Code of Vermont Rules › Agency 14 - AGENCY OF TRANSPORTATION › Sub-Agency 010 - TRANSPORTATION BOARD › Chapter 015 - WOMEN-OWNED AND DISADVANTAGED BUSINESS ENTERPRISE PROGRAM › Section 14 010 015 - WOMEN-OWNED AND DISADVANTAGED BUSINESS ENTERPRISE PROGRAM

Current through June, 2024
Preamble
It is the intention of the Vermont Transportation Board and the
				Vermont Agency of Transportation to assure that all businesses, regardless of
				ownership, be allowed equal access through competitive bidding, to all work
				advertised by the Agency of Transportation. Consistent with this policy, the
				Agency has traditionally maintained and will continue to maintain an atmosphere
				of freedom and equality in its bidding and award procedures.
The Board and the Agency emphasize their support of and belief
				in, the system of free enterprise, but also recognize and endorse national
				policy addressing the special needs of businesses owned by disadvantaged
				peoples and by women.
The document attached hereto and referred to as the Women-owned
				and Disadvantaged Business Enterprise Program, for implementation by the
				Vermont Agency of Transportation, represents Board policy regarding the equal
				rights of women-owned and disadvantaged business enterprises (W/DBE) to
				participate in all contracts financed in whole or in part with public monies.
				The Program also details the affirmative efforts the Agency will undertake to
				assure that results are achieved.
To this end, the Vermont Transportation Board and the Agency of
				Transportation issue the following policy statement affirming its commitment to
				women-owned and disadvantaged business enterprises.
POLICY STATEMENT
The Vermont Agency of Transportation shall require, through
				contractual provisions, that all of its contractors, subcontractors,
				consultants, cities, towns and all other recipients and sub-recipients of
				federal-aid funds administered by this Agency, ensure that women-owned and
				disadvantaged business enterprises have the maximum opportunity to participate
				in the performance of contracts and subcontracts. In this regard, the Vermont
				Transportation Board endorses the following Women-owned and Disadvantaged
				Business Enterprise Program, as an affirmative means to fulfill the philosophy
				that all business, regardless of ownership, be allowed equal freedom and
				opportunity to compete for all contracts. Furthermore, the Board directs the
				Agency to take the necessary action to ensure that all contractors,
				subcontractors, recipients and sub-recipients take reasonable steps to comply
				with all current state and federal laws and regulations pertaining to
				women-owned and disadvantaged business enterprises.
...
Chairperson, Vermont Transportation Board
...
Secretary, Vermont Agency of Transportation
INTRODUCTION
Purpose
The purpose of this program is to provide guidelines for the
				continued refinement, upgrading, and management of the Agency's W/DBE program.
				These guidelines include procedures to insure that W/DBEs have an equitable
				opportunity to compete for contracts and subcontracts, and to ascertain the
				eligibility of W/DBEs and joint ventures involving W/DBEs. A W/DBE Registry is
				also part of this plan.
Included are the percentage goals for the dollar value of work
				to be awarded to W/DBEs, the development of procedures requiring that
				subcontract solicitations of W/DBEs are documented by competitors for
				contracts, and procedures to insure that prime contracts are awarded to
				competitors that meet W/DBE goals.
Authority
The preparation of this W/DBE Program is done in accordance
				with 49 C.F.R., Part 23 and Section
				106(c)
				of the Surface Transportation and Uniform Relocation Assistance Act of 1987,
				and is scheduled for adoption under the State of Vermont's Administrative
				Procedures Act.
Scope
The requirements of this W/DBE program apply to contracts
				financed in whole or in part with federal funds. The program is designed to
				serve all Divisions of the Vermont Agency of Transportation. While the program
				applies to contracts financed in whole or in part with federal funds, the
				Vermont Agency of Transportation will actively solicit participation by W/DBEs
				in all contracts that lend themselves to such participation.
Definitions
Definitions are included in Appendix D.
IMPLEMENTATION RESPONSIBILITIES
1. Transportation Board
The Transportation Board is the policymaking body for
				transportation issues.
2. Secretary of
			 Transportation
The ultimate responsibility for achieving Women-owned and
				Disadvantaged Business Enterprise Program objectives rests with the Secretary
				of Transportation.
3. Agency Chief of
			 Contract Administration
Overall Agency responsibility for assuring external contractor
				compliance with E.E.O., Civil Rights, and W/DBE regulation is delegated by the
				Secretary of Transportation to the Chief of Contract Administration as Equal
				Employment and W/DBE Liaison Officer.
4. Contract Compliance Officer
The Contract Compliance Officer assists the Chief of Contract
				Administration in implementing external contractor compliance
				procedures.
5. Transportation Program
			 Specialist
The Specialist assists the Contract Compliance Officer by
				providing expertise in computerized data management systems, program analysis,
				policy and procedural advice, and program administration.
