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Section 3: Acronyms, Terms and Definitions

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Area Engineer


Advanced Funding Agreement


Area Engineer Office


Code of Federal Regulations


Civil Rights Division


Control Section Job


Commercially Useful Function


Disadvantaged Business Enterprise


District DBE Coordinator


District Engineer


Diversity Management System


Director of Construction


Federal Aviation Administration


Federal Highway Administration


Federal Transit Administration


Good Faith Effort


Local Government


Local Government Projects Office


Memorandum of Understanding


North American Industry Classification System


Texas Administrative Code


Texas Unified Certification Program


Texas Department of Transportation


United States Department of Transportation

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Terms and Conditions

Advance Funding Agreement - The form of contract most frequently used for development of projects with LGs.

Commitment – The bidder’s commitment to use a DBE subcontractor whose participation is required to meet contract goal.

Commercially Useful Function (CUF) - A DBE performs a CUF when it is responsible for execution of a distinct element of work of a contract or subcontract and carries out its responsibilities by actually performing, managing, and supervising the work involved.

Disadvantaged Business Enterprise (DBE) - A for-profit, small business concern where socially and economically disadvantaged individuals own at least a fifty-one percent interest and also control management and daily business operations.

Federally Assisted Contract - Any contract between TxDOT and a contractor which is paid for, in-whole or in-part, with USDOT financial assistance.

Goal Credit - The value of DBE participation on a project that qualifies towards the DBE goal.

Good Faith Effort - A contractor’s efforts to achieve a DBE goal by its scope, intensity, and appropriateness to the objective can reasonably be expected to fulfill the program requirement.

Guide – Local Government DBE Compliance and Monitoring Guide

Joint Venture – A joint venture is an association of a DBE firm and one or more other firms to carry out single, for-profit business enterprise, for which the parties combine their property, capital, efforts, skills, and knowledge, and in which the DBE is responsible for a distinct, clearly defined portion of the work of the contract and whose shares in the capital contribution, control, management, risks, and profits of the joint venture are commensurate with its ownership interest.

Local Government - Includes municipalities, counties, county and regional toll authorities, metropolitan planning organizations (MPOs), regional mobility authorities (RMAs), and some private entities that receive government funding.

Local Government Project - A project in which at least one phase of project development is managed by a local government agency for which it is being reimbursed with federal or state funding or a locally funded project managed by a local government on the state highway system.

NAICS - The North American Industry Classification System is the primary industry classification system which best describes the primary business of a firm. The NAICS is used by federal statistical agencies for the purpose of collecting, analyzing, and publishing statistical data related to the US economy. (

Race-Conscious - Measures taken to meet DBE Program objectives that focus specifically on assisting only DBEs.

Race-Neutral - Measures taken to meet DBE Program objectives that are tailored to assist all small businesses including DBEs and do not single out a specific minority group.

Shortfall - A contractor’s failure to meet a project assigned DBE goal.

Sub recipient - Any entity, public or private, to which USDOT financial assistance is extended through a recipient, through programs of the FHWA, FAA, or FTA.

Special Provision - Additions or revisions to standard specifications or special specifications of the contract.

Texas Unified Certification Program (TUCP) - A certification program for the federal DBE Programs in Texas.

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