For the first three of these goals, DOT's performance again far exceeded the thresh-old. Rather than be limited by the 5% SDB/WOB goal, DOT provided 16% and 8% of its procurement dollars to SDBs and WOBs respectively. For HUBZones, the figure reached 7.5%.

The only subcategory of small business where we didn't reach our goal is for SDVOSBs. However, DOT continues to make significant improvements in this area, actually doubling its performance over the previous year. Furthermore, efforts within DOT are beginning to be recognized and show that the SDVOSB community can make significant contributions [See "DOT Champion of Veterans Enterprise" article in this issue].

Using the Scorecard

The Scorecard is a method of ensuring that federal agencies provide the maximum possible opportunity for small businesses in the federal marketplace. The Scorecard's purpose, according to SBA Administrator, Steven C. Preston, is "to increase transparency and accountability in the small business procurement arena" - resulting in "additional ways to engage the small business contracting community." While we are proud of the achievements documented by this first Scorecard, OSDBU will continue to reach out to the small business community and work with the DOT operating administrations to ensure that contracting opportunities are available to small, disadvantaged, HUBZone, woman-owned and service disabled veteran-owned small businesses.

Introducing Our Director

OSDBU's Director, Ms. Denise Rodriguez-Lopez, is an attorney who has devoted her career to helping individuals overcome obstacles that could prevent them from getting ahead.

Prior to her current appointment at OSDBU, Ms. Rodriguez-Lopez served as the Deputy Director of the White House Initiative on Educational Excellence for Hispanic Americans. As the Deputy Director, Ms. Rodriguez-Lopez worked to close the educational achievement gap of Hispanic Americans and conducted outreach so that Hispanic Americans could better understand the educational opportunities available to them.

Ms. Rodriguez-Lopez has held leadership positions with the Cuban American National Council, the Puerto Rico Federal Affairs Administration, and the Puerto Rico Electric and Power Authority.

Ms. Rodriguez-Lopez brings to OSDBU a unique combination of private sector expertise and hands on public service. We look forward to her continued leadership in ensuring that small, disadvantaged, 8(a), HUBZone, woman-owned and service disabled veteran-owned small businesses are provided the opportunity to succeed in the DOT procurement arena.

More of Ms. Denise Rodriguez-Lopez's biography can be found under "About OSDBU" on the OSDBU Website.

We've Moved

If you haven't done so already, it's time to update your BlackBerry, Palm Pilot, or (good, old-fashioned) address book. In June, OSDBU joined the other DOT offices in relocating to the Department's new headquarters building at the Washington Navy Yard.  Our new address is:

1200 New Jersey Avenue, SE

Washington, DC 20590

However, while our physical location has changed, there is no need to update any of OSDBU's telephone numbers and email addresses. They all remain the same. We are also excited to be at the forefront of a full-scale economic revitalization of the once-depressed Anacostia River waterfront - an initiative that takes elements from the past to create a more dynamic future. With regard to the past, DOT's new facility restores a portion of Pierre L'Enfant's original design for the city of Washington by reopening three streets once blocked by the Washington Navy Yard. With regard to the future, DOT Headquarters is at the vanguard of a planned transformation of the Anacostia River from a run-down collection of abandoned or underused buildings. In their place, this partnership of public and private interests is prepared to create a lively waterfront of offices, restaurants, shops, and marinas -and the future home of the Washington Nationals baseball team.

For a map and directions to DOT's new Headquarters building, check out the "Visitor's Information" link on OSDBU Website.

A New Procurement Forecast

October 1, 2007, was the first day of Fiscal Year (FY) 2008 and OSDBU rang in the new year by posting its U.S. Department of Transportation (DOT) Procurement Forecast FY 2008.

Checking out the Procurement Forecast is a "must" for all of OSDBU's customers. It represents DOT's best estimate of what the different operating administrations will be buying in the coming year.

The Forecast is set up to be user-friendly. For example, are you interested in knowing what projects the Federal Highway Administration is planning to fund in the 3rd quarter of FY 2008? Just check under the "Operating Administration" tab of the Forecast. Do you want to know which offices will be requesting computer-related services in the coming year? Simply click on "Procurement Category."

You can also use the "Advanced Search" function to find out if DOT offices anticipate a need for more specific services - and focus your marketing efforts accordingly. Be sure to take advantage of this valuable tool for growing your business.

Recertification Rules Offer New Opportunities for Small Businesses

New SBA regulations took effect on June 30, 2007, requiring companies with federal contracts to recertify their size status as "small businesses." These actions will increase opportunities for more small businesses to receive contracts from the federal government.