GOALS
The methodology for the selection of annual percentage goals
				for the dollar value of work to be awarded W/DBEs is as follows.
The Agency will establish overall annual percentage goals, and
				when necessary, specific contract goals which are practical and related to the
				potential availability and capability of W/DBEs. These goals are intended to
				direct a justified, proportionate amount of contracting and subcontracting
				opportunities to disadvantaged and woman-owned small businesses. Projects
				targeted for goals will be selected in accordance with their capability to
				accommodate the areas of expertise that W/DBEs certified in Vermont have
				demonstrated ability to perform and the availability of competing W/DBE
				firms.
Overall Annual W/DBE Participation Goal
The overall annual goal shall consist of a single goal
				combining both women-owned and disadvantaged business enterprise
				participation.
The following factors will be evaluated when determining the
				Agency's overall goal for value of work to be awarded W/DBEs.
1. Agency projected contract letting
			 schedules.
Schedules will be reviewed annually for number of projects
				proposed for construction, types of projects (e.g. paving, bridge, rail,
				roadway, airport, etc.) and geographical location.
2. Past results attained in achieving the
			 annual overall goal.
Previous goal statistics will be analyzed on a yearly basis to
				determine degree of success in attaining the projected goal. The knowledge will
				be applied when setting the new projected annual goal.
3. Availability and capability of W/DBEs.
Geographic concentration of project activities in relation to
				W/DBE availability will be a major consideration when establishing the overall
				goal. Work categories of demonstrated W/DBE expertise and capability will also
				be a consideration when determining the overall goal.
4. Census Statistics
The size and composition of the minority population will be a
				factor of consideration when establishing the annual W/DBE participation
				goal.
5. Information From the
			 Consultation Process
Information provided by the W/DBE community concerning the
				availability of W/DBE firms and information received as a result of Public
				Notices announcing the proposed annual goal will also be considered.
Individual Contract W/DBE Participation Goal
A specific contract goal may be assigned by the Agency as a
				means to achieve and maintain the overall annual goal. The following factors
				will be considered, if it is deemed necessary to establish a specific contract
				goal.
1. Availability of known
			 qualified DBEs and WBEs.
2. Desired
			 areas of contracting expertise.
3.
			 Geographic location of project.
4.
			 Size of project and conduciveness to subletting possibilities.
5. Success in achieving the current year's
			 W/DBE participation goal.
The Supplemental Specifications for W/DBE Utilization is
				included in Appendix H. The subject of individual contract goals is discussed
				further in Section V - "W/DBE Utilization".
Procedure for Warning
The Agency will establish an overall W/DBE participation goal
				in accordance with the methodology contained in this section and submit them to
				the U.S. Department of Transportation for approval. A public notice will be
				written detailing the new overall W/DBE annual goal. This public notice will be
				published in major Vermont newspapers announcing said goal; a sample of this
				notice is included in Appendix A. A description of the methodology used in
				selecting the goal will be available for citizen inspection for thirty (30)
				days following the date of the notice. This material will be made available to
				the public at:
The Vermont Agency of Transportation
Contract Administration Division
133 State Street
Montpelier, Vermont 05602
Telephone: (802) 828-2641
The public notice will also allow for a public comment period
				of forty-five (45) days following the date of the notice. Comments will be
				directed to the above-stated address and be for information purposes only. The
				overall annual goal will be established on October 1 of each year and remain in
				effect through September 30 of the following year.
In addition to public notices, contracting organizations
				representing both minority and non-minority interest, will be solicited by mail
				concerning the proposed annual W/DBE goal. These responses and other public
				input will be considered when formulating the goal.
W/DBE PROGRAM PROCEDURES
The Vermont Agency of Transportation will strive to ensure the
				inclusion, development, and growth of women-owned and disadvantaged business
				enterprises in all Agency contractual activities with the goal of assimilating
				women and disadvantaged businesses into the transportation industry through
				affirmative, logical efforts.
Affirmative Actions
The Agency has or will:
1. Appoint a W/DBE Liaison Officer and such
			 support staff as will be necessary to administer the W/DBE program. The W/DBE
			 Liaison Officer will report directly to the Agency's Secretary and shall be
			 responsible for developing, managing, and implementing the W/DBE program on a
			 day-to-day basis.
2. Search out and
			 identify qualified W/DBEs interested in participating in the Agency's
			 federal-aid construction program.
3. Search out and identify qualified women or
			 disadvantaged-owned and operated vendors, banking institutions and suppliers of
			 goods, services and materials which federal-aid construction contractors may
			 use in their day-to-day operation. Also, it will develop a list of these firms
			 and assist them in contacting prime contractors in an effort to encourage
			 purchases from those listed firms.
