DOT's Operating Administrations distribute substantial funds each year to finance construction projects initiated by state and local governments, and public transit and airport agencies.  The Transportation Equity Act for the 21st Century (TEA-21), enacted June 9, 1998, authorized the Federal surface transportation programs for highways, highway safety, and transit for the 6-year period 1998-2003. Section 1101(b) of the act (Disadvantaged Business Enterprises) states except to the extent that the Secretary determines otherwise, not less than 10% of the amounts made available for any program under Titles I, III, and V of this act shall be expended with small business concerns owned and controlled by socially and economically disadvantaged individuals.  The Department's most recent surface program reauthorization — the Safe, Accountable, Flexible, Efficient Transportation Equity Act:  A Legacy for Users (SAFETEA-LU), enacted in 2005, extended the DBE program to the Department's highway and safety research program.  Recipients of DOT funds must develop and implement a DBE program that conforms to DOT standards set forth in 49 CFR Part 23 (for airport concessionaires) and 49 CFR Part 26.

The integrity of DOT's Disadvantaged Business Enterprise program depends to a large extent upon the establishment of systematic procedures to ensure that only bona fide small disadvantaged business firms are certified to participate in DOT federally assisted programs. The DOT Disadvantaged Business Enterprise Regulations 49 CFR Part 23 and 49 CFR Part 26 place primary responsibility for the certification process upon State Transportation Agencies, which are tasked with ensuring only bona fide, small firms, owned and controlled by a socially and economically disadvantaged individual(s) are certified.

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DBE Eligibility

In general, to be eligible for the DBE program, persons must own 51% or more of a "small business," establish that they are disadvantaged within the meaning of DOT regulations, and prove they control their business. The following general guidelines, taken in part from the applicable regulation (49 CFR Part 26), will help business owners determine whether they are eligible for the DBE program:

Eligibility Guidelines (in general):

• Ownership - Your business must be 51% owned by a socially and economically disadvantaged individual(s).

• "Disadvantaged" - You may be eligible if you are a member of a group of persons the Department considers as disadvantaged. The Department presumes certain groups are disadvantaged, including women, Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian-Pacific Americans, or other minorities found to be disadvantaged by the U.S. Small Business Administration (SBA). Persons who are not members of one of the above groups and own and control their business may also be eligible if they establish their "social" and "economic" disadvantage. The Department notes, for example, that people with disabilities have disproportionately low incomes and high rates of unemployment, and that many may be socially and economically disadvantaged. A determination of whether an individual with a disability meets DBE eligibility criteria is made on a case-by-case basis. More information on how social and economic disadvantage is determined can be found in Appendix E to 49 CFR Part 26.

• Business Size Determination - A firm (including its affiliates) must be a small business as defined by SBA standards. It must not have annual gross receipts over $20,410,000 in the previous three fiscal years ($47,780,000 for airport concessionaires in general with some exceptions).  Under SAFETEA-LU, this threshold will be adjusted annually for inflation by the Secretary.

• Personal Net Worth - Only disadvantaged persons having a personal net worth (PNW) of less than $750,000 can be considered as a potential qualified DBE.  Items excluded from a person's net worth calculation include an individual's ownership interest in the applicant firm, and his or her equity in their primary residence.  Additional exclusions are available for owners of airport concessionaires (See 49 CFR Part 23).

• Independence - The business must not be tied to another firm in such a way as to compromise its independence and control.

• Control - A disadvantaged owner seeking certification must possess the power to direct or cause the direction of the management and policies of the firm.  The owner must also have an overall understanding of, and managerial and technical competence and experience directly related to, the type of business in which the firm is engaged.

• Burden of Proof Allocation - Applicants carry the initial burden of proof regarding their eligibility and must demonstrate that they meet all requirements concerning group membership or individual disadvantage, business size, ownership, and control.

Additional program requirements and certification procedures are found in the Department's regulations 49 CFR Parts 23 and 26. Specific information can also be found in the DBE Library section below or within the Department of Transportation's Office of Small and Disadvantaged Business Utilization.

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Obtaining Certification as a DBE

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Filing an Appeal

Firms that have applied for and were denied DBE certification and firms whose certification has been removed by a recipient of DOT funds may file an administrative appeal with the Departmental Office of Civil Rights within 90 days from the date of denial.

How to file an appeal after being denied DBE certification by a DOT recipient:

To file a DBE certification appeal, firms should send a letter to the U.S. Department of Transportation. The appeal should at a minimum include information and arguments concerning why the recipient's decision should be reversed, a copy of the denial letter, and any additional information you believe to be pertinent to the appeal. Firms must provide the name(s) and address(es) of any DOT recipient the firm is currently certified with; or who has rejected its application for certification; or removed the firm's eligibility within one year prior to the date of the appeal. This includes applications currently pending certification action. 