Recertification is necessary because federal agencies have been able to count all contracts originally awarded to small businesses as small business contracts for up to 20 years, even if those companies were acquired by large corporations. However, starting June 30, any small business that merges or is acquired by another firm must immediately "recertify" its size.

If the company is no longer "small" under SBA rules, the contract will nevertheless continue; however, the federal government will no longer be able to count it as a "small" contract. Federal agencies will also immediately modify all existing long-term (over five years) contracts to require small businesses to recertify their size status for acquisitions, mergers and novation requests and to recertify their size status prior to an option being exercised.

Under these rules, most large businesses credited with small contracts will no longer be counted as small. Nearly all the remaining large businesses will be removed from the federal government's contracting database within a year. As a result, federal agencies will need to increase efforts to identify and contract with new small businesses to meet the congressional goal that 23 percent of all procurements go to small businesses.

Community-Based Organizations to Assist Local Businesses

OSDBU recently announced the selection of three new organizations that will partner with OSDBU to host a Small Business Transportation Resource Center (SBTRC) in their respective geographic areas. The local organizations chosen were:

• Greater Dallas Hispanic Chamber of Commerce ( Dallas, TX) - for the Gulf Region ( Texas, Louisiana, Oklahoma, New Mexico, Arkansas);

• Greater Philadelphia Minority Business Strategic Alliance ( Philadelphia, PA) - for the Mid Atlantic Region ( Pennsylvania, Maryland, Virginia, West Virginia, Delaware, the District of Columbia); and

• Hispanic American Construction Industry Association ( Chicago, IL) - for the Great Lakes Region ( Illinois, Indiana, Michigan, Ohio, Wisconsin).

These three SBTRC hosts will join two others that were announced in April:

• Miami Dade College ( Miami, FL) - for the Southeast Region ( Florida, Georgia, Alabama, Mississippi, Puerto Rico, U.S. Virgin Islands); and

• University of Missouri Extension Business Development Group ( Columbia, MO) - for the Central Region ( Missouri, Colorado, Minnesota, Iowa, Kansas, Nebraska, South Dakota, North Dakota, Wyoming).

These five organizations were selected from a number of respondents to an OSDBU Request for Proposals seeking qualified organizations to host nine Regional SBTRCs across the country. OSDBU is still considering candidates for the remaining five Regions.

Qualified organizations include: 1) business-centered community-based organizations, 2) transportation related trade associations, 3) colleges and universities, 4) community colleges, or 5) chambers of commerce. OSDBU's plan is to enter into Cooperative Agreements with the nine organizations selected to establish SBTRCs on a region-wide basis. The purpose of the SBTRC program is to increase the number of small, disadvantaged, 8(a), HUBZone, woman- and veteran-owned businesses that are prepared to compete for, and enter into, transportation-related prime and subcontracts. OSDBU's goal is to partner with local organizations to disseminate information and to offer both business training and technical assistance targeted towards small business transportation enterprises at the regional level.

Answering Your Questions about the Department of Transportation (DOT) DBE Program

What type of work is covered by the DOT's DBE Program?

The Disadvantaged Business Enterprise (DBE) program is unique to the transportation sector and covers contracts let by state highway agencies, airports, transit authorities, and other state and local agencies that receive DOT funds.

In a nutshell, how does the DBE Program work?

DOT provides substantial financial assistance to state and local transportation agencies (recipients) for their highway, transit and airport improvement programs. As provided in federal regulations (Title 49 Code of Federal Regulations Parts 23 and 26), DOT requires that recipients set overall percent-age goals, as appropriate, for the use of DBEs on projects in which these DOT funds participate - based on the relative availability of DBEs and other factors. DOT tells the recipients to give priority to race-neutral methods to meet these goals. To the extent that the goals are not met, then recipients use contract specific goals as appropriate. The level of DBE subcontracting goals may vary from their approved DBE goal; however, at the end of the year, the amount of contract/subcontract awards to DBEs should be consistent with the overall goal.

What is the overall purpose of the DBE Program?

The objective is to create a level playing field on which all firms can compete free from the effects of discrimination.

What is a DBE?

DBEs are for-profit small business concerns in which socially and economically disadvantaged individuals own at least a 51% interest and also control management and daily business operations. African Americans, Hispanics, Native Americans, Asian-Pacific and Subcontinent Asian Americans, and women are presumed to be socially and economically disadvantaged. Other individuals can also qualify as socially and economically disadvantaged on a case-by-case basis.

