DBE firms that will participate in the contract;

2. A description of the work that each DBE will perform;

3. The dollar amount of the participation of each DBE firm participating;

4. Written and signed documentation of commitment to use a DBE subcontractor whose participation it submits to meet a contract goal;

5. Written and signed confirmation from the DBE that it is participating in the contract as provided in the prime contractor’s commitment; and

6. If the contract goal is not met, evidence of good faith efforts.

Administrative reconsideration (§ 26.53(d))
If Within ten (10) days of being informed by the City of Corona Transit Servicedetermines that the apparent sucessful it is not responsive because it has not documented sufficient good faith efforts, a bidder/offeror failed to meet the requirements of good aith efforts, the City will, before awarding the contract, provide the bidder/offer an oopportunity for may request administrative reconsideration. Bidder/offerors should make this request in writing to the following Commented [SP4]: Reference attachment

Page 169 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 27 of 65
reconsideration official: Community Services Director, Community Services 400 S. Vicentia Ave., Corona, CA 92882. The reconsideration official will not have played any role in the original determination that the bidder/offeror did not document sufficient good faith efforts.

1. As part of this reconsideration, the bidder/offeror will have the opportunity to provide written documentation or argument concerning the issue of whether it met the goal or made adequate good faith efforts to do so.

2. The City’s decision on the reconsideration must be made by an official who did not take part in the original determination that the bidder/offeror failed to meet the goal or make adequate good faith efforts to do so.

3. The bidder/offeror will have the opportunity to meet in person with our reconsideration official to discuss the issue of whether it met the goal or made adequate good faith efforts to do.

4. WeThe City will send the bidder/offeror a written decision on reconsideration, explaining the basis for finding that the bidder did or did not meet the goal or make adequate good faith efforts to do so.

5. The result of the reconsideration process is not administratively appealable to the Department of Transportation.

Bidder/offerors should make this request in writing to the following reconsideration official:

CommunityPublic Works Services Director, Community ServicesPublic Works, 400 S. Vicentia Ave. Suite 210, Corona, CA 92882. The reconsideration official will not have played any role in the original determination that the bidder/offeror did not document sufficient good faith efforts.

The bidder/offeror will have the opportunity to meet in person with our reconsideration official to discuss the issue of whether it met the goal or made adequate good faith efforts to do. We will send the bidder/offeror a written decision on reconsideration, explaining the basis for finding that the bidder did or did not meet the goal or make adequate good faith efforts to do so. The result of the reconsideration process is not administratively appealable to the Department of Transportation.

Page 170 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 28 of 65
proposal. The OEPP replaces the requirement to provide the information required in 26.53(b) of this section that applies to design-bid-build contracts. To be considered responsive, the OEPP must include a commitment to meet the goal and provide details of the types of subcontracting work or services (with projected dollar amount) that the proposer will solicit DBEs to perform.

The OEPP must include an estimated time frame in which actual DBE subcontracts would be executed. Once the design-build contract is awarded, the recipient must provide ongoing monitoring and oversight to evaluate whether the design-builder is using good faith efforts to comply with the OEPP and schedule. The recipient and the design-builder may agree to make written revisions of the OEPP throughout the life of the project, e.g., replacing the type of work items the design-builder will solicit DBEs to perform and/or adjusting the proposed schedule, as long as the design-builder continues to use good faith efforts to meet the goal.

Good Faith Efforts when a DBE is replaced on a contract (§ 26.53(f)) The City of Corona Transit Service will require a contractor require that a prime contractor not terminate a DBE or any portion of its work without the City’s prior written consent, unless the City causes the termination or reduction. A termination includes any reduction or underrun in work listed for a DBE not caused by a material change to the prime contract by the recipient. This requirement applies to instances that include, but are not limited to, when a prime contractor 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. to make good faith efforts to replace a DBE that is terminated or has otherwise failed to complete its work on a contract with another certified DBE, to the extent needed to meet the contract goal. We will require the prime contractor to notify the DBE Liaison officer immediately of the DBE's inability or unwillingness to perform and provide reasonable documentation.

The City may provide such a written consent only if the City agrees that the prime contractor has good cause to terminate the listed DBE or any portion of its work.

Good cause does not exist if the prime contractor seeks to terminate a DBE or any portion of its work that it relied upon to obtain the contract so that the prime contractor can self-perform the work for which the DBE contractor was engaged, or so that the prime contractor can substitute another DBE or non-DBE contractor after contract award. For purposes of this paragraph , good cause includes the following circumstances:
i. The listed DBE subcontractor fails or refuses to execute a written contract; ii. 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

Page 171 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 29 of 65
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; iii. The listed DBE subcontractor fails or refuses to meet the prime contractor's reasonable, nondiscriminatory bond requirements;
iv. The listed DBE subcontractor becomes bankrupt, insolvent, or exhibits credit unworthiness;
v. The listed DBE subcontractor is ineligible to work on public works projects because of suspension and debarment proceedings pursuant to 2 CFR parts 180 and 1200 or applicable State law;
vi. RTA has determined that the listed DBE subcontractor is not a responsible contractor; vii. The listed DBE subcontractor voluntarily withdraws from the project and provides to you written notice of its withdrawal;
viii. The listed DBE is ineligible to receive DBE credit for the type of work required; ix. A DBE owner dies or becomes disabled with the result that the listed DBE contractor is unable to complete its work on the contract; and
x. Other documented good cause that you determine compels the termination of the DBE subcontractor.

Before transmitting to the City a request to terminate a DBE subcontractor or any portion of its work, the prime contractor must give notice in writing to the DBE subcontractor, with a copy to the City sent concurrently, of its intent to request to terminate and the reason for the proposed request.

The prime contractor's written notice must give the DBE 5 days to respond, advising the City and the contractor of the reasons, if any, why it objects to the proposed termination of its subcontract/or portion thereof and why the City should not approve the prime contractor's request. If required in a particular case as a matter of public necessity (e.g., safety), the City may provide a response period shorter than 5 days.

In addition to post-award terminations, the provisions of this section apply to pre-award deletions or changes to DBEs or their listed work put forward by offerors in negotiated procurements
When a DBE subcontractor or any portion of its work is terminated by the prime contractor or the firm fails to complete its work on the contract for any reason, including when work committed to a DBE is not countable or reduced due to overestimations made prior to award, the prime contractor must use good faith efforts to include additional DBE participation to the extent needed to meet the contract goal. The good faith efforts shall be documented by the

Page 172 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 30 of 65
contractor. If the City requests documentation under this provision, the contractor shall submit the documentation within 7 days, which may be extended for an additional 7 days, if necessary, at the request of the contractor, and the City shall provide a written determination to the contractor stating whether or not good faith efforts have been demonstrated.

In this situation, CCTS will require the prime contractor to obtain prior approval of the substitute DBE and to provide copies of new or amended subcontracts, or documentation of good faith efforts. If the contractor fails or refuses to comply in the time specified, our contracting office will issue an order stopping all or part of payment/work until satisfactory action has been taken.

If the contractor still fails to comply, the contracting officer may issue a termination for default proceeding.

The City will include in each prime contract the contract clause required by § 26.13(b) stating that failure by the contractor to carry out the requirements of this part is a material breach of the contract and may result in the termination of the contract or such other remedies set forth in that section the City deems appropriate if the prime contractor fails to comply with the requirements of this section.

Sample Bid Specification:

The requirements of 49 CFR Part 26, Regulations of the U.S. Department of Transportation, apply to this contract. It is the policy of the [Name of Recipient] to practice nondiscrimination based on race, color, sex, or national origin in the award or performance of this contract. All firms qualifying under this solicitation are encouraged to submit bids/proposals. Award of this contract will be conditioned upon satisfying the requirements of this bid specification. These requirements apply to all bidders/offerors, including those who qualify as a DBE. A DBE contract goal of ____ percent has been established for this contract. The bidder/offeror shall make good faith efforts, as defined in Appendix A, 49 CFR Part 26 (Attachment HE), to meet the contract goal for DBE participation in the performance of this contract.

The bidder/offeror will be required to submit the following information: (1) the names and addresses of DBE firms that will participate in the contract; (2) a description of the work that each DBE firm will perform; (3) the dollar amount of the participation of each DBE firm participating; (4) Written documentation of the bidder/offeror's commitment to use a DBE subcontractor whose participation it submits to meet the contract goal; (5) Written confirmation from the DBE that it is participating in the contract as provided in Commented [SP5]: Confirm attachment

Page 173 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 31 of 65
the commitment made under (4); and (5) if the contract goal is not met, evidence of good faith efforts.

Counting DBE Participation (§ 26.55)
City of Corona Transit ServiceThe City will count DBE participation toward overall and contract goals as provided in 49 CFR 26.55.

SUBPART D and E - CERTIFICATION STANDARDS and

PROCEDURES
DBE Certification Procedures (§ 26.61 - 26.91)
In order to reduce administrative burden associated with determining the eligibility of firms to participate as DBEs in FTA-assisted contracts, City of Coronathe City will rely on the California Unified Certification Program (CUCP) to perform the DBE certification determinations.

City of Corona is a non-certifying member of the CUCP; and will utilize the CUCP certification directory (Caltrans - Disadvantaged Business Enterprise System (dbesystem.com)) to determine the eligibility of DBEs, their work codes, etc., in order to participate as DBEs on City of Corona Transit Service projects. . Information about the DBE certification process can be obtained from the following websites:

Information: Disadvantaged Business Enterprises (DBE) | Caltrans To apply for certification: Caltrans - Disadvantaged Business Enterprise System (dbesystem.com) See Attachment GF – CUCP Roster of Certifying Agencies.

SUBPART F - COMPLIANCE AND ENFORCEMENT
Information, Confidentiality, Cooperation (§ 26.109)
Confidentiality
The City of Corona will safeguard from disclosure ing to third parties, information that may reasonably be regarded as confidential business information, consistent with Federal, state, and Commented [SP6]: Confirm attachment

Page 174 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 32 of 65
local law. California Government Code §6250 provides for the disclosure of certain public information. Since the City of Corona is not a Certifying Entity, personal information is not routinely handled by the City.

Notwithstanding any contrary provisions of state or local law, the City of Corona will not release personal financial information submitted in response to the personal net worth requirement to a third party (other than DOT) without the written consent of the submitter.

Monitoring Payments to DBEs(26.37)
The City of Corona will require prime contractors to maintain records and documents of payments to DBEs for three years following the performance of the contract. These records will be made available for inspection upon request by any authorized representative of the City of Corona or DOT. This reporting requirement also extends to any certified DBE subcontractor.

The City will require reporting by the prime contractor of actual payments to DBE firms for work committed to them at the time of contract award.

The City of Corona will perform interim audits of contract payments to DBEs. The audit will review payments to DBE subcontractors to ensure that the actual amount paid to DBE subcontractors equals or exceeds the dollar amounts states stated in the schedule of DBE participation.

Page 175 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 33 of 65

ATTACHMENTS
Attachment A City of Corona Transit Service - Organizational Chart with DBELO Attachment B Bidders List Form
Attachment C Monitoring and EnforcementStatement of Compliance – Self Certification
Attachment D DBE Utilization Attainment Report
Attachment E Overall DBE Goal and Methodology
Attachment DF TVM Certification
Attachment GE Regulations: 49 CFR part 26 Roster of Certifying Agencies Attachment HF Regulations: 49 CFR part 26CUCP Roster of Certifying Agencies

Page 176 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 34 of 65
Attachment A – Organizational Chart

Page 177 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 35 of 65

Page 178 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 36 of 65
Attachment B – Bidders List Form

Page 179 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 37 of 65

Page 180 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 38 of 65

Page 181 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 39 of 65
Attachment C – Statement of Compliance-Self CertificationMonitoring and Enforcement

Page 182 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 40 of 65
Disadvantaged Business Enterprise (DBE)
Self-Certification

STATEMENT OF COMPLIANCE
Project No: ____________
Project Name: ________________________
I, __________________________________, undersigned, have the authority to act for and on behalf of the CITY OF CORONA TRANSIT SERVICE, and certify under penalty of perjury that this federal-aided project has been monitored in conformance with Part 26 of Title 49 of the Code of Federal Regulations—DBE Regulations.

Date: _________________________ Signature: ___________________________________ Comments/Exceptions (Explanation):

Enclosures: Copies of the DBE Final Payment Record
Maintain in contract file.
(Name & Title)

Page 183 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 41 of 65
Attachment D – DBE Utilization Attainment Report

Page 184 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 42 of 65

Page 185 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 43 of 65
Attachment E – Overall DBE Goal and Methodology

Page 186 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 44 of 65

Page 187 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 45 of 65

Page 188 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 46 of 65

Page 189 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 47 of 65

Page 190 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 48 of 65

Page 191 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 49 of 65

Page 192 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 50 of 65

Page 193 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 51 of 65

Page 194 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 52 of 65

Page 195 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 53 of 65

Page 196 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 54 of 65

Page 197 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 55 of 65

Page 198 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 56 of 65

Page 199 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 57 of 65
Attachment C – Monitoring and Enforcement

Page 200 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 58 of 65
Attachment FD – Transit Vehicle Manufacturer’s Certification

Page 201 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 59 of 65

Page 202 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 60 of 65
Attachment HE – Code of Federal Regulations: Title 49 CFR Part 26

Page 203 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 61 of 65
Attachment GF – Roster of Certifying Agencies

Page 204 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 62 of 65

Page 205 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 63 of 65

Page 206 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 64 of 65

Page 207 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program FFY 2024-202Update May 20256 Page 65 of 65
Attachment H – Code of Federal Regulations: Title 49 CFR Part 26

Page 208 of 1035 ends

DISADVANTAGED

BUSINESS

ENTERPRISE

PROGRAM
City of Corona Transit Service
Program Update: May 2025

Page 209 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 1 of 31 Table of Contents
Background ............................................................................................................................................3 Disadvantaged Business Enterprise Objectives and Policy Statement.................4 SUBPART A – GENERAL REQUIREMENTS..............................................................................5 DBE Program Objectives/Policy Statement (§ 26.1, 26.23)............................................................5 Applicability (§ 26.3)...............................................................................................................................5 Definitions (§ 26.5).................................................................................................................................5 Non-discrimination Requirements (§ 26.7).........................................................................................5 Record Keeping, Reporting and Bidder’s List Requirements (§ 26.11 (b)(c))..............................5 Reporting § 26.11 (b) ............................................................................................................................5 Bidder’s List § 26.11 (c) .........................................................................................................................6 Federal Financial Assistance Agreement and Contract Assurance (§ 26.13 (a)(b))...................6 Federal Financial Assistance Agreement Assurance § 26.13 (a)...........................................................6 Contract Assurance § 26.13 (b).............................................................................................................7 SUBPART B - ADMINISTRATIVE REQUIREMENTS.............................................................7 DBE Program Updates (§ 26.21).........................................................................................................7 Policy Statement (§ 26.23) ...................................................................................................................8 DBE Liaison Officer (DBELO) (§ 26.25) .............................................................................................8 DBE Financial Institutions (§ 26.27)....................................................................................................9 Prompt Payment Mechanisms (§ 26.29 (a)(b)) .................................................................................9 Prompt Payment §26.29(a)...................................................................................................................9 Retainage §26.29(b)............................................................................................................................10 Monitoring and Enforcement §26.29(d) .............................................................................................10 Directory (§ 26.31) ...............................................................................................................................11 Overconcentration (§ 26.33)...............................................................................................................11 Business Development Programs (§ 26.35) ....................................................................................11 Monitoring and Enforcement Mechanisms (§ 26.37)......................................................................12 Fostering Small Business Participation (§ 26.39) ...........................................................................12 SUBPART C - GOALS, GOOD FAITH EFFORTS, AND COUNTING..............................13 Set-asides or Quotas (§ 26.43)..........................................................................................................13 Overall Goals (§ 26.45) .......................................................................................................................13 Goal Setting and Accountability (§ 26.47)........................................................................................15

Page 210 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 2 of 31 Transit Vehicle Manufacturers Goals (§ 26.49)...............................................................................16 Breakout of Estimated Race-Neutral & Race-Conscious Participation (§ 26.51(a-c)) ..............16 Contract Goals (§ 26.51(d-g)) ............................................................................................................17 Good Faith Efforts Procedures (§ 26.53)..........................................................................................18 Demonstration of good faith efforts (§ 26.53(a) & (c)).......................................................................18 Information to be submitted (§ 26.53(b))...........................................................................................19 Administrative reconsideration (§ 26.53(d)).......................................................................................19 Design-Build (§ 26.53(e)).....................................................................................................................20 Good Faith Efforts when a DBE is replaced on a contract (§ 26.53(f))................................................20 Counting DBE Participation (§ 26.55)...............................................................................................23 SUBPART D and E - CERTIFICATION STANDARDS and PROCEDURES ................23 DBE Certification Procedures (§ 26.61 - 26.91)..............................................................................23 SUBPART F - COMPLIANCE AND ENFORCEMENT ...........................................................23 Information, Confidentiality, Cooperation (§ 26.109)......................................................................23 ATTACHMENTS ..................................................................................................................................25 Attachment A – Organizational Chart................................................................................................26 Attachment B – Bidders List Form.....................................................................................................27 Attachment C – Monitoring and Enforcement..................................................................................28 Attachment D – Transit Vehicle Manufacturer’s Certification........................................................29 Attachment E – Code of Federal Regulations: Title 49 CFR Part 26...........................................30 Attachment F – Roster of Certifying Agencies.................................................................................31

Page 211 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 3 of 31 City of Corona Transit Service
Background
The Code of Federal Regulations (CFR) Title 49, Part 26 sets forth the requirements for Participation by Disadvantaged Business Enterprises in Department of Transportation Programs.

In preparing the DBE Program, staff chose to very closely match the DBE sample program provided by the DOT. The General Counsel of the Department of Transportation reviewed the DOT sample program and approved it as consistent with the language and intent of 49 CFR Part 26, the DOT DBE rule. The sample DBE Program was obtained by downloading it along with the DBE regulations themselves, and other DOT guidance from DOT’s DBE website located at: Sample Disadvantaged Business Enterprise Program | US Department of Transportation According to DOT and FTA requirements, CCTS has revised its DBE Program according to the DBE final rule (April 9, 2024, 89 FR 24898).

Page 212 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 4 of 31 Disadvantaged Business Enterprise Objectives and Policy Statement The City of Corona, City of Corona Transit Service (CCTS) has established a Disadvantaged Business Enterprise (DBE) program in accordance with regulations of the U.S. Department of Transportation (DOT), 49 Code of Federal Regulation Part 26. CCTS has received Federal financial assistance from the DOT, and as a condition of receiving this assistance, the City of Corona has signed an assurance that it will comply with 49 CFR Part 26.

