Document ID: DOT-OST-2009-0185-0002
Agency: dot
Document Type: Rule
Title: Funding Availability: Disadvantaged Business Enterprise American Recovery and Reinvestment Act Bonding Assistance Reimbursable Fee Program (DBE ARRA BAP)
Posted Date: 2009-08-31T04:00Z

[Federal Register: August 31, 2009 (Volume 74, Number 167)]
[Notices]               
[Page 44896-44899]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31au09-132]                         

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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

[Docket No. DOT-OST-2009-0185]

 
Notice of Funding Availability for Disadvantaged Business 
Enterprise American Recovery and Reinvestment Act Bonding Assistance 
Reimbursable Fee Program (DBE ARRA BAP)

AGENCY: Office of the Secretary of Transportation (OST), Office of 
Small and Disadvantaged Business Utilization (OSDBU), Department of 
Transportation (DOT).

ACTION: Notice of funding availability.

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SUMMARY: The Department of Transportation (DOT), Office of the 
Secretary (OST), Office of Small and Disadvantaged Business Utilization 
(OSDBU) announces the availability of $20 million provided by the 
American Recovery and Reinvestment Act of 2009 (ARRA) for the 
reimbursement of bonding premiums and fees incurred by Disadvantaged 
Business Enterprises (DBE) competing for, or performing on, 
transportation infrastructure projects receiving DOT ARRA funding.
    Catalog of Federal Domestic Assistance (CFDA) Number: 20.904 
Bonding Assistance Program.
    Type of Award: DBE Financial Assistance.
    Estimated Average Size of Award: $11,300.
    Estimated Number of Awards: 1,770.
    DOT is not bound by any estimates in this notice. Awards will be 
made in the order of application receipt until funding is fully 
expended or the program closes on September 8, 2010.
    Program Authority: Funding for the DBE ARRA BAP has been provided 
to DOT by ARRA (Pub. L. 111-5, Feb. 17, 2009) to be administered 
pursuant to 49 U.S.C. 332(e).
    DOT established its OSDBU in accordance with Public Law 95-507, an 
amendment to the Small Business Act and the Small Business Investment 
Act of 1958. OSDBU administers the provisions of Title 49, United 
States Code, Section 332.
    DOT/OSDBU has posted a synopsis of this announcement on http://
www.govbenefits.gov.

DATES: Applications will be available beginning August 28, 2009. 
Applications must be received by mail or electronically transmitted to 
DOT OST OSDBU on or before September 8, 2010 for bond issue dates for 
ARRA projects on or after the date of this notice, August 28, 2009. 
Provided OSDBU is given an email address, applicants should receive a 
confirmation email. Regardless, the applicant is advised to request 
delivery confirmation for mail submissions or return receipt for email 
submissions. In the event funding is fully expended prior to September 
8, 2010, OSDBU will cease to accept new applications.

ADDRESSES: Applications may be submitted to OSDBU electronically via 
email at bap.arra@dot.gov. Mailed applications may be submitted to DOT/
OSDBU, 1200 New Jersey Avenue, SE., Suite W56-497, Washington, DC 
20590, Attn: DBE ARRA BAP.

FOR FURTHER INFORMATION CONTACT: For further information concerning 
this

[[Page 44897]]

notice, contact OSDBU at U.S. Department of Transportation, 1200 New 
Jersey Ave., SE., Room W56-497, Washington, DC 20590. Telephone: 1-800-
532-1169. E-mail: bap.arra@dot.gov. Additional guidance may be found at 
http://www.dot.gov/recovery/ost/.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Overview
II. Eligibility Information and Program Requirements
III. Application Process
IV. Application Content
V. Application Approval
VI. Reporting Requirements
VII. Technical Assistance

