DBE Frequently Asked Questions

What is the Disadvantaged Business Enterprise Program?

The Disadvantaged Business Enterprise is a legislatively mandated United States Department of Transportation program that applies to federal-aid highway dollars expended on federally assisted contracts issued by USDOT recipients such as state departments of transportation. The U.S. Congress established the DBE program in 1982 to:

  • Ensure fairness in the award and administration of DOT-assisted contracts;
  • Help remove barriers to the participation of DBEs in DOT-assisted contracts, and
  • Help develop firms to compete successfully in the marketplace outside of the DBE program.

 

How does it help Missouri businesses?

The DBE Program has the following objectives:

  • To ensure fairness in the award and administration of contracts in MoDOT's highway, transit, and airport financial assistance programs.
  • To create a level playing field on which DBEs can compete fairly for contracts.
  • To ensure that MoDOT's DBE program stays in accordance with applicable law.
  • To ensure that only firms that fully meet eligibility standards are permitted to participate as DBEs.
  • To help remove barriers to the participation of DBEs in DOT-assisted contracts.
  • To promote the use of DBEs in all types of federally assisted contracts and procurement activities conducted by recipients.
  • To assist the development of firms that can compete successfully in the marketplace outside the DBE program.

 

What are the criteria to be a DBE?

There are several criteria for a business to be classified as a DBE including:

  • Business Size – As established by the Small Business Administration, the business must have three-year average gross receipts not to exceed $31.84 million.
  • Social and Economic Disadvantage – Participants must demonstrate that the majority owner (51%) is socially and economically disadvantaged based on their own experiences and circumstances within American society, and without regard to race or sex.
  • Group Membership – Participants must demonstrate they are a member of an eligible group.
  • Personal Net Worth of Owner – Not to exceed $2.047 million.
  • Ownership and Control – 51% majority owner must prove ownership and control of the firm.
  • Other Rules Affecting Certification – Company must not exhibit pattern of evading or subverting the intent of the DBE program.

For complete requirements, see 49 CFR Part 26, Subpart D.

 

What is the history of the overall DBE goal?

Currently every three years, U.S. Department of Transportation (USDOT) recipient State Transportation Agencies (STAs) are required to set an overall DBE goal that they must either meet or show that they used good faith efforts to meet, annually. This goal is in the form of a percentage of federal funds apportioned annually to each STA and is calculated based upon the relative availability of DBE firms as compared to all firms in the relevant geographic market area. STAs submit their goal to the appropriate Operating Administrations (OAs) to ensure their methodology used to establish the goal is legally sufficient. STAs must maximize the use of DBE-neutral efforts to achieve their overall goal. DBE-neutral efforts are those that assist all small businesses and do not use DBE contract goals.  Overall DBE goals are set based upon the federal fiscal year (FFY).  Listed below are the current overall goals for each OA that MoDOT receives federal financial assistance:

FHWA FFY 2024 - 2026:  13.87%

FTA FFY 2025 - 2027:  0.71%

FAA FFY 2025 - 2027:  9.71%

 

What’s the difference between an “overall DBE goal” and one calculated by project?

It’s important to remember that the overall DBE goal does not apply on every project. It is a calculation used to determine availability for the entire state. Every federal-aid project MoDOT undertakes is reviewed to determine the goal specific to that project.