How does the DBE program assure that “fronts” or “sham” organizations do not benefit from the DBE Program?
The DBE certification process is used to determine if a firm is minority owned and controlled. To qualify as an DBE, the owner must demonstrate that he or she is a minority person and provide documentation establishing at least 51 % ownership of the company. Once the ownership of a firm is established, the business owner must demonstrate the technical knowledge and experience to make independent business operating and management decisions. Annual reviews of all certified firms are made to determine if the ownership and control of the DBE has changed. Consideration is given to reports filed by the administrations, which describe how the DBE has managed and performed on projects. Effective contract compliance monitoring procedures also facilitate the identification of “front” or “sham” DBE firms.