4. Work with interested W/DBEs in developing
			 joint ventures and mentor-protege relationships between W/DBEs and/or between a
			 W/DBE and a majority owned firm. The objective is to combine their resources to
			 better compete for federal-aid work and/or to allow small, inexperienced firms
			 to learn transportation-related trades from the more experienced contractors. A
			 copy of the Agency's policy on mentor-protege relationships is contained in
			 Appendix I.
5. Provide needed
			 Supportive Services to interested W/DBEs in the areas of bonding, financing
			 management, and technical assistance. Support Services may be provided by
			 consultants, via mentor-protege, by institutions of higher learning, seminars,
			 and other acceptable means.
6.
			 Coordinate and supervise with the help and involvement of federal agencies and
			 Agency officials, meetings between interested and prequalified firms. The
			 intent of these meetings is to explain federal and state W/DBE utilization
			 regulations, to give the W/DBEs an opportunity to meet and sell their firms
			 capabilities to the prime contractors, and to identify and eliminate specific
			 barriers common to these businesses.
7. Conduct sufficient follow-up actions on
			 interested W/DBEs to formulate a standard for determining the extent of success
			 achieved. Also, data collected from the follow-up will enable federal and state
			 agencies to better formulate future courses of action relative to the Agency's
			 W/DBE Program.
8. Assure that all
			 parties to the Agency's federal-aid construction contracts are made cognizant
			 of their responsibilities concerning the utilization of W/DBEs and other Equal
			 Employment Opportunity obligations by transmitting this information at the
			 project pre-construction conference.
9. Coordinate efforts with other State D.O.T.
			 Liaison Officers and W/DBE Supportive Services consultants in assisting W/DBEs
			 with interstate contracting capabilities. Also, it will share ideas and
			 information with other in-state and out-of-state organizations working toward
			 the common goal of providing equal opportunities for disadvantaged and
			 women-owned firms.
10. The
			 Compliance Officer shall conduct periodic reviews as part of the regularly
			 scheduled Equal Employment Opportunity Comprehensive Compliance reviews on
			 construction contracts to assure that adequate and documented efforts have been
			 exercised by prime contractors to solicit quotes from available and qualified
			 W/DBEs.
11. Maintain an up-to-date
			 listing of certified disadvantaged and women-owned businesses and include this
			 listing in all federal-aid contract proposals released by the Agency. It will
			 ensure that all businesses seeking W/DBE status with this Agency are provided
			 assistance in filling out the W/DBE certification application forms when
			 necessary.
12. Establish an annual
			 overall percentage goal, and when deemed necessary, a specific contract goal
			 for the dollar value of work to be awarded to W/DBEs as permitted by law.
			 Specific contract goals will be implemented only as a short-term method of
			 maintaining the overall goal. Goals, and the methodology for establishing them
			 are addressed in Section III of this program.
13. Maintain certification procedures which
			 ensure that this program benefits only bona fide W/DBE firms. The Agency W/DBE
			 certification process is further explained in Section IV of this
			 program.
14. Design
			 prequalification requirements to encourage small contractors to participate in
			 our construction programs. Every reasonable effort will be made to assist
			 W/DBEs in establishing prequalification status with the Agency.
15. Where feasible, large construction
			 projects may be segmented to allow small W/DBE contractors the opportunity to
			 bid.
Specific Affirmative Actions Employed
1. The Agency encourages the Certification
			 Review Consultant to complete all reviews and submit a recommendation for
			 certification (or denial) within 30 days of the initial contact with the
			 applicant. Final approval by the Prequalification Committee usually occurs
			 within three weeks of the receipt of recommendation from the Certification
			 consultant. No backlog of certification applicants has existed since March,
			 1985.
2. The Agency's endorsement
			 of certification reciprocity with other state departments of transportation has
			 encouraged W/DBEs from other states in the region to seek work in Vermont. A
			 letter requesting certification and a copy of the W/DBEs current letter of
			 certification from their home state is all that is normally required for the
			 reciprocal certification. This process can be completed in as little as a
			 week's time.
3. The W/DBE Registry,
			 a listing of firms certified as owned and controlled by women and/or
			 disadvantaged persons, is updated on a monthly basis. This action ensures that
			 bidders on federal-aid contracts have the most current listing of W/DBE
			 certified firms.
4. The Agency
			 encourages Vermont W/DBEs to use the Community College of Vermont during the
			 winter shutdown months for courses relative to the highway construction
			 industry and small buisness management. The Community College has the advantage
			 of offering courses at locations throughout the state in an accredited
			 educational system; tuition costs, room, lab, and textbook charges are
			 reimbursed by the Agency through the W/DBE Supportive Services consultant, who
			 administers course registrations.
