Disadvantaged Business Enterprise (DBE)

A disadvantaged business enterprise (DBE) is a for-profit small business concern that is:

1. at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged; and
2. whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.

The objectives of the DBE program are to:

• ensure nondiscrimination in the award and administration of federal-aid contracts
• create a level playing field on which DBEs can compete fairly for federal-aid contracts
• ensure that the Department's DBE program is narrowly tailored
• ensure that only firms that fully meet the eligibility standards are permitted to participate as DBEs
• help remove barriers to participation of DBEs in federal-aid contracts
• assist in the development of firms that can compete successfully in the marketplace outside the DBE program.

A firm is not considered "small business concern" if it has annual gross receipts in excess of $31.84 million for general construction or in excess of $25.5 million for engineering, $19.0 million for surveying, and $12.5 million for architectural firms over the previous three fiscal years. (For industries not listed above, please refer to the U.S. SBA Size Standards link below). An economically disadvantaged individual is one whose personal net worth does not exceed $2.047 million. Personal net worth does not include the individual's ownership interest in the applicant or participating DBE firm, or the individual's equity in his or her primary place of residence. Socially and economically disadvantaged individuals are those who are (in addition to being economically disadvantaged) citizens of the United States who are:

(a) found to be socially and economically disadvantaged on a case-by-case basis.

(b) Individuals in the following groups, of which are rebuttably presumed to be socially and economically disadvantaged:

• Black Americans, which includes persons having origins in any of the Black racial groups of Africa
• Hispanic Americans, which includes persons of Mexican, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race
• Native Americans, which includes persons who are American Indians, Eskimos, Aleuts or Native Hawaiians
• Asian-Pacific Americans, which includes persons who origins are from Japan, China, Taiwan, Korea, Burma (Myanmar), Vietnam, Laos, Cambodia (Kampuchea), Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, the US Trust Territories of the Pacific Islands (Republic of Palau), the Commonwealth of the Northern Marianas Island, Macao, Fiji, Tonga, Kirbati, Juvalu, Nauru, Federated States of Micronesia, or Hong Kong.
• Subcontinent Asian Americans, which includes persons whose origins are from India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal or Sri Lanka
• Women
• Any additional groups whose members are designated as socially and economically disadvantaged by the SBA, at such time as the SBA designation becomes effective.

https://www.sba.gov/document/support-table-size-standards

The Department of Transportation sets an overall DBE goal for federal-aid contracts annually. The department attempts to meet the overall goal without using individual contract goals. However, individual contract goals are assigned if the overall goal is not being met.

To obtain additional information regarding the DBE program, or an application for certification, contact Kyle Watkins, DBE Program Coordinator at 605-773-4906; or e-mail Kyle Watkins.

SEARCH THE SDDOT (DBE) DIRECTORY

DBE Directory Changes

DBE's noted by Region or Area, please refer to this map for location.

There has been an increased number of projects with specified DBE goals.  Due to that fact, one of the main items discussed during the DBE portion of the webinar was the Good Faith Effort (GFE) requirements.

Good Faith Effort (GFE) is defined as: “Efforts to achieve a DBE goal which; by their scope, intensity, and appropriateness to the objective; can reasonably be expected to meet the objective of the Department’s DBE program pursuant to 49 CFR 26.1.”

DBE Special Provision (provisions can be found below) gives more detailed information.  Below is the basic information and important reminders.   

All prime contractors who do not meet or exceed the DBE goal are required to submit GFE documents within two days following notification from the Bid Letting Engineer.  Typically, this is two days following the letting.  Below are the required documents to include when submitting the GFE Package:

1.) Submit a contact log of all solicitation efforts (see Contact Log Template below): 

1. Timeframe for contacting DBEs
   1. DBEs on the plan holders list:
      1. At least 7 calendar days prior to letting
   2. Contacting by mail:
      1. At least 6 calendar days prior to letting
   3. Contacting by email, phone, fax
      1. At least 5 calendar days prior to letting
2. If there is no positive contact, a second solicitation must be made by phone, fax, or email at least 2 business days prior to letting.

2.) Submit documentation that shows GFE

1. Select work items to encourage DBE participation.
2. Solicit all DBEs listed in the work classification and geographic area.
3. Solicit all DBEs on the plan holders list in a timely manner.
4. Follow up with all DBEs if there was no positive contact.
5. Answer any questions that DBEs have about the project.
6. If you reject a DBEs quote, include a detailed explanation.

3.) Consider qualified DBEs whose quotes are reasonably competitive.

1. Include all quotes received.
2. Provide quote comparison document typically a spreadsheet format with each quote broken down by bid items.  (See example of a quote comparison below).

4.) Explain why goal couldn't be met.

5.) Note additional efforts made to secure DBE participation.

Some other key points to remember:

• Be sure to reach out to all sub-contractors to see if any subcontractors are utilizing DBEs. It’s important to list those DBEs that subcontractors may be using on the DBE commitment form when submitting your bid. DBEs that subcontractors may use need to be contacted per the requirements in A.
• Must solicit all eligible DBEs even if normally the supplier would be supplying a subcontractor. 
• Solicit for the entire project for all eligible work groups and appropriate geographic area. 
• Be detailed in your narrative to explain why the goal couldn’t be met and what extra efforts were made. 
• It’s important to submit all the required GFE documents when requested.  The DBE GFE committee can only consider what is submitted.
• Continued solicitation of DBEs following the letting is encouraged but any DBE participation that is not on the DBE Commitment form or obtained “after-the-fact” does not count towards a GFE effort determination. 
• DBEs who may be considered competitors are still required to be solicited and consideration is to be given to any quotes received.

Forms and Documents: 

Contact Log Template.xlsx

DBE SPECIAL PROVISION (20240209).PDF

Quote Comparison.pdf

If you have additional questions, please contact Kyle Watkins, DBE Coordinator below. 

 

Project Solutions, Inc. is the DBE Supportive Services Resource. We are committed to assisting firms with understanding the program and application process to provide opportunities for underutilized businesses interested in participating in federally funded highway construction projects. We also offer business development training and guidance to help build business management potential.

Federal U.S. Dept of Transportation, Office of Small Disadvantaged Business Utilization (OSDBU) offers financial assistance to small disadvantaged businesses by providing guaranteed loan through our Short Term Lending Program (STLP) for transportation related contracts only.

New Applicants: 

DBE/ ACDBE Certification

• There is no cost to apply for certification as a DBE/ACDBE.
• Application assistance is available at no cost through our Support Service Provider.
  
• Submitting an incomplete application package will delay the overall certification process.
• Follow the Documentation Checklist appropriate to your business structure.
• Once a complete application is submitted, SDDOT will conduct an On-Site Review.
• All On-Site Reviews must be recorded per 49 CFR 26.83(c)(1)(i).

Steps to Submit an Application for DBE/ACDBE Certification

1. Download the Uniform Certification Application (UCA).
   • Print UCA form or save it to your desktop.
   • This is the official form to be used for DBE/ACDBE Certification.
2. Read the instructions for completing the application.
3. Complete all sections of the application.
   • Do not leave blanks on the application.
   • Note “N/A” in areas that are not applicable.
   • For areas marked as “N/A,” include a brief statement about why that information is not applicable.
4. Download and complete the required Personal Net Worth (PNW) Form.
   • Read the PNW Guidelines (Instructions) and PNW Overview for guidance on completion of the PNW.
   • Print PNW form or save it to your desktop.
   • This is the official form to be used for DBE/ACDBE Certification.
5. Review the Supporting Document Checklist on the UCA for the Required Documents for All Applicants.
   • This is the official checklists to be used for DBE/ACDBE Certification.
6. Application Submission:

   1. US Mail:                                                                                               

      DBE Program
      South Dakota Department of Transportation
      700 E Broadway Ave
      Pierre, SD 57501-2586
      
      

   2. Electronically:
      Contact Kyle Watkins at kyle.watkins@state.sd.us to set up a SharePoint file share folder
7. Retain a copy of the entire application package for your files.

Uniform Certification Application (UCA).PDF

Personal Net Worth (PNW).PDF

49 CFR PART 26 SUBPART D CERTIFICATION STANDARDS

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Annual Declaration of Eligibility:

• Annual Affirmation
  1.) DECLARATION OF ELIGIBILITY & INFO FORM.PDF
   
  2.) Most recent tax return (Gross Receipts)

• Reporting Changes
  

Interstate Certification

Effective May 9, 2024, new federal regulations issued by the United States Department of Transportation (USDOT) have significantly reduced the number of documents required for the interstate application process. Firms now only need to submit to SDDOT the following documents to receive interstate certification:

• A cover letter to SDDOT requesting certification with SDDOT, which also lists all of the other states in which your firm is DBE certified, including your Jurisdiction of Original Certification (JOC) and your anniversary date in the JOC;
• An electronic image of the UCP directory of the firm’s original UCP that shows its DBE certification (screenshot or snippet). If a screenshot or snippet is unavailable, a copy of the firm’s original certification letter will suffice; and
• A Declaration of Eligibility (DOE)

1.) Electronic Image of UCP Directory

2.) SDUCP INTERSTATE COVER LETTER.PDF

3.) DECLARATION OF ELIGIBILITY & INFO FORM.PDF

 

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Annual Declaration of Eligibility

Annual Affirmation

1.) DECLARATION OF ELIGIBILITY & INFO FORM.PDF

2.) Most recent tax return (Gross Receipts)


Reporting Changes

Businesses become certified based on the information provided at the time of certification. It is the DBEs responsibility to notify its certifying agency within 30 days of any change that can impact a firm’s eligibility. DBEs must also annually affirm that there have been no changes other than the changes previously reported.

Report changes required under 49 CFR §26.83(i) within 30 days of the occurrence of the change:

• Changes in a firm’s circumstances affecting its eligibility, or material changes in the information provided in the firm's application form.
• Submission of the SDDOT Declaration of Eligibility & Info Form and most recent Gross Receipts on the anniversary date of the firm’s certification;
• Work code change/expansion requests;
• Notification of address, phone, or other contact information changes; and
• Withdrawal of certification

Failure to notify your certifying agency of changes or submit an Annual Declaration of Eligibility within the required time frames is deemed a failure to cooperate and is grounds for removal of a firm’s certification.

• Business Development Program Plan
• DBE Program Flyer
• DBE Program Guide
• DBE Program Plan
• DBE Special Provision
• DBE Goal Methodology FFY 2025 - 2027
• Interstate Application Process
• Supplier Informational Flyer
• Supportive Services Program Guide
• Unified Certification Program Agreement
  

49 CFR 26 Participation by DBE's in DOT Programs
49 CFR 23 Participation by DBE's in Airport Concessions