The City of Corona assures equal opportunity in the award and performance of any contract to all persons without regard to race, color, national origin, or sex. The intent of the DBE Program is to eliminate discriminatory practices, ensure discrimination is not occurring, increase participation of DBEs in all contracting activities to the maximum extent feasible, and meet the overall annual DBE participation goal, in compliance with 49 CFR Part 26. Adhering to this policy will ensure a level playing field and foster equal opportunity to receive and participate in DOTassisted contracts. It is also our policy:
1) To ensure nondiscrimination in the award and administration of DOT-assisted contracts; 2) To create a level playing field on which DBEs can compete fairly for DOT-assisted contracts;
3) To ensure that the DBE Program is narrowly tailored in accordance with applicable law; 4) To ensure that only firms that fully meet 49 CFR Part 26 eligibility standards are permitted to participate as DBEs;
5) To help remove barriers to the participation of DBEs in DOT-assisted contracts; 6) To promote the use of DBEs in all types of federally assisted contracts and procurement activities conducted by recipients;
7) To assist the development of firms that can compete successfully in the marketplace outside the DBE Program; and
8) To provide appropriate flexibility to recipients of federal financial assistance in establishing and providing opportunities for DBEs.

Jacob Ellis, City Manager Date

Page 213 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 5 of 31 SUBPART A – GENERAL REQUIREMENTS
DBE Program Objectives/Policy Statement (§ 26.1, 26.23) The objectives are found in the policy statement on the second page of this program.

Definitions (§ 26.5)
The City of Corona will adopt the definitions contained in 49 CFR Section 26.5 for this program.

Record Keeping, Reporting and Bidder’s List Requirements (§ 26.11 (b)(c)) Reporting § 26.11 (b)
The City of Corona will report DBE participation to DOT as follows:

Report DBE participation to the relevant operating administration at the Federal Transit Administration using the Uniform Report of DBE Awards or Commitments and Payments, found in the DBE regulation. The report will be submitted at the intervals required by and in the format acceptable to the concerned Operating Administration. The report will cover all information described in the Uniform Report.

Page 214 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 6 of 31 Report data about its DBE program to the Department as directed by DOT Operating Administrations.

Bidder’s List § 26.11 (c)
City of Corona will maintain information about all DBE and non-DBE firms that bid or quote on DOT-assisted contracts and enter it into a system designated by the Department. The bidders list will include the following information about all DBE and non-DBEs who bid as prime contractors and subcontractors on every federally-assisted contract:
1) Firm name;
2) Firm address including ZIP code;
3) Firm’s status as a DBE or non-DBE;
4) Race and gender information for the firm’s majority owner; 5) NAICS code applicable to each scope of work the firm sought to perform in its bid; 6) Age of firm; and
7) The annual gross receipts of the firm. The City may obtain this information by asking each firm to indicate into what gross receipts bracket they fit (e.g., less than $ million; $1-3 million; $3-6 million; $6-10 million; etc.) rather than requesting an exact figure from the firm.

Federal Financial Assistance Agreement and Contract Assurance (§ 26.13 (a)(b))
Federal Financial Assistance Agreement Assurance § 26.13 (a)

Page 215 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 7 of 31 Each financial assistance agreement the City of Corona signs with a DOT operating administration (or a primary recipient), must include the following assurance statement verbatim:

City of Corona shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any DOT assisted contract or in the administration of its DBE Program or the requirements of 49 CFR part 26. The recipient shall take all necessary and reasonable steps under 49 CFR part 26 to ensure nondiscrimination in the award and administration of DOT-assisted contracts. The recipient's DBE Program, as required by 49 CFR part 26 and as approved by DOT, is incorporated by reference in this agreement. Implementation of this program is a legal obligation, and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the City of Corona its failure to carry out its approved program, the Department may impose sanction as provided for under Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).

Contract Assurance § 26.13 (b)
Each contract that the City of Corona signs with a contractor (and each subcontract the prime contractor signs with a subcontractor) will include the following assurance:

The contractor, sub-recipient, or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate, which may include, but not limited to:, (1) withholding monthly progress payments; (2) assessing sanctions; (3) liquidated damages; and/or (4) disqualifying the contractor from future bidding as non-responsive.

Page 216 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 8 of 31 City of Corona will carry out the program until all funds from DOT financial assistance have been expended. The City of Corona will provide updates to the DOT, representing significant changes in the program.

The City will circulate the statement throughout the organization and the DBE and non-DBE business communities that perform work on DOT-assisted contracts.

DBE Liaison Officer (DBELO) (§ 26.25)
The City of Corona has designated the following individual as the DBE Liaison Officer:

Sudesh Paul, Transit Program Manager
[email protected]
Phone: (951) 279-3763
In this capacity, the DBELO is responsible for implementing all aspects of the DBE program and ensuring that City of Corona Transit Service complies with all provisions of 49 CFR Part 26. The DBELO reports to the Public Works Director concerning DBE program matters. An organizational chart displaying the DBELO's position in the organization can be found in Attachment A of this program.

The DBELO is responsible for developing, implementing, and monitoring the DBE program, in coordination with other appropriate officials. The DBELO may assign other personnel who will be responsible for any portion of developing, implementing, and monitoring the DBE program in coordination with the DBELO. The duties and responsibilities include the following:
1) Gathers and reports statistical data and other information as required by DOT. 2) Reviews third-party contracts and purchase requisitions for compliance with this program.
3) Works with all departments to set overall annual goals. 4) Ensures that bid notices and requests for proposals are available to DBEs in a timely manner.
5) Identifies contracts and procurements so that DBE goals are included in solicitations (both race-neutral methods and contract-specific goals attainment and identifies ways to improve progress.

Page 217 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 9 of 31 6) Analyze City of Corona Transit Service’s progress toward attainment and identify ways to improve progress.
7) Participates in pre-bid meetings.
8) Advises the CEO and governing body on DBE matters and achievements. 9) Participates with the legal counsel and project director to determine contractor compliance with good faith efforts.
10) Provides DBEs with information and assistance in preparing bids, obtaining bonding, and insurance.
11) Plans and participates in DBE training seminars.
12) Provides outreach to DBEs and community organizations to advise them of opportunities. 13) Maintains the City of Corona Transit Service's updated directory on certified DBEs.

DBE Financial Institutions (§ 26.27)
City of Corona will investigate the full extent of services offered by financial institutions owned and controlled by socially and economically disadvantaged individuals in the community, and make reasonable efforts to use these institutions. The City will also encourage prime contractors to make use of these institutions.

Prompt Payment Mechanisms (§ 26.29 (a)(b))
Prompt Payment §26.29(a)
The City of Corona has established as part of its DBE program, the following contract clause to require prime contractors to pay subcontractors for satisfactory performance of their contract no later than 30 days from receipt of each payment made to the prime contractor:

Page 218 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 10 of 31 Retainage §26.29(b)
The City of Corona has established the following contract clause to ensure prompt and full payment of retainage from the prime contractor to the subcontractors within 30 days after the subcontractor's work is satisfactorily completed:

The prime contractor agrees further to return retainage payments to each subcontractor within 30 days after the subcontractors work is satisfactorily completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of City of Corona.

This clause applies to both DBE and non-DBE subcontracts.

Page 219 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 11 of 31 3) The dollars committed to each firm.
4) The dollars paid to each firm during the reporting period. 5) The dollars paid to the firm as a result of a change order or other cost modification. 6) Contractor signature under penalty of perjury that it has complied with all prompt payment requirements per State laws and 49 CFR 26.29.

Directory (§ 26.31)
City of Corona is a non-certifying member of the California Unified Certification Program (CUCP) , therefore, will utilize the CUCP DBE Directory to identify certified DBEs eligible to participate as DBEs on federal assisted projects. The CUCP DBE Directory can be found at California Unified Certification Program (dbesystem.com). The CUCP directory lists the firm’s name, address, phone number, fax number, on-site visit date, North American Industry Classification System (NAICS) code, ethnicity and gender of ownership, and the type of work the firm has been certified to perform as a DBE under which the firm has been certified to perform as a DBE. A listing in the DBE directory does not in any way guarantee a firm’s capacity or ability to perform specific tasks or services, nor does a listing in the DBE directory pre-qualify the identified DBE firms with respect to licensing, bonding bility, competence, or financial responsibility. Users of DBE directory information are advised to conduct their own due diligence when engaging DBE-listed entities.

Business Development Programs (§ 26.35)
City of Corona has not established a business development program. However, if City of Corona identifies the need for such a program in the future, the rationale for adopting such a program and a comprehensive description of the program, will be submitted as a significant update to the DBE Program Plan.

Page 220 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 12 of 31 Monitoring and Enforcement Mechanisms (§ 26.37)
City of Corona will implement appropriate mechanisms to ensure compliance with the requirements in this part by all program participants.

See Attachment C – Monitoring and Enforcement Mechanisms for details.

Page 221 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 13 of 31 1) Establishing a race-neutral small business set-aside for prime contracts under a stated amount (e.g., $1 million).
2) In multi-year design-build contracts or other large contracts (e.g., for “megaprojects”) requiring bidders on the prime contract to specify elements of the contract or specific subcontracts that are of a size that small businesses, including DBEs, can reasonably perform.
3) On prime contracts not having DBE contract goals, requiring the prime contractor to provide subcontracting opportunities of a size that small businesses, including DBEs, can reasonably perform, rather than self-performing all the work involved. 4) Identifying alternative acquisition strategies and structuring procurements to facilitate the ability of consortia or joint ventures consisting of small businesses, including DBEs, to compete for and perform prime contracts.
5) To meet the portion of the City’s overall goal, the City will project to meet through raceneutral measures, ensuring that a reasonable number of prime contracts are of a size that small businesses, including DBEs, can reasonably perform.

The City will actively implement its program elements to foster small business participation to ensure the City meets the requirement of good faith implementation of its DBE program.

SUBPART C - GOALS, GOOD FAITH EFFORTS, AND COUNTING
Set-asides or Quotas (§ 26.43)
City of Corona will not use quotas in any way in the administration of this DBE program.

City of Corona will not set-aside contracts for DBEs on DOT-assisted contracts subject to this part, except that, in limited and extreme circumstances, the City may use set-asides when no other method could be reasonably expected to redress egregious instances of discrimination.

Overall Goals (§ 26.45)
A description of the methodology to calculate the overall goal and the goal calculations can be found on the City’s website at: Public Transit | City of Corona In accordance with Section 26.45(f), City of Corona will submit its Triennial DBE overall goal by August 1 at three (3) year intervals, based on the FTA schedule. The City of Corona will express the overall contract goal as a percentage of the total amount of the federal assistance received.

The process generally used to establish the overall DBE goal is as follows:

Page 222 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 14 of 31 1) The overall DBE goal represents the amount of FTA-assisted funds the City anticipates expending over three Federal Fiscal years;, therefore, the City establishes a reasonable estimate of FTA-funded contracting activities for the covered federal fiscal years. 2) The two-step goal-setting process required by the 49 CFR Part 26, Section 26.45 will be used to determine the City’s base figure. The two steps for setting an overall goal are:
i. Step One: Establish a base figure for the relative availability of DBEs. The base figure is intended to be a measurement of the current ready, willing, and able DBEs as a percentage of all ready, willing, and able businesses to perform the City's anticipated FTA-assisted contracts in the City’s market area. The City uses the following method to determine the base figure:

1. The city categorized these contracting opportunities by NAICS Code.

2. The City reviewed its contracting database and established the Counties of Riverside, San Bernardino & Orange as its market area, where the majority of contracting occurs.

3. The City then developed an estimate of ready, willing, and able DBEs based on the State of California Unified Contracting Database for the Market Area.

4. The City developed the number of overall firms ready, willing, and available, by NAICS Code, utilizing US Census Data.

5. When necessary, the City evaluated both DBE’s and Non-DBE’s to ensure the accuracy of the NAICS code area, and the firms ready, willing, and able, to satisfy the City’s requirements.

6. The City then multiplied the dollar value of the opportunities by the result of dividing the number of DBE firms by the number of total firms.

7. The City then totaled these amounts to arrive at the step one goal. ii. Step Two: Determine the base figure adjustment, if necessary. During this step, the City will examine relevant and reliable data in the City’s market area to determine if an adjustment to the base figure is warranted. The consideration of an adjustment is intended to account for any impact the relevant factors may have on DBEs' contracting opportunities with the City. The following factors will be considered for the Step Two adjustment:
iii. Past DBE goal attainment
iv. Evidence from Disparity Studies
v. The City’s Bidder List

Page 223 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 15 of 31 Before establishing the overall goal, the DBELO or staff designated by the DBELO will consult with the various organizations in the market area, such as the Chamber of Commerce, minority, women-owned, and small business groups, community organizations, the U.S. Census Bureau, and the CUCP to obtain information concerning the relative availability of DBE and non-DBE firms, the effects of discrimination on opportunities for DBEs, and the City’s efforts to establish a level playing field for the participation of DBEs.

Following this consultation, the City will publish a notice of the proposed overall goal, informing the public that the proposed goal and its rationale are available for inspection during normal business hours at the City Clerk’s office for 30 days following the date of the notice. The notice will be posted on the City’s official website. The notice informs the public that the City and DOT will accept comments on the goals for 30 days from the date of the notice. If the proposed goal changes following review, the revised goal will be posted on the City’s official website.

While the City is required to submit an overall goal to FTA every three years, the overall goal the provisions of Section 26.47© apply to each fiscal year during the three-year period. City of Corona will begin using the overall goal on October 1 of each year, unless we have received other instructions from DOT. If a project-based goal is established, then the goal will be utilized by the time of the first solicitation for a DOT-assisted contract for the project. The overall DBE goal will remain effective for the duration of the three-year period established and approved by the FTA.

Goal Setting and Accountability (§ 26.47)
If the awards and commitments shown on the City’s Uniform Report of Awards or Commitments and Payments at the end of any fiscal year are less than the overall goal applicable to that fiscal year, City of Corona staff will:
1) Analyze in detail the reason for the difference between the overall goal and the actual awards/commitments;
2) Establish specific steps and milestones to correct the problems identified in the analysis; and

Page 224 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 16 of 31 3) Establish and implement a corrective action plan, and maintain information/records regarding the analysis and efforts made and make available to FTA on request for their review
Transit Vehicle Manufacturers Goals (§ 26.49)
City of Corona will require each transit vehicle manufacturer, as a condition of being authorized to bid or propose on FTA-assisted transit vehicle procurements, to certify that it has complied with the requirements of this section. The City will not include FTA assistance used in transit vehicle procurements in the base amount from which the City’s overall goal was calculated.

Alternatively, the City of Corona may, at its discretion and with FTA approval, establish projectspecific goals for DBE participation in the procurement of transit vehicles in lieu of the TVM complying with this element of the program.

Within 30 days of becoming contractually required to procure a transit vehicle, the City will report to FTA the following:
1) The name of the TVM that was the successful bidder; and 2) The Federal share of the contractual commitment at that time.

See Attachment D: TVM Certification
Breakout of Estimated Race-Neutral & Race-Conscious Participation (§

The City will implement the following race-neutral measures, which are aimed at increasing DBE and other small business participation:
1) Arranging solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate participation by DBEs and other small businesses and by making contracts more accessible to small businesses, by means such as those provided under § 26.39;
2) Providing assistance in overcoming limitations such as inability to obtain bonding or financing (e.g., by such means as simplifying the bonding process, reducing bonding

Page 225 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 17 of 31 requirements, eliminating the impact of surety costs from bids, and providing services to help DBEs and other small businesses, obtain bonding and financing); 3) Providing technical assistance and other services;
4) Carrying out information and communications programs on contracting procedures and specific contract opportunities (e.g., ensuring the inclusion of DBEs, and other small businesses, on recipient mailing lists for bidders; ensuring the dissemination to bidders on prime contracts of lists of potential subcontractors; provision of information in languages other than English, where appropriate);
5) Implementing a supportive services program to develop and improve immediate and long-term business management, record keeping, and financial and accounting capability for DBEs and other small businesses;
6) Providing services to help DBEs, and other small businesses improve long-term development, increase opportunities to participate in a variety of kinds of work, handle increasingly significant projects, and achieve eventual self-sufficiency; 7) Establishing a program to assist new, start-up firms, particularly in fields in which DBE participation has historically been low;
8) Ensuring distribution of your DBE directory, through print and electronic means, to the widest feasible universe of potential prime contractors; and 9) Assisting DBEs and other small businesses to develop their capability to utilize emerging technology and conduct business through electronic media.

Each time the City submitsthe overall goal for review by the concerned operating administration, RTA will also submit its projection of the portion of the goal that it expects to meet through raceneutral means and the basis for that projection. This projection is subject to approval by the concerned operating administration, in conjunction with its review of the City’s overall goal.

Contract Goals (§ 26.51(d-g))
The City will use contract goals to meet any portion of the overall goal that the City does not project being able to meet using race-neutral means.

The following provisions apply to the use of contract goals:
1) The City may use contract goals only on those DOT-assisted contracts that have subcontracting possibilities.
2) The City is not required to set a contract goal on every DOT-assisted contract. The city is not required to set each contract goal at the same percentage level as the overall goal.

Page 226 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 18 of 31 cumulatively result in meeting any portion of the overall goal that the City does not project being able to meet through the use of race-neutral means. 3) Operating administration approval of each contract goal is not necessarily required.

However, operating administrations may review and approve or disapprove any contract goal that the City establishes.
4) The City’s contract goals must provide for participation by all certified DBEs and must not be subdivided into group-specific goals.

Good Faith Efforts Procedures (§ 26.53)
Demonstration of good faith efforts (§ 26.53(a) & (c))

1. When the City establishes an DBE contract goal, the City will award the contract only to a bidder/offeror who makes good faith efforts to meet it. The City will determine that a bidder/offeror has made good faith efforts if the bidder/offeror does either of the following things: Documents that it has obtained enough DBE participation to meet the goal; or

2. Documents that it made adequate good faith efforts to meet the goal, even though it did not succeed in obtaining enough DBE participation to do so. If the bidder/offeror does document adequate good faith efforts, the City will not deny award of the contract on the basis that the bidder/offeror failed to meet the goal. See Appendix A,. Title 49 Part 26 (Attachment E) for guidance in determining the adequacy of a bidder/offeror's good faith efforts.

Page 227 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 19 of 31 The City will ensure that all information is complete and accurate and adequately documents the bidder/offeror's good faith efforts before we commit to the performance of the contract by the bidder/offeror.

Information to be submitted (§ 26.53(b))
The City treats bidder/offers' compliance with good faith efforts' requirements as a matter of responsibility.

Each solicitation for which a contract goal has been established will require the bidders/offerors to submit the following information:
1) The names and addresses of DBE firms that will participate in the contract; 2) A description of the work that each DBE will perform; 3) The dollar amount of the participation of each DBE firm participating; 4) Written and signed documentation of commitment to use a DBE subcontractor whose participation it submits to meet a contract goal;
5) Written and signed confirmation from the DBE that it is participating in the contract as provided in the prime contractor’s commitment; and
6) If the contract goal is not met, evidence of good faith efforts.

