Ownership Determinations. In accordance with 49 CFR section 26.69, the Metropolitan Council will utilize the following guidelines to determine social and economic disadvantage for purposes of DBE eligibility:
Ownership Determinations. In accordance with 49 CFR §26.69, in determining whether the socially and economically disadvantaged owner (SEDO) in a firm owns the firm, the MRCC will consider all the facts in the record, viewed as a whole at the time of application. To be an eligible DBE, a SEDO must own at least 51 percent (51%) of each class of ownership of the firm and each SEDO whose ownership is necessary to the firm’s eligibility must demonstrate that his/her ownership satisfies the requirements of 49 CFR §26.69(a-g) or deemed ineligible. In accordance with 49 CFR §26.71, in determining whether socially and economically disadvantaged owners (SEDO) control a firm, the MRCC will consider all the facts in the record, viewed as a whole at the time of application. Applicant firms cannot be denied DBE certification for the following: differences in remuneration, the SEDO is employed outside the firm, ownership and leasing of equipment, ability of non-SEDOs to bind the firm without SEDO’s consent, and use of employee leasing companies. When the SEDO is employed outside the firm, the MRCC certifier needs to consider the effect on outside employment as they determine whether a SEDO is in a position to really run the business of an applicant firm. For example, when a SEDO has a full-time job for another employer, how does the SEDO find the time to analyze information and make independent decisions for the applicant firm? How does the SEDO communicate with employers and customers if the SEDO has duties for another employer that conflict, in the terms of time and place, with the applicant firm’s work? The applicant has the burden of proving to the MRCC certifier that the SEDO can do everything needed to control the firm, notwithstanding the SEDO’s duties for another employer. Delegations by a SEDO with outside employment must meet the same requirement as other delegations; the SEDO must remain in active control of those to whom the SEDO has delegated duties. Only an independent business may be certified as a DBE. An independent business is one in which viability does not depend on its relationship with another firm or firms. In determining whether a potential DBE is an independent business, the MRCC will scrutinize relationships with other DBE firms and non-DBE firms in such areas as personnel, facilities, equipment, financial and/or bonding support, and other resources. The MRCC will consider present or recent employer/employee relationships, the firm's relationship with prime contractors, ...
