sham” organizations do not benefit from the MBE/DBE Programs?
The MBE and DBE certification processes are used to determine whether a firm is owned and controlled by one or more socially and economically disadvantaged individuals. Applicants must demonstrate that the owner is a socially or economically disadvantaged individual, and provide documentation establishing at least 51% ownership of the company. The applicant also must demonstrate that the disadvantaged individual controls the firms by establishing that he or she has, among other things, the technical knowledge and experience to make independent business operating and management decisions. Certified firms are reviewed annually to determine whether the ownership and control of the MBE or DBE firm has changed. Contract compliance monitoring procedures also facilitate the identification of “front” or “sham” MBE firms.