How can an eligible small business participate?

To participate in the DBE program, a small business owned and controlled by socially and economically disadvantaged individuals must receive DBE certification from the relevant state - generally through the state Uniform Certification Program (see box). To be regarded as economically disadvantaged, an individual must have a personal net worth that does not exceed $750,000. To be seen as a small business, a firm must meet SBA size criteria AND have average annual gross receipts not to exceed $20.41 million. Size limits for the airport concessions DBE program are higher.

What's the role of state and local transportation agencies?

As recipients of DOT financial assistance, state and local transportation agencies are responsible to: 1) ensure DBEs are certified and the program is implemented according to DOT regulations; 2) establish narrowly-tailored goals for DBE participation; and 3) evaluate their DOT-assisted contracts throughout the year and establish contract-specific DBE subcontracting goals as necessary to meet their overall goals.

What's the role of DOT?

The Department is responsible for: 1) developing the rules and regulations for the national DBE program; 2) providing guidance and conducting oversight to make sure that these rules and regulations are followed by the recipients of DOT funds; and 3) considering appeals from state/local certification decisions.

The DBE program is administered and managed at the state and local level, and does NOT apply to Federal contracting with the U.S. Department of Transportation.

What is the Uniform Certification Program ( UCP)?

The purpose of the UCP is to provide "one-stop shopping" to DBE applicants. Under this program, a firm applies one time with the state certification agency, and if approved, that certification is shared by all other recipients of federal highway, transit, and airport improvement funds in the state.

DOT a Champion of Veterans Enterprise

DOT's Office of Intelligence, Security & Emergency Transportation (OET) recently received a Champion of Veterans Enterprise Award from the U.S. Department of Veterans Affairs' (VA) Center for Veterans Enterprise (CVE). The CVE is solely dedicated to assisting veterans in starting and building businesses. The Champions of Veterans Enterprise Awards Program was created to honor those individuals and organizations that have given first consideration to the needs and concerns of veterans and service-disabled veterans.

The federal government has a goal that 3% of its contracting and subcontracting dollars should be awarded each year to service disabled veteran-owned small businesses (SDVOSB). DOT's OET has not only met this goal, but has far exceeded it. In 2006, OET awarded 63% of its procurement dollars to SDVOSBs - representing $9.9 million in awards.

OSDBU congratulates OET and its Director, Mr. Mike Lowder, for this well-deserved award.

DOT Partnering with Communities to Fight Gridlock

DOT Secretary Mary E. Peters recently announced the selection of five metropolitan areas as the first communities to participate in a new federal initiative to fight traffic congestion. This initiative, the Urban Partnership Agreement (UPA), is aimed at reducing gridlock in the short-term by pursuing aggressive strategies under the umbrella of the "Four Ts" - tolling, transit, telecommuting, and technology. [See first box on this page for a description of the "Four Ts."]

A key component for a UPA is the use of congestion pricing as part of its tolling strategy. With congestion pricing, tolls typically vary by level of traffic and are collected at highway speeds using electronic toll collection technology. Vehicles are equipped with electronic devices called transponders or "tags," which are read by overhead antennas. Toll rates for different time periods may be set to ensure that the lanes are fully utilized without a break-down in traffic flow. [See second box on this page for more information on congestion pricing.]

The following list presents the five communities receiving UPA funding, along with the size of their awards:

Secretary Peters said that each of the Urban Partners has developed a total transportation solution: "These communities have committed to fighting congestion now. Our commitment was to allocate the federal contribution in a lump sum, not in bits and pieces over several years - an approach meant to get these projects off the drawing board and into action."

More on congestion Pricing

Congestion pricing - sometimes called value pricing - is a way of harnessing the power of the market to reduce the waste associated with traffic congestion. Variable charges have been successfully utilized in other industries. For example, airline ticket prices, cell phone rates, and electricity rates vary by level of demand. There is a consensus among economists that congestion pricing represents the single most viable and sustainable approach to reducing traffic congestion.

Congestion pricing has demonstrated powerful results both here in the U.S. and around the world. Successful U.S. applications of congestion pricing are operating on California's State Route 91 in Orange County, I-15 in San Diego, I-25 in Denver, and I-394 in Minneapolis - all of which have enabled congestion-free rush-hour commuting and have proven popular with drivers of all income levels. Internationally, broad-based congestion pricing has yielded dramatic reductions in traffic congestion in Singapore, London, and Stockholm.