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WHAT'S NEW?

                                  The MBE Monitor - Winter 2010                                               Follow the link above to read our quarterly newsletter.     

MBE/DBE Application Assistance Workshop        Follow the link above to learn more about this free monthly work. 

                                   Maryland's Linked Deposit  Program                                    Follow the link above to learn more about reduced interest rate loans offered exclusively to MBE certified firms.

Increase to the Personal Net Worth Cap for Certified MBE Firms
Effective January 1, 2010

2009 Law Requires PNW Cap to be Adjusted Annually Based on
the Consumer Price Index

December 17, 2009 – The Maryland Department of Transportation’s Office of Minority Business Enterprise (OMBE) today announced the Minority Business Enterprise (MBE) Program will increase the Personal Net Worth (PNW) cap applied to the MBE certification program from $1,500,000 to $1,504,585 effective January 1, 2010. One of several new laws passed by the Maryland General Assembly in 2009, the goal of Senate Bill 489/House Bill 471 is to ensure that the requirements for certification are aligned with the current economy by adjusting the PNW cap annually.

"The new cap will apply to all certification decisions rendered during 2010," stated OMBE Director Zenita Wickham Hurley. "As the official certification agency for the State, OMBE is responsible for calculating the annual cap based on the Consumer Price Index," she stated.

Senate Bill 489/House Bill 471 was sponsored by Senators Catherine Pugh, Ulysses Currie, David Harrington, Richard Madaleno, Nathaniel McFadden, C. Anthony Muse, Douglas Peters, Jamie Raskin, Nathaniel Exum, Michael Lenett, and Joan Carter Conway and Delegates Joseline Pena-Melnyk, Barbara Robinson, Jay Walker, Michael Weir, Ben Barnes, Aisha Braveboy, Jolene Ivey, Gerron Levi, Veronica Turner, Kris Valderrama, Joanne Benson, John Donoghue, James Hubbard, Sue Kullen, Karen Montgomery, Dan Morhaim, Shirley Nathan-Pulliam, Nathaniel Oaks, Kirill Reznik, and Shawn Tarrant.

The MBE Program’s PNW cap has been $1,500,000 since 2004. The PNW cap for the federal Disadvantaged Business Enterprise (DBE) program is not affected. The DBE cap on personal net worth remains $750,000.

Firms meeting the standards set forth in State and federal law are eligible for MBE and/or DBE certification. The certification process ensures that bona fide disadvantaged or minority-owned firms receive the MBE/DBE designation in support of the State’s minority business inclusion efforts. For more information, contact the Office of Minority Business Enterprise at 410-865-1269 or learn more online by visiting the Minority/Disadvantaged Business Enterprise tab at www.mdot.maryland.gov.

Disadvantaged Business Enterprise Goals
for Federal Fiscal Year 2010

The Office of the Secretary of the Maryland Department of Transportation announces, in accordance with Code of Federal Regulations, 49 CFR §26.45, the Proposed Overall Disadvantaged Business Enterprise Goals for federal fiscal year 2010. The overall goals for the Maryland Department of Transportation’s federally financed modal administrations are: the State Highway Administration – 24.3 percent, the Maryland Aviation Administration – 23.3 percent, and the Maryland Transit Administration – 25.9 percent. 

Information concerning the rationale used in the formulation of the overall goals will be available for inspection during normal business hours for 30 days following the date of this notice. For an appointment to inspect this information, all interested persons may contact the Maryland Department of Transportation Office of Minority Business Enterprise at (410) 865-1269 or 1-800-544-6056. The Maryland Department of Transportation will accept written comments for 45 days from the date this notice appears in the Maryland Register. All written comments should be addressed t Maryland Department of Transportation, Office of Minority Business Enterprise, 7201 Corporate Center Drive, Post Office Box 548, Hanover, Maryland 21076.

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MBE Program Impacted by Several Changes

First, the State’s current Personal Net Worth (PNW) limit of $1,500,000 will be adjusted annually according to the Consumer Price Index.  The Office of Minority Business Enterprise (MDOT/OMBE) is responsible for making this annual adjustment and we are currently working out the mechanics.  The first adjustment will be effective on January 1, 2010.  After that date, minority owner(s) will be evaluated relative to the new PNW limit when applying for MBE recertification.  It is important to note that the Federal Disadvantaged Business Enterprise (DBE) Program's PNW limit remains $750,000.