Full Text of Announcement

I. Overview

    On February 17, 2009, the President of the United States signed the 
American Recovery and Investment Act of 2009 (Pub. L. 111-5) (ARRA) to, 
among other purposes, (1) preserve and create jobs and promote economic 
recovery, (2) invest in transportation infrastructure that will provide 
long-term economic benefits, and (3) assist those most affected by the 
current economic downturn. Pursuant to ARRA, DOT was appropriated a 
combined $48.1 billion in funding for the purpose of stimulating the 
economy and investing in the nation's transportation infrastructure. 
ARRA also appropriated $20 million to the Department of Transportation 
for Disadvantaged Business Enterprise bonding assistance.
    The DOT OSDBU has established the DBE ARRA Bonding Assistance 
Reimbursable Fee Program (DBE ARRA BAP) to distribute the DBE bonding 
assistance provided by the ARRA. The term ``Disadvantaged Business 
Enterprise'' (DBE), includes a for-profit small business concern that 
is owned and controlled by a socially and economically disadvantaged 
individual, including women, and is set forth in Title 49 Code of 
Federal Regulations Part 26 (49 CFR part 26).
    The Miller Act (40 U.S.C. 3131 to 3134) provides that, before a 
contract that exceeds $100,000 in amount for the construction, 
alteration, or repair of any building or public work of the United 
States is awarded to any person, that person shall furnish the Federal 
government with a performance bond in an amount that the contracting 
officer regards as adequate for the protection of the Federal 
government and; a separate payment bond for the protection of suppliers 
of labor and materials. A bid/proposal bond may also be required. 
States have enacted ``Little Miller Acts'' that impose similar bond 
requirements for state and local projects.
    Surety companies charge a premium fee to all contractors to ensure 
the surety company's financial backing and guarantee. These premium 
rates vary between 2 percent and 3 percent of the contract amount. If a 
contractor wants to use SBA's Surety Bond Guarantee Program (SBGP), SBA 
charges the contractor or small business concern (principal) a fee of 
.729 percent of the contract price to finance potential claims against 
the bond.
    The purpose of the DBE ARRA program is to assist DBEs to 
participate in the ARRA investment in transportation infrastructure and 
to address the disproportionate effect that the increase in 
unemployment has had on minority-owned and women-owned businesses by 
assisting them to obtain transportation infrastructure contracts at the 
local, state and federal levels through a reduction in the cost of 
bonding.
    The bonding assistance provided by the DBE ARRA BAP will allow DBEs 
with traditionally less working capital than large transportation-
related contractors to perform on transportation infrastructure 
projects receiving ARRA funding from any DOT mode of transportation, 
such as Federal Highway Administration, (FHWA), Federal Transit 
Administration (FTA), Federal Aviation Administration (FAA), Federal 
Railroad Administration (FRA), and the Maritime Administration (MARAD). 
In addition, the assistance provided to the DBE to compete for, and 
execute contracts for ARRA projects, will position the DBE to compete 
for future transportation contracts at any tier from any Federal, 
state, or local transportation agency.
    The DBE ARRA BAP is bonding assistance in the form of a bonding fee 
cost reimbursement. DOT will directly reimburse DBEs the premiums paid 
to the surety company for performance, payment or bid/proposal bonds. 
In the event the DBE also obtains a bond guarantee from Small Business 
Administration's (SBA) Surety Bond Guarantee Program (SBGP), the DOT 
will also reimburse the DBE for the small business concern (principal) 
fee of .729 percent of the contract price.

II. Eligibility Information and Program Requirements

A. General Requirements

    1. Civil Rights Act of 1964, as amended (42 U.S.C. 2000d). 
Compliance with civil rights statutes is required, including compliance 
with equity in service.
    2. Section 504 of the Rehabilitation Act of 1973, as amended (29 
U.S.C. 794), and the Americans with Disabilities Act (ADA) requirements 
in 49 CFR parts 27, 37, and 38.
    3. A DBE must execute a Certificate Regarding Lobbying in 
compliance with 49 CFR Part 20.
    4. An application must include a certification, signed by the 
applicant, stating that it will comply with the requirements of 
subchapter IV of chapter 31 of title 40, United States Code (Federal 
wage rate requirements), as required by the Recovery Act.
    5. Certification Regarding Debarment, Suspension in compliance with 
29 CFR Part 98.

