[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