How to get DBE and HUB certified in Texas

How to get DBE and HUB certified in Texas Historically, companies owned by certain minority groups have not been given fair and equal access to government contracts, specifically those awarded by the federal and state departments of transportation. The Texas Department of Transportation, along with the U.S. Department of Transportation, made significant strides in improving this inequity with the establishment of DBE (Disadvantaged Business Enterprises) and HUB (Historically Underutilized Businesses) initiatives.

The criteria for becoming DBE and HUB certified are similar. A qualifying minority must own at least 51 percent of the interest in the company, and must be actively involved in the operations of the business, including managing the business' daily operations. Qualifying minorities include: ● ● ● ● ●

African American Asian Pacific Americans Native Americans American women of any ethnicity Veterans disabled 20 percent or greater as a result of active duty military service, as defined by the Veteran's Administration

Businesses also must be for-profit entities, must meet the state's criteria of a small business, and must operate in the state of Texas. Furthermore, owners must reside in Texas, even if they are not citizens of the United States.

By obtaining DBE or HUB certification, these businesses are given equal access when bidding for DOT contracts. Qualifiers are entered into a database used by agencies when putting contracts up for bid. Though certification does not guarantee the business will be awarded any given contract, it definitely improves their chances.

Becoming DBE Certified Begin the DBE certification by submitting a fully completed application through the TUCP (Texas Unified Certification Program), along with any requested supporting documentation. The program will conduct a Needs Assessment, which works to identify and measure the business' needs in a variety of areas, including managing finances and assessing risks, as well as legal and marketing needs.

The Needs Assessment will also identify which businesses need assistance from TAP (the Technical Assistance Program). Once DBE certified, the company's name and contact information will be entered into the database used by the Texas DOT and other government agencies which receive federal funding from the U.S. DOT. From this database, government agencies solicit bids from companies to complete contract work.

Becoming HUB Certified

HUB certification is similar to DBE. Applicants must fill out the application in full. The application asks for a variety of general information about the business and its owners.

Along with the application, applicants must supply all of the support documentation to back up statements made in the application.

After the state receives the application and documentation, they will assign a specialist to review the information. Sometimes, the specialist will ask for additional information in order to verify if the business is eligible for the program. Upon approval, the vendor profile is entered into the HUB directory of businesses, where it can be found by government agencies in need of contractors.

The business will receive a HUB certification package through the mail, which includes information on bidding and being awarded such contracts. There is no fee for becoming HUB certified, and as long as the company continues to meet the basic requirements for certification, the certification is good for four years.

DBE and HUB contractors often find it difficult to track and bid on contracts once certified. DBE Good Faith is an organization that helps these contractors find and place bids, which often results in a greater number of winning bids for the minority-owned business.