September 14, 2009
The classifieds in this issue include two chief executive officer positions!
DBEs Eligible for Bonding Premium, Fee Reimbursement
U.S. DOT has announced a new program under which Disadvantaged Business Enterprises (DBEs) can apply to be reimbursed for bonding premiums and fees incurred when competing for, or performing on, transportation infrastructure projects funded by ARRA.
The department’s Office of Small and Disadvantaged Business Utilization administers the program, which is designed to help businesses that traditionally have less working capital than larger contractors.
Under the Bonding Assistance Reimbursable Fee Program, DBEs receiving ARRA funding assistance for transportation and infrastructure projects can obtain financial bonding assistance in the form of bonding fee cost reimbursement. DOT will directly reimburse DBEs the premiums paid to the surety company for performance, payment, or bid/proposal bonds, at a range of between 1 and 3 percent of the total bond amount.
DBEs that also obtain bond guarantees from the Small Business Administration’s Surety Bond Guarantee Program can be reimbursed from DOT for the small business concern (principal) fee of .729 percent of the contract price.
More information about the program, including the reimbursement application and program guidance, is available online.