Second, MBEs that graduate from Maryland’s MBE Program will continue to be listed in the online directory of certified firms.  This change affects MBEs that are graduated from the Program when the minority owner(s)' personal net worth exceeds the State limit or when the firm exceeds the U.S. Small Business Administration's size standards.  Now, if your firm graduates from the MBE Program, your information is still available to state procurement officers and prime contractors using the online Directory of MBE and/or DBE Certified Firms to find companies with which to do business. 

Lastly, firms owned by a woman who is African-American, Native American, Asian or Hispanic can now be certified as an MBE in both the gender and the appropriate racial/ethnic category.  Now, when participating in a State contract, those firms will be able to decide whether to participate as a woman-owned firm or as a minority-owned firm.  The Office of MBE is working directly with female minority owners to ensure their firms are correctly listed in the MBE Directory. 

These changes will make Maryland’s MBE Program even stronger. Questions about the changes or how they will affect your business should be directed to MDOT’s Office of Minority Business Enterprise at 410-865-1269 or mbe@mdot.state.md.us.

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             Important Announcement for DBE Certified Firms

Transportation Secretary Ray LaHood Announces Recovery Assistance
for Small and Disadvantaged Businesses 

DOT’s Office of Small and Disadvantaged Business Utilization to Create New Bond Fee Reimbursement Program

WASHINGTON – U.S. Transportation Secretary Ray LaHood today announced $20 million in recovery funds to create the Disadvantaged Business Enterprise (DBE) Bonding Assistance Program, an initiative that will help small and disadvantaged businesses better compete for work on transportation projects funded by the American Recovery and Reinvestment Act (ARRA). 

Through this new program, which will be administered by the Department of Transportation’s Office of Small and Disadvantaged Business Utilization (OSDBU), small and disadvantaged businesses can apply to be reimbursed for bonding premiums and fees incurred when competing for, or performing on, transportation infrastructure projects funded by ARRA.  The program will be especially helpful for businesses with traditionally less working capital than larger contractors.

“The Obama Administration is committed to doing all it can to help DBE’s realize the American dream and contribute to making our transportation systems even better,” said Secretary LaHood.  “These Recovery dollars will help level the playing field so these companies have the tools and resources they need to compete.”

OSDBU was created as part of the Small Business Act (SBA) to ensure that small and disadvantaged businesses are provided the best opportunity to participate in the agency's contracting process.  DOT’s Disadvantaged Business Enterprise (DBE) program is intended to ensure nondiscrimination in the award and administration of DOT-assisted contracts in the Department's highway, transit, airport, and highway safety financial assistance programs.  To be certified as a DBE, a firm must be a small business owned and controlled by socially and economically disadvantaged individuals.

For additional information on the new DBE Bonding Assistance Program, including more details on the application process, please visit http://www.dot.gov/recovery/ost/osdbu/index.htm



MDOT Named "Most Supportive Government Agency for Minority Business Enterprise"

Transportation Secretary Porcari Accepts Award at Maryland Washington Minority Contractor’s Association’s 6th Annual Spring Breakfast

Maryland Washington Minority Contractors Association  (MWMCA) named the Maryland Department of Transportation (MDOT) the 2009 “Most Supportive Government Agency for Minority Business Enterprise.”  In recognition of MDOT’s fair-practice standards and outstanding leadership team, MWMCA’s President Wayne Frazier, Sr., presented the award to Transportation Secretary John D. Porcari at the annual breakfast with nearly 1,500 dignitaries and guests attending.

“The Maryland Department of Transportation is an economic engine within the state of Maryland, and Secretary John Porcari is its leader. Secretary Porcari understood this when he returned in 2007, and his ambitious approach to minority economic inclusion has been a blessing to all minority contractors,” said Mr. Frazier.  “We believe his plan included improving quality, integrity and production at all the modes, which is evident by historic contract awards and dollars spent with minority businesses. Perhaps the best compliment that can be bestowed upon Secretary Porcari is the scores of well-educated and qualified human talent that he recruited to work his plan. Secretary Porcari is one of the best government department heads in the state.”

MDOT’s Office of Minority Business Enterprise (OMBE) is the official certification agency for the State of Maryland.  Under the O’Malley-Brown Administration, MDOT continues to revamp the overall certification process and to expand outreach efforts to increase the number and capacity of certified minority business enterprises.  Staffing realignment is reducing the processing time from application to certification from six to seven months in previous years to three to six months this year.  OMBE is receiving more than 100 new applications each month -- a 50% increase from the number received in 2008.

“It is truly an honor for MDOT to be recognized by this distinguished organization,” said Secretary Porcari.  “From day one, Governor O’Malley and Lt. Governor Brown have been focused on expanding opportunities for minority- and women-owned firms.  Diversity truly is our greatest strength, and we are beginning to see success from our early efforts.”

