Disadvantaged Business Enterprise (DBE) Program

The Texas Water Development Board's (TWDB) Clean Water and Drinking Water State Revolving Fund programs receive federal funds from the U. S. Environmental Protection Agency (EPA).  These funds are used to provide low interest rate loans to finance wastewater and drinking water capital projects.  As a condition of federal grant awards, EPA regulations require that loan recipients (municipalities, towns, public water authorities, etc.) and sub-recipients (prime contractors and sub-contractors) make a "good faith effort" to award a fair share of work to DBE's who are Minority Business Enterprises (MBE's), and Women-owned Business Enterprises (WBE's) whenever procuring construction, supplies, services and equipment.

The DBE Program is an outreach, education, and goal oriented program designed to increase the participation of DBE's in procurements funded by EPA assistance agreements.  In addition, EPA regulations require evidence of the demonstration of the "Six Affirmative Steps" in trying to achieve the DBE participation goals.

Please contact Rene Gonzalez by Email, by Phone 512-463-2634, or by Fax 512-475-2086 for more information.

Six Affirmation Steps

  1. Include qualified DBEs on solicitation lists;
  2. Solicit potential DBEs whenever they are potential sources;
  3. Reduce contract size or quantities when economically feasible, to permit maximum participation of DBEs;
  4. Establish delivery schedules to encourage participation by DBEs;
  5. Use the services and assistance of the EPA, Small Business Administration, U.S. Department of Transportation, or state, local, Tribal, or private entities whose certification criteria match EPA's;
  6. Require Prime Contractors to follow steps 1 - 5 when awarding subcontracts or sub- agreements.

Updated DBE Guidance and Forms

All DBE forms (TWDB-0215, TWDB-0216, TWDB-0217, and TWDB-0373) have been updated as of 2/16/12. New DBE Program Guidance (TWDB-0210) and forms are available below and in Program Guidance Manuals for your convenience. Please download and save these forms on your computer. TWDB encourages typed forms to be submitted, instead of handwritten forms.

DBE Compliance Policy

Effective March 1, 2012, entities invited for the Drinking Water State Revolving Fund and the Clean Water State Revolving Fund Tier III program will be required to be in compliance with the new DBE policy through all phases of the project including; Project Application, Loan Commitment and Closing, Planning/Design, and Construction Contract phases.

2012 Enhancements to the EPA's DBE Program

DBE Certification Requirements

Self-Certification of MBEs and WBEs is no longer acceptable. Disadvantaged Business Enterprises (MBEs and WBEs) must be certified by state, local, Tribal, or private entities whose certification criteria meet or exceed EPA's. To qualify as a MBE or WBE, a firm must establish that it is at least 51% owned and/or controlled by socially and economically disadvantaged individuals who are of good character and are citizens of the United States. The following are government entities that TWDB will accept certifications from:

Please refer to "Tips for Achieving a Good Faith Effort in Procurement" for additional information.  If you have any questions or need assistance, please contact Rene Gonzalez at (512) 463-2634; or by email at: rene.gonzalez@twdb.texas.gov

Tips for Achieving a Good Faith Effort in Procurement

To assist entities identify, include, and utilize qualified Disadvantaged Business Enterprises (DBEs), applicants and prime contractors are encouraged to refer to the following list of resources made available on a local, statewide, and national level.

Resources for identifying DBE's:

Other Minority & Women Business Organizations that you can contact directly to obtain a list of qualified vendors for your procurement opportunity:

Options for announcing your solicitation:

Direct Communication - Contacting potential bidders by direct communication can include correspondence by letter, facsimile, telephone, or email to a minimum of three businesses/firms solicited for each type of contract sought (i.e. engineering, financial advisor, and bond counsel, prime construction firms).

Small Business Administration's (SBA) Sub-Net - Sub-Net is an Internet-based system that allows applicants and prime contractors to post their procurement opportunities online.  Access to the database is free to government agencies and contractors, and is an excellent resource for soliciting DBE's for your project.  The Sub-Net database can be accessed at: http://web.sba.gov/subnet

Newspaper Advertisements - The posting of applicable project procurement opportunities should be done in accordance with the notice requirements of state law on competitive bidding, where applicable.  There are specific laws governing each type of entity.  For example, two important provisions of state law governing municipalities require:

  1. The notice should be published once a week for two consecutive weeks in a newspaper published in the municipality.  If no newspaper is published in the municipality, the notice must be posted at the city hall for 14 days before the date set to publicly open the bids and read them aloud;
  2. The date of the first publication should be BEFORE the 14th day of the date set to publicly open the bids.

Please consult your legal counsel for specific laws governing your entity.

Pertinent language that needs to appear within the text of the solicitation includes:

  • Any loan award is contingent upon release of funds from the Texas Water Development Board (TWDB).
  • This contract is subject to the Environmental Protection Agency's (EPA) "fair share policy", which includes EPA-approved "fair share goals" for Minority Business Enterprise (MBE) and Women Business Enterprise (WBE) firms in the Construction, Supplies, Equipment, and Services procurement categories.  EPA's policy requires that applicants and prime contractors make a good faith effort to award a fair share of contracts, subcontracts, and procurements to Minority Business Enterprise and Women-Owned Business Enterprise firms.  Although EPA's policy does not mandate that the fair share goals be achieved, it does require applicants and prime contractors to demonstrate use of the six affirmative steps.  The current fair share goals for the State of Texas are as follows:
    CATEGORY MBE WBE
    CONSTRUCTION 12.94% 8.72%
    EQUIPMENT 7.12% 5.39%
    SERVICES 10.84% 5.72%
    SUPPLIES 9.68% 9.34%

When are DBE forms required?

Entities receiving federal financial assistance through the SRF Programs will be required to submit DBE documentation at different phases during the project's lifecycle (Project Application, Commitment and Closing, Planning/Design, and Construction Contract Phases).

Project Application Phase

Applicants requesting federal financial assistance through the SRF funds must include a TWDB-0215 form with the loan application.

Commitment and Closing Phase

After loan commitment, but prior to closing, applicants must provide forms TWDB-0216 and TWDB-0373 forms. The project's Prime Engineer, Financial Advisor, and Bond Counsel must complete a TWDB-0217 form and indicate if any subcontracting opportunities will be available or if the contractor will be self-performing the contract. Regardless of the procurement's outcome, all entities must submit a TWDB-0373 and list the contractors selected by the applicant for the project. Failure to comply or include a contractor and/or contract will result in denial of payment.

Planning and Designing Phase

Some projects require additional procurement during the planning phase for geotechnical and materials testing, pilot testing, surveying, archeological surveys, etc. Projects requiring additional procurements will require a TWDB-0216 and TWDB-0373 form be completed by the Prime Engineer.

Construction Contract Phase

For each Construction Contract, applicants are required to submit a TWDB-0216 and TWDB-0373 for the procurement of the project's Prime Contractor. If the Prime Contractor is utilizing subcontractors for the project, then additional TWDB-0216 and TWDB-0373 forms must be submitted prior to requesting payment.

Disadvantaged Business Enterprise Program (DBE) Forms

  • Affirmative Steps Certification (TWDB-0215)
  • Affirmative Steps Solicitation Report (TWDB-0216)
  • Prime Contractor Affirmative Steps (TWDB-0217)
  • Loan/Grant Participation Summary (TWDB-0373)