B. ARRA BAP Reimbursement Program Eligibility

    To be eligible for a performance, payment, or bid/proposal bond fee 
cost reimbursement under the DBE ARRA BAP, a contractor must:
    1. Be a certified DBE in accordance with Title 49 Code of Federal 
Regulations Part 26 (49 CFR 26);
    2. Have a current Dun and Bradstreet Number (DUNS);
    3. Be registered in the Central Contractor Registration (CCR), 
CCR.gov, complete with bank information for electronic payment; and
    4. Provide goods or services on a contract for a transportation-
related project receiving DOT funding pursuant to ARRA or if a bid/
proposal bond is required, bid on a contract for a transportation 
infrastructure project receiving DOT funding pursuant to ARRA.
    5. Applications must be received by mail or electronically 
submitted to DOT OST OSDBU on or before September 8, 2010 for bonds 
issued on ARRA projects with issue dates on or after August 28, 2009. 
In the event funding is fully expended prior to September 8, 2010, 
OSDBU will cease to accept new applications. Bonding premiums and fees 
incurred by the DBE prior to this notice are not eligible for 
reimbursement under the DBE ARRA BAP.

C. Types of Surety Bonds Eligible for Reimbursement of Bond Premiums 
and Fees Under the DBE ARRA BAP

    A surety bond is a three-party instrument between a surety, the 
contractor and the project owner. The agreement binds the contractor to 
comply with the terms and conditions of a contract. If the contractor 
is unable to successfully perform the contract, the surety assumes the 
contractor's responsibilities. The following are types of surety bonds 
eligible for

[[Page 44898]]

reimbursement of bond premiums and fees:
    1. Bid/Proposal--A bond which guarantees that the bidder on a 
contract will enter into the contract and furnish the required payment 
and performance bonds. A proposal bond also guarantees that the offeror 
on a contract will enter into the contract and furnish the required 
payment and performance bonds. It is used in response to a Request for 
Proposal (RFP).
    2. Payment--A bond which guarantees payment from the contractor to 
persons who furnish labor, materials equipment and/or supplies for use 
in the performance of the contract.
    3. Performance--A bond which guarantees that the contractor will 
perform the contract in accordance with its terms.

III. Application Process

    A. The DBE will select an approved surety company listed in 
Department of the Treasury's Listing of Approved Sureties (Department 
Circular 570) and establish a business relationship.
    B. The DBE will submit a bond application to the surety company in 
accordance with the surety company's requirements. In the event the DBE 
is participating in the SBA's SBGP, the contractor will comply with 
SBA's requirements.
    C. Upon approval, the DBE will pay all required bonding premiums. 
In the event the DBE is participating in the SBA's SBGP, the DBE will 
also pay SBA's principal fee.
    D. To receive reimbursement from DOT for the bonding premium/fees 
paid to the surety company and possibly SBA, the DBE will be required 
to submit an Application for Reimbursement of Bond Fees to DOT. A 
separate application must be submitted for each bond for which the 
applicant is seeking reimbursement of the bond premiums and fees paid 
by the applicant. Applications submitted by mail may be delayed due to 
mail screening security requirements. For faster reimbursement, the DBE 
should consider electronic submission by email. The application is an 
electronically fillable application form. We strongly suggest 
applicants utilize the electronically fillable form to complete the 
application entries. Illegible applications will delay processing time. 
The DBE will be required to submit the following information on the 
form:
    1. Legal name of the company and full street address of the primary 
business location.
    2. TIN (Federal Tax ID Number).
    3. Dun & Bradstreet Number (DUNS).
    4. Affirmation that the DBR is registered in central contractor 
registration (ccr.gov), inclusive of banking information.
    5. Surety bond information:
    (a) Bond number;
    (b) Date of issue;
    (c) Name of surety company;
    (d) Type of bond;
    (e) Bond amount;
    (f) Total bond premiums and fees for which the DBE is seeking 
reimbursement.
    6. Transportation-related contract information:
    (a) Contract Awarder (Agency/Prime/Subcontractor);
    (b) Contract number;
    (c) Federal project number and Name;
    (d) Contract amount;
    (e) Contract start date;
    (f) Contract estimated completion date.
    7. DBE certification information:
    (a) Certification that the applicant is a DBE and the contract 
being bonded is a transportation-related contract;
    (b) Name of the entity which certified the contractor's business as 
a DBE;
    (c) State of certification;
    (d) Certification expiration/renewal date;
    (e) The most current annual affidavit date. A current annual 
affidavit is not required in the event the DBE is certified less than 
one (1) year.
    8. Signature of applicant and contact information.
    9. Certification that the DBE has not sought reimbursement for the 
bond fees for which they are seeking reimbursement from DOT, nor will 
the DBE seek reimbursement in the event they receive reimbursement from 
DOT. The DBE will also provide consent for DOT to contact the agency/
prime/subcontractor to confirm non-reimbursement of the bond fees.
    E. The DBE will be required to submit the following documentation 
with the application:
    1. A copy of the bond.
    2. A copy of the contract.
    3. DBE certification letter from the DBE certification office in 
their state and a current annual affidavit. A current annual affidavit 
is not required in the event the DBE is certified less than one (1) 
year.
    4. Regardless of whether the DBE is a prime contractor or a 
subcontractor, a letter from the federal, state or local transportation 
authority, on their letterhead, indicating the DBE is a prime 
contractor or a subcontractor and the federal project number. In the 
event the DBE is already in possession of other documentation from the 
federal, state or local transportation authority indicating the federal 
project number, that documentation may be submitted in lieu of the 
letter.
    5. A copy of their invoice(s) from the surety company and if 
applicable, SBA and cancelled checks or other proof of payment of the 
bond fees in support of the total amount claimed for reimbursement.
    The Application for Reimbursement of Bond Fees, application 
instructions, and additional guidance is located at http://www.dot.gov/
recovery/ost/.