Administrative reconsideration (§ 26.53(d))
If the City determines that the apparent successful bidder/offeror failed to meet the requirements of good faith efforts, the City will, before awarding the contract, provide the bidder/offer an opportunity for administrative reconsideration. 1) As part of this reconsideration, the bidder/offeror will have the opportunity to provide written documentation or argument concerning the issue of whether it met the goal or made adequate good faith efforts to do so.
2) The City’s decision on the reconsideration must be made by an official who did not take part in the original determination that the bidder/offeror failed to meet the goal or make adequate good faith efforts to do so.
3) The bidder/offeror will have the opportunity to meet in person with our reconsideration official to discuss the issue of whether it met the goal or made adequate good faith efforts to do.

Page 228 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 20 of 31 4) The City will send the bidder/offeror a written decision on reconsideration, explaining the basis for finding that the bidder did or did not meet the goal or make adequate good faith efforts to do so.
5) The result of the reconsideration process is not administratively appealable to the Department of Transportation.

Bidder/offerors should make this request in writing to the following reconsideration official:

Public Works Director, Public Works, 400 S. Vicentia Ave. Suite 210, Corona, CA 92882.

Design-Build (§ 26.53(e))
In a design-build contracting situation, in which the recipient solicits proposals to design and build a project with minimal-project details at time of letting, the recipient may set a DBE goal that proposers must meet by submitting a DBE Open-Ended DBE Performance Plan (OEPP) with the proposal. The OEPP replaces the requirement to provide the information required in 26.53(b) of this section that applies to design-bid-build contracts. To be considered responsive, the OEPP must include a commitment to meet the goal and provide details of the types of subcontracting work or services (with projected dollar amount) that the proposer will solicit DBEs to perform.

Good Faith Efforts when a DBE is replaced on a contract (§ 26.53(f)) The City require that a prime contractor not terminate a DBE or any portion of its work without the City’s prior written consent, unless the City causes the termination or reduction. A termination includes any reduction or underrun in work listed for a DBE not caused by a material change to the prime contract by the recipient. This requirement applies to instances that include, but are not limited to, when a prime contractor 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. The City may provide such a written consent only if the City agrees that the prime contractor has good cause to terminate the listed DBE or any portion of its work.

Page 229 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 21 of 31 Good cause does not exist if the prime contractor seeks to terminate a DBE or any portion of its work that it relied upon to obtain the contract so that the prime contractor can self-perform the work for which the DBE contractor was engaged, or so that the prime contractor can substitute another DBE or non-DBE contractor after contract award. For purposes of this paragraph , good cause includes the following circumstances:
i. The listed DBE subcontractor fails or refuses to execute a written contract; ii. 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; iii. The listed DBE subcontractor fails or refuses to meet the prime contractor's reasonable, nondiscriminatory bond requirements;
iv. The listed DBE subcontractor becomes bankrupt, insolvent, or exhibits credit unworthiness;
v. The listed DBE subcontractor is ineligible to work on public works projects because of suspension and debarment proceedings pursuant to 2 CFR parts 180 and 1200 or applicable State law;
vi. RTA has determined that the listed DBE subcontractor is not a responsible contractor; vii. The listed DBE subcontractor voluntarily withdraws from the project and provides to you written notice of its withdrawal;
viii. The listed DBE is ineligible to receive DBE credit for the type of work required; ix. A DBE owner dies or becomes disabled with the result that the listed DBE contractor is unable to complete its work on the contract; and
x. Other documented good cause that you determine compels the termination of the DBE subcontractor.

Page 230 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 22 of 31 In addition to post-award terminations, the provisions of this section apply to pre-award deletions or changes to DBEs or their listed work put forward by offerors in negotiated procurements
When a DBE subcontractor or any portion of its work is terminated by the prime contractor or the firm fails to complete its work on the contract for any reason, including when work committed to a DBE is not countable or reduced due to overestimations made prior to award, the prime contractor must use good faith efforts to include additional DBE participation to the extent needed to meet the contract goal. The good faith efforts shall be documented by the contractor. If the City requests documentation under this provision, the contractor shall submit the documentation within 7 days, which may be extended for an additional 7 days, if necessary, at the request of the contractor, and the City shall provide a written determination to the contractor stating whether or not good faith efforts have been demonstrated.

The City will include in each prime contract the contract clause required by § 26.13(b)stating that failure by the contractor to carry out the requirements of this part is a material breach of the contract and may result in the termination of the contract or such other remedies set forth in that section the City deems appropriate if the prime contractor fails to comply with the requirements of this section.

Sample Bid Specification:

The requirements of 49 CFR Part 26, Regulations of the U.S. Department of Transportation, apply to this contract. It is the policy of the [Name of Recipient] to practice nondiscrimination based on race, color, sex, or national origin in the award or performance of this contract. All firms qualifying under this solicitation are encouraged to submit bids/proposals. Award of this contract will be conditioned upon satisfying the requirements of this bid specification. These requirements apply to all bidders/offerors, including those who qualify as a DBE. A DBE contract goal of ____ percent has been established for this contract. The bidder/offeror shall make good faith efforts, as defined in Appendix A, 49 CFR Part 26 (Attachment E), to meet the contract goal for DBE participation in the performance of this contract.

Page 231 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 23 of 31 Written confirmation from the DBE that it is participating in the contract as provided in the commitment made under (4); and (5) if the contract goal is not met, evidence of good faith efforts.

Counting DBE Participation (§ 26.55)
The City will count DBE participation toward overall and contract goals as provided in 49 CFR

26.55. SUBPART D and E - CERTIFICATION STANDARDS and

PROCEDURES
DBE Certification Procedures (§ 26.61 - 26.91)
In order to reduce administrative burden associated with determining the eligibility of firms to participate as DBEs in FTA-assisted contracts, the City will rely on the California Unified Certification Program (CUCP) to perform the DBE certification determinations.

SUBPART F - COMPLIANCE AND ENFORCEMENT
Information, Confidentiality, Cooperation (§ 26.109)
Confidentiality
The City will safeguard from disclosure to third parties, information that may reasonably be regarded as confidential business information, consistent with Federal, state, and local law.

Page 232 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 24 of 31 Notwithstanding any contrary provisions of state or local law, the City will not release personal financial information submitted in response to the personal net worth requirement to a third party (other than DOT) without the written consent of the submitter.

Monitoring Payments to DBEs(26.37)
The City will require prime contractors to maintain records and documents of payments to DBEs for three years following the performance of the contract. These records will be made available for inspection upon request by any authorized representative of the City of Corona or DOT. This reporting requirement also extends to any certified DBE subcontractor.

The City will require reporting by the prime contractor of actual payments to DBE firms for work committed to them at the time of contract award.

The City will perform interim audits of contract payments to DBEs. The audit will review payments to DBE subcontractors to ensure that the actual amount paid to DBE subcontractors equals or exceeds the dollar amounts stated in the schedule of DBE participation.

Page 233 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 25 of 31

ATTACHMENTS
Attachment A Organizational Chart with DBELO
Attachment B Bidders List Form
Attachment C Monitoring and Enforcement
Attachment D TVM Certification
Attachment E Regulations: 49 CFR part 26
Attachment F CUCP Roster of Certifying Agencies

Page 234 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 26 of 31 Attachment A – Organizational Chart

Page 235 of 1035 ends

CITY OF CORONA TRANSIT SERVICE

DBE PROGRAM
ATTACHMENT A: ORGANIZATIONAL CHART

Page 236 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 27 of 31 Attachment B – Bidders List Form

Page 237 of 1035 ends

ATTACHMENT B - Bidders List Form updated 4-24-25

Page 1 of 2 ends

BIDDERS LIST
Project Name: ________________________________ IFB/RFP#: __________ Bidder/Offeror: _______________________________________ The Department of Transportation requires the City of Corona, City of Corona Transit Service (CCTS), to create and maintain a “Bidders List” containing information about all firms (DBE and Non-DBE) that bid, propose, or quote on CCTS’s DOT-assisted contracts, in accordance with 49 CFR Part 26.11. The “Bidders List” is intended to be a count of all firms participating, or attempting to participate, on DOT-assisted contracts, whether successful or unsuccessful in their attempt to obtain a contract.

The Bidder/Offeror is to complete all requested information on the “Bidders List” for every firm that submitted a bid, proposal, or quote, including the primary Bidder/Offeror, and submit this information at the time of bid submission. However, if not elected to do so at the time of bid submission, bidders/Offerors must submit such information at the request of the Authority within the prescribed timeline set forth in the solicitation. The City of Corona will utilize this information to assist in CCTS’s overall annual DBE goal-setting process. The “Bidders List” content will not be considered in evaluating the bid/proposal or determining award of any contract.

Prime Bidder’s/Offeror’s Information:

Phone #: Fax:
( ) ( )
City, State: Zip Code:

NAISC Code(s):

Number of years in business:

Firm Address:

Type of work/services/materials provided:

Contact Person: Title:

Page 238 of 1035 ends

ATTACHMENT B - Bidders List Form updated 4-24-25

Page 2 of 2 ends

Project Name: ________________________________ IFB/RFP#: __________ If necessary, this “Bidders List” form can be duplicated to include all firms (DBE and nonDBE) that have submitted a bid, proposal, or quote on this DOT-assisted project, whether successful or unsuccessful in their attempt to obtain a contract.

Failure of the Bidder/Offeror to submit the required “Bidders List” form will deem the Bidder/Offeror non-responsive.

Phone #: Fax:
( ) ( )
City, State: Zip Code:

NAISC Code(s):

Number of years in business:

Check the box below for your firm’s annual gross receipts last year:
☐ Less than $1 Million ☐ $1-3 million ☐ $3-6 million
☐ $6-10 million ☐ $10-15 million ☐ More than $15 million Is the firm currently certified as a DBE under 49 CFR Part 26? ☐ Yes ☐ No Provide the following information for every firm (DBE and non-DBE) that submitted a bid, proposal or quote on this DOT-assisted project, whether successful or unsuccessful in their attempt to obtain a contract:

Name of Prime’s Firm:

Firm Address:

Type of work/services/materials provided:

Contact Person: Title:

Phone #: Fax:
( ) ( )
City, State: Zip Code:

NAISC Code(s):

Number of years in business:

Name of Prime’s Firm:

Firm Address:

Type of work/services/materials provided:

Contact Person: Title:

Page 239 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 28 of 31 Attachment C – Monitoring and Enforcement

Page 240 of 1035 ends

CITY OF CORONA TRANSIT SERVICE

DBE PROGRAM
ATTACHMENT C: MONITORING AND ENFORCEMENT
ATTACHMENT C - Monitoring and Enforcement

MONITORING AND ENFORCEMENT MECHANISMS
City of Corona will implement appropriate mechanisms, including sanctions, suspension, debarment, and application of legal and contractual remedies available under Federal, state, and local laws, as deemed appropriate and necessary, to ensure compliance with the requirements by all program participants. Specifically, the City of Corona will take the following monitoring and enforcement steps to ensure compliance with 49 CFR Part 26:
• Bring to the attention of the Department of Transportation any false, fraudulent, or dishonest conduct in connection with the program, so that DOT can take the steps (e.g., referral to the Department of Justice for criminal prosecution, referral to the DOT Inspector General, action under suspension and debarment or Program Fraud and Civil Penalties rules) provided in 26.109. Consider similar action under our own legal authorities, including responsibility determinations in future contracts. • Implement enforcement and monitoring processes/procedures outlined in DBE Contract Provisions contained in all engineering design/professional services, construction, transit, and DOT-assisted contracts, and this DBE Program Plan. This includes processes for Good Faith Efforts review and approval, counting DBE participation, monitoring and enforcing prompt payment, review and approval of substitutions and termination of DBEs on projects, requiring payment certifications from DBEs and Prime contractors attesting to total amounts paid to DBE firms, and contract closeout procedures that evaluate whether DBE goals have been met on each contract.
• Implement procedures to verify that work committed to DBEs at contract award is actually performed by the DBEs. This will be accomplished by document reviews of contracting records, project onsite visits and interviews conducted by CCTS staff and construction inspectors, review of payroll records for public work activity, and a thorough review of invoices provided for services, as applicable. This will occur for each contract/project on which DBEs are participating.
• Compile and maintain a report of awards/commitments and attainments, which is reported semi-annually to FTA.

Page 241 of 1035 ends

CITY OF CORONA TRANSIT SERVICE

DBE PROGRAM
ATTACHMENT C: MONITORING AND ENFORCEMENT
ATTACHMENT C - Monitoring and Enforcement
• Keep a running tally of DBE utilization/attainment, including race-neutral DBE participation, as well as payments to DBE firms for work committed to them at the time of contract award.
• Track and delineate state/federal funding split to ensure that only the federal share is reported on Uniform Reports to US. DOT. This information is tracked in Excel spreadsheet and compared to City of Corona’s OneSolution System.
• Compare DBE commitment submitted at the beginning of each project with Written Certification at the end of the project to determine if DBE goal was met.

Written Certification
The mechanism includes a written certification that City of Corona has reviewed contracting records and monitored work sites for DBE participation. The City of Corona Transit Staff will monitor every contract with DBE requirements, on paper and in the field and will include a written certification that this compliance monitoring effort took place in accordance with the Contract Close-Out Report. Refer to the Self-Certification Statement of Compliance on the last page of this document. The mechanisms include comparing the DBE commitments to actual DBE attainments.

Construction Contract On-Site Monitoring
The City of Corona will ensure that City of Corona Transit Staff and inspectors know what items of work each DBE is responsible for performing. Inspectors will notify the City of Corona Transit Staff immediately of apparent violations. When a firm other than the listed DBE subcontractor is found performing the work, the City of Corona Transit Staff will notify the Contractor of the apparent discrepancy and potential loss of payment. Based on the Contractor’s response, the City of Corona will take appropriate action. If the Contractor fails to adequately explain why there

Page 242 of 1035 ends

CITY OF CORONA TRANSIT SERVICE

DBE PROGRAM
ATTACHMENT C: MONITORING AND ENFORCEMENT
ATTACHMENT C - Monitoring and Enforcement
is a discrepancy, payment for the work will be withheld and a letter will be sent to the contractor referencing the applicable specification violation and the required withholding of payment.

This monitoring effort is fully incorporated into the DBE On-site Monitoring process. The observed work will be reconciled against the DBE commitment.

1. Contract number, DBE goal commitment and brief description of the work.

2. Name and address of each DBE listed and certifications held.

3. The dollar amount of each subcontract, including supplies and services.

4. Reports from Contractor with an accounting of actual expenditures to DBEs and the progress to date in meeting the DBE participation commitment.

5. Evidence to support subcontractor substitution requests, where appropriate.

6. Evidence to support prompt payments made, with date of payment and total dollar figure paid to each DBE, subcontractor and suppliers.

7. The DBE prime contractor shall also show the date of work performed by their own forces along with the corresponding dollar value of the work claimed toward DBE goals.

Contract Close-Out Report
When a contract has been completed, the Contractor will provide a summary of the records stated above. The DBE utilization information will be documented on the form "Final ReportUtilization of Disadvantaged Business Enterprises (DBE), First-Tier Subcontractors" will be submitted to City of Corona. City of Corona Transit Staff will compare the completed form to the contractor’s completed "Designation of Subcontractors". The DBE’s shown on the completed "Final Report-Utilization of Disadvantaged Business Enterprises (DBE), First-Tier Subcontractors" form should be the same as those originally listed unless an authorized substitution was allowed, or the contractor used more DBE’s and they were added. The dollar amount should reflect any changes made in planned work done by the DBE. The Contractor will be required to explain in writing why the names of the subcontractors, the work items or dollar figures are different from what was originally shown on the completed "Designation of Subcontractors" form when:

Page 243 of 1035 ends

CITY OF CORONA TRANSIT SERVICE

DBE PROGRAM
ATTACHMENT C: MONITORING AND ENFORCEMENT
ATTACHMENT C - Monitoring and Enforcement
• There have been no changes made by the RE.
• The Contractor has not provided a sufficient explanation in the comments section of the completed "Final Report-Utilization of Disadvantaged Business Enterprises (DBE), FirstTier Subcontractors" form.

The CITY OF CORONA TRANSIT SERVICE reserves the right to initiate Administrative Remedies, which may include but are not limited to:
• Withholding of payments due equivalent to the difference between the actual DBE attainment and the overall project and/or contract specific DBE goal. • Suspension of payment to the Contractor of any other monies held by the City of Corona; and
• Termination of the Contract in part or in whole.

Page 244 of 1035 ends

CITY OF CORONA TRANSIT SERVICE

DBE PROGRAM
ATTACHMENT C: MONITORING AND ENFORCEMENT
ATTACHMENT C - Monitoring and Enforcement
The Administrative Remedies shall not apply if the Contractor is able to demonstrate to the satisfaction of the City of Corona that it exercised good faith efforts in an attempt to meet the contract-specific DBE goal, where applicable.

The City of Corona will bring to the attention of the FTA any false, fraudulent, or dishonest conduct in connection with the program, so that FTA can take the steps (e.g., referral to the U.S.

Department of Justice for criminal prosecution, referral to the USDOT Inspector General, action under suspension and debarment or Program Fraud and Civil Penalties rules) provided in §26.109.

The City of Corona will also consider similar action under its own legal authorities, including responsibility determinations in future contracts.

The requirements of this section equally apply to a DBE operating as a prime contractor.

Page 245 of 1035 ends

CITY OF CORONA TRANSIT SERVICE

DBE PROGRAM
ATTACHMENT C: MONITORING AND ENFORCEMENT
ATTACHMENT C - Monitoring and Enforcement

STATEMENT OF COMPLIANCE
Project Name: ____________________________________ Project #: ___________ I, ______________________________________, undersigned, have the authority to act For and on behalf of the CITY OF CORONA TRANSIT SERVICE, I certify under penalty of perjury that this federally aided project has been monitored in conformance with Part 26 of Title 49 of the Code of Federal Regulations—DBE Regulations.

Date: _________________________ Signature: ___________________________________ Comments/Exceptions (Explanation):

Enclosures: Copies of the DBE Final Payment Record
Maintain in the contract file.
(Name & Title)

Page 246 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 29 of 31 Attachment D – Transit Vehicle Manufacturer’s Certification

Page 247 of 1035 ends

CITY OF CORONA TRANSIT SERVICE

DBE PROGRAM
ATTACHMENT D: TVM CERTIFICATION
BIDDER’S CERTIFICATION OF DISADVANTAGED BUSINESS

ENTERPRISE PLAN
The bidder hereby certifies that it has complied with 49 C.F.R. 26, which requires each transit vehicle manufacturer to establish annual goals for the participation of disadvantaged business enterprise and to submit these goals to the Federal Transit Administration for approval:

The _____________________________________ hereby certifies that it has on file with the Federal Transit Administration, a Disadvantaged Enterprise Plan.

