DBE GoodFaith.com April Newsletter

May 2010  -  Volume 1, Number 3  -  Texas Edition  -  www.dbegoodfaith.com

this month:

US DOT proposes DBE program changes
The U.S. Department of Transportation is hoping the amendments will increase disadvantaged business enterprise participation on government contracts.

Semi-annual HUB report published
According to data compiled by the State of Texas, HUBs received a record share of the state's expenditures in the first six months of 2010.

Let us help with your 'good faith effort'
Let DBE GoodFaith Inc. help you find and solicit DBEs & HUBs for your government contract bid. We'll publish outreach ads, fax and email invitations to bid, perform telephone solicitations, and provide detailed documentation of the outreach performed. To learn more, contact us at (877) 802-3394 or info@dbegoodfaith.com.

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DBE GoodFaith Inc. is dedicated to providing a premium bid outreach solution that meets the needs of companies competing for government-funded contracts and socially & economically disadvantaged businesses.

We take the good faith effort seriously and, as a result, have designed our services to maximize transparency in the outreach component of the good faith effort - a policy that we believe benefits all parties involved in public works & procurement contracting.

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DOT proposes DBE program changes

The U.S. Department of Transportation (DOT) is proposing an expansion of its disadvantaged business enterprise (DBE) program and a crackdown on agencies that fail to meet their annual DBE goals.

"When we help small businesses, we're helping get the economy going," said DOT Secretary Ray LaHood. "This is an important rule that can help small businesses owned and controlled by women and minorities."

The proposed rules would:

  • Require state DOTs that do not meet their annual DBE participation goals to analyze why they fell short and offer corrective action;
  • Prevent DBEs from being removed from the program without a full review;
  • Adjust the DBE certification size requirements for inflation, raising the personal net worth ceiling from $750,000 to $1.3 million (this requirement has not been changed since 1989);
  • Mandate increased oversight by state and local agencies to ensure that prime contractors fulfill their DBE commitments on contracts; and
  • Mandate that DBE certifications be accepted between states unless there is good cause. Currently, state and local agencies only recognize DBEs certified by the state DOT.

The DOT will be accepting comments on the proposed changes to the DBE program through July 11, 2010.

To read the U.S. DOT's press release for the proposed changes, visit: http://www.osdbu.dot.gov/News/newsDetail.cfm?RecordID=642


Semi-annual HUB report published

The 2010 Semi-Annual Report for the Statewide Historically Underutilized Business (HUB) Program was published last month, finding that Texas HUBs are more involved in state contracting that ever before.

According to the study, 16.46 percent of statewide expenditures - totaling over $1 billion - have gone to HUBs this year. This is a 2.21 percent increase in participation over the first six months of last year. This improvement has been made despite a $25.6 million decrease in state spending from 2009.

Over half of all HUB expenditures went to women-owned businesses, trailed by Hispanic Americans receiving just over a third of all state spending. Black American, Asian-Pacific American, and Native Americans each received less than ten percent.

The report has also discovered that a substantial portion of HUB participation has come from subcontracting opportunities.

"While the HUBs' share of state spending on subcontracted professional services fell by 11 percent, their share of spending on subcontracts with heavy construction, building construction, special trade, other services and commodities firms rose by 50.35 percent, 46.80 percent, 77.65 percent, 8.87 percent and 21.85 percent, respectively," said Paul Gibson, Manager of the Statewide HUB Program, in the report's Executive Letter.

Individual agency spending on HUBs was also documented. The Texas Department of Transportation, which is the largest spender in the state, also ranked the highest in total HUB expenditures. However, HUBs only accounted for 15.26 percent of the TxDOT's expenditures, which does not qualify it to join the top 25 agencies in this category.

Texas' universities fared better regarding the percentage of total expenditures going to HUBs, with 17 out of the top 25 agencies being institutions of higher learning.

To view the 2010 Semi-Annual Report, visit:
http://www.window.state.tx.us/procurement/prog/hub/hub-
reporting/hub-report-FY10/


Let us help with your 'GFE'

Since its start in 2005, DBE GoodFaith Inc. has become a leader in disadvantaged business outreach, having helped over 1,110 firms meet contracts' outreach  requirements on more than 6,000 contract bids.

With DBE GoodFaith's intuitive outreach service, disadvantaged businesses (DBEs & HUBs) can be targeted to receive subcontracting and supplier opportunities for your contract. Our system allows users to:

  • Place DBE & HUB outreach ads online;

  • Automatically fax and email invitations to bid to DBE subcontractors of the users choice;

  • Complete initial phone call solicitations with the help of DBE GoodFaith's call center; and

  • Automatically document all outreach performed.

For more information on how DBE GoodFaith can help your business, contact a representative at (877) 802-3394 or visit www.dbegoodfaith.com.

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