IV. Application Content

    Submitted Applications must contain:
    A. A completed and signed application.
    B. Supporting Documentation outlined in Section III.E.
    C. Certificate Regarding Lobbying in compliance with 49 CFR Part 
20.
    D. Certification stating that the DBE will comply with the 
requirements of subchapter IV of chapter 31 of title 40, United States 
Code (Federal wage rate requirements), as required by the Recovery Act.
    E. Certification Regarding Debarment, Suspension in compliance with 
29 CFR Part 98.

V. Application Approval

    OSDBU will review submitted applications in the order of receipt. 
Applications will be reviewed for eligibility and completeness. 
Applications that are incomplete or contain inaccurate information will 
not be considered for approval. OSDBU will verify supporting 
documentation and the DBE's registration status on http://www.ccr.gov. 
Incomplete applications will not be considered for approval. OSDBU will 
notify the applicant in the event of approval or disapproval of an 
application. The Director or OSDBU or his designee will provide 
signatory approval on applications approved for cost reimbursement. DOT 
intends to expedite payment of approved applications. Payment will not 
be made for approved applications until the DBE's bank information is 
completed in their registration profile on http://www.ccr.gov.

VI. Reporting Requirements

    A. ARRA Section 1512 Recipient Reporting: DBEs that receive bonding 
assistance under DBE ARRA BAP are not subject to reporting requirements 
under Section 1512 unless such awards of assistance exceed the 
reporting threshold of $25,000 for prime recipients. DOT also notes 
that eligible recipients are already subject to ARRA Section 1512 
recipient reporting requirements by the DOT modes of

[[Page 44899]]

transportation, such as FHWA, FTA, FAA, FRA, and MARAD. Please 
reference additional guidance located http://www.dot.gov/recovery/ost/
for specific Section 1512 reporting instructions for recipients of 
bonding assistance under the DBE ARRA BAP
    B. Other Reporting: To satisfy the needs for transparency and 
accountability related to funding appropriated under the ARRA, DBEs may 
be required to provide additional information not yet specified in this 
notice to satisfy requests from the Office of Management and Budget 
(OMB), the Congressional Budget Office (CBO), the Government 
Accountability Office (GAO, or the DOT Office of Inspector General 
(IG). DOT/OSDBU will inform the DBEs if and when such additional 
reports are required. Through its participation in the DBE ARRA BAP, 
the DBE agrees to provide the additional required information.

VII. Technical Assistance

    Technical assistance pertaining to the DBE ARRA BAP is available 
from OSDBU headquarters, S-40, 1200 New Jersey Avenue SE., Washington, 
DC 20590 1-800-532-1169 or through the regional DOT Small Business 
Transportation Resource Centers (SBTRC).
    Small Business Transportation Resource Centers (SBTRCs):
    Northeast Region:

New York, Headquarters, New Jersey, Massachusetts, Connecticut, Rhode 
Island, Maine, New Hampshire, Vermont

    Contact: LaGuardia Community College:

Elizabeth Perdomo, Project Director, SBTRC, LaGuardia Community 
College, 29-10 Thompson Avenue, 9th Floor, Long Island City, NY 11101, 
Telephone: (718) 482-5941, FAX: (718) 609-2036, E-mail: 
eperdomo@lagcc.cuny.edu.