Date: _________________________________________________________________ Signature: _____________________________________________________________ Title: _________________________________________________________________ Manufacturer: __________________________________________________________

Page 248 of 1035 ends

City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 30 of 31 Attachment E – Code of Federal Regulations: Title 49 CFR Part 26

Page 249 of 1035 ends

Title 49 —Transportation
Subtitle A —Office of the Secretary of Transportation
Part 26 Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs
Subpart A General
§ 26.1 What are the objectives of this part?
§ 26.3 To whom does this part apply?
§ 26.5 Definitions.
§ 26.7 What discriminatory actions are forbidden?
§ 26.9 How does the Department issue guidance and interpretations under this part? § 26.11 What records do recipients keep and report?
§ 26.13 What assurances must recipients and contractors make? § 26.15 How can recipients apply for exemptions or waivers? Subpart B Administrative Requirements for DBE Programs for Federally Assisted Contracting
§ 26.21 Who must have a DBE program?
§ 26.23 What is the requirement for a policy statement? § 26.25 What is the requirement for a liaison officer?
§ 26.27 What efforts must recipients make concerning DBE financial institutions? § 26.29 What prompt payment mechanisms must recipients have? § 26.31 What information must a UCP include in its DBE/ACDBE directory? § 26.33 What steps must a recipient take to address overconcentration of DBEs in certain types of work?
§ 26.35 What role do business development and mentor-protégé programs have in the DBE program?
§ 26.37 What are a recipient's responsibilities for monitoring? § 26.39 Fostering small business participation.

Subpart C Goals, Good Faith Efforts, and Counting
§ 26.41 What is the role of the statutory 10 percent goal in this program? § 26.43 Can recipients use set-asides or quotas as part of this program? § 26.45 How do recipients set overall goals?
§ 26.47 Can recipients be penalized for failing to meet overall goals? § 26.49 What are the requirements for transit vehicle manufactures (TVMs) and for awarding DOT-assisted contracts to TVMs?
§ 26.51 What means do recipients use to meet overall goals? § 26.53 What are the good faith efforts procedures recipients follow in situations where there This content is from the eCFR and is authoritative but unofficial. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR Part 26 (Apr. 21, 2025)
49 CFR Part 26 (Apr. 21, 2025) (enhanced display) page 1 of 69

Page 250 of 1035 ends

Appendix A to Part 26
Guidance Concerning Good Faith Efforts
Appendix B to Part 26 [Reserved]
Appendix C to Part 26
DBE Business Development Program Guidelines
Appendix D to Part 26
Mentor-Protégé Program Guidelines
are contract goals?
§ 26.55 How is DBE participation counted toward goals?
Subpart D Certification Standards
§ 26.61 Burden of proof
§ 26.63 General certification rules.
§ 26.65 Business size determinations.
§ 26.67 Social and economic disadvantage.
§ 26.68 Personal net worth.
§ 26.69 Ownership.
§ 26.70 Debt-financed investments.
§ 26.71 Control.
§ 26.73 NAICS codes.

Subpart E Certification Procedures
§ 26.81 Unified Certification Programs.
§ 26.83 What procedures do certifiers follow in making certification decisions? § 26.85 Interstate certification.
§ 26.86 Decision letters.
§ 26.87 Decertification.
§ 26.88 Summary suspension of certification.
§ 26.89 Appeals to the Department.
§ 26.91 What actions do certifiers take following DOT certification appeal decisions? Subpart F Compliance and Enforcement
§ 26.101 What compliance procedures apply to recipients? § 26.103 What enforcement actions apply in FHWA and FTA programs? § 26.105 What enforcement actions apply in FAA programs? § 26.107 What enforcement actions apply to firms participating in the DBE program? § 26.109 What are the rules governing information, confidentiality, cooperation, and intimidation or retaliation?
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR Part 26 (Apr. 21, 2025)
49 CFR Part 26 (Apr. 21, 2025) (enhanced display) page 2 of 69

Page 251 of 1035 ends

PART 26—PARTICIPATION BY DISADVANTAGED BUSINESS

ENTERPRISES IN DEPARTMENT OF TRANSPORTATION FINANCIAL

ASSISTANCE PROGRAMS
Authority: 23 U.S.C. 304 and 324; 42 U.S.C. 2000d, et seq.; 49 U.S.C. 47113, 47123; Sec. 1101(b), Pub. L. 114-94, 129 Stat. 1312, 1324 (23 U.S.C. 101 note); Sec. 150, Pub. L. 115-254, 132 Stat. 3215 (23 U.S.C. 101 note); Pub. L. 117-58, 135 Stat. 429 (23 U.S.C. 101 note).

Source: 64 FR 5126, Feb. 2, 1999, unless otherwise noted.

Subpart A—General
§ 26.1 What are the objectives of this part?
This part seeks to achieve several objectives:
[64 FR 5126, Feb. 2, 1999, as amended at 79 FR 59592, Oct. 2, 2014; 89 FR 24963, Apr. 9, 2024] § 26.3 To whom does this part apply?
(a) To ensure nondiscrimination in the award and administration of DOT-assisted contracts in the Department's highway, transit, and airport financial assistance programs; (b) To create a level playing field on which DBEs can compete fairly for DOT-assisted contracts; (c) To ensure that the Department's DBE program is narrowly tailored in accordance with applicable law; (d) To ensure that only firms that fully meet this part's eligibility standards are permitted to participate as DBEs;
(e) To help remove barriers to the participation of DBEs in DOT-assisted contracts; (f) To promote the use of DBEs in all types of federally assisted contracts and procurement activities conducted by recipients.
(g) To assist the development of firms that can compete successfully in the marketplace outside the DBE program; and
(h) To provide appropriate flexibility to recipients of Federal financial assistance in establishing and providing opportunities for DBEs.
(a) If you are a recipient of any of the following types of funds, this part applies to you:
(1) Federal-aid highway funds authorized under Titles I (other than Part B) and V of the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA), Public Law 102-240, 105 Stat. 1914, or Titles I, III, and V of the Transportation Equity Act for the 21st Century (TEA-21), Public Law 105-178, 112 Stat. 107. Titles I, III, and V of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), Public Law 109-59, 119 Stat. 1144; Divisions A and B of the Moving Ahead for Progress in the 21st Century Act (MAP-21), Pub. L. 112-141, 126 Stat. 405; Titles I, II, III, 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26
49 CFR 26.3(a)(1) (enhanced display) page 3 of 69

Page 252 of 1035 ends

[89 FR 24963, Apr. 9, 2024]
§ 26.5 Definitions.
and VI of the Fixing America's Surface Transportation Act (FAST Act) Public Law 114-94;, and Divisions A and C of the Bipartisan Infrastructure Law (BIL), enacted as the Infrastructure Investment and Jobs Act (IIJA), Public Law 117-58.
(2) Federal transit funds authorized by Titles I, III, V and VI of ISTEA, Public Law 102-240 or by Federal transit laws in Title 49, U.S. Code, or Titles I, III, and V of the TEA-21, Public Law 105-178. Titles I, III, and V of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), Public Law 109-59, 119 Stat. 1144; Divisions A and B of the Moving Ahead for Progress in the 21st Century Act (MAP-21), Public Law 112-141, 126 Stat. 405; Titles I, II, III, and VI of the Fixing America's Surface Transportation Act (FAST Act) Public Law 114-94; and Divisions A and C of the Bipartisan Infrastructure Law (BIL), enacted as the Infrastructure Investment and Jobs Act (IIJA) (Pub. L. 117-58), Public Law 117-58.
(3) Airport funds authorized by 49 U.S.C. 47101, et seq. (b) [Reserved]
(c) If you are letting a contract, and that contract is to be performed entirely outside the United States, its territories and possessions, Puerto Rico, Guam, or the Northern Mariana Islands, this part does not apply to the contract.
(d) If you are letting a contract in which DOT financial assistance does not participate, this part does not apply to the contract.

Affiliation has the same meaning the term has in the Small Business Administration (SBA) regulations, 13 CFR part 121.
(1) Except as otherwise provided in 13 CFR part 121, concerns are affiliates of each other when, either directly or indirectly:
(i) One concern controls or has the power to control the other; or (ii) A third party or parties controls or has the power to control both; or (iii) An identity of interest between or among parties exists such that affiliation may be found. (2) In determining whether affiliation exists, it is necessary to consider all appropriate factors, including common ownership, common management, and contractual relationships. Affiliates must be considered together in determining whether a concern meets small business size criteria and the statutory cap on the participation of firms in the DBE program.

Alaska Native means a citizen of the United States who is a person of one-fourth degree or more Alaskan Indian (including Tsimshian Indians not enrolled in the Metlakatla Indian Community), Eskimo, or Aleut blood, or a combination of those bloodlines. The term includes, in the absence of proof of a minimum blood quantum, any citizen whom a Native village or Native group regards as an Alaska Native if their father or mother is regarded as an Alaska Native.

Alaska Native Corporation (ANC) means any Regional Corporation, Village Corporation, Urban Corporation, or Group Corporation organized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act, as amended (43 U.S.C. 1601, et seq.). 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.3(a)(2)
49 CFR 26.5 “Alaska Native Corporation” (enhanced display) page 4 of 69

Page 253 of 1035 ends

Assets mean all the property of a person available for paying debts or for distribution, including one's respective share of jointly held assets. This includes, but is not limited to, cash on hand and in banks, savings accounts, IRA or other retirement accounts, accounts receivable, life insurance, stocks and bonds, real estate, and personal property.

Business, business concern or business enterprise means an entity organized for profit with a place of business located in the United States, and which operates primarily within the United States or which makes a significant contribution to the United States economy through payment of taxes or use of American products, materials, or labor.

Compliance means that a recipient has correctly implemented the requirements of this part.

Contingent Liability means a liability that depends on the occurrence of a future and uncertain event. This includes, but is not limited to, guaranty for debts owed by the applicant concern, legal claims and judgments, and provisions for federal income tax.

Contract means a legally binding relationship obligating a seller to furnish supplies or services (including, but not limited to, construction and professional services) and the buyer to pay for them. For purposes of this part, a lease is considered to be a contract.

Contractor means one who participates, through a contract or subcontract (at any tier), in a DOT-assisted highway, transit, or airport program.

Days mean calendar days. In computing any period of time described in this part, the day from which the period begins to run is not counted, and when the last day of the period is a Saturday, Sunday, or Federal holiday, the period extends to the next day that is not a Saturday, Sunday, or Federal holiday. Similarly, in circumstances where the recipient's offices are closed for all or part of the last day, the period extends to the next day on which the agency is open.

Department or DOT means the U.S. Department of Transportation, including the Office of the Secretary, the Departmental Office of Civil Rights, the Federal Highway Administration (FHWA), the Federal Transit Administration (FTA), and the Federal Aviation Administration (FAA).

Disadvantaged Business Enterprise or DBE means a for-profit small business concern— (1) That is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged; and
(2) Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.

DOT-assisted contract means any contract between a recipient and a contractor (at any tier) funded in whole or in part with DOT financial assistance, including letters of credit or loan guarantees, except a contract solely for the purchase of land.

FTA Tier I recipient means an FTA recipient to whom this part applies that will award prime contracts (excluding transit vehicle purchases) the cumulative total value of which exceeds $670,000 in FTA funds in a Federal fiscal year.

FTA Tier II recipient means an FTA recipient to whom this part applies who will award prime contracts (excluding transit vehicle purchases) the cumulative total value of which does not exceed $670,000 in FTA funds in a Federal fiscal year.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.5 “Assets”
49 CFR 26.5 “FTA Tier II recipient” (enhanced display) page 5 of 69

Page 254 of 1035 ends

Good faith efforts means efforts to achieve a DBE goal or other requirement of this part which, by their scope, intensity, and appropriateness to the objective, can reasonably be expected to fulfill the program requirement.

Immediate family member means father, mother, husband, wife, son, daughter, brother, sister, grandfather, grandmother, father-in-law, mother-in-law, sister-in-law, brother-in-law, and domestic partner and civil unions recognized under State law.

Indian Tribe or Native American Tribe means any federally or State-recognized Tribe, band, nation, or other organized group of Indians (Native Americans), or an ANC.

Joint venture means an association of a DBE firm and one or more other firms to carry out a single, for-profit business enterprise, for which the parties combine their property, capital, efforts, skills and knowledge, and in which the DBE is responsible for a distinct, clearly defined portion of the work of the contract and whose share in the capital contribution, control, management, risks, and profits of the joint venture are commensurate with its ownership interest.

Liabilities mean financial or pecuniary obligations. This includes, but is not limited to, accounts payable, notes payable to bank or others, installment accounts, mortgages on real estate, and unpaid taxes.

Native Hawaiian means any individual whose ancestors were natives, prior to 1778, of the area which now comprises the State of Hawaii.

Native Hawaiian Organization means any community service organization serving Native Hawaiians in the State of Hawaii which is a not-for-profit organization chartered by the State of Hawaii, is controlled by Native Hawaiians, and whose business activities will principally benefit such Native Hawaiians.

Noncompliance means that a recipient has not correctly implemented the requirements of this part.

Notice of decision or NOD means determination that denies a firm's application or decertifies a DBE.

Notice of intent or NOI means recipients letter informing a DBE of a suspension or proposed decertification.

Operating Administration or OA means any of the following parts of DOT: the Federal Aviation Administration (FAA), Federal Highway Administration (FHWA), and Federal Transit Administration (FTA). The “Administrator” of an operating administration includes his or her designees.

Personal net worth or PNW means the net value of an individual's reportable assets and liabilities, per the calculation rules in § 26.68.

Primary industry classification means the most current North American Industry Classification System (NAICS) designation which best describes the primary business of a firm. The NAICS is described in the North American Industry Classification Manual—United States, which is available online on the U.S. Census Bureau website: www.census.gov/naics/.

Primary recipient means a recipient which receives DOT financial assistance and passes some or all of it on to another recipient.

Principal place of business means the business location where the individuals who manage the firm's day-to-day operations spend most working hours. If the offices from which management is directed and where the business records are kept are in different locations, the recipient will determine the principal place of business. The term does not include construction trailers or other temporary construction sites.

Program means any undertaking on a recipient's part to use DOT financial assistance, authorized by the laws to which this part applies.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.5 “Good faith efforts”
49 CFR 26.5 “Program” (enhanced display) page 6 of 69

Page 255 of 1035 ends

Race-conscious measure or program is one that is focused specifically on assisting only DBEs, including women-owned DBEs.

Race-neutral measure or program is one that is, or can be, used to assist all small businesses. For the purposes of this part, race-neutral includes gender-neutrality.

Recipient means any entity, public or private, to which DOT financial assistance is extended, whether directly or through another recipient, through the programs of the FAA, FHWA, or FTA, or that has applied for such assistance.

Secretary means DOT's Secretary of Transportation or the Secretary's designee.

Set-aside means a contracting practice restricting eligibility for the competitive award of a contract solely to DBE firms.

Small Business Administration or SBA means the United States Small Business Administration.

SBA certified firm refers to firms that have a current, valid certification from or recognized by the SBA under the 8(a) BD or SDB programs.

Small business concern means, with respect to firms seeking to participate as DBEs in DOT-assisted contracts, a small business concern as defined pursuant to section 3 of the Small Business Act and Small Business Administration regulations implementing it (13 CFR part 121) that also does not exceed the cap on average annual gross receipts specified in § 26.65(b).

Socially and economically disadvantaged individual means any individual who is a citizen (or lawfully admitted permanent resident) of the United States and who has been subjected to racial or ethnic prejudice or cultural bias within American society because of his or her identity as a member of a group and without regard to his or her individual qualities. The social disadvantage must stem from circumstances beyond the individual's control.
(1) Any individual who a recipient finds to be a socially and economically disadvantaged individual on a case-by-case basis. An individual must demonstrate that he or she has held himself or herself out, as a member of a designated group if you require it.
(2) Any individual in the following groups, members of which are rebuttably presumed to be socially and economically disadvantaged:
(i) “Black Americans,” which includes persons having origins in any of the Black racial groups of Africa;
(ii) “Hispanic Americans,” which includes persons of Mexican, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race; (iii) “Native Americans,” which includes persons who are enrolled members of a federally or State recognized Indian tribe, Alaska Natives, or Native Hawaiians; (iv) “Asian-Pacific Americans,” which includes 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), Republic of the Northern Mariana Islands, Samoa, Macao, Fiji, Tonga, Kiribati, Tuvalu, Nauru, Federated States of Micronesia, or Hong Kong; (v) “Subcontinent Asian Americans,” which includes persons whose origins are from India, Pakistan, Bangladesh, Bhutan, Maldives, Nepal or Sri Lanka; 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.5 “Race-conscious”
49 CFR 26.5 “Socially and economically disadvantaged individual” (2)(v) (enhanced display) page 7 of 69

Page 256 of 1035 ends

[64 FR 5126, Feb. 2, 1999, as amended at 64 FR 34570, June 28, 1999; 68 FR 35553, June 16, 2003; 76 FR 5096, Jan. 28, 2011; 79 FR 59592, Oct. 2, 2014; 89 FR 24963, Apr. 9, 2024]
§ 26.7 What discriminatory actions are forbidden?
§ 26.9 How does the Department issue guidance and interpretations under this part? (vi) Women;
(vii) Any additional groups whose members are designated as socially and economically disadvantaged by the SBA, at such time as the SBA designation becomes effective. (3) Being born in a particular country does not, standing alone, mean that a person is necessarily a member of one of the groups listed in this definition.

Spouse means a married person, including a person in a domestic partnership or a civil union recognized under State law.

Transit vehicle manufacturer (TVM) means any manufacturer whose primary business purpose is to manufacture vehicles built for mass transportation. Such vehicles include, but are not limited to buses, rail cars, trolleys, ferries, and vehicles manufactured specifically for paratransit purposes. Businesses that perform retrofitting or post-production alterations to vehicles so that such vehicles may be used for public transportation purposes are also considered TVMs. Businesses that manufacture, mass-produce, or distribute vehicles primarily for personal use are not considered TVMs.

Tribally-owned concern means any concern at least 51 percent owned by an Indian tribe as defined in this section.

Unsworn declaration means an unsworn statement, dated and in writing, subscribed as true under penalty of perjury.