5. The Agency continues to benefit from the
			 inclusion of the Civil Rights Section as a part of the Contract Administration
			 Division. The same individuals who administer the W/DBE Program also have
			 responsibility for Equal Employment Opportunity and Affirmative Action Programs
			 for the Agency, Labor Compliance review procedures, and Title VI Program. The
			 Contract Administration Division prepares all contract documents for
			 federal-aid projects, advertises bids, prequalifies contractors, distributes
			 proposals to contractors, opens bids, and forwards the results of bids to the
			 Chief Engineer. The proximity of W/DBE program personnel to the other staff and
			 functions of the Contract Administration Division provides a knowledge of, and
			 participation in these other functions. Contractors pick up and deliver
			 proposals in the Contract Administration Office; W/DBE Program personnel meet
			 and speak personally to active contractors, subcontractors, and W/DBEs on a
			 regular basis. This face-to-face approach has resulted in a better
			 understanding and acceptance of the program by the contracting community than
			 might otherwise be possible.
All W/DBE Program personnel have an extensive background in
				various phases of highway preconstruction and/or as construction Resident
				Engineers and Inspectors. This knowledge and experience is essential to the
				understanding of the realities of how W/DBE subcontractor participation works
				on the project site.
6. Approximately
			 every other construction season the Agency sponsors a conference to provide
			 guidance to the contracting community on the various civil rights regulations
			 that are effective in their federal-aid contracts--including W/DBE
			 requirements.
W/DBE UTILIZATION
Solicitation Requirements
Prime contractors are required to solicit W/DBEs and provide
				physical evidence that such solicitation was done in good faith before
				subcontractor approval is granted. Binding provision to that effect are
				included in every federal-aid contract package. The kind of actions that will
				be considered by the Vermont Agency of Transportation as a good faith effort to
				meet the W/DBE goal and solicitation requirements shall include, but not be
				limited to, those outlined in 49 CRF § 23. 45, Appendix A. In addition,
				these requirements are reiterated in contract document CA-110 and also at the
				pre-construction conference prior to the commencement of construction. A copy
				of CA-110, dated September, 1987, is included in Appendix B.
A specific contract W/DBE participation goal is also set for a
				number of projects; the prime contractor is required to submit with the bid
				proposal a list of qualified W/DBEs the firm intends to contract with to
				perform portions of the work, the agreed price to be paid, and the specific
				contract items to be performed by each W/DBE. A copy of the supplemental
				specification, CA-160, is included in Appendix H as an illustration of Agency
				methods of administering contract goals and judging compliance with applicable
				W/DBE requirements. The specific goal required in this supplemental
				specification is revised for each applicable contract.
Subrecipients
As a precondition to receiving federal funds extended through
				the Agency, a subrecipient of Agency federal funds must comply with the
				requirements of 49 CRF Part 23. The subrecipient may have a federally approved
				W/DBE program or officially adopt the Agency program.
The W/DBE Liaison Officer will assist subrecipients in meeting
				W/DBE goals.
Use of W/DBE Banks
At this time, no disadvantaged or women controlled banks
				operate in Vermont. If such banks do emerge, the Agency will attempt to certify
				the business as a Women or Disadvantaged Business Enterprise utilizing the same
				certification process described in Section VI of this program. Upon
				certification, the bank will be listed in the W/DBE Registry. The Agency will
				encourage the solicitation and use of such banks by contractors.
W/DBE Registry
The Office of Contract Administration maintains an up-to-date
				listing of firms in the state and region certified to participate as W/DBEs in
				the Agency's contracting program. The firms are listed in work-performed
				categories with address and phone number and identified as a women or
				disadvantaged business enterprise. The Registry is included in every
				contract-proposal package for federally-funded projects. A copy of the current
				Registry is in Appendix J.
Contract Setasides
The use of contract setasides as a means to achieve W/DBE
				participation goals may be used when good-faith effort solicitation and
				specific contract W/DBE goals have failed to attain reasonable W/DBE
				participation in Agency projects. W/DBE setasides shall be used only in cases
				where at least three W/DBE firms with capabilities consistent with contract
				requirements exist so as to permit competition.
The Agency may select entire projects or specific items within
				individual projects for exclusive bidding privileges for W/DBEs.
CERTIFICATION
In order for the Agency to achieve the goals of the W/DBE
				program, it must insure that participation is limited to only those business
				entities for which the program is intended -- the bona fide woman-owned or
				disadvantaged business enterprise. To accomplish this, the Agency has developed
				a W/DBE certification process.
Certification of W/DBEs is a function of the Agency
				Prequalification Committee. This Committee, which is comprised of the Chief
				Engineer and Agency Division Heads, reviews each women-owned or disadvantaged
				firm applying for access to the Agency W/DBE Program. Their decisions are based
				on information presented in the Certification Application and recommendations
				from the Agency W/DBE Supportive Services Consultant and W/DBE Liaison
				Officer.
