State Department of Transportation Small Business Programs (2013)

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37 Federal Transit Administration (FTA)—An agency of the U.S.DOT that administers federal funding to support a variety of locally planned, constructed, and operated public transpor- tation systems throughout the United States, including buses, subways, light rail, commuter rail, streetcars, monorail, pas- senger ferry boats, inclined railways, and people movers. Firm—See “business.” Federally funded contract—Any contract or project funded in whole or in part with FAA, FHWA, and/or FTA financial assistance, including loans. As used in this study, it is syn- onymous with “federally assisted contract.” Industry—A broad grouping of firms providing related goods or services. Local agency—Any local government that solicits bids, quali- fications, or proposals for transportation construction or engi- neering projects. Majority-owned businesses—For-profit firms not owned and controlled by minorities or women (see definition of “minorities”). Minorities—Racial and ethnic groups with a rebuttable pre- sumption of social and economic disadvantage identified in the federal regulations in 49 CFR Part 26: • Asian-Pacific Americans, which includes persons whose origins are Japan, China, Taiwan, Korea, Burma (Myan- mar), Vietnam, Laos, Cambodia (Kampuchea), Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, Hong Kong, and other countries and territories in the Pacific set forth in 49 CFR § 26.5; • Black Americans, which includes persons having origins in any of the black racial groups of Africa; • Hispanic Americans, which includes persons of Mexi- can, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or ori- gin, regardless of race; • Native Americans, which includes persons who are Amer- ican Indians, Eskimos, Aleuts, or Native Hawaiians; and • Women, which includes women who are a non-Hispanic white woman. This definition of “women” includes only white women. Minority women are included in their respec- tive minority category. Minority-owned business (MBE)—A firm with at least 51% ownership and control by minorities. Minority groups are defined according to federal guidelines. For the pur- poses of this study, a firm need not be certified to be counted as a minority-owned firm. Firms owned by minority women are counted as MBEs in this study (where that information is available). This is not a classification included in CFR 49 parts 26 and 23. Non-DBEs—Firms not certified as DBEs. Non-minority owned businesses—For-profit firms not owned and controlled by minorities or women (see definition of “minorities”). Owned—Ownership of at least 51% of a company. A “minority- owned” firm is at least 51% owned by one or more minorities. (For DBE certification, additional guidelines are set forth in 49 CFR § 26.69.) Prime consultant—The professional services firm performing a contract for an end user. Public sector—Government or a public service body. This appendix provides explanations and definitions useful to understanding the State DOT Small Business Program Syn- thesis. These definitions are only relevant in the context of this report. Business—A for-profit company, including all of its establish- ments (equivalent to “firm”). Disadvantaged Business Enterprise (DBE)—A small for-profit business owned and controlled by one or more individuals who are both socially and economically disadvantaged according to the guidelines in the Federal DBE Program (49 CFR Part 26). Membership in certain race and ethnic groups identified under “minority-owned business enterprise” in this appen- dix may meet the presumption of socially and economically disadvantaged. Women are also presumed to be socially and economically disadvantaged. Examination of economic disad- vantage also includes investigating the gross revenues and the firm owner’s personal net worth (maximum of $750,000 exclusive of equity in a home and in the business). Some minority- and women-owned firms do not qualify as DBEs because of the gross revenue or the net worth requirements. A firm owned by a non-minority male can be certified as a DBE if the individual meets social and economic disad- vantaged requirements in 49 CFR Part 26, Appendix E. Tribally owned concerns can be certified as a DBE if the enterprise meets the requirements in 49 CFR Part 26. The DBE program was reauthorized via legislation signed July 2012, entitled “Moving Ahead for Progress in the 21st Cen- tury” (MAP 21). DBE liaison—The liaison officer shall be responsible for imple- menting all aspects of the DBE program. The officer shall have direct, independent access to your chief executive offi- cer concerning DBE program matters. DBE program managers—The program manager can be dif- ferent from the liaison officer. In most instances, the program manager has responsibility for the day-to-day activities of the DBE program. DBE small business element—A component of the DBE pro- gram to structure contracting requirements to facilitate compe- tition by small business concerns, taking all reasonable steps to eliminate obstacles to their participation, including unneces- sary and unjustified bundling of contract requirements that may preclude small business participation in procurements as prime contractors or subcontractors. Federal DBE Program—Unless otherwise specified, “Federal DBE Program” refers to the Disadvantaged Business Enter- prise program established by the U.S.DOT after enactment of the Transportation Equity Act for the 21st Century (TEA- 21), as amended in 1998. The elements of the Program are set forth in 49 CFR Parts 26 and 23. The DBE program recently has been reauthorized through legislation signed July 2012, entitled “Moving Ahead for Progress in the 21st Century (Map 21).” Federal Aviation Administration (FAA)—An operating agency of the U.S.DOT that works with state and local governments to improve the safety and efficiency of aviation. Federal Highway Administration (FHWA)—An agency of the U.S.DOT that works with state and local governments to construct, preserve, and improve the National Highway Sys- tem, other roads eligible for federal aid, and certain roads on federal and tribal lands. APPENDIX A Definitions of Terms

38 Race- and gender-conscious—Remedies that apply to individ- uals or firms that include some races and ethnicities and not others; and women and not men. This term is equivalent to “race- and gender-based.” A DBE contract goal is one example of a race- and gender-conscious remedy. Note that this term is more accurately “race-,” “ethnicity-,” and “gender-” conscious. For ease of communication, the study team has shortened this to “race- and gender-conscious” remedies. Race- and gender-neutral—As defined by Title 49 Code of Federal Regulations (CFR) Part 26, § 26.5 (Part 26): “[A] 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.” Small business concern—A small business concern as defined pursuant to § 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). In general, a firm with low revenues or employment size relative to other firms in the industry. “Small business” does not necessarily mean that the firm is certified as such. Small Business Administration (SBA)—The U.S. Small Business Administration, an independent agency of the U.S. government. Small business element—A DBE program must include an ele- ment to structure contracting requirements to facilitate com- petition by small business concerns, taking all reasonable steps to eliminate obstacles to their participation, including unnecessary and unjustified bundling of contract require- ments that may preclude small business participation in pro- curements as prime contractors or subcontractors. Small business program—A program targeting small business success regardless of funding sources and only on race- neutral means, which are aimed at removing barriers and enhancing opportunities for all small businesses, both DBEs and non-DBEs. State-funded contract—Any contract or project funded in whole or in part with state funds that does not include federal funds. U.S.DOT—U.S. Department of Transportation, which includes the FHWA, FTA, and FAA. Women-owned business (WBE)—A firm with at least 51% ownership and control by non-minority women. For this study, a WBE firm is not a regulatory term; however, the DBE programs keep records as to the race, ethnicity, and gender of DBE firms. In addition, firms owned and con- trolled by minority women are counted as minority-owned firms. Therefore, WBEs principally refer to firms owned by white women.