You refers to a recipient, unless a statement in the text of this part or the context requires otherwise (i.e., ‘You must do XYZ’ means that recipients must do XYZ).
(a) You must never exclude any person from participation in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of any contract covered by this part on the basis of race, color, sex, or national origin. (b) In administering your DBE program, you must not, directly or through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating or substantially impairing accomplishment of the objectives of the program with respect to individuals of a particular race, color, sex, or national origin.
(a) Only guidance and interpretations (including interpretations set forth in certification appeal decisions) consistent with this part 26 and issued after March 4, 1999 express the official positions and views of the Department of Transportation or any of its operating administrations. (b) The Secretary of Transportation, Office of the Secretary of Transportation, FHWA, FTA, and FAA may issue written interpretations of or written guidance concerning this part. Written interpretations and guidance are valid, and express the official positions and views of the Department of Transportation or any of its operating administrations, only if they are issued over the signature of the Secretary of Transportation or if they contain the following statement:
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.5 “Socially and economically disadvantaged
individual” (2)(vi)
49 CFR 26.9(b) (enhanced display) page 8 of 69

Page 257 of 1035 ends

The General Counsel of the Department of Transportation has reviewed this document and approved it as consistent with the language and intent of 49 CFR part 26. [72 FR 15617, Apr. 2, 2007]
§ 26.11 What records do recipients keep and report?
(a) You must submit a report on DBE participation to the concerned Operating Administration containing all the information described in the Uniform Report to this part. This report must be submitted at the intervals required by, and in the format acceptable to, the concerned Operating Administration. (b) You must continue to provide data about your DBE program to the Department as directed by DOT Operating Administrations.
(c) You must obtain bidders list information as described in paragraph (c)(2) of this section and enter it into a system designated by the Department.
(1) The purpose of this bidders list information is to compile as accurate data as possible about the universe of DBE and non-DBE contractors and subcontractors who seek to work on your federally assisted contracts for use in helping you set your overall goals, and to provide the Department with data for evaluating the extent to which the objectives of § 26.1 are being achieved. (2) You must obtain the following bidders list information about all DBE and non-DBEs who bid as prime contractors and subcontractors on each of your federally assisted contracts:
(i) Firm name;
(ii) Firm address including ZIP code;
(iii) Firm's status as a DBE or non-DBE;
(iv) Race and gender information for the firm's majority owner; (v) NAICS code applicable to each scope of work the firm sought to perform in its bid; (vi) Age of the firm; and
(vii) The annual gross receipts of the firm. You may obtain this information by asking each firm to indicate into what gross receipts bracket they fit (e.g., less than $1 million; $1-3 million; $3-6 million; $6-10 million; etc.) rather than requesting an exact figure from the firm. (3) You must collect the data from all bidders for your federally assisted contracts by requiring the information in paragraph (c)(2) of this section to be submitted with their bids or initial responses to negotiated procurements. You must enter this data in the Department's designated system no later than December 1 following the fiscal year in which the relevant contract was awarded. In the case of a “design-build” contracting situation where subcontracts will be solicited throughout the contract period as defined in a DBE Performance Plan pursuant to § 26.53(e), the data must be entered no later than December 1 following the fiscal year in which the design-build contractor awards the relevant subcontract(s).
(d) You must maintain records documenting a firm's compliance with the requirements of this part. At a minimum, you must keep a complete application package for each certified firm and all Declarations of Eligibility, change notices, and on-site visit reports. These records must be retained in accordance with applicable record retention requirements for the recipient's financial assistance agreement. Other 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.11
49 CFR 26.11(d) (enhanced display) page 9 of 69

Page 258 of 1035 ends

[89 FR 24964, Apr. 9, 2024]
§ 26.13 What assurances must recipients and contractors make? certification or compliance related records must be retained for a minimum of three (3) years unless otherwise provided by applicable record retention requirements for the recipient's financial assistance agreement, whichever is longer.
(e) The State department of transportation in each Unified Certification Program (UCP) established pursuant to § 26.81 must report to DOT's Departmental Office of Civil Rights each year, the following information:
(1) The number and percentage of in-state and out-of-state DBE certifications by gender and ethnicity (Black American, Asian-Pacific American, Native American, Hispanic American, Subcontinent-Asian Americans, and non-minority);
(2) The number of DBE certification applications received from in-state and out-of-state firms and the number found eligible and ineligible;
(3) The number of decertified firms:
(i) Total in-state and out-of-state firms decertified;
(ii) Names of in-state and out-of-state firms decertified because SEDO exceeded the personal net worth cap;
(iii) Names of in-state and out-of-state firms decertified for excess gross receipts beyond the relevant size standard.
(4) The number of in-state and out-of-state firms summarily suspended; (5) The number of in-state and out-of-state applications received for an individualized determination of social and economic disadvantage status;
(6) The number of in-state and out-of-state firms certified whose owner(s) made an individualized showing of social and economic disadvantaged status.
(a) Each financial assistance agreement you sign with a DOT operating administration (or a primary recipient) must include the following assurance: The recipient shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any DOT-assisted contract or in the administration of its DBE program or the requirements 49 CFR part 26. The recipient shall take all necessary and reasonable steps under 49 CFR part 26 to ensure nondiscrimination in the award and administration of DOT-assisted contracts. The recipient's DBE program, as required by 49 CFR part 26 and as approved by DOT, is incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the recipient of its failure to carry out its approved program, the Department may impose sanctions as provided for under 49 CFR part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.). (b) Each contract you sign with a contractor (and each subcontract the prime contractor signs with a subcontractor) must include the following assurance: The contractor, sub recipient or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.11(e)
49 CFR 26.13(b) (enhanced display) page 10 of 69

Page 259 of 1035 ends

[79 FR 59593, Oct. 2, 2014]
§ 26.15 How can recipients apply for exemptions or waivers? DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate, which may include, but is not limited to:
(1) Withholding monthly progress payments;
(2) Assessing sanctions;
(3) Liquidated damages; and/or
(4) Disqualifying the contractor from future bidding as non-responsible. (a) You can apply for an exemption from any provision of this part. To apply, you must request the exemption in writing from the Office of the Secretary of Transportation, FHWA, FTA, or FAA. The Secretary will grant the request only if it documents special or exceptional circumstances, not likely to be generally applicable, and not contemplated in connection with the rulemaking that established this part, that make your compliance with a specific provision of this part impractical. You must agree to take any steps that the Department specifies to comply with the intent of the provision from which an exemption is granted. The Secretary will issue a written response to all exemption requests. (b) You can apply for a waiver of any provision of Subpart B or C of this part including, but not limited to, any provisions regarding administrative requirements, overall goals, contract goals or good faith efforts.

Program waivers are for the purpose of authorizing you to operate a DBE program that achieves the objectives of this part by means that may differ from one or more of the requirements of Subpart B or C of this part. To receive a program waiver, you must follow these procedures:
(1) You must apply through the concerned operating administration. The application must include a specific program proposal and address how you will meet the criteria of paragraph (b)(2) of this section. Before submitting your application, you must have had public participation in developing your proposal, including consultation with the DBE community and at least one public hearing. Your application must include a summary of the public participation process and the information gathered through it.
(2) Your application must show that—
(i) There is a reasonable basis to conclude that you could achieve a level of DBE participation consistent with the objectives of this part using different or innovative means other than those that are provided in subpart B or C of this part;
(ii) Conditions in your jurisdiction are appropriate for implementing the proposal; (iii) Your proposal would prevent discrimination against any individual or group in access to contracting opportunities or other benefits of the program; and (iv) Your proposal is consistent with applicable law and program requirements of the concerned operating administration's financial assistance program. (3) The Secretary has the authority to approve your application. If the Secretary grants your application, you may administer your DBE program as provided in your proposal, subject to the following conditions:
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.13(b)(1)
49 CFR 26.15(b)(3) (enhanced display) page 11 of 69

Page 260 of 1035 ends

Subpart B—Administrative Requirements for DBE Programs for Federally Assisted Contracting § 26.21 Who must have a DBE program?
(i) DBE eligibility is determined as provided in subparts D and E of this part, and DBE participation is counted as provided in § 26.49;
(ii) Your level of DBE participation continues to be consistent with the objectives of this part; (iii) There is a reasonable limitation on the duration of your modified program; and (iv) Any other conditions the Secretary makes on the grant of the waiver. (4) The Secretary may end a program waiver at any time and require you to comply with this part's provisions. The Secretary may also extend the waiver, if he or she determines that all requirements of paragraphs (b)(2) and (3) of this section continue to be met. Any such extension shall be for no longer than period originally set for the duration of the program. (a) If you are in one of these categories and let DOT-assisted contracts, you must have a DBE program meeting the requirements of this part:
(1) All FHWA primary recipients receiving funds authorized by a statute to which this part applies; (2) All FTA recipients receiving planning, capital and/or operating assistance must maintain a DBE program.
(i) FTA Tier I recipients must have a DBE program meeting all the requirements of this part. (ii) Beginning 180 days after the publication of the final rule, FTA Tier II recipients must maintain a program locally meeting the following requirements of this part:
(A) Reporting and recordkeeping under § 26.11;
(B) Contract assurances under § 26.13;
(C) Policy statement under § 26.23;
(D) Fostering small business participation under § 26.39; and (E) Transit vehicle procurements under § 26.49.
(3) FAA recipients receiving grants for airport planning or development that will award prime contracts the cumulative total value of which exceeds $250,000 in FAA funds in a Federal fiscal year. (b)
(1) You must submit a conforming DBE program to the concerned Operating Administration (OA). Once the OA has approved your program, the approval counts for all of your DOT-assisted programs (except goals that are reviewed by the relevant OA).
(2) You do not have to submit regular updates of your DBE program plan if you remain in compliance with this part. However, you must submit significant changes to the relevant OA for approval. (c) You are not eligible to receive DOT financial assistance unless DOT has approved your DBE program and you are in compliance with it and this part. You must continue to carry out your DBE program until all funds from DOT financial assistance have been expended. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.15(b)(3)(i)
49 CFR 26.21(c) (enhanced display) page 12 of 69

Page 261 of 1035 ends

[89 FR 24965, Apr. 9, 2024]
§ 26.23 What is the requirement for a policy statement? You must issue a signed and dated policy statement that expresses your commitment to your DBE program, states its objectives, and outlines responsibilities for its implementation. You must circulate the statement throughout your organization and to the DBE and non-DBE business communities that perform work on your DOT-assisted contracts.
§ 26.25 What is the requirement for a liaison officer?
You must have a DBE liaison officer, who shall have direct, independent access to your Chief Executive Officer concerning DBE program matters. The liaison officer shall be responsible for implementing all aspects of your DBE program. You must also have adequate staff to administer the program in compliance with this part. § 26.27 What efforts must recipients make concerning DBE financial institutions? You must thoroughly investigate the full extent of services offered by financial institutions owned and controlled by socially and economically disadvantaged individuals in your community and make reasonable efforts to use these institutions. You must also encourage prime contractors to use such institutions. § 26.29 What prompt payment mechanisms must recipients have? (a) You must establish, as part of your DBE program, a contract clause to require prime contractors to pay subcontractors for satisfactory performance of their contracts no later than 30 days from receipt of each payment you make to the prime contractor.
(b) You must ensure prompt and full payment of retainage from the prime contractor to the subcontractor within 30 days after the subcontractor's work is satisfactorily completed. You must use one of the following methods to comply with this requirement:
(1) You may decline to hold retainage from prime contractors and prohibit prime contractors from holding retainage from subcontractors.
(2) You may decline to hold retainage from prime contractors and require a contract clause obligating prime contractors to make prompt and full payment of any retainage kept by prime contractor to the subcontractor within 30 days after the subcontractor's work is satisfactorily completed. (3) You may hold retainage from prime contractors and provide for prompt and regular incremental acceptances of portions of the prime contract, pay retainage to prime contractors based on these acceptances, and require a contract clause obligating the prime contractor to pay all retainage owed to the subcontractor for satisfactory completion of the accepted work within 30 days after your payment to the prime contractor.
(c) For purposes of this section, a subcontractor's work is satisfactorily completed when all the tasks called for in the subcontract have been accomplished and documented as required by the recipient. When a recipient has made an incremental acceptance of a portion of a prime contract, the work of a subcontractor covered by that acceptance is deemed to be satisfactorily completed. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.23
49 CFR 26.29(c) (enhanced display) page 13 of 69

Page 262 of 1035 ends

[68 FR 35553, June 16, 2003, as amended at 89 FR 24965, Apr. 9, 2024; 89 FR 55089, July 3, 2024] § 26.31 What information must a UCP include in its DBE/ACDBE directory? (d) Your DBE program must include the mechanisms you will use for proactive monitoring and oversight of a prime contractor's compliance with subcontractor prompt payment and return of retainage requirements in this part. Reliance on complaints or notifications from subcontractors about a contractor's failure to comply with prompt payment and retainage requirements is not a sufficient monitoring and oversight mechanism.
(e) Your DBE program must provide appropriate means to enforce the requirements of this section. These means must be described in your DBE program and should include appropriate penalties for failure to comply, the terms and conditions of which you set. Your program may also provide that any delay or postponement of payment among the parties may take place only for good cause, with your prior written approval.
(f) Prompt payment and return of retainage requirements in this part also apply to all lower-tier subcontractors.
(g) You may also establish, as part of your DBE program, any of the following additional mechanisms to ensure prompt payment:
(1) A contract clause that requires prime contractors to include in their subcontracts language providing that prime contractors and subcontractors will use appropriate alternative dispute resolution mechanisms to resolve payment disputes. You may specify the nature of such mechanisms. (2) A contract clause providing that the prime contractor will not be reimbursed for work performed by subcontractors unless and until the prime contractor ensures that the subcontractors are promptly paid for the work they have performed.
(3) Other mechanisms, consistent with this part and applicable state and local law, to ensure that DBEs and other contractors are fully and promptly paid.
(a) In the directory required under § 26.81(g), you must list all firms eligible to participate as a DBE and/or ACDBE in your program. In the listing for each firm, you must include its business address, business phone number, firm website(s), and the types of work the firm has been certified to perform as a DBE and/ or ACDBE.
(b) You must list each type of work a DBE and/or ACDBE is eligible to perform by using the most specific NAICS code available to describe each type of work the firm performs. Pursuant to § 26.73(a), your directory must allow for NAICS codes to be supplemented with specific descriptions of the type(s) of work the firm performs.
(c) Your directory may include additional data fields of other items readily verifiable in State or locally maintained databases, such as State licenses held, Prequalifications, and Bonding capacity. (d) Your directory must be an online system that permits the public to search and/or filter for DBEs by:
(1) Physical location;
(2) NAICS code(s);
(3) Work descriptions; and
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.29(d)
49 CFR 26.31(d)(3) (enhanced display) page 14 of 69

Page 263 of 1035 ends

[89 FR 24965, Apr. 9, 2024; 89 FR 55089, July 3, 2024]
§ 26.33 What steps must a recipient take to address overconcentration of DBEs in certain types of work?
§ 26.35 What role do business development and mentor-protégé programs have in the DBE program?
(4) All optional information added pursuant to paragraph (c) of this section. The directory must include a prominently displayed disclaimer (e.g., large type, bold font) that states the information within the directory is not a guarantee of the DBE's capacity and ability to perform work. (e) You must make any changes to your current directory entries by November 5, 2024. (a) If you determine that DBE firms are so overconcentrated in a certain type of work as to unduly burden the opportunity of non-DBE firms to participate in this type of work, you must devise appropriate measures to address this overconcentration.
(b) These measures may include the use of incentives, technical assistance, business development programs, mentor-protégé programs, and other appropriate measures designed to assist DBEs in performing work outside of the specific field in which you have determined that non-DBEs are unduly burdened. You may also consider varying your use of contract goals, to the extent consistent with § 26.51, to unsure that non-DBEs are not unfairly prevented from competing for subcontracts. (c) You must obtain the approval of the concerned DOT operating administration for your determination of overconcentration and the measures you devise to address it. Once approved, the measures become part of your DBE program.
(a) You may or, if an operating administration directs you to, you must establish a DBE business development program (BDP) to assist firms in gaining the ability to compete successfully in the marketplace outside the DBE program. You may require a DBE firm, as a condition of receiving assistance through the BDP, to agree to terminate its participation in the DBE program after a certain time has passed or certain objectives have been reached. See Appendix C of this part for guidance on administering BDP programs. (b) As part of a BDP or separately, you may establish a “mentor-protégé” program, in which another DBE or non-DBE firm is the principal source of business development assistance to a DBE firm. (1) Only firms you have certified as DBEs before they are proposed for participation in a mentor-protégé program are eligible to participate in the mentor-protégé program. (2) In the mentor-protégé relationship, you must:
(i) Not award DBE credit to a non-DBE mentor firm for using its own protégé firm for more than one half of its goal on any contract let by the recipient; and (ii) Not award DBE credit to a non-DBE mentor firm for using its own protégé firm for more than every other contract performed by the protégé firm.
(3) For purposes of making determinations of business size under this part, you must not treat protégé firms as affiliates of mentor firms, when both firms are participating under an approved mentorprotégé program. See Appendix D of this part for guidance concerning the operation of mentorprotégé programs. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.31(d)(4)
49 CFR 26.35(b)(3) (enhanced display) page 15 of 69

Page 264 of 1035 ends

[64 FR 5126, Feb. 2, 1999, as amended at 89 FR 24966, Apr. 9, 2024] § 26.37 What are a recipient's responsibilities for monitoring? [89 FR 24966, Apr. 9, 2024]
§ 26.39 Fostering small business participation.
(c) Your BDPs and mentor-protégé programs must be approved by the concerned operating administration before you implement them. Once approved, they become part of your DBE program. (a) A recipient must implement appropriate mechanisms to ensure compliance with the requirements in this part by all program participants (e.g., applying legal and contract remedies available under Federal, State, and local law). The recipient must set forth these mechanisms in its DBE program. (b) A recipient's DBE program must also include a monitoring and enforcement mechanism to ensure that work committed, or in the case of race-neutral participation, the work subcontracted, to all DBEs at contract award or subsequently is performed by the DBEs to which the work was committed or subcontracted to, and such work is counted according to the requirements of § 26.55. This mechanism must include a written verification that you have reviewed contracting records and monitored the work site to ensure the counting of each DBE's participation is consistent with its function on the contract. The monitoring to which this paragraph (b) refers may be conducted in conjunction with monitoring of contract performance for other purposes such as a commercially useful function review. (c) You must effectively implement the following running tally mechanisms:
(1) With respect to achieving your overall goal, you must use a running tally that provides for a frequent comparison of cumulative DBE awards/commitments to DOT-assisted prime contract awards to determine whether your current implementation of contract goals is projected to be sufficient to meet your annual goal. This mechanism should inform your decisions to implement goals on contracts to be advertised according to your established contract goal-setting process. (2) With respect to each DBE commitment, you must use a running tally that provides for a frequent comparison of payments made to each listed DBE relative to the progress of work, including payments for such work to the prime contractor to determine whether the contractor is on track with meeting its DBE commitment and whether any projected shortfall exists that requires the prime contractor's good faith efforts to address to meet the contract goal pursuant to § 26.53(g). (a) Your DBE program must include an element to structure contracting requirements to facilitate competition by small business concerns, taking all reasonable steps to eliminate obstacles to their participation, including unnecessary and unjustified bundling of contract requirements that may preclude small business participation in procurements as prime contractors or subcontractors. (b) This element must be submitted to the appropriate DOT operating administration for approval as a part of your DBE program. As part of this program element you may include, but are not limited to, the following strategies:
(1) Establishing a race-neutral small business set-aside for prime contracts under a stated amount (e.g., $1 million).
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.35(c)
49 CFR 26.39(b)(1) (enhanced display) page 16 of 69

Page 265 of 1035 ends

[76 FR 5097, Jan. 28, 2011, as amended at 89 FR 24966, Apr. 9, 2024] Subpart C—Goals, Good Faith Efforts, and Counting
§ 26.41 What is the role of the statutory 10 percent goal in this program? § 26.43 Can recipients use set-asides or quotas as part of this program? § 26.45 How do recipients set overall goals?
(2) In multi-year design-build contracts or other large contracts (e.g., for “megaprojects”) requiring bidders on the prime contract to specify elements of the contract or specific subcontracts that are of a size that small businesses, including DBEs, can reasonably perform. (3) On prime contracts not having DBE contract goals, requiring the prime contractor to provide subcontracting opportunities of a size that small businesses, including DBEs, can reasonably perform, rather than self-performing all the work involved. (4) Identifying alternative acquisition strategies and structuring procurements to facilitate the ability of consortia or joint ventures consisting of small businesses, including DBEs, to compete for and perform prime contracts.
(5) To meet the portion of your overall goal you project to meet through race-neutral measures, ensuring that a reasonable number of prime contracts are of a size that small businesses, including DBEs, can reasonably perform.
(c) You must actively implement your program elements to foster small business participation. Doing so is a requirement of good faith implementation of your DBE program. (a) The statutes authorizing this program provide that, except to the extent the Secretary determines otherwise, not less than 10 percent of the authorized funds are to be expended with DBEs. (b) This 10 percent goal is an aspirational goal at the national level, which the Department uses as a tool in evaluating and monitoring DBEs' opportunities to participate in DOT-assisted contracts. (c) The national 10 percent goal does not authorize or require recipients to set overall or contract goals at the 10 percent level, or any other particular level, or to take any special administrative steps if their goals are above or below 10 percent.
(a) You are not permitted to use quotas for DBEs on DOT-assisted contracts subject to this part. (b) You may not set-aside contracts for DBEs on DOT-assisted contracts subject to this part, except that, in limited and extreme circumstances, you may use set-asides when no other method could be reasonably expected to redress egregious instances of discrimination. (a) General rule.
(1) Except as provided in paragraph (a)(2) of this section, you must set an overall goal for DBE participation in your DOT-assisted contracts.
(2) If you are an FTA Tier II recipient who intends to operate a race-neutral DBE program, or if you are an FAA recipient who reasonably anticipates awarding $250,000 or less in FAA prime contract funds in a Federal fiscal year, you are not required to develop overall goals for FTA or FAA, respectively, for that Federal fiscal year.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.39(b)(2)
49 CFR 26.45(a)(2) (enhanced display) page 17 of 69

Page 266 of 1035 ends

(b) Your overall goal must be based on demonstrable evidence of the availability of ready, willing and able DBEs relative to all businesses ready, willing and able to participate on your DOT-assisted contracts (hereafter, the “relative availability of DBEs”). The goal must reflect your determination of the level of DBE participation you would expect absent the effects of discrimination. You cannot simply rely on either the 10 percent national goal, your previous overall goal or past DBE participation rates in your program without reference to the relative availability of DBEs in your market. (c) Step 1. You must begin your goal setting process by determining a base figure for the relative availability of DBEs. The following are examples of approaches that you may take toward determining a base figure.

