Differences between a Manufacturer, Regular Dealer, and Broker
The following example shows the difference under the requirements
of the DBE Program between a manufacturer, a regular dealer, and
a broker. The example is the furnishing of crushed aggregate meeting
a state DOTs specification for such items as aggregate base course.
- Manufacturer (100%) - A DBE as its principal business and under its name produces on its premises crushed aggregate and meets state standard specifications would be considered a manufacturer and the cost of the crushed aggregate produced can be credited 100% towards meeting the goal.
- Regular Dealer (60%) - A DBE is considered a regular dealer of crushed aggregate if the material is purchased in its name, and it engages as its principal business the purchase and sale of crushed aggregate to the general public, or owns and operates the necessary distribution equipment (since aggregate is considered a bulk item) to deliver the crushed aggregate. Under these circumstances, the DBE can be considered a regular dealer and 60% of the cost of the crushed aggregate purchased is credited towards the goal.
- Packager, Broker, or Manufacturer’s Representative - (100% Fees or Commissions) - If the DBE firm does not meet all or any of the functions presented in defining a manufacturer or regular dealer in crushed aggregate but arranges or expedites transactions consistent with industry practice in the delivery of such materials, then the services in the amounts of fees or commissions charged in the procurement and/or delivery of such materials can be credited towards the goal.