Jim Kim outlines Muskegon's Disadvantaged Business Enterprise certification process

During the December 12, 2024, Transportation Committee meeting in Muskegon, a significant discussion centered on the role and certification of Disadvantaged Business Enterprises (DBEs) in local transportation projects. Jim Kim from Tuskegee and Area Transit provided a detailed overview of the DBE program, which aims to support small businesses owned by socially or economically disadvantaged individuals, including minorities and women.

Kim explained that while Muskegon does not conduct its own DBE certifications, it participates in a statewide certification process managed by agencies such as the Michigan Department of Transportation and the Wayne County Airport. This collaboration allows local businesses to become certified, enabling them to compete for contracts and contribute to meeting federal spending goals.

A key point raised was that participation in the DBE program is not mandatory for businesses wishing to work with the county. However, certified businesses can help transportation agencies meet their diversity goals during bidding processes. For instance, when large projects arise, agencies set specific participation goals for DBEs, which contractors must strive to meet.

Kim emphasized the importance of monitoring and reporting on DBE participation, noting that every three years, they assess expected spending and set a modest goal of approximately 1.6% for their operations. This data is crucial for compliance with federal funding requirements, as agencies must report how much of their spending is directed toward certified businesses.

The discussion highlighted the ongoing efforts to foster inclusivity in local transportation projects while navigating the complexities of federal regulations. As Muskegon continues to engage with DBEs, the focus remains on enhancing opportunities for disadvantaged businesses in the community.