More than 4,400 firms currently hold Minority Business Enterprise (MBE) and/or Disadvantaged Business Enterprise (DBE) certification.  In 2008, OMBE certified 688 businesses and re-certified 2,718 firms. 

The Office of Minority Business Enterprise (OMBE) is the official certification agency of the State of Maryland.  Firms meeting the standards set forth in State and federal law are eligible for Minority Business Enterprise (MBE) and/or Disadvantaged Business Enterprise (DBE) certification.  OMBE’s comprehensive certification process ensures that bona fide disadvantaged or minority-owned firms receive the MBE/DBE designation in support of the State’s minority business inclusion efforts.

                                   

GOVERNOR O’MALLEY ANNOUNCES SIGNIFICANT IMPROVEMENT FOR MINORITY-OWNED BUSINESS IN MARYLAND

Procurement awards to MBEs increase 30 percent over last two fiscal years

Governor Martin O’Malley announced that Maryland achieved a 30 percent growth in Minority Business Enterprise (MBE) program awards during its first two years.  State awarded more than $1.3 billion to MBEs in FY 2008 as compared to $1 billion in FY 2006, representing a 30% growth in awards over the last two fiscal years.   In addition, the Governor’s Office of Minority Affairs (GOMA) reports in its Annual Minority Business Enterprise Report that MBE participation for all cabinet agencies was 22.5 percent collectively in FY08, and 27.2 percent for the ten agencies reporting to the Governor’s StateStat program, the highest in State history.

“A healthy small and minority business community contributes positively to our State’s economy, and can ultimately help our State come through this national economic downturn more quickly than others,” said Governor O’Malley.  “The development of minority-owned businesses in Maryland is a vital part of overall economic development, and therefore is a central priority for the O’Malley-Brown Administration.”

“Governor O’Malley and I are proud of the partnerships we have forged with our diverse and dynamic small, minority- and women-owned business community,” said Lt. Governor Anthony G. Brown. “Because of that partnership, we have been able to increase MBE procurement by $300 million. The success of our small, minority- and women-owned businesses has helped make Maryland the national model for how states can build strong communities through the work of small, minority- and women-owned, locally-operated businesses.”

The annual report notes substantial progress during FY08.  Total procurement awards to MBEs rose in FY08, and total procurement percentages continue to rise for MBEs in Maryland.  In addition, payments to MBEs continue to improve, and the State continues to do a significant volume of business with former MBEs, including graduates.

  • Total State contract awards grew 13.8 percent, while total MBE contract awards grew 15.9 percent.
  • MBE awards to African American-owned firms grew 34 percent as compared to FY06 ($266 million in FY08 vs. $199 million in FY06).
  • In keeping with Maryland’s strength in the areas of health and human services, technology and engineering, minority firms in these academically-rich industry sectors represented 38 percent of all MBE awards in FY08.
  • Payments to MBEs increased by 52.5 percent in FY08 when compared to FY06 ($1.1 billion in FY08 vs. $733 million in FY06).
  • Payments to African American-owned firms increased by 58 percent in FY08 when compared to FY06 ($196.7 million in FY 08 vs. $124 million in FY 06).

“MBE Program progress for FY08 has been substantial,” said GOMA Special Secretary Luwanda W. Jenkins.  “Our MBE reform efforts include monthly reporting of MBE activity inclusive of verifying the achievement of MBE goals.  Additionally, there is monthly monitoring of MBE requirements on all State contracts prior to approval by the Board of Public Works.”  Secretary Jenkins also noted there has been increased outreach and advocacy to make MBE firms across the State aware of contract and procurement opportunities.

As noted in the FY08 report by GOMA and the Sage Policy Group, Inc, “the findings in this report demonstrate the steady progress Maryland is making to reach the O’Malley-Brown Administration’s goal to strengthen and grow small, minority and women-owned firms in the State of Maryland.” 

A copy of the report is available on GOMA’s website at www.mdminoritybusiness.com           

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GOVERNOR O’MALLEY ANNOUNCES NEW OUTREACH PROGRAMTO HELP CERTIFY MINORITY BUSINESSES FOR STATE AND FEDERAL CONTRACTS

MDOT’s MBE Office to Hold Monthly Application Assistance Workshops

Governor Martin O’Malley announced a new outreach program to help certify eligible small and minority businesses as Minority Business Enterprises (MBE) or Disadvantaged Business Enterprises (DBE).  The State certification opens up a myriad of new work opportunities for these firms on State, local and federal government projects.  The Maryland Department of Transportation’s (MDOT) Office of Minority Business Enterprise (OMBE) will provide a series of free Application Assistance Workshops to provide hands-on assistance to firms seeking MBE or DBE certification. 