    Mid Atlantic Region:

Pennsylvania, Headquarters, Maryland, Virginia, District of Columbia, 
Delaware, West Virginia

    Contact: Greater Philadelphia Minority Business Strategic Alliance:

Tiffany L. King, Project Director, 105 N. 22nd Street, Philadelphia, 
Pennsylvania 19103, Telephone: (215) 399-0062, Fax: (215) 399-0063, E-
mail: tking@gpmbsa.com

    South Atlantic Region:

North Carolina, Headquarters, Tennessee, South Carolina, Kentucky
    Contact: North Carolina Agricultural and Technical (NC A&T) State 
University:

George C. Jones, Jr., Project Director, SBTRC, Rm 312-G Craig Hall, The 
Transportation Institute, NC A&T State University, 1601 E. Market 
Street, Greensboro, NC 27411, Ph: (336) 256-2111, Fax: (336) 334-7093, 
E-mail: gcjones@ncat.edu

    Southeast Region:

Florida, Headquarters, Georgia, Alabama, Mississippi, Puerto Rico, U.S. 
Virgin Islands

    Contact: Miami Dade College:

Adrianna Clark, Project Director, SBTRC, Miami Dade College, Homestead, 
500 College Terrace, Office B230, Homestead, FL 33160, Telephone: (305) 
237-5115, Fax (305) 237-5108, E-mail: aclark1@mdc.edu

    Gulf Region:

Texas, Headquarters, Louisiana, Oklahoma, New Mexico, Arkansas

    Contact: Greater Dallas Hispanic Chamber of Commerce:

Yolanda Tafoya, Diana L. Flores, Project Director, SBTRC, 4622 Maple 
Ave., 207, Dallas, Texas 75219-1101, Telephone: (214) 523-
3432, Fax: (214) 520-1687, E-mail: diana@gdhcc.com

    Great Lakes Region:

Illinois, Headquarters, Indiana, Michigan, Ohio, Wisconsin

    Contact: Hispanic American Construction Industry Association:

Jackie Gomez, Project Director, SBTRC, 901 W. Jackson Blvd., Suite 205, 
Chicago, Illinois 60607, Telephone: (312) 666-6070, ext 22, Fax: (312) 
666-5692, E-mail: jgomez@haciaworks.org

    Central Region:

Missouri, Headquarters, Colorado, Minnesota, Iowa, Kansas, Nebraska, 
South Dakota, North Dakota, Wyoming

    Contact: University of Missouri--Columbia:

Rhonda K. Wilson, Project Director, SBTRC, W1026 Lafferre Hall 400 
South 6th Street, Columbia, Missouri 65211, Phone: (816) 294-9803, Fax: 
(573) 882-9931 E-mail: wilsonrh@missouri.edu

    Southwest Region:

California, Headquarters, Arizona, Utah, Nevada, Hawaii

    Contact: U.S. Pan Asian American Chamber of Commerce:

Carrolyn Kubota, Project Director, SBTRC, 275 5th Street, San 
Francisco, CA 94103, Phone: (415) 348-6262, Toll Free: 1-866-928-6289 
x9, Fax: (415) 541-8589, E-mail: carrolyn@uspaacc.com

    Northwest Region:

Washington, Headquarters, Oregon, Alaska, Idaho, Montana

    Contact: Economic Development Council of Snohomish County:

Lily Keeffe, Project Director, SBTRC, 728 134th St., SW., Ste 128, 
Everett, WA 98204, Telephone: (206) 718-7250, Fax (425) 745-5563, E-
mail: lkeeffe@snoedc.org

    Issued in Washington, DC, on August 25, 2009.
Brandon Neal,
Director, Office of Small and Disadvantaged Business Utilization.
[FR Doc. E9-20919 Filed 8-28-09; 8:45 am]

BILLING CODE 4910-9X-P