Regular Dealer
A prime contractor purchases material or supplies from a DBE
regular dealer. There are two ways a DBE firm can perform as a regular
dealer.
- A DBE firm may have a store or warehouse out of which it sells or leases products to the public.
- For bulk items such as petroleum, steel, cement, gravel, stone, or asphalt, a DBE firm must own and operate distribution equipment for the product it is supplying. Any supplementing of regular dealer’s own distribution equipment shall be by a long-term lease agreement and not on an ad-hoc or contract-by-contract basis. The DBE must lease the equipment itself, as well as run the equipment with its own workforce.
If a DBE firm is acting as a regular dealer, sixty percent
(60%) of the value of items sold to the project counts toward the
DBE goal. TxDOT determines the amount of credit on a contract-by-contract
basis.
For example, a dealer will provide pipes for $100,000. Because
the DBE firm regularly sells this product as a part of its business,
TxDOT counts $60,000 toward the DBE participation goal, or sixty
percent (60%) of the value of the items provided.