Staff recommends that the City Council approve and adopt MET Transit's updated Disadvantaged Business Enterprise (DBE) Program in accordance with 49 CRF 26.

49 CFR Part 26 includes requirements supporting the promotion and use of Disadvantaged Business Enterprises (DBE) in execution of federally assisted contracts, including funding provided via the Federal Transit Administration. As recipients of affected Federal funding, Billings MET Transit is required to have an updated and adopted DBE Program in place.  A DBE is a for-profit small business that is at least 51 percent owned by one or more individuals who are socially and economically disadvantaged.  The intent of this federally required program is to provide a level playing field for DBE companies interested in competing for federally supported projects.  Federal requirements for DBE were recently modified with the Bipartisan Infrastructure Law, which subsequently required an overall update to the MET Transit plan with approval by its governing board, Billings City Council. Primary updates to the previous program include more extensive bidder and sub-bidder information gathering during bid and contracting processes, changes to good faith efforts, and overall DBE qualification requirements in relation to business size and personal net worth.

City Council may:

• Approve the updated MET Transit DBE Program, ensuring compliance with FTA regulations; or,
• Not Approve the updated DBE program.  This action would put the receipt of Federal funding in jeopardy, placing a significant financial strain on both the capital and operational needs of the MET Transit Division and impair the City's ability to provide transit services to the population of Billings.; or

At this time, there will be no additional financial impact as the MET Transit Division intends to continue utilizing current personnel and resources to fulfill the requirements of the DBE Program.  Failure to submit an updated plan may jeopardize federal transit grant funding, including annual formula funds supporting Billings MET Transit operations, planning, and capital.