Eligibility Application
In December, 1984 the "Disadvantaged/Women Owned Businesses
				Certification Application" recommended by the FHWA Region I Certification Task
				Force was adopted for use by the Agency.
All in-state applicants wishing to participate in the W/DBE
				program must apply for W/DBE certification by completing this application, a
				copy of which is included in Appendix F of this program. Applicants must also
				submit the required documents pertaining to their firms as stipulated in the
				application. These forms will be made available to prospective W/DBE's
				through:
Vermont Agency of Transportation
Office of Contract Administration
133 State Street
Montpelier, Vermont 05602
802 -828-2641
or through the office of the W/DBE Consultant.
The Compliance Officer and W/DBE Consultant will actively
				solicit applications from the women and disadvantaged business community.
				Applicants are encouraged to submit the certification application as soon as
				possible and not wait until the Agency advertises a project that they wish to
				bid or give quotes on.
Review and Analysis
Certification applications are received by the Office of the
				W/DBE Certification Consultant; the Consultant conducts a comprehensive review
				of each application relevent to required information and content, and then
				conducts on-site interviews of in-state firms. When the certification
				application with required attachments and the on-site review form have been
				completed, the Consultant submits the application package, along with a
				recommendation relevant to certification, to the Compliance Officer. The
				Compliance Officer conducts a review of the application information and submits
				a recommendation, relevant to certification, via the W/DBE Liaison Officer to
				the Prequalification Committee. The Prequalification Committee has the ultimate
				authority to grant or deny certification. Appendix C contains information and
				guidance for qualitative review and analysis of applicants for W/DBE
				status.
Business Size
All firms applying for either W/DBE status must first meet the
				small business requirements defined in Section
				3
				of the Small Business Act referred to in Appendix B to subpart D of 49 CFR,
				Part 23.
Social and Economic Disadvantaged
1. Based on Ethnic or Racial Origin
Once a firm is determined to be a small business, social and
				economic disadvantaged status are reviewed. Guidance for determining social and
				economic disadvantage status is provided under Appendix C to subpart D of 49
				CFR, Part 23.
Where ethnic or racial origin of an applicant is in question,
				recognition of the applicant by the particular ethnic or racial community he or
				she claims to be a member of should be the prevailing criteria upon which the
				ethnic or racial status is determined. In this sense, the degree of origin
				(1/8, 1/16, 1/32, etc.) is not as important as the ethnic or racial community's
				regard of the person as one of its members. Thus, a person claiming one
				minority parent or any degree of minority ancestry may or may not be found to
				be a minority under the regulations. In these cases, inquiry of the particular
				minority community should be made. Such an inquiry may include documentary
				evidence from disinterested persons whose ethnic/racial origin is not in
				question. Some sources would be individual members of the community the
				applicant claims to be a member of including community organization leaders,
				bank officials, and local business development organizations. Documentary
				evidence may include birth certificates, naturalization papers, Indian tribal
				role registration, statements from disinterested parties, and proof of
				membership and interaction in recognized racial or ethnic organizations.
2. Women which includes female persons
			 regardless of race or origin.
3.
			 Based on Factors Other Than Racial or Ethnic Origin.
Individuals who are not presumed to be socially and
				economically disadvantaged by virtue of gender or membership in a racial or
				ethnic group may, nevertheless, be found to be socially and economically
				disadvantaged on a case-by-case basis. If individuals request that their
				businesses be certified as eligible disadvantaged businesses, the Agency, as
				part of its certification process, will make a determination of social and
				economic disadvantage.
In making determinations of social and economic disadvantage,
				the Agency will be guided by the following standards:
a. The individual's social disadvantage must
			 stem from color, national origin, physical impairment, long-term residence in
			 an environment isolated from the mainstream of American society, or other
			 similar cause beyond the individual's control. The individual cannot establish
			 social disadvantage on the basis of factors which are common to small business
			 persons who are not socially disadvantaged. For example, an individual
			 predicating a social disadvantage claim on denial of bank credit would have to
			 establish that the denial was based on one or more of the listed causes, or
			 similar causes - not simply on the individual's or the firm's marginal
			 financial status.
b. Individuals
			 must demonstrate that they have personally suffered social disadvantage, not
			 merely claim membership in a non-designated groups which could be considered
			 socially disadvantaged. This can be demonstrated, for example, by describing
			 specific instances of discrimination that the individuals have experienced, or
			 by recounting in some detail how their development in the business world has
			 been thwarted by one or more of the listed causes or similar causes. In
			 assessing these facts the Agency will consider prior administrative or judicial
			 findings of discrimination experienced by them.
c. Each individual's social disadvantage must
			 be rooted in treatment which they have experienced in the United States, not in
			 other countries.
d. Each
			 individual's social disadvantage must be chronic, longstanding, and
			 substantial, and demonstrate a series of obstacles which have impeded their
			 progress in the business world.
e.
