What is the DBE Program?

The Disadvantaged Business Enterprise (DBE) Program is a federal program administrated by IDOT that provides minorities, women and other eligible small businesses an opportunity to participate in highway, mass transit and airport contracts that are federally and state-funded. The program seeks to promote diversity and level the playing field for small businesses owned by women or minorities in the transportation industry. 

A “DBE” is a Disadvantaged Business Enterprise, which is the term IDOT uses in their program to include a women business enterprise (WBE), a minority business enterprise (MBE), and a small business enterprise (SBE).

The program requires set-aside goals for utilizing certified DBEs on their transportation projects. This creates significant opportunities for certified DBEs (or as you make recognize them, WBEs and MBEs) to secure more government contracts and grow their businesses.

Steps to Become a DBE with IDOT

These are the essential steps to become a certified DBE with IDOT:

Step 1: Determine your company’s eligibility

Are you eligible? 

There are a few requirements to be met, including:

1. Group Membership

The eligible “disadvantaged” groups are:

• • Black Americans 

• • Hispanic Americans 

• • Native Americans 

• • Asian-Pacific Americans 

• • Subcontinent Asian Americans 

• • Women 

• • Any additional groups whose members are designated as socially and economically disadvantaged by the Small Business Administration (SBA), at such time as the SBA designation becomes effective. 

2. Ownership + Control Requirements

For your business to qualify as a DBE, it must be at least 51% owned by individuals who belong to one or more of the presumptive groups mentioned earlier. This means that the majority ownership should lie in the hands of Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian Americans, or women.

However, ownership is just one piece of the puzzle; control is equally vital. Your business must demonstrate that the individuals who belong to the presumptive groups have both the power to make decisions and the expertise to run the company effectively. This includes holding key positions within the organization and being involved in its day-to-day operations and long-term strategic planning.

3. Business Size

To meet the size requirements of the DBE program, a firm, including its affiliates, must have average annual gross receipts, over the firm’s previous three fiscal years, that do not exceed the following size caps: 

• • General construction firms (e.g., highway, street and bridge construction): the size cap is $22.41 million

• • Specialty trades (e.g., electrical, plumbing and site preparation): the size cap is $14 million

• • Landscaping services: the size cap is $7 million

• • Professional, scientific and technical services (e.g., engineering, drafting, geophysical surveying and mapping, surveying and mapping (except geophysical), and environmental consulting):  the size caps are as follows:
    • • Engineering Services – $19 million 
    • • Drafting Services – $7 million 
    • • Geophysical Surveying and Mapping Services – $14 million 
    • • Surveying and Mapping (except Geophysical) Services – $14 million 
    • • Environmental Consulting Services – $14 million 

Step 2: Gather documentation

Now that you’ve confirmed your company’s eligibility, it’s time to roll up your sleeves and gather the necessary documentation to bolster your application for certification.

Spend the time to gather the documentation on the checklist. It will ease the process of submitting your application. If you fail to submit all the required documentation or fill out the application incorrectly, your application will be delayed or denied.

With IDOT applications specifically, I always recommend that my clients create two “files” when starting their Document Collection Phase:

1. Paper version

2. Digital version

Ultimately, you will have to mail a printed physical application to IDOT. So create a file folder where you will keep all of your physical documents. This is what you will end up mailing to IDOT with your application.

I still recommend that my clients start with saving their documents in one place online. It makes it easier to review what you have, and you create a nice little folder of all your business documents that you can use later for other certifications.

Create a folder in your Google Drive and title it “IDOT DBE Application.” Start dropping documents from the checklist into the folder. If you prefer to keep your lists online, I have created a Google Sheet that you can download and keep track of your document collection.