About the DBE Program

The Department of Transportation distributes substantial Federal funds to finance transportation projects initiated by State and local governments, public transit authorities, and airport entities. The DOT is responsible for ensuring that all business enterprises have a fair opportunity to compete for federally-funded transportation contracts.
The Disadvantaged Business Enterprise, DBE program, is the DOT's strongest tool for creating a level playing field. The DBE program began in 1980 as a minority and women's business enterprise program. The program was established under the authority of Title VI of the Civil Rights Act of 1964, which prohibits racial, ethnic, and national origin discrimination, and other statutes prohibiting gender discrimination that apply to DOT financial assistance programs.
Congress has reauthorized the DBE program several times since its inception. Most recently, Congress established a continued need for the DBE program in the "Moving Ahead for Progress in the 21st Century Act." As a condition of receiving Federal financial assistance, recipients of funds from the Federal Highways Administration, Federal Aviation Administration, and Federal Transit Administration are required to follow the DBE program regulations located in 49 CFR parts 26 and 23. The Departmental Office of Civil Rights coordinates the Department's oversight of the program. These three Operating Administrations (FHWA, FAA, and FTA) are primarily responsible for overseeing the day-to-day administration of the program by recipients, providing training and technical assistance, and enforcing compliance.
The DBE program remedies ongoing discrimination and the continuing effects of past discrimination in federally-assisted transportation contracting markets nationwide. The day-to-day administration of the DBE program is carried out by recipients of Federal funds at the state and local level. This includes approximating how much participation is expected from DBEs by setting an annual overall DBE goal that represents the level of participation anticipated absent the effects of present and past discrimination.
Recipients must set an overall goal for DBE participation and monitor results to foster nondiscriminatory environments and ensure that DBEs have an equal opportunity to compete fairly. The DBE program isn't a quota or set aside program. Instead it’s based on narrowly tailored goals and participation by prime contractors, subcontractors, and agency partners. Certification of eligible firms is a key component of the DBE program.
But what is a DBE? A disadvantaged business enterprise is a for-profit small business. At least 51% of the business is owned by 1 or more individuals who are both socially and economically disadvantaged. And the management and daily business operations are controlled by 1 or more of the socially and economically disadvantaged business owners.
Firms meeting the eligibility standards can contact state departments of transportation or state DBE liaison and certification officers for instructions on how to apply for DBE certification. Each state has a unified certification program (UCP) to ensure certification decisions are honored by all recipients in that state. There's also a streamlined inter-state certification process for existing DBE’s wishing to participate in other states. A firm must be certified to be counted toward a “DBE goal”.
To find out more about the DBE program, how to apply to the program, and other useful contacts, visit the DOT website.
 

The goal of the DBE program is to make sure there is equal opportunity in the award of US DOT-FTA-FAA-FHWA assisted contracts for highway, transit, and airport projects. The program is intended to create a “level playing field” on which DBEs can compete fairly with larger non-DBE firms.

Every year government agencies in Minnesota spend millions of dollars on highway, airport, housing, and transit planning, construction, and maintenance projects. When federal dollars are utilized for this work, goals for DBE participation may be set on these projects.

DBE’s are Disadvantaged Business Enterprises. DBE’s are for-profit small business concerns where socially and economically disadvantaged individuals own at least a 51% interest in the firm and control the management and daily business operations.

 

To become a Certified DBE firm and be listed in the MNUCP’s DBE Directory a firm must be verified by the MnUCP as meeting Federal DBE Regulation standards.

If you operate a small business that provides services in areas such as professional/technical/design and planning, supply, trucking or transportation, construction, and construction-related or other services that might be utilized by one of the MNUCP members you may want to seek certification. Businesses seeking certification as a DBE may want to consider obtaining legal and financial advice concerning eligibility requirements for certification prior to applying for certification.

 

Small businesses are certified to ensure that they meet the requirements of the federal regulations governing the program. Certified DBE’s are listed in a directory published by the MnUCP. Once listed in the directory a small business will be among the pool of DBEs prime contractors can use to meet DBE goals on projects.

Certification of a business can be valuable tool for developing and maintaining business relationships.

The DBE program is for business owners that are socially and economically disadvantaged. Women and African Americans, Hispanics, Native Americans, Asian-Pacific and Subcontinent Asian Americans are presumed to be socially and economically disadvantaged. Other individuals may also qualify as socially and economically disadvantaged on a case-by-case basis.

To be regarded as economically disadvantaged, an individual must have a personal net worth that does not exceed $1.32 million. To be seen as a small business, a firm must meet Small Business Administration size criteria AND have average annual gross receipts not to exceed $30.40 million when averaged over a three year period.

The owner must have technical competence and experience directly related to the type of work in which certification is being sought and must be a United States citizen or a lawfully admitted permanent resident of the United States.

Size limits for the Airport Concessions DBE program are higher.

The ACDBE program is specifically for airport concessionaires that may be located within an airport or for which the business activity takes place at an airport. While eligibility standards for ACDBEs are similar to those of DBE businesses, such as the personal net worth limit of $1,32,000.00, the average annual gross receipts not to exceed $56.42 million when averaged over a three year period (With the exception of car rentals, auto dealers, pay phone operators, and banks).

These are the basic steps to become a DBE.

1. Complete and Submit DBE Application (via paper or on-line)
2. A Specialist from a certifying agency will review and assess the firms application to determine eligibility.
3. A Specialist will conduct an On-site Visit to the firms place of business to verify office set-up, view equipment and interview key staff
4. The Specialist will then present a recommendation to the MnUCP Certification Committee. The committee then casts a vote to either approve or deny the firm.
5. You will be notified of the determination

The are a number of certification programs operating in Minnesota. Not every certification is well suited for each business. When considering whether or not to seek a specific certification you should consider the type of business opportunities that certification might help you secure. Below are links to the primary business certifications in Minnesota:

• Targeted Group/Economically Disadvantaged (TG/ED) Small Business Program: http://www.mmd.admin.state.mn.us/mn02001.htm
• The Central Certification (CERT) Program: https://cert.smwbe.com/FrontEnd/StartCertification.asp?TN=cert&XID=6057
• Minnesota Minority Supplier Development Council: affiliate.nmsdc.org/mmsdc/app/template/contentMgmt%2CContentPage.vm?contentid=1319

The DBE program is not a guarantee of work. The DBE program seeks to level the playing field on which firms compete for contracts on projects of the MNUCP agencies. As a DBE you must compete with other DBEs and non-DBEs for work.

Being a DBE supports your firms marketing and networking efforts by a) inclusion of the firm in the DBE Directory used by contractors to find businesses eligible to meet contract goals and b) notification of networking, training and contracting opportunities