			 In addition to a personal statement from the individual claiming to be socially
			 disadvantaged such evidence may be: third party statements, copies of
			 administrative or judicial findings of discrimination, and other documentation
			 in support of matters discussed in the personal statement. The Agency will
			 consider the applicant's education, employment, and business history; the
			 individual may present evidence relating to other matters as well. Moreover,
			 the attainment of a quality education or job should not absolutely disqualify
			 the individual from being found socially disadvantaged if sufficient evidence
			 of social disadvantage is presented to the Agency.
Other evidence considered in the determination of social and
				economic disadvantage are:
- Denial of access to business and/or professional
				schools.
- Denial of equal access to education curricula.
- Exclusion from social and professional organizations.
- Denial of professional or educational honors.
- Social patterns or pressures which have discouraged the
				individual from pursuing a professional or business education or career.
- Discrimination in hiring promotion and/or professional
				advancement, pay/wages and fringe benefits, or disciplinary actions in
				education or employment.
- Unequal access to credit or capital.
- Inability to acquire credit or the necessity or mandate to
				acquire credit under unfavorable circumstances.
The Agency will make a determination as to whether the
				applicant firm and its owner(s) are in a more difficult social and economic
				situation than most firms and owners who are not disadvantaged. The applicant
				must also demonstrate that the firm is 51 percent owned by socially and
				economically disadvantaged individual(s) that this (these) individual(s)
				control the day-to-day management of the firm, and that the firm meets such
				other requirements for eligibility as a DBE described in this program.
Ownership and Control
The following standards will be used to determine whether a
				firm is owned and controlled by one or more socially and economically
				disadvantaged individuals as defined above, and therefore, eligible to be
				certified as a W/DBE by this Agency.
1. To be eligible the firm must be an
			 independent business. The The ownership and control by the socially and
			 economically disadvantaged must be real, substantial, continuing, and shall go
			 beyond the pro forma ownership of the firm as reflected in its ownership
			 documents. The socially and economically disadvantaged owners shall enjoy the
			 customary incidents of ownership and shall share in the risks and profits
			 commensurate with their ownership interests, as demonstrated by an examination
			 of the substance rather than the form of the ownership arrangements.
2. The socially and economically
			 disadvantaged owners shall also possess the power to direct or cause the
			 direction of the management and policies of the firm and to make the day-to-day
			 as well as major decisions on matters of management, policy and operations. The
			 firm shall not be subject to any formal or informal restrictions which limit
			 the customary discretion of the socially and economically disadvantaged owners.
			 No by-law provisions, partnership agreements, charter requirements for
			 cumulative voting rights or any other factor will prevent the socially and
			 economically disadvantaged owners from making a business decision for the
			 firm.
3. If the owners of the firm
			 who are not socially and economically disadvantaged are disproportionately
			 responsible for the operation of the firm, then the firm is not controlled by
			 the socially and economically disadvantaged persons and shall not be considered
			 a W/DBE. Where the actual management of the firm is contracted out to
			 individuals other than the owner, those persons who have the ultimate power to
			 hire and fire the managers can be considered as controlling the
			 business.
4. All securities which
			 constitute ownership and/or control of a corporation for purposes of
			 establishing it as a W/DBE shall be held directly by the socially and
			 economically disadvantaged persons. No securities held in trust, or by any
			 guardian for a minor shall be considered as held by socially and economically
			 disadvantaged persons in determining the ownership or control of a
			 corporation.
5. The contributions
			 of capital or expertise by the socially and economically disadadvantaged owners
			 to acquire their interests in the firm shall be real and substantial. Examples
			 of insufficient contributions include a promise to contribute capital, a note
			 payable to the firm or its owner who are not socially and economically
			 disadvantaged persons, or the mere participation as an employee, rather than as
			 a manager.
If at any time the Agency has reason to believe that any person
				or firm has willfully and knowingly provided incorrect information or made
				false statements on the disclosure affidavit, it shall refer the matter to the
				General Counsel of the Agency. The Counsel may initiate debarment procedures in
				accordance with 41 C.F.R. 1 - 1.604 and 12 - 1.602 and/or refer the matter to
				the Department of Justice under
				18 U.S.C.
				1001, as may be deemed appropriate. A copy of
				the Agency's Policy and Procedures on Debarment is included in Appendix I. The
				office of the Inspector General, U.S. Department of Transportation, may also be
				notified if fraudulent information or activity is suspected.