All appeals should be submitted to:

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Appeal Process

Under 49 CFR Section 26.89 the Departmental Office of Civil Rights is responsible for processing all appeals of denial of DBE certification. This CFR Section specifies our procedures as follows:

Initial Processing

1. Upon receipt of a written appeal, DOCR will review the incoming correspondence to determine whether the appeal was filed within 90 days from the date of denial or if an extension is warranted.

2. If the appeal is filed within 90 days, DOCR will write to the appellant acknowledging receipt of the appeal.

3. At the same time, DOCR will request in writing that the recipient who denied the certification provide copies of all documentation (including hearing transcripts, interviews, applications, etc.) used in making the determination not to certify the appellant.

Review of Documentation and Decision

4. DOCR will review the information submitted by the recipient to determine whether the recipient properly applied the eligibility standards to the firm in accordance with 49 CFR Part 26, Subpart C.

5. Only the information originally available to the recipient will be considered during the appeal and the Department bases its decision solely on the administrative record. If any additional information or recent change of circumstances is reported, the potential DBE will be advised to reapply to the recipient, or the information will be referred to the recipient for review and consideration.

6. After reviewing the documentation, DOCR will render one of the following decisions:

1. The DBE is certified (overturning the denial by the recipient); or
2. The DBE is not eligible to be certified, and is denied eligibility to participate in the program (upholding the decision of the recipient); or
3. The case is remanded to the recipient for additional information and/or instruction.



7. All decisions by the Department are administratively final.  If the Department upholds the recipient's denial or removal of DBE certification and the firm still wishes to participate in the DBE program, the firm must reapply to the recipient within specified timeframes.

8. DOCR will inform both the recipient and the appellant of the results of its decision. DOCR will also notify the Directors of Civil Rights in the Department's Operating Administrations (for example, the Federal Highway Administration, Federal Transit Administration, etc.) and the Director, Office of Small and Disadvantaged Business Utilization (OSDBU) of the Department's decision. The Directors of Civil Rights will ensure that appropriate field personnel are made aware of the decisions that would affect the program in their area.

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Role of Other Departmental Personnel

If the information available to DOCR suggests fraud or other criminal violations in connection with the Department's DBE program, the case will be referred to the Department's Office of the Inspector General for investigation.

The Office of the General Counsel, specifically the Office of the Assistant General Counsel for Regulation and Enforcement (C-50), will be consulted in cases that involve interpretation of DOT regulations; the Office of the Assistant General Counsel for Environmental, Civil Rights, and General Law (C-10) for legal guidance; and the Office of the Assistant General Counsel for Litigation (C-30) for legal sufficiency.

Any DOT office that receives a certification appeal should forward it to DOCR, S-33, Room 5414, for appropriate action.

Occasionally, Operating Administrations' Civil Rights staff will be asked to facilitate the process by providing information or conducting investigations.

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DBE Contact Information
Department	Address	Contact Number
External Civil Rights Programs Division (S-33) Departmental Office of Civil Rights	1200 New Jersey Ave, S.E Washington, DC 20590	Phone: (202) 366-4754 Fax: (202) 366-5575 TTY: (202) 366-9696
Office of Small and Disadvantaged Business Utilization (S-40) Department of Transportation	1200 New Jersey Ave, S.E Washington, DC 20590	Phone: (800) 532-1169 (202) 366-1930 Fax: (202) 366-7538 TTY: Federal Relay Service
Office of Civil Rights (HCR-1) Federal Highway Administration	1200 New Jersey Ave, S.E Washington, DC 20590	Phone: (202) 366-1607 Fax: (202) 366-1599 TTY: (202) 366-5751
Office of Civil Rights (TCR-1) Federal Transit Administration	1200 New Jersey Ave, S.E Washington, DC 20590	Phone: (202) 366-4018 Fax: (202) 366-3475 TTY: Federal Relay Service
Office of Civil Rights (ACR-1) Federal Aviation Administration	External Programs Team ACR-4 800 Independence Ave SW Room 1030 Washington, DC 20591	Phone: (202) 267-3270 Fax: (202) 267-5565 TTY: Federal Relay Service
Federal Relay Service	TTY: (800) 877-8339 Voice/Hearing: (800) 377-8642 VCO: (800) 877-6280 Speech-to-Speech: (877) 877-8982

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DOCR DBE Customer Service Standards

Our Commitments to You...