“This outreach program is another step forward in the O’Malley-Brown Administration’s efforts to expand opportunity to more Marylanders, rather than fewer,” said Governor O’Malley.  “In today’s economy, these opportunities serve to improve the quality of life for our residents throughout Maryland, while working to strengthen and modernize our critical infrastructure.  Small and minority businesses will now have greater access to business opportunities across the State.”

OMBE Director Zenita Wickham Hurley is encouraging all small and minority businesses to participate in this free workshop.  The workshop will be particularly helpful to firms interested in learning about the benefits of certification, firms that have specific questions about the application process, or firms that would like assistance in completing the application.

“These workshops will help provide assistance to all businesses that are looking for new opportunities,” said Ms. Wickham Hurley.  “We are committed to enhancing the earning prospects for small and minority-owned businesses in Maryland.   I am very confident that the Application Assistance Workshops will be a very valuable tool for firms seeking certification.”

OMBE’s Application Assistance Workshops includes a comprehensive overview of the State’s MBE and DBE certification programs. Participants will receive valuable information about the application process and procurement opportunities available to certified firms.  Experienced certification officers will be on-site to answer questions or provide one-on-one assistance to individual participants.  Special guests from other State agencies will also be participating in the workshops.

“We are pleased to support MDOT’s Office of MBE on this exciting outreach initiative,” stated Luwanda Jenkins, Special Secretary, Governor’s Office of Minority Affairs. “Providing greater access to business opportunities in State government and information to assist MBE firms to be competitive remains an important goal of the O’Malley/Brown Administration’s commitment to increased minority inclusion.”

OMBE’s Application Assistance Workshops will be held the first Tuesday of every month.  The first workshop of 2009 will be held on Tuesday, January 6, 2009, from 10 am to 1 pm at the Maryland Department of Transportation’s headquarters located at 7201 Corporate Center Drive in Hanover.  Pre-registration is not required.  All participants must show photo identification upon entering the building.  For more information about the Application Assistance Workshops, contact OMBE at 410-865-1269.

The Office of Minority Business Enterprise (OMBE) is the official certification agency of the State of Maryland.  Firms meeting the standards set forth in State and federal law are eligible for Minority Business Enterprise (MBE) and/or Disadvantaged Business Enterprise (DBE) certification.  OMBE’s comprehensive certification process ensures that bona fide disadvantaged or minority-owned firms receive the MBE/DBE designation in support of the State’s minority business inclusion efforts.

                                        

Modified Disadvantaged Business  Enterprise(DBE)Reciprocity Certification Program Launched      

At the September 12, 2008 regional summit to address transportation and safety issues in the metro area, Governor O'Malley, Virginia's Governor Kaine, and District of Columbia's Mayor Fenty committed to a new Memorandum of Understanding (MOU) agreeing to streamline the certification process for local Disadvantaged Business Enterprise (DBE) firms and Airport Concession Disadvantaged Business Enterprises (ACDBE) wanting to participate in federally funded transportation projects throughout the Washington region, Maryland, Virginia and the District of Columbia.

Any MD, VA or DC firm that is certified as a DBE/ACDBE in its Home State by one of the following five agencies is eligible to participate:

  • the District Department of Transportation (DDOT);
  • the Washington Metropolitan Area Transit Authority (WMATA);
  • the Maryland Department of Transportation (MDOT);
  • the Virginia Department of Minority Business Enterprise (DMBE); and
  • the Metropolitan Washington Airports Authority (MWAA).

Under the MOU, DBE firms applying for certification in Maryland that are already certified by one of the agencies above will need to submit only the following documents to MDOT to initiate the certification process:

  • the Uniform Certification Application;
  • a Personal Net Worth statement;
  • individual federal tax return for latest tax year;
  • firm's federal tax return for the latest tax year;
  • a copy of the latest letter of certification received by the DBE/ACDBE from its Home State; and
  • a Certificate of Good Standing from Maryland State Department of Assessments and Taxation, where applicable.

The goal of the regional certification consortium and streamlined application process is to increase the number of certified DBEs and ACDBEs in the local marketplace and, subsequently, to increase the participation of small disadvantaged businesses in public contracting in the Washington region.

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QUARTERLY NEWSLETTER

The MBE Monitor is a quarterly newsletter published by the Office of Minority Business Enterprise.  It contains informative and timely information for firms that currently have MBE and/or DBE certification as well as those firms interested in obtaining certification.  

                                                                              

Questions?    Contact us at mbe@mdot.state.md.us

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