Call
Write
Inspector General's Hotline
Inspector General
Toll Free 800-424-9071
P.O. Box 23178
Washington, D.C. Area 755-1855/56
L'Enfant Plaza Station
Washington, D.C. 20024-0178
Information about the Inspector General's Hotline and a request
				that fraudulent activity be reported to the Hotline has been included in all
				federal-aid bid proposals for the period January, 1986 through July, 1986.
				Referrals to the Hotline may be made anonymously.
The field office contact for Vermont is:
Baltimore Regional Office
Special Agent-in-Charge
FTS: 8-922-6175
Comm: 301-962-6175
31
			 Hopkins Plaza, Room 1022
Baltimore, MD 21201
After approval of the findings by the Prequalification
				Committee, the applicant will be notified concerning whether or not the firm is
				eligible for participation in the W/DBE program.
Certification When A Change of Ownership Has Occurred
As a condition of certification a six month waiting period will
				be required of firms where majority ownership has been transferred to a
				woman/minority disadvantaged family member of the firms owner or to a company
				employee. This waiting period will start at the time the woman/minority
				disadvantaged person assumes ownership and control of the firm and extended to
				six months from that date. Women/disadvantaged owners may submit W/DBE
				certification applications to the Agency during the six month waiting
				period.
This requirement may be waived in special circumstances such as
				when the death of a male non-minority owner transfers ownership and control of
				a firm to a woman/disadvantaged family member, a male non-minority owner
				retires, or legitimate buy-outs by non-relatives or employees.
This policy applies only to Vermont based firms applying for
				W/DBE certification through this Agency.
Recertification
W/DBE firms appearing in the W/DBE Registry are notified by
				mail on an annual basis that they must be recertified. The firm must submit an
				update identifying whether a change in ownership has occurred since the last
				certification. A copy of this correspondence and update are included in
				Appendix E.
Certification Reciprocity With Other State And Small Business
				Administration 8 (a) Program
The W/DBE certification status of a firm's home state
				department of transportation (DOT), or similar entity that uses the
				certification requirements of 49 CFR, Part 23 will be honored by this Agency.
				Comprehensive certification reviews are not normally conducted on firms based
				outside Vermont. The out-of-state applicant is asked to supply verification
				that their certification is current with their home state DOT, and then
				recommended for certification to the Prequalification Committee, based on this
				policy of reciprocity.
By the same token, W/DBE firms who are decertified, or removed
				from the list of certified firms by their home state DOT, are also removed from
				this Agency's list. Status of an out-of-state W/DBE during the pendency of an
				appeal or third party complaint is explained in the section describing those
				actions.
Owner/Operator Certification
An abbreviated certification application and review procedure
				for W/DBE equipment owner-operators was instituted to allow the most expedient
				access to the W/DBE program by this type of small business.
Removal from W/DBE Registry by Administrative Action
In certain instances a certified firm may be removed from the
				Agency W/DBE Registry by the Agency W/DBE Liaison Officer. Such cause for this
				administrative action will include, but not be limited to:
1. Written request by a firm to be
			 removed.
2. When a firm does not
			 respond to a recertification update, a second update form (certified
			 mail/return receipt) will be sent to the firm allowing 14 days following
			 receipt to respond to the update before removal from the list of certified
			 firms.
3. When an out-of-state
			 based W/DBE has been decertified by its home state DOT.
Decertification
W/DBEs may be decertified and excluded from participation in
				the W/DBE Program for the following reasons:
1. The W/DBEs business entity has changed to
			 the extent that the business is no longer owned and controlled by a
			 disadvantaged person or woman.
2.
			 The facts have been misrepresented on the certification application.
When it has been determined by the Agency that a W/DBE no
				longer meets the requirements for certification, the Prequalification Committee
				will notify the W/DBE by certified mail, return receipt, of the contemplated
				decertification, briefly describe the reasons why decertification is
				contemplated, and offer the firm or individual an opportunity to respond to
				reasons for decertification stated therein. The Prequalification Committee
				shall meet with the W/DBE to hear and discuss the arguments concerning
				decertification. The Prequalification Committee shall then issue a
				ruling.
Challenges to Firms Certified as Woman-owned or Disadvantaged
				Businesses
Any third party may challenge the socially and economically
				disadvantaged status of any individual (except an individual who has current
				8(a) certification) presumed to be socially and economically disadvantaged if
				that individual is an owner of a firm certified by or seeking certification
				from the Agency as a W/DBE. The actual ownership and control of a firm
				certified as a W/DBE or the W/DBE's compliance with the requirements of 49 CFR
				23 may also be challenged by any third party.
In making the determination of the challenged individual's
				status as a socially and economically disadvantaged individual the standards
				set forth in Appendix C to subpart D of 49 CFR, Part 23 shall be used.