These examples are provided as a starting point for your goal setting process. Any percentage figure derived from one of these examples should be considered a basis from which you begin when examining all evidence available in your jurisdiction. These examples are not intended as an exhaustive list. Other methods or combinations of methods to determine a base figure may be used, subject to approval by the concerned operating administration.
(1) Use DBE Directories and Census Bureau Data. Determine the number of ready, willing and able DBEs in your market from your DBE directory. Using the Census Bureau's County Business Pattern (CBP) data base, determine the number of all ready, willing and able businesses available in your market that perform work in the same NAICS codes. (Information about the CBP data base may be obtained from the Census Bureau at their web site, https://www.census.gov/programs-surveys/cbp.html;) Divide the number of DBEs by the number of all businesses to derive a base figure for the relative availability of DBEs in your market.
(2) Use a bidders list. Determine the number of DBEs that have bid or quoted (successful and unsuccessful) on your DOT-assisted prime contracts or subcontracts in the past three years.

Determine the number of all businesses that have bid or quoted (successful and unsuccessful) on prime or subcontracts in the same time period. Divide the number of DBE bidders and quoters by the number of all businesses to derive a base figure for the relative availability of DBEs in your market.

When using this approach, you must establish a mechanism (documented in your goal submission) to directly capture data on DBE and non-DBE prime and subcontractors that submitted bids or quotes on your DOT-assisted contracts.
(3) Use data from a disparity study. Use a percentage figure derived from data in a valid, applicable disparity study.
(4) Use the goal of another DOT recipient. If another DOT recipient in the same, or substantially similar, market has set an overall goal in compliance with this rule, you may use that goal as a base figure for your goal.
(5) Alternative methods. Except as otherwise provided in this paragraph, you may use other methods to determine a base figure for your overall goal. Any methodology you choose must be based on demonstrable evidence of local market conditions and be designed to ultimately attain a goal that is rationally related to the relative availability of DBEs in your market. The exclusive use of a list of prequalified contractors or plan holders, or a bidders list that does not comply with the requirements of paragraph (c)(2) of this section, is not an acceptable alternative means of determining the availability of DBEs.
(d) Step 2. Once you have calculated a base figure, you must examine all of the evidence available in your jurisdiction to determine what adjustment, if any, is needed to the base figure to arrive at your overall goal.

If the evidence does not suggest an adjustment is necessary, then no adjustment shall be made. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.45(b)
49 CFR 26.45(d) (enhanced display) page 18 of 69

Page 267 of 1035 ends

(1) There are many types of evidence that must be considered when adjusting the base figure. These include:
(i) The current capacity of DBEs to perform work in your DOT-assisted contracting program, as measured by the volume of work DBEs have performed in recent years; (ii) Evidence from disparity studies conducted anywhere within your jurisdiction, to the extent it is not already accounted for in your base figure; and
(iii) If your base figure is the goal of another recipient, you must adjust it for differences in your local market and your contracting program.
(2) If available, you must consider evidence from related fields that affect the opportunities for DBEs to form, grow and compete. These include, but are not limited to:
(i) Statistical disparities in the ability of DBEs to get the financing, bonding and insurance required to participate in your program;
(ii) Data on employment, self-employment, education, training and union apprenticeship programs, to the extent you can relate it to the opportunities for DBEs to perform in your program. (3) If you attempt to make an adjustment to your base figure to account for the continuing effects of past discrimination (often called the “but for” factor) or the effects of an ongoing DBE program, the adjustment must be based on demonstrable evidence that is logically and directly related to the effect for which the adjustment is sought.
(e) Once you have determined a percentage figure in accordance with paragraphs (c) and (d) of this section, you should express your overall goal as follows:
(1) If you are an FHWA recipient, as a percentage of all Federal-aid highway funds you will expend in FHWA-assisted contracts in the forthcoming three fiscal years. (2) If you are an FTA or FAA recipient, as a percentage of all FT or FAA funds (exclusive of FTA funds to be used for the purchase of transit vehicles) that you will expend in FTA or FAA-assisted contracts in the three forthcoming fiscal years.
(3) In appropriate cases, the FHWA, FTA or FAA Administrator may permit or require you to express your overall goal as a percentage of funds for a particular grant or project or group of grants and/or projects, including entire projects. Like other overall goals, a project goal may be adjusted to reflect changed circumstances, with the concurrence of the appropriate operating administration. (i) A project goal is an overall goal, and must meet all the substantive and procedural requirements of this section pertaining to overall goals.
(ii) A project goal covers the entire length of the project to which it applies. (iii) The project goal should include a projection of the DBE participation anticipated to be obtained during each fiscal year covered by the project goal.
(iv) The funds for the project to which the project goal pertains are separated from the base from which your regular overall goal, applicable to contracts not part of the project covered by a project goal, is calculated.
(f)
(1)
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.45(d)(1)
49 CFR 26.45(f)(1) (enhanced display) page 19 of 69

Page 268 of 1035 ends

(i) If you set your overall goal on a fiscal year basis, you must submit it to the applicable DOT operating administration by August 1 at three-year intervals, based on a schedule established by the FHWA, FTA, or FAA, as applicable, and posted on that agency's website. (ii) You may adjust your three-year overall goal during the three-year period to which it applies, in order to reflect changed circumstances. You must submit such an adjustment to the concerned operating administration for review and approval.
(iii) The operating administration may direct you to undertake a review of your goal if necessary to ensure that the goal continues to fit your circumstances appropriately. (iv) While you are required to submit an overall goal to FHWA, FTA, or FAA only every three years, the overall goal and the provisions of Sec. 26.47(c) apply to each year during that three-year period.
(v) You may make, for informational purposes, projections of your expected DBE achievements during each of the three years covered by your overall goal. However, it is the overall goal itself, and not these informational projections, to which the provisions of section 26.47(c) of this part apply.
(2) If you are a recipient and set your overall goal on a project or grant basis as provided in paragraph (e)(3) of this section, you must submit the goal for review at a time determined by the FHWA, FTA or FAA Administrator, as applicable.
(3) You must include with your overall goal submission a description of the methodology you used to establish the goal, including your base figure and the evidence with which it was calculated, and the adjustments you made to the base figure and the evidence you relied on for the adjustments. You should also include a summary listing of the relevant available evidence in your jurisdiction and, where applicable, an explanation of why you did not use that evidence to adjust your base figure. You must also include your projection of the portions of the overall goal you expect to meet through raceneutral and race-conscious measures, respectively (see § 26.51(c)). (4) You are not required to obtain prior operating administration concurrence with your overall goal.

However, if the operating administration's review suggests that your overall goal has not been correctly calculated or that your method for calculating goals is inadequate, the operating administration may, after consulting with you, adjust your overall goal or require that you do so. The adjusted overall goal is binding on you. In evaluating the adequacy or soundness of the methodology used to derive the overall goal, the operating administration will be guided by goal setting principles and best practices identified by the Department in guidance issued pursuant to § 26.9. (5) If you need additional time to collect data or take other steps to develop an approach to setting overall goals, you may request the approval of the concerned operating administration for an interim goal and/or goal-setting mechanism. Such a mechanism must:
(i) Reflect the relative availability of DBEs in your local market to the maximum extent feasible given the data available to you; and
(ii) Avoid imposing undue burdens on non-DBEs.
(6) Timely submission and operating administration approval of your overall goal is a condition of eligibility for DOT financial assistance.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.45(f)(1)(i)
49 CFR 26.45(f)(6) (enhanced display) page 20 of 69

Page 269 of 1035 ends

[64 FR 5126, Feb. 2, 1999, as amended at 64 FR 34570, June 28, 1999; 65 FR 68951, Nov. 15, 2000; 68 FR 35553, June 16, 2003; 75 FR 5536, Feb. 3, 2010; 76 FR 5097, Jan. 28, 2011; 79 FR 59593, Oct. 2, 2014; 89 FR 24966, Apr. 9, 2024; 89 FR 55089, July 3, 2024] § 26.47 Can recipients be penalized for failing to meet overall goals? (7) If you fail to establish and implement goals as provided in this section, you are not in compliance with this part. If you establish and implement goals in a way different from that provided in this part, you are not in compliance with this part. If you fail to comply with this requirement, you are not eligible to receive DOT financial assistance.
(g)
(1) In establishing an overall goal, you must provide for consultation and publication. This includes:
(i) Consultation with minority, women's and general contractor groups, community organizations, and other officials or organizations which could be expected to have information concerning the availability of disadvantaged and non-disadvantaged businesses, the effects of discrimination on opportunities for DBEs, and your efforts to establish a level playing field for the participation of DBEs. The consultation must include a scheduled, direct, interactive exchange (e.g., a face-to-face meeting, video conference, teleconference) with as many interested stakeholders as possible focused on obtaining information relevant to the goal setting process, and it must occur before you are required to submit your methodology to the operating administration for review pursuant to paragraph (f) of this section. You must document in your goal submission the consultation process you engaged in. Notwithstanding paragraph (f)(4) of this section, you may not implement your proposed goal until you have complied with this requirement.
(ii) A published notice announcing your proposed overall goal before submission to the operating administration on August 1st. The notice must be posted on your official Internet Web site and may be posted in any other sources (e.g., minority-focused media, trade association publications). If the proposed goal changes following review by the operating administration, the revised goal must be posted on your official Internet Web site. (2) At your discretion, you may inform the public that the proposed overall goal and its rationale are available for inspection during normal business hours at your principal office and for a 30-day comment period. Notice of the comment period must include addresses to which comments may be sent. The public comment period will not extend the August 1st deadline set in paragraph (f) of this section.
(h) Your overall goals must provide for participation by all certified DBEs and must not be subdivided into group-specific goals.
(a) You cannot be penalized, or treated by the Department as being in noncompliance with this rule, because your DBE participation falls short of your overall goal, unless you have failed to administer your program in good faith.
(b) If you do not have an approved DBE program or overall goal, or if you fail to implement your program in good faith, you are in noncompliance with this part.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.45(f)(7)
49 CFR 26.47(b) (enhanced display) page 21 of 69

Page 270 of 1035 ends

[64 FR 5126, Feb. 2, 1999, as amended at 76 FR 5098, Jan. 28, 2011; 89 FR 24966, Apr. 9, 2024] (c) If the awards and commitments shown on your Uniform Report of Awards or Commitments and Payments at the end of any fiscal year are less than the overall goal applicable to that fiscal year, you must do the following in order to be regarded by the Department as implementing your DBE program in good faith:
(1) Analyze in detail the reasons for the difference between the overall goal and your awards and commitments in that fiscal year;
(2) Establish specific steps and milestones to correct the problems you have identified in your analysis and to enable you to meet fully your goal for the new fiscal year; (3)
(i) If you are a state highway agency; one of the 50 largest transit authorities as determined by the FTA; or an CORE 30 airport or other airport designated by the FAA, you must submit, within 90 days of the end of the fiscal year, the analysis and corrective actions developed under paragraphs (c)(1) and (2) of this section to the appropriate operating administration for approval. If the operating administration approves the report, you will be regarded as complying with the requirements of this section for the remainder of the fiscal year. (ii) As a transit authority or airport not meeting the criteria of paragraph (c)(3)(i) of this section, you must retain analysis and corrective actions in your records for three years and make it available to FTA or FAA on request for their review.
(4) FHWA, FTA, or FAA may impose conditions on the recipient as part of its approval of the recipient's analysis and corrective actions including, but not limited to, modifications to your overall goal methodology, changes in your race-conscious/race-neutral split, or the introduction of additional race-neutral or race-conscious measures.
(5) You may be regarded as being in noncompliance with this Part, and therefore subject to the remedies in § 26.103 or § 26.105 of this part and other applicable regulations, for failing to implement your DBE program in good faith if any of the following things occur:
(i) You do not submit your analysis and corrective actions to FHWA, FTA, or FAA in a timely manner as required under paragraph (c)(3) of this section; (ii) FHWA, FTA, or FAA disapproves your analysis or corrective actions; or (iii) You do not fully implement the corrective actions to which you have committed or conditions that FHWA, FTA, or FAA has imposed following review of your analysis and corrective actions. (d) If, as recipient, your Uniform Report of DBE Awards or Commitments and Payments or other information coming to the attention of FTA, FHWA, or FAA, demonstrates that current trends make it unlikely that you will achieve DBE awards and commitments that would be necessary to allow you to meet your overall goal at the end of the fiscal year, FHWA, FTA, or FAA, as applicable, may require you to make further good faith efforts, such as by modifying your race-conscious/race-neutral split or introducing additional raceneutral or race-conscious measures for the remainder of the fiscal year. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.47(c)
49 CFR 26.47(d) (enhanced display) page 22 of 69

Page 271 of 1035 ends

§ 26.49 What are the requirements for transit vehicle manufactures (TVMs) and for awarding DOT-assisted contracts to TVMs?
(a) If you are an FTA recipient, you must require in your DBE program that each TVM, as a condition of being authorized to bid or propose on FTA assisted transit vehicle procurements, certify that it has complied with the requirements of this section. You do not include FTA assistance used in transit vehicle procurements in the base amount from which your overall goal is calculated. (1) Only those TVMs listed on FTA's list of eligible TVMs, or that have submitted a goal methodology to FTA that has been approved or has not been disapproved at the time of solicitation are eligible to bid.
(2) A TVM that fails to follow the requirements of this section and this part will be deemed as noncompliant, which will result in removal from FTA's eligible TVMs list and ineligibility to bid. (3) An FTA recipient's failure to comply with the requirements set forth in paragraph (a) of this section may result in formal enforcement action or appropriate sanction as determined by FTA (e.g., FTA declining to participate in the vehicle procurement).
(4) Within 30 days of becoming contractually required to procure a transit vehicle, an FTA recipient must report to FTA:
(i) The name of the TVM that was the successful bidder; and (ii) The Federal share of the contractual commitment at that time. (b) If you are a TVM, you must establish and submit to FTA an annual overall percentage goal for DBE participation.
(1) In setting your overall goal, you should be guided, to the extent applicable, by the principles underlying § 26.45. The base from which you calculate this goal is the amount of FTA financial assistance included in transit vehicle contracts on which you will bid on during the fiscal year in question, less the portion(s) attributable to the manufacturing process performed entirely by your own forces.
(i) You must consider and include in your base figure all domestic contracting opportunities made available to non-DBEs.
(ii) You must exclude from this base figure funds attributable to work performed outside the United States and its territories, possessions, and commonwealths. (iii) In establishing an overall goal, you must provide for public participation. This includes consultation with interested parties consistent with § 26.45(g). (2) The requirements of this part with respect to submission and approval of overall goals apply to you as they do to recipients, except that TVMs set and submit their goals annually and not on a triennial basis.
(c) TVMs must comply with the reporting requirements of § 26.11, including the requirement to submit the Uniform Report of DBE Awards or Commitments and Payments, in order to remain eligible to bid on FTA assisted transit vehicle procurements.
(d) TVMs must implement all other requirements of this part, except those relating to UCPs and DBE certification procedures.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.49
49 CFR 26.49(d) (enhanced display) page 23 of 69

Page 272 of 1035 ends

[89 FR 24966, Apr. 9, 2024]
§ 26.51 What means do recipients use to meet overall goals? (e) If you are an FHWA or FAA recipient, you may, with FHWA or FAA approval, use the procedures of this section with respect to procurements of vehicles or specialized equipment. If you choose to do so, then the manufacturers of the equipment must meet the same requirements (including goal approval by FHWA or FAA) that TVMs must meet in FTA assisted procurements. (f) Recipients may establish project-specific goals for DBE participation in the procurement of transit vehicles from specialized manufacturers when a TVM cannot be identified. (1) Project-specific goals established pursuant to this section are subject to the same review and approval and must be established as prescribed in the project goal provisions of § 26.45. (2) FTA must approve the decision to use a project goal before the recipient issues a public solicitation for the vehicles in question.
(3) To support the request to develop a project goal, recipients must demonstrate that no TVMs are available to manufacture the vehicle.
(a) You must meet the maximum feasible portion of your overall goal by using race-neutral means of facilitating race-neutral DBE participation. Race-neutral DBE participation includes any time a DBE wins a prime contract through customary competitive procurement procedures or is awarded a subcontract on a prime contract that does not carry a DBE contract goal. (b) Race-neutral means include, but are not limited to, the following:
(1) Arranging solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate participation by DBEs and other small businesses and by making contracts more accessible to small businesses, by means such as those provided under § 26.39 of this part.
(2) Providing assistance in overcoming limitations such as inability to obtain bonding or financing (e.g., by such means as simplifying the bonding process, reducing bonding requirements, eliminating the impact of surety costs from bids, and providing services to help DBEs, and other small businesses, obtain bonding and financing);
(3) Providing technical assistance and other services;
(4) Carrying out information and communications programs on contracting procedures and specific contract opportunities (e.g., ensuring the inclusion of DBEs, and other small businesses, on recipient mailing lists for bidders; ensuring the dissemination to bidders on prime contracts of lists of potential subcontractors; provision of information in languages other than English, where appropriate);
(5) Implementing a supportive services program to develop and improve immediate and long-term business management, record keeping, and financial and accounting capability for DBEs and other small businesses;
(6) Providing services to help DBEs, and other small businesses, improve long-term development, increase opportunities to participate in a variety of kinds of work, handle increasingly significant projects, and achieve eventual self-sufficiency;
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.49(e)
49 CFR 26.51(b)(6) (enhanced display) page 24 of 69

Page 273 of 1035 ends

(7) Establishing a program to assist new, start-up firms, particularly in fields in which DBE participation has historically been low;
(8) Ensuring distribution of your DBE directory, through print and electronic means, to the widest feasible universe of potential prime contractors; and
(9) Assisting DBEs, and other small businesses, to develop their capability to utilize emerging technology and conduct business through electronic media. (c) Each time you submit your overall goal for review by the concerned operating administration, you must also submit your projection of the portion of the goal that you expect to meet through race-neutral means and your basis for that projection. This projection is subject to approval by the concerned operating administration, in conjunction with its review of your overall goal. (d) You must establish contract goals to meet any portion of your overall goal you do not project being able to meet using race-neutral means.
(e) The following provisions apply to the use of contract goals:
(1) You may use contract goals only on those DOT-assisted contracts that have subcontracting possibilities.
(2) You are not required to set a contract goal on every DOT-assisted contract. You are not required to set each contract goal at the same percentage level as the overall goal. The goal for a specific contract may be higher or lower than that percentage level of the overall goal, depending on such factors as the type of work involved, the location of the work, and the availability of DBEs for the work of the particular contract. However, over the period covered by your overall goal, you must set contract goals so that they will cumulatively result in meeting any portion of your overall goal you do not project being able to meet through the use of race-neutral means. (3) Operating administration approval of each contract goal is not necessarily required. However, operating administrations may review and approve or disapprove any contract goal you establish. (4) Your contract goals must provide for participation by all certified DBEs and must not be subdivided into group-specific goals.
(f) To ensure that your DBE program continues to be narrowly tailored to overcome the effects of discrimination, you must adjust your use of contract goals as follows:
(1) If your approved projection under paragraph (c) of this section estimates that you can meet your entire overall goal for a given year through race-neutral means, you must implement your program without setting contract goals during that year, unless it becomes necessary in order meet your overall goal.