• We will acknowledge receipts of appeals filed in writing to this office within 4 business days.
• We will process certification appeals and issue decisions within 90 days of receipt of complete appeal packages.
• We will offer at least 3 workshops each year on certification procedures to recipients of DOT financial assistance.
• We will offer at least 3 workshops each year to individuals and businesses on DBE eligibility criteria and grounds for denial of certification appeal rights.
• We will provide regulatory and DBE eligibility criteria for certification as a DBE through our Web page.

Report to Our Customers

Following the Department of Transportation's 1999 DBE regulation, the Departmental Office of Civil Rights (DOCR) revised its customer service standards to realistically reflect the time required of civil rights staff to process certification appeals and issue decisions. Our standard processing time of 60 days established in FY 1996 changed in FY 1999 to a standard processing time of 180 days. However, DOCR has established as a goal, a processing time of 90-120 days from the date of receipt of records.

DOCR is an active participant in the Department's Disadvantaged Business Enterprise program and continues to work with the Office of Small and Disadvantaged Business Utilization (OSDBU) to offer workshops around the country on certification procedures to recipients of DOT financial assistance and to individuals and businesses on DBE eligibility criteria and denial of certification appeal rights. In addition, DOCR is an integral part of the DBE Task Force, an internal entity composed of Operating Administration representatives and chaired by the Deputy Assistant General Counsel. The task force reviews all DBE programmatic issues, makes recommendations for regulatory changes, and develops guidance for DOT recipients.

Improving Customer Service

DOCR has made some important changes in the day-to-day management of its DBE Certification Appeals program, changes that are intended to make the program more responsive to the needs of its customers.

• DBE Appeals Tracking System: DOCR made investments to enhance its current DBE appeals tracking system. Enhancements to the system will improve the tracking and monitoring of the progress of each appeal from receipt to final agency decision.

• DBE Appeal Decisions:  Copies of appeal decisions are posted regularly by DOCR on the Office of Small and Disadvantaged Business Utilization website. 

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DBE Library

Final Agency Decisions on DBE Certification Appeals

• 2007 Decisions
• 2008 Decisions

Guidance for DBE Program Administrators

Questions and Answers on the DBE Program

The following questions and answers are presented in MS Word format:

• 49 CFR Part 26

• Application of DBE Program

• Contractual Change Orders

• DBE Certification Rules

• DBE Program Subrecipients

• Home State First Provision

• On-site Interviews

• Service-Connected Disabilities

• UCP Q&A

DBE Certification Appeals Program Brochure    HTML    PDF

United States Codes

49 USC 47113, Minority and Disadvantaged Business Participation
Each agency is required to expend a certain percentage of amounts available within a fiscal year from the Airport and Airway Trust Fund with small and disadvantaged businesses or qualified HUBZone small business concerns.

Codes of Federal Regulations

13 CFR Part 121, Small Business Size Regulations
These regulations govern qualifications for small businesses and detail how SBA determines relevant size standards.

49 CFR Part 21, Nondiscrimination in Federally-Assisted Programs of Department of Transportation — Effectuation of Title VI of the Civil Rights Act of 1964
No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity receiving Federal financial assistance from the Department of Transportation.

49 CFR Part 23, Participation by Disadvantaged Business Enterprise in Airport Concessions
This regulation governs the participation by airport concessionaire disadvantaged business enterprises (ACDBEs) in the concessions activities of airports receiving Federal financial assistance from FAA's airport improvement program.

Federal Register Notice (April 2, 2007)
This notice adjusts the dollar limits and size limits used to define small businesses for the ACDBE program. In addition, this document, as required by statute, also adjusts the dollar limits used to define small businesses for the DBE program 

49 CFR Part 26, Participation by Disadvantaged Business Enterprises
This regulation is designed to create a level playing field on which DBEs can compete. It covers nondiscrimination in the award and administration of DOT-assisted contracts in the Department's highway, transit, and airport financial assistance programs. The regulation specifies program administration requirements; goals, good faith efforts, and counting; DBE certification standards and procedures; and compliance and enforcement.

Public Laws

SAFETEA-LU (Safe, Accountable, Flexible, Efficient Transportation Equity Act:  A Legacy for Users)

PL 104-121, Small Business Regulatory Enforcement and Fairness Act
This act is designed to simplify, develop, and enforce the Federal regulations pertaining to small businesses.

PL 107-100, Small Business Act
This act dictates the actions that each Federal agency must take in order to assist small businesses.

Related Websites

Department of Transportation Office of Small and Disadvantaged Business Utilization

Small Business Administration

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Customer Service Feedback

For questions regarding the DBE program or certification appeals procedures, or to make suggestions for improving our services, contact the External Civil Rights Programs Development Division at:

U.S. Department of Transportation
Departmental Office of Civil Rights
External Civil