The challenging party shall submit in writing to the Agency's
				Prequalification Committee all information available justifying his/her
				determination that whether the challenged party is not in fact socially and
				economically disadvantaged, or the ownership and control of the firm is
				questionable. Based on the information provided by the challenging party, the
				Prequalification Committee shall determine whether there is reason to believe
				that the challenge has adequate validity to merit further action.
If the Prequalification Committee determines that the challenge
				does have adequate validity following procedure shall be taken:
1. The Prequalification Committee shall
			 notify the challenged party by certified mail/return receipt of the challenge.
			 This notice shall identify the challenging party and summarize the grounds for
			 the challenge. The notice may also require the challenged party to provide,
			 within a reasonable time, information addressing the items detailed in the
			 challenge.
2. The Prequalification
			 Committee shall evaluate the information available and make a proposed
			 determination in writing, setting forth the reasons for the determination. The
			 Committee shall notify both parties certified by mail/return receipt of the
			 determination.
During the pendency of a challenge, the certification of that
				challenged party as a socially and economically disadvantaged individual or the
				ownership and control of the firm previously used as a basis for certifying the
				firm as a W/DBE shall remain in effect until a final determination has been
				made.
If the Prequalification Committee determines that there is not
				reason to believe that the challenge is valid both parties will be so informed
				by certified mail/return receipt stating a reason for the determination. An
				appeal process similar to the one described below may be utilized by the
				challenging party.
If the Prequalification Committee determines that there is
				reason to believe that the challenge is valid, both parties will be so informed
				in writing by certified mail/return receipt stating a reason for the
				determination. The challenged party may also appeal the determination as
				described below.
All written notifications made during the pendency of a third
				party challenge procedure will also be by certified mail/return receipt to the
				U.S. Department of Transportation, Office of Civil Rights via the FHWA -
				Vermont Division Administrator.
Appeal Procedures
Any firm which believes that it has been wrongly denied
				certification as a W/DBE, been decertified as a W/DBE, or lost its
				certification as a W/DBE by challenge may file an appeal with the
				Prequalification Committee. Any individual who challenges the socially and
				economically disadvantaged status of an owner or the actual ownership of a firm
				and has that challenge denied may also appeal. The appeal shall be in writing,
				signed and dated, and contain reasons for the appeal. The appeal must be filed
				no later than 15 days after the date of denial, removal, or continuation of
				certification. After review of presented reasons in the appeal, the
				Prequalification Committee may reverse its action, or if it determines the
				appealed action is still in order, the appeal will be forwarded to the
				Secretary.
The Secretary will appoint a Hearing Officer who will schedule
				a formal hearing on the appeal. The hearing will be convened not less than 20
				days nor more than 30 days after the appeal is filed. All parties involved will
				be notified by certified mail/return receipt of the hearing time, date and
				place, and their responsibility to provide information relevant to their
				position.
Based on the information presented at the hearing, the Hearing
				Officer will, within 20 days after the hearing, present a written report to the
				Secretary. The report shall contain findings of fact, conclusions, and
				recommendations.
The Secretary shall review the hearing evidence and the Hearing
				Officer's report and issue a decision concerning the matter. Written
				notification by certified mail/return receipt of the decision shall be sent to
				all parties involved within 20 days after the Secretary receives the
				recommendation from the Hearing Officer.
If the applicant is not satisfied with the decision of the
				Secretary, the decision may, in accordance with 49 CFR Part 23.55 dated March
				31, 1980, be appealed directly to the U.S. Department of Transportation.
The Secretary may omit the appeal process within the Agency and
				advise the applicant to appeal directly to the U.S. Department of
				Transportation by writing to:
The Secretary of Transportation
Washington, DC 20590
Attention: Office of Civil Rights S-30
The status of a firm remains the same as it was prior to any
				certification, decertification, appeal or challenge procedures during the
				pendency of these procedures.
In cases of decertification, certification denial, challenges
				and appeals provisions have been added to allow the Agency to make a referral
				for legal action if it appears the matter would have potential for initiation
				of a debarment action or criminal prosecution. This referral may be either to
				the Vermont Attorney General's office or the US DOT Office of Civil Rights via
				the FHWA-Vermont Division Administrator.
Pre-Award Audit
Following bid opening on projects designated for specific
				goals, the Compliance Officer performs a pre-award audit/review of the low
				bidder's success in meeting the requirements set forth in the W/DBE
				Supplemental Specification Appendix H.
The following criteria is evaluated prior to awarding these
				contracts:
a. Review W/DBE
			 certification file to determine:
1.
			 Certification - the W/DBE is certified by Vermont Agency of Transportation and
			 the certification is current.
2.
			 Scope of Work - The W/DBE is capable of constructing items of work listed in
			 contract proposal. The items of work to be subcontracted to W/DBE are listed in
			 the W/DBEs scope of services.