Example to paragraph (f)(1): Your overall goal for Year 1 is 12 percent. You estimate that you can obtain 12 percent or more DBE participation through the use of race-neutral measures, without any use of contract goals. In this case, you do not set any contract goals for the contracts that will be performed in Year 1. However, if part way through Year 1, your DBE awards or commitments are not at a level that would permit you to achieve your overall goal for Year 1, you could begin setting race-conscious DBE contract goals during the remainder of the year as part of your obligation to implement your program in good faith. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.51(b)(7)
49 CFR 26.51(f)(1) “Example to paragraph (f)(1)” (enhanced display) page 25 of 69

Page 274 of 1035 ends

(2) If, during the course of any year in which you are using contract goals, you determine that you will exceed your overall goal, you must reduce or eliminate the use of contract goals to the extent necessary to ensure that the use of contract goals does not result in exceeding the overall goal. If you determine that you will fall short of your overall goal, then you must make appropriate modifications in your use of race-neutral and/or race-conscious measures to allow you to meet the overall goal.

Example to paragraph (f)(2): In Year II, your overall goal is 12 percent. You have estimated that you can obtain 5 percent DBE participation through use of race-neutral measures. You therefore plan to obtain the remaining 7 percent participation through use of DBE goals. By September, you have already obtained 11 percent DBE participation for the year. For contracts let during the remainder of the year, you use contract goals only to the extent necessary to obtain an additional one percent DBE participation. However, if you determine in September that your participation for the year is likely to be only 8 percent total, then you would increase your use of race-neutral and/or race-conscious means during the remainder of the year in order to achieve your overall goal.
(3) If the DBE participation you have obtained by race-neutral means alone meets or exceeds your overall goals for two consecutive years, you are not required to make a projection of the amount of your goal you can meet using such means in the next year. You do not set contract goals on any contracts in the next year. You continue using only race-neutral means to meet your overall goals unless and until you do not meet your overall goal for a year.

Example to paragraph (f)(3): Your overall goal for Years I and Year II is 10 percent. The DBE participation you obtain through race-neutral measures alone is 10 percent or more in each year. (For this purpose, it does not matter whether you obtained additional DBE participation through using contract goals in these years.) In Year III and following years, you do not need to make a projection under paragraph (c) of this section of the portion of your overall goal you expect to meet using race-neutral means. You simply use race-neutral means to achieve your overall goals. However, if in Year VI your DBE participation falls short of your overall goal, then you must make a paragraph (c) projection for Year VII and, if necessary, resume use of contract goals in that year.
(4) If you obtain DBE participation that exceeds your overall goal in two consecutive years using contract goals (i.e., not through the use of race-neutral means alone), you must reduce your use of contract goals proportionately in the following year.

Example to paragraph (f)(4): In Years I and II, your overall goal is 12 percent, and you obtain 14 and 16 percent DBE participation, respectively. You have exceeded your goals over the two-year period by an average of 25 percent. In Year III, your overall goal is again 12 percent, and your paragraph (c) projection estimates that you will obtain 4 percent DBE participation through race-neutral means and 8 percent through contract goals. You then reduce the contract goal projection by 25 percent (i.e., from 8 to 6 percent) and set contract goals accordingly during the year. If in Year III you obtain 11 percent participation, you do not use this contract goal adjustment mechanism for Year IV, because there have not been two consecutive years of exceeding overall goals.
(g) In any year in which you project meeting part of your goal through race-neutral means and the remainder through contract goals, you must maintain data separately on DBE achievements in those contracts with and without contract goals, respectively. You must report this data to the concerned operating administration as provided in § 26.11.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.51(f)(2)
49 CFR 26.51(g) (enhanced display) page 26 of 69

Page 275 of 1035 ends

[64 FR 5126, Feb. 2, 1999, as amended at 76 FR 5098, Jan. 28, 2011; 79 FR 59595, Oct. 2, 2014; 89 FR 24967, Apr. 9, 2024] § 26.53 What are the good faith efforts procedures recipients follow in situations where there are contract goals?
(a) When you have established a DBE contract goal, you must award the contract only to a bidder/offeror who makes good faith efforts to meet it. You must determine that a bidder/offeror has made good faith efforts if the bidder/offeror does either of the following things:
(1) Documents that it has obtained enough DBE participation to meet the goal; or (2) Documents that it made adequate good faith efforts to meet the goal, even though it did not succeed in obtaining enough DBE participation to do so. If the bidder/offeror does document adequate good faith efforts, you must not deny award of the contract on the basis that the bidder/offeror failed to meet the goal. See Appendix A of this part for guidance in determining the adequacy of a bidder/ offeror's good faith efforts.
(b) In your solicitations for DOT-assisted contracts for which a contract goal has been established, you must require the following:
(1) Award of the contract will be conditioned on meeting the requirements of this section; (2) All bidders or offerors will be required to submit the following information to the recipient, at the time provided in paragraph (b)(3) of this section:
(i) The names and addresses of DBE firms that will participate in the contract; (ii) A description of the work that each DBE will perform. To count toward meeting a goal, each DBE firm must be certified in a NAICS code applicable to the kind of work the firm would perform on the contract;
(iii) The dollar amount of the participation of each DBE firm participating; (iv) Written documentation of the bidder/offeror's commitment to use a DBE subcontractor whose participation it submits to meet a contract goal; and
(v) Written confirmation from each listed DBE firm that it is participating in the contract in the kind and amount of work provided in the prime contractor's commitment. Each DBE listed to perform work as a regular dealer or distributor must confirm its participation according to the requirements of paragraph (c)(1) of this section.
(vi) If the contract goal is not met, evidence of good faith efforts (see Appendix A of this part). The documentation of good faith efforts must include copies of each DBE and non-DBE subcontractor quote submitted to the bidder when a non-DBE subcontractor was selected over a DBE for work on the contract; and
(3)
(i) At your discretion, the bidder/offeror must present the information required by paragraph (b)(2) of this section—
(A) Under sealed bid procedures, as a matter of responsiveness, or with initial proposals, under contract negotiation procedures; or
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.53
49 CFR 26.53(b)(3)(i)(A) (enhanced display) page 27 of 69

Page 276 of 1035 ends

(B) No later than 7 days after bid opening as a matter of responsibility. The 7 days shall be reduced to 5 days beginning January 1, 2017.
(ii) Provided that, in a negotiated procurement, such as a procurement for professional services, the bidder/offeror may make a contractually binding commitment to meet the goal at the time of bid submission or the presentation of initial proposals but provide the information required by paragraph (b)(2) of this section before the final selection for the contract is made by the recipient. This paragraph (b)(3)(ii) does not apply to a design-build procurement, which must follow the provisions in paragraph (e) of this section. (c) You must make sure all information is complete and accurate and adequately documents the bidder/ offeror's good faith efforts before committing yourself to the performance of the contract by the bidder/ offeror.
(1) For each DBE listed as a regular dealer or distributor you must make a preliminary counting determination to assess its eligibility for 60 or 40 percent credit, respectively, of the cost of materials and supplies based on its demonstrated capacity and intent to perform as a regular dealer or distributor, as defined in § 26.55(e)(2)(iv)(A), (B), and (C) and (e)(3) under the contract at issue. Your preliminary determination shall be made based on the DBE's written responses to relevant questions and its affirmation that its subsequent performance of a commercially useful function will be consistent with the preliminary counting of such participation. Where the DBE supplier does not affirm that its participation will meet the specific requirements of either a regular dealer or distributor, you are required to make appropriate adjustments in counting such participation toward the bidder's good faith efforts to meet the contract goal. The bidder is responsible for verifying that the information provided by the DBE supplier is consistent with the counting of such participation toward the contract goal.
(2) [Reserved]
(d) If you determine that the apparent successful bidder/offeror has failed to meet the requirements of paragraph (a) of this section, you must, before awarding the contract, provide the bidder/offeror an opportunity for administrative reconsideration.
(1) As part of this reconsideration, the bidder/offeror must have the opportunity to provide written documentation or argument concerning the issue of whether it met the goal or made adequate good faith efforts to do so.
(2) Your decision on reconsideration must be made by an official who did not take part in the original determination that the bidder/offeror failed to meet the goal or make adequate good faith efforts to do so.
(3) The bidder/offeror must have the opportunity to meet in person with your reconsideration official to discuss the issue of whether it met the goal or made adequate good faith efforts to do so. (4) You must send the bidder/offeror a written decision on reconsideration, explaining the basis for finding that the bidder did or did not meet the goal or make adequate good faith efforts to do so. (5) The result of the reconsideration process is not administratively appealable to the Department of Transportation.
(e) In a design-build contracting situation, in which the recipient solicits proposals to design and build a project with minimal-project details at time of letting, the recipient may set a DBE goal that proposers must meet by submitting a DBE Open-Ended DBE Performance Plan (OEPP) with the proposal. The OEPP 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.53(b)(3)(i)(B)
49 CFR 26.53(e) (enhanced display) page 28 of 69

Page 277 of 1035 ends

replaces the requirement to provide the information required in paragraph (b) of this section that applies to design-bid-build contracts. To be considered responsive, the OEPP must include a commitment to meet the goal and provide details of the types of subcontracting work or services (with projected dollar amount) that the proposer will solicit DBEs to perform. The OEPP must include an estimated time frame in which actual DBE subcontracts would be executed. Once the design-build contract is awarded, the recipient must provide ongoing monitoring and oversight to evaluate whether the design-builder is using good faith efforts to comply with the OEPP and schedule. The recipient and the design-builder may agree to make written revisions of the OEPP throughout the life of the project, e.g., replacing the type of work items the design-builder will solicit DBEs to perform and/or adjusting the proposed schedule, as long as the design-builder continues to use good faith efforts to meet the goal. (f)
(1)
(i) You must require that a prime contractor not terminate a DBE or any portion of its work listed in response to paragraph (b)(2) of this section (or an approved substitute DBE firm per paragraph (g) of this section) without your prior written consent, unless you cause the termination or reduction. A termination includes any reduction or underrun in work listed for a DBE not caused by a material change to the prime contract by the recipient. This requirement applies to instances that include, but are not limited to, when a prime contractor seeks to perform work originally designated for a DBE subcontractor with its own forces or those of an affiliate, a nonDBE firm, or with another DBE firm. (ii) You must include in each prime contract a provision stating that:
(A) The contractor must utilize the specific DBEs listed to perform the work and supply the materials for which each is listed unless the contractor obtains your written consent as provided in this paragraph (f); and
(B) Unless your consent is provided under this paragraph (f), the prime contractor must not be entitled to any payment for work or material unless it is performed or supplied by the listed DBE.
(2) You may provide such written consent only if you agree, for reasons stated in your concurrence document, that the prime contractor has good cause to terminate the listed DBE or any portion of its work.
(3) Good cause does not exist if the prime contractor seeks to terminate a DBE or any portion of its work that it relied upon to obtain the contract so that the prime contractor can self-perform the work for which the DBE contractor was engaged, or so that the prime contractor can substitute another DBE or non-DBE contractor after contract award. For purposes of this paragraph (f)(3), good cause includes the following circumstances:
(i) The listed DBE subcontractor fails or refuses to execute a written contract; (ii) 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; (iii) The listed DBE subcontractor fails or refuses to meet the prime contractor's reasonable, nondiscriminatory bond requirements;
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.53(f)
49 CFR 26.53(f)(3)(iii) (enhanced display) page 29 of 69

Page 278 of 1035 ends

(iv) The listed DBE subcontractor becomes bankrupt, insolvent, or exhibits credit unworthiness; (v) The listed DBE subcontractor is ineligible to work on public works projects because of suspension and debarment proceedings pursuant to 2 CFR parts 180, 215, and 1200 or applicable State law;
(vi) You have determined that the listed DBE subcontractor is not a responsible contractor; (vii) The listed DBE subcontractor voluntarily withdraws from the project and provides to you written notice of its withdrawal;
(viii) The listed DBE is ineligible to receive DBE credit for the type of work required; (ix) A DBE owner dies or becomes disabled with the result that the listed DBE contractor is unable to complete its work on the contract; and
(x) Other documented good cause that you determine compels the termination of the DBE subcontractor.
(4) Before transmitting to you its request to terminate a DBE subcontractor or any portion of its work, the prime contractor must give notice in writing to the DBE subcontractor, with a copy to you sent concurrently, of its intent to request to terminate and the reason for the proposed request. (5) The prime contractor's written notice must give the DBE 5 days to respond, advising you and the contractor of the reasons, if any, why it objects to the proposed termination of its subcontract/or portion thereof and why you should not approve the prime contractor's request. If required in a particular case as a matter of public necessity (e.g., safety), you may provide a response period shorter than 5 days.
(6) In addition to post-award terminations, the provisions of this section apply to pre-award deletions or changes to DBEs or their listed work put forward by offerors in negotiated procurements. (g) When a DBE subcontractor or any portion of its work is terminated by the prime contractor as provided in paragraph (f) of this section, or the firm fails to complete its work on the contract for any reason, including when work committed to a DBE is not countable or reduced due to overestimations made prior to award, the prime contractor must use good faith efforts to include additional DBE participation to the extent needed to meet the contract goal. The good faith efforts shall be documented by the contractor. If the recipient requests documentation under this provision, the contractor shall submit the documentation within 7 days, which may be extended for an additional 7 days, if necessary, at the request of the contractor, and the recipient shall provide a written determination to the contractor stating whether or not good faith efforts have been demonstrated.
(h) You must include in each prime contract the contract clause required by § 26.13(b) stating that failure by the contractor to carry out the requirements of this part is a material breach of the contract and may result in the termination of the contract or such other remedies set forth in that section you deem appropriate if the prime contractor fails to comply with the requirements of this section. (i) You must apply the requirements of this section to DBE bidders/offerors for prime contracts. In determining whether a DBE bidder/offeror for a prime contract has met a contract goal, you count the work the DBE has committed to performing with its own forces as well as the work that it has committed to be performed by DBE subcontractors and DBE suppliers. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.53(f)(3)(iv)
49 CFR 26.53(i) (enhanced display) page 30 of 69

Page 279 of 1035 ends

[64 FR 5126, Feb. 2, 1999, as amended at 76 FR 5098, Jan. 28, 2011; 79 FR 59595, Oct. 2, 2014; 89 FR 24967, Apr. 9, 2024; 89 FR 55089, July 3, 2024]
§ 26.55 How is DBE participation counted toward goals?
(j) You must require the contractor awarded the contract to make available upon request a copy of all DBE subcontracts. The subcontractor shall ensure that all subcontracts or an agreement with DBEs to supply labor or materials require that the subcontract and all lower tier subcontractors be performed in accordance with this part's provisions.
(a) When a DBE participates in a contract, you count only the value of the work performed by the DBE toward DBE goals.
(1) Count the entire amount of that portion of a construction contract (or other contract not covered by paragraph (a)(2) of this section) that is performed by the DBE's own forces. Include the cost of supplies and materials obtained by the DBE for the work of the contract, including supplies purchased or equipment leased by the DBE (except supplies and equipment the DBE subcontractor purchases or leases from the prime contractor or its affiliate). (2) Count the entire amount of fees or commissions charged by a DBE firm for providing a bona fide service, such as professional, technical, consultant, or managerial services, or for providing bonds or insurance specifically required for the performance of a DOT-assisted contract, toward DBE goals, provided you determine the fee to be reasonable and not excessive as compared with fees customarily allowed for similar services.
(3) When a DBE subcontracts part of the work of its contract to another firm, the value of the subcontracted work may be counted toward DBE goals only if the DBE's subcontractor is itself a DBE. Work that a DBE subcontracts to a non-DBE firm does not count toward DBE goals. (b) When a DBE performs as a participant in a joint venture, count a portion of the total dollar value of the contract equal to the distinct, clearly defined portion of the work of the contract that the DBE performs with its own forces toward DBE goals.
(c) Count expenditures to a DBE contractor toward DBE goals only if the DBE is performing a commercially useful function on that contract.
(1) A DBE performs a commercially useful function when it is responsible for execution of the work of the contract and is carrying out its responsibilities by performing, managing, and supervising the work involved. To perform a commercially useful function, the DBE must also be responsible, with respect to materials and supplies used on the contract, for negotiating price, determining quality and quantity, ordering the material, and installing (where applicable) and paying for the material itself. To determine whether a DBE is performing a commercially useful function, you must evaluate the amount of work subcontracted, industry practices, whether the amount the firm is to be paid under the contract is commensurate with the work it is performing and the DBE credit claimed for its performance of the work, and other relevant factors.
(2) A DBE does not perform a commercially useful function if its role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed to obtain the appearance of DBE participation. In determining whether a DBE is such an extra participant, you must examine similar transactions, particularly those in which DBEs do not participate. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.53(j)
49 CFR 26.55(c)(2) (enhanced display) page 31 of 69

Page 280 of 1035 ends

(3) If a DBE does not perform or exercise responsibility for at least 30 percent of the total cost of its contract with its own work force, or the DBE subcontracts a greater portion of the work of a contract than would be expected within normal industry practice for the type of work involved, you must presume that it is not performing a commercially useful function. (4) When a DBE is presumed not to be performing a commercially useful function as provided in paragraph (c)(3) of this section, the DBE may present evidence to rebut this presumption. You may determine that the firm is performing a commercially useful function given the type of work involved and normal industry practices.
(5) Your decisions on commercially useful function matters are subject to review by the concerned operating administration, but are not administratively appealable to DOT. (d) Use the following factors in determining whether a DBE trucking company is performing a commercially useful function:
(1) The DBE must be responsible for the management and supervision of the entire trucking operation for which it is responsible on a particular contract, and there cannot be a contrived arrangement for the purpose of meeting DBE goals.
(2) The DBE must itself own and operate at least one fully licensed, insured, and operational truck used on the contract.
(3) The DBE receives credit for the total value of the transportation services it provides on the contract using trucks it owns, insures, and operates using drivers it employs. (4) The DBE may lease trucks from another DBE firm, including an owner-operator who is certified as a DBE. The DBE who leases trucks from another DBE receives credit for the total value of the transportation services the lessee DBE provides on the contract. (5) The DBE may also lease trucks from a non-DBE firm, including from an owner-operator. The DBE that leases trucks equipped with drivers from a non-DBE is entitled to credit for the total value of transportation services provided by non-DBE leased trucks equipped with drivers not to exceed the value of transportation services on the contract provided by DBE-owned trucks or leased trucks with DBE employee drivers. Additional participation by non-DBE owned trucks equipped with drivers receives credit only for the fee or commission it receives as a result of the lease arrangement. If a recipient chooses this approach, it must obtain written consent from the appropriate DOT operating administration.

Example to paragraph (d)(5): DBE Firm X uses two of its own trucks on a contract. It leases two trucks from DBE Firm Y and six trucks equipped with drivers from non-DBE Firm Z. DBE credit would be awarded for the total value of transportation services provided by Firm X and Firm Y, and may also be awarded for the total value of transportation services provided by four of the six trucks provided by Firm Z. In all, full credit would be allowed for the participation of eight trucks. DBE credit could be awarded only for the fees or commissions pertaining to the remaining trucks Firm X receives as a result of the lease with Firm Z. (6) The DBE may lease trucks without drivers from a non-DBE truck leasing company. If the DBE leases trucks from a non-DBE truck leasing company and uses its own employees as drivers, it is entitled to credit for the total value of these hauling services.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.55(c)(3)
49 CFR 26.55(d)(6) (enhanced display) page 32 of 69

Page 281 of 1035 ends

Example to paragraph (d)(6): DBE Firm X uses two of its own trucks on a contract. It leases two additional trucks from non-DBE Firm Z. Firm X uses its own employees to drive the trucks leased from Firm Z. DBE credit would be awarded for the total value of the transportation services provided by all four trucks.
(7) For purposes of this paragraph (d), a lease must indicate that the DBE has exclusive use of and control over the truck. This does not preclude the leased truck from working for others during the term of the lease with the consent of the DBE, so long as the lease gives the DBE absolute priority for use of the leased truck. Leased trucks must display the name and identification number of the DBE.
(e) Count expenditures with DBEs for materials or supplies toward DBE goals as provided in the following:
(1)
(i) If the materials or supplies are obtained from a DBE manufacturer, count 100 percent of the cost of the materials or supplies.
(ii) For purposes of this paragraph (e)(1), a manufacturer is a firm that owns (or leases) and operates a factory or establishment that produces, on the premises, the materials, supplies, articles, or equipment required under the contract and of the general character described by the specifications. Manufacturing includes blending or modifying raw materials or assembling components to create the product to meet contract specifications. When a DBE makes minor modifications to the materials, supplies, articles, or equipment, the DBE is not a manufacturer.

Minor modifications are additional changes to a manufactured product that are small in scope and add minimal value to the final product.
(2)
(i) If the materials or supplies are purchased from a DBE regular dealer, count 60 percent of the cost of the materials or supplies (including transportation costs). (ii) For purposes of this section, a regular dealer is a firm that owns (or leases) and operates, a store, warehouse, or other establishment in which the materials, supplies, articles or equipment of the general character described by the specifications and required under the contract are bought, kept in sufficient quantities, and regularly sold or leased to the public in the usual course of business.
(iii) Items kept and regularly sold by the DBE are of the “general character” when they share the same material characteristics and application as the items specified by the contract. (iv) You must establish a system to determine that a DBE regular dealer per paragraph (e)(2)(iv)(A) of this section, over a reasonable period of time, keeps sufficient quantities and regularly sells the items in question. This system must also ensure that a regular dealer of bulk items per (e)(2)(iv)(B) of this section owns/leases and operates distribution equipment for the products it sells. This requirement may be administered through questionnaires, inventory records reviews, or other methods to determine whether each DBE supplier has the demonstrated capacity to perform a commercially useful function (CUF) as a regular dealer prior to its participation. The system you implement must be maintained and used to identify all DBE suppliers with capacity to be eligible for 60 percent credit, contingent upon the performance of a CUF. This requirement is a programmatic safeguard apart from that described in § 26.53(c)(1). 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.55(d)(6) “Example to paragraph (d)(6)”
49 CFR 26.55(e)(2)(iv) (enhanced display) page 33 of 69

Page 282 of 1035 ends

(A) To be a regular dealer, the firm must be an established business that engages, as its principal business and under its own name, in the purchase and sale or lease of the products in question. A DBE supplier performs a CUF as a regular dealer and receives credit for 60 percent of the cost of materials or supplies (including transportation cost) when all, or at least 51 percent of, the items under a purchase order or subcontract are provided from the DBE's inventory, and when necessary, any minor quantities delivered from and by other sources are of the general character as those provided from the DBE's inventory.
(B) A DBE may be a regular dealer in such bulk items as petroleum products, steel, concrete or concrete products, gravel, stone, or asphalt without owning and operating a place of business as provided in paragraph (e)(2)(ii) of this section if the firm both owns and operates distribution equipment used to deliver the products. Any supplementing of regular dealers' own distribution equipment must be by a long-term operating lease and not on an ad hoc or contract-by-contract basis.
(C) A DBE supplier of items that are not typically stocked due to their unique characteristics (e.g., limited shelf life or items ordered to specification) should be considered in the same manner as a regular dealer of bulk items per paragraph (e)(2)(iv)(B) of this section. If the DBE supplier of these items does not own or lease distribution equipment, as descried above, it is not a regular dealer.
(D) Packagers, brokers, manufacturers' representatives, or other persons who arrange, facilitate, or expedite transactions are not regular dealers within the meaning of paragraph (e)(2) of this section.
(3) If the materials or supplies are purchased from a DBE distributor that neither maintains sufficient inventory nor uses its own distribution equipment for the products in question, count 40 percent of the cost of materials or supplies (including transportation costs). A DBE distributor is an established business that engages in the regular sale or lease of the items specified by the contract. A DBE distributor assumes responsibility for the items it purchases once they leave the point of origin (e.g., a manufacturer's facility), making it liable for any loss or damage not covered by the carrier's insurance. A DBE distributor performs a CUF when it demonstrates ownership of the items in question and assumes all risk for loss or damage during transportation, evidenced by the terms of the purchase order or a bill of lading (BOL) from a third party, indicating Free on Board (FOB) at the point of origin or similar terms that transfer responsibility of the items in question to the DBE distributor. If these conditions are met, DBE distributors may receive 40 percent for drop-shipped items. Terms that transfer liability to the distributor at the delivery destination (e.g., FOB destination), or deliveries made or arranged by the manufacturer or another seller do not satisfy this requirement. (4) With respect to materials or supplies purchased from a DBE that is neither a manufacturer, a regular dealer, nor a distributor, count the entire amount of fees or commissions charged that you deem to be reasonable, including transportation charges for the delivery of materials or supplies. Do not count any portion of the cost of the materials and supplies themselves. (5) You must determine the amount of credit awarded to a firm for the provisions of materials and supplies (e.g., whether a firm is acting as a regular dealer, distributor, or a transaction facilitator) on a contract-by-contract basis.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.55(e)(2)(iv)(A)
49 CFR 26.55(e)(5) (enhanced display) page 34 of 69

Page 283 of 1035 ends

[64 FR 5126, Feb. 2, 1999, as amended at 65 FR 68951, Nov. 15, 2000; 68 FR 35554, June 16, 2003; 79 FR 59595, Oct. 2, 2014; 89 FR 24968, Apr. 9, 2024; 89 FR 55089, July 3, 2024]
Subpart D—Certification Standards
§ 26.61 Burden of proof
[89 FR 24969, Apr. 9, 2024]
§ 26.63 General certification rules.
(f) If a firm is not currently certified as a DBE in accordance with the standards of subpart D of this part at the time of the execution of the contract, do not count the firm's participation toward any DBE goals, except as provided for in § 26.87(j)).
(g) Do not count the dollar value of work performed under a contract with a firm after it has ceased to be certified toward your overall goal.
(h) Do not count the participation of a DBE subcontractor toward a contractor's final compliance with its DBE obligations on a contract until the contractor has paid the DBE the amount being counted. (a) In determining whether to certify a firm, the certifier must apply the standards of this subpart. Unless the context indicates otherwise, singular terms include their plural forms and vice versa. (b) The firm has the burden of demonstrating, by a preponderance of the evidence, i.e., more likely than not, that it satisfies all of the requirements in this subpart. In determining whether the firm has met its burden, the certifier must consider all the information in the record, viewed as a whole. (1) Exception 1. In a decertification proceeding the certifier bears the burden of proving, by a preponderance of the evidence, that the firm is no longer eligible for certification under the rules of this part.
(2) Exception 2. If a certifier has a reasonable basis to believe that an individual who is a member of a group in § 26.67(a) of this section is not, in fact, socially and/or economically disadvantaged, the certifier bears the burden of proving, by a preponderance of the evidence, that the individual is not socially and/or economically disadvantaged.
(a) General rules. Except as otherwise provided:
(1) The firm must be for-profit and engaged in business activities. (2) In making eligibility determinations, a certifier may not consider whether a firm performs a commercially useful function (CUF), or the potential effect on goals or counting. (3) A certifier cannot condition eligibility on State prequalification requirements for bidding on contracts. (4) Certification is not a warranty of competence or suitability. (5) A certifier determines eligibility based on the evidence it has at the time of its decision, not on the basis of historical or outdated information, giving full effect to the “curative measures” provisions of this part.
(6) Entering into a fraudulent transaction or presenting false information to obtain or maintain DBE certification is disqualifying.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.55(f)
49 CFR 26.63(a)(6) (enhanced display) page 35 of 69

Page 284 of 1035 ends

(b) Indirect ownership. A subsidiary (i.e., S) that SEDOs own and control indirectly is eligible, if it satisfies the other requirements of this part and only under the following circumstances. (1) Look-through. SEDOs own at least 51 percent of S through their ownership of P (i.e., the parent firm) as shown in the examples following.
(2) Control. SEDOs control P, and P controls S.
(3) One tier of separation. The SEDOs indirectly own S through P and no other intermediary. That is, no applicant or DBE may be more than one entity (P) removed from its individual SEDOs. (4) Examples. The following examples assume that S and its SEDOs satisfy all other requirements in this part.
(i) Example 1 to paragraph (b)(4). SEDOs own 100 percent of P, and P owns 100 percent of S. S is eligible for certification.
(ii) Example 2 to paragraph (b)(4). Same facts as Example 1, except P owns 51 percent of S. S is eligible.
(iii) Example 3 to paragraph (b)(4). SEDOs own 80 percent of P, and P owns 70 percent of S. S is eligible because SEDOs indirectly own 56 percent of S. The calculation is 80 percent of 70 percent or .8 × .7 = .56.
(iv) Example 4 to paragraph (b)(4). SEDOs own and control P, and they own 52 percent of S by operation of this paragraph (b). However, a non-SEDO controls S. S is ineligible. (v) Example 5 to paragraph (b)(4). SEDOs own 60 percent of P, and P owns 51 percent of S. S is ineligible because SEDOs own just 31 percent of S.
(vi) Example 6 to paragraph (b)(4). P indirectly owns and controls S and has other affiliates. S is eligible only if its gross receipts, plus those of all of its affiliates, do not exceed the applicable small business size cap of § 26.65. Note that all of P's affiliates are affiliates of S by virtue of P's ownership and/or control of S.
(c) Indian Tribes, NHOs, and ANCs —
(1) Indian Tribes and NHOs. A firm that is owned by an Indian Tribe or Native Hawaiian organization (NHO), rather than by Indians or Native Hawaiians as individuals, is eligible if it meets all other certification requirements in this part.
(2) Alaska Native Corporations (ANCs).
(i) Notwithstanding any other provisions of this subpart, a subsidiary corporation, joint venture, or partnership entity of an ANC is eligible for certification if it meets all the following requirements:
(A) The Settlement Common Stock of the underlying ANC and other stock of the ANC held by holders of the Settlement Common Stock and by Natives and descendants of Natives represents a majority of both the total equity of the ANC and the total voting power of the corporation for purposes of electing directors;
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.63(b)
49 CFR 26.63(c)(2)(i)(A) (enhanced display) page 36 of 69

Page 285 of 1035 ends

[89 FR 24969, Apr. 9, 2024]
§ 26.65 Business size determinations.
[89 FR 24970, Apr. 9, 2024; 89 FR 55089, July 3, 2024]
§ 26.67 Social and economic disadvantage.
(B) The shares of stock or other units of common ownership interest in the subsidiary, joint venture, or partnership entity held by the ANC and by holders of its Settlement Common Stock represent a majority of both the total equity of the entity and the total voting power of the entity for the purpose of electing directors, the general partner, or principal officers; and
(C) The subsidiary, joint venture, or partnership entity has been certified by the Small Business Administration under the 8(a) or small disadvantaged business program. (ii) As a certifier to whom an ANC-related entity applies for certification, a certifier must not use the Uniform Certified Application. The certifier must obtain from the firm documentation sufficient to demonstrate that the entity meets the requirements of paragraph (c)(2)(i) of this section. The certifier must also obtain sufficient information about the firm to allow the certifier to administer its program (e.g., information that would appear in a UCP directory). (iii) If an ANC-related firm does not meet all the conditions of paragraph (c)(2)(i) of this section, then it must meet the requirements of paragraph (c)(1) of this section in order to be certified. (a) By NAICS Code. A firm (including its affiliates) must be a small business, as defined by the Small Business Administration (SBA). The certifier must apply the SBA business size limit in 13 CFR part 121 which corresponds to the applicable primary industry classifications (NAICS codes). The firm is ineligible when its affiliated “receipts” (computed on a cash basis), as defined in 13 CFR 121.104(a) and averaged over the firm's preceding five fiscal years, exceed the applicable SBA size cap(s). (b) Statutory cap. Even if a firm is a small business under paragraph (a) of this section, it is ineligible to perform DBE work on FHWA or FTA assisted contracts if its affiliated annual gross receipts, as defined in 13 CFR 121.104, averaged over the firm's previous three fiscal years exceed $30.72 million (as of March 1, 2024). The Department will adjust this amount annually and post the adjusted amount on its website available at https://www.transportation.gov/DBEsizestandards. (a) Group membership —
(1) General rule. Citizens of the United States (or lawfully admitted permanent residents) who are women, Black American, Hispanic American, Native American, Asian Pacific American, Subcontinent Asian American, or other minorities found to be disadvantaged by the Small Business Administration (SBA), are rebuttably presumed to be socially and economically disadvantaged. A firm owner claiming the presumption must specify of which groups in this paragraph (a)(1) she or he is a member on the Declaration of Eligibility (DOE).
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.63(c)(2)(i)(B)
49 CFR 26.67(a)(1) (enhanced display) page 37 of 69

Page 286 of 1035 ends

(2) Native American group membership. An owner claiming Native American group membership must submit a signed DOE as well as proof of enrollment in a federally or State-recognized Indian Tribe.

An owner claiming Native Hawaiian or Alaska Native group membership must submit documentation legally recognized under State or Federal law attesting to the individual's status as a member of that group.
(3) Questioning group membership.
(1) Certifiers may not question claims of group membership as a matter of course. Certifiers must not impose a disproportionate burden on members of any particular group. Imposing a disproportionate burden on members of a particular group could violate Title VI of the Civil Rights Act of 1964, paragraph (b) of this section, and/or 49 CFR part 21.
(i) If a certifier has a well-founded reason(s) to question an owner's claim of membership in a group in paragraph (a)(1) of this section, it must provide the individual a written explanation of its reason(s), using the most recent email address provided. The firm bears the burden of proving, by a preponderance of the evidence, that the owner is a member of the group in question.
(ii) A certifier's written explanation must instruct the individual to submit evidence demonstrating that the individual has held herself/himself/themself out publicly as a member of the group for a long period of time prior to applying for DBE certification, and that the relevant community considers the individual a member. The certifier may not require the individual to provide evidence beyond that related to group membership.
(iii) The owner must email the certifier evidence described in paragraph (a)(3)(ii) of this section no later than 20 days after the written explanation. The certifier must email the owner a decision no later than 30 days after receiving timely submitted evidence. (iv) If a certifier determines that an individual has not demonstrated group membership, the certifier's decision must specifically reference the evidence in the record that formed the basis for the conclusion and give a detailed explanation of why the evidence submitted was insufficient. It must also inform the individual of the right to appeal, as provided in § 26.89(a), and of the right to reapply at any time under paragraph (d) of this section. (b) Rebuttal of social disadvantage.
(1) If a certifier has a reasonable basis to believe that an individual who is a member of a group in paragraph (a)(1) of this section is not, in fact, socially disadvantaged, the certifier must initiate a §

26.87 proceeding, regardless of the firm's DBE status. As is the case in all section § 26.87 proceedings, the certifier must prove ineligibility.
(2) If the certifier finds that the owner is not socially disadvantaged, its decision letter must inform the firm of its appeal rights.
(c) Rebuttal of economic disadvantage —
(1) Personal net worth. If a certifier has a reasonable basis to believe that an individual who submits a PNW Statement that is below the currently applicable PNW cap is not economically disadvantaged, the certifier may rebut the individual's presumption of economic disadvantage. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.67(a)(2)
49 CFR 26.67(c)(1) (enhanced display) page 38 of 69

Page 287 of 1035 ends

Corona City CouncilMay 21, 2025

Corona City Council
May 21, 2025