Are you a small disadvantaged business that can provide products or services to the transportation industry? If so, you should seriously be looking into the Disadvantaged Business Enterprise Program (DBE) to give you an edge over the competition. This federal program is operated under the U.S. Department of Transportation (DOT) in an effort to increase the participation of socially and economically disadvantaged small businesses in state and local transportation projects.

Certification is managed by the Construction Management Development Program-Bond Guarantee Program. Once certified your business is able to bid as a DBE anywhere within the state of Florida. However, if you want to bid as a DBE in a separate State you will need to recertify there. You can find information about certification on individual State websites.

Why obtain a Disadvantaged Business Enterprise Certification?

FDOT requires that at least 10% of the funds authorized for the highway and transit financial assistance programs be expended with DBEs. What does that mean? Basically, when the DOT funds a state or local transportation project they require that agency to make sure small, disadvantaged firms that are certified get part of the action. Many state transportation projects also have mandatory DBE contracting goals that allocate an even higher percentage of prime contracting dollars to certified firms. Becoming certified gives socially and economically disadvantaged businesses an advantage over larger firms when competing for these types of contracts. The bottom line is this is a great way to get into government contracting. Additionally, large firms are often given contract incentives to use DBEs as subcontractors. The DBE program also assists small businesses outside the DBE program with business development and other government contracts.

Requirements to Become A Certified Disadvantaged Business Enterprise.

A Firm must be a small business that is at least 51% owned and controlled by a socially or economically disadvantaged person. Daily business operations must be controlled by the qualifying minority. Average gross earnings over three year period not to exceed $20.41 million, for heavy construction, $5 million for special trade contractors, $4 million for professional consultants and $5 million for other consultants. Qualifying owner(s) can not have personal net worth that exceeds $750,000.

For specific instructions on how to become a Certified Disadvantaged Business Enterprise, please contact the Construction Management Development Program-Bond Guarantee Program (CMDP-BGP) at (850) 561-2393 or (800) 226-3881.