Federal ACDBE Certification Program

OMWBE processes applications for certification in the Federal Aviation Administration’s (FAA) Airport Concessionaire Disadvantaged Business Enterprise (ACDBE) program. The purpose of the ACDBE program is to increase the opportunities for minority and women-owned small businesses to operate as concessionaires in the nation’s airports. The ACDBE program is mandated by 49 U.S.C. 47107(e), originally enacted in 1987 and amended in 1992.

Chapter 49 of the Code of Federal Regulations (CFR) Parts 23 and 26 outline the rules and objectives of the ACDBE program.

ACDBE Program Objectives

  • To ensure nondiscrimination in the award and administration of opportunities for concessions by airports receiving DOT financial assistance.
  • To create a level playing field on which ACDBEs can compete fairly for opportunities for concessions.
  • To ensure the ACDBE program is narrowly tailored in accordance with applicable law.
  • To ensure that only firms that fully meet eligibility standards are permitted to participate as ACDBEs.
  • To help remove barriers to the participation of ACDBEs in opportunities for concessions at airport(s).
  • To provide appropriate flexibility to airports in establishing and providing opportunities for ACDBEs.

ACDBE Program Eligibility

  1. To be considered an eligible owner, you must be a U.S. citizen or lawful permanent resident and socially and economically disadvantaged.  If you are a member of one of the following  groups, you are presumed to be socially and economically disadvantaged:
    • Woman
    • Black American – origins in any of the Black racial groups of Africa
    • Hispanic American – Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race
    • Native American – American Indian, Eskimo, Aleut or Native Hawaiian
    • Asian-Pacific American – origins in Japan, China, Taiwan, Korea, Burma (Myanmar), Vietnam, Laos, Cambodia (Kampuchea), Thailand, Malaysia, Indonesia, Philippines, Brunei, Samoa, Guam, U.S. Trust Territories of the Pacific (Republic of Palau), Commonwealth of the Northern Marianas Islands, Macao, Fiji, Tonga, Kirbati, Juvalu, Nauru, Federated States of Micronesia or Hong Kong
    • Subcontinent Asian American – persons with origins from India, Pakistan, Bangladesh, Bhutan, Maldives Islands, Nepal or Sri Lanka
    • Any additional groups whose members are designated as socially and economically disadvantaged by the SBA, at such time as the SBA designation becomes effective.
    • Tribally-owned concern – business owned at least 51 percent by an Indian tribe
    • Alaska Native corporations (ANCs) – The following special rules apply to the certification of firms related to ANCs in accordance to 49 CFR Part 26.73(i) of Subpart D:
      • (1) Notwithstanding any other provisions of this subpart, a direct or indirect subsidiary corporation, joint venture, or partnership entity of an ANC is eligible for certification as a DBE if it meets all of the following requirements:
        • (i) The Settlement Common Stock of the underlying ANC and other stock of the ANC held by holders of the Settlement Common Stock and by Natives and descendents of Natives represents a majority of both the total equity of the ANC and the total voting power of the corporation for purposes of electing directors;
        • (ii) The shares of stock or other units of common ownership interest in the subsidiary, joint venture, or partnership entity held by the ANC and by holders of its Settlement Common Stock represent a majority if both the total equity of the entity and the total voting power of the entity for the purpose of electing directors, the general partner, or principal officers; and
        • (iii) The subsidiary, joint venture, or partnership entity has been certified by the Small Business Administration under the 8(a) or small disadvantaged business program.

If you are not a member of a group presumed to be disadvantaged, you must demonstrate you are socially and economically disadvantaged.  The owner must complete the Proof of Social and Economic Disadvantage Questionnaire and Personal Financial Statement and provide documented proof of his or her social and economic disadvantage

  1. Eligible owner must own at least 51% of the business.
    • Ownership percentages are not rounded. 50.99% ownership will not be rounded up to 51% ownership.
    • Because Washington is a community property state, a business owned by a husband and wife is automatically deemed to be owned 50% by the husband and 50% by the wife, unless there is specific documentation establishing a different ownership interest. For more information on the impact of Community Property on Certification, please see the FAQ section on Getting Certified.
  2. Eligible owner must control the firm’s managerial and day-to-day operations. The eligible owner must have both the legal authority and technical ability to control the firm.  For example, if the State of Washington requires a professional license to perform the firm’s line of work, the eligible owner must hold this license, even if they are not the ones performing the work.
    • Example: The owner of a medical practice must be a licensed doctor, even if they employ other doctors to actually see patients. The reasoning is that if the owner was not a physician, he/she could not legally or knowledgeably perform the firm’s activities, and is unduly reliant (or dependent) on non-owner(s) to operate.
  3. Firm must be an independent business, organized for profit, and legally licensed to do business in Washington.
    • An independent businesses is not:
      • Intertwined with any non-certified businesses. Intertwinement and Joint Venturing with other M/W/DBE certified firms may be allowed.
      • Unduly reliant on any other business or person.
      • Engaged in sharing resources (people, facilities, equipment, insurance, etc.) with non-certified firms.
    • Out of state firms that do not have a location in Washington and do not have a physical presence in Washington in order to conduct business may not be required to have a Washington Business License.
    • Any firm incorporated in another state must obtain a Certificate of Foreign Authority from the Washington Secretary of State in order to operate in Washington.
  4. OMWBE is required to perform an on-site visit and to interview firm owner(s) before the firm may be certified.
  5. Firm must be a small business as appropriate for the type(s) of work the firm seeks to perform on DOT-assisted contracts.  OMWBE uses the North American Industry Classification System (NAICS) to assign codes appropriate for a firm’s type(s) of work and the U.S. Small Business Administration (SBA) size standards to determine size.
  6. Eligible owner must complete a Personal Financial Statement.  The eligible owner’s personal net worth cannot exceed $750,000. This calculation will exclude the owner’s primary residence and the value of their ownership in the applicant business. The calculation also excludes other assets that the individual can document as necessary to obtain financing or a franchise agreement for the initiation or expansion of the applicant ACDBE firm, to a maximum of $3 million. This calculation will include any other properties or businesses held by the owner.

Applications to apply for certification
Currently Certified ACDBEs

Public Records Notice:
Applications and supporting documentation submitted to OMWBE for the state program are considered public records and subject to public disclosure (WAC 326-07). Any exemptions from public disclosure are found in chapter 42.56 RCW, the state’s Public Record Act. 
Applications and supporting documentation submitted to OMWBE for the DBE or ACDBE programs are non-disclosable without written consent from the firm (49 CFR Part 26.109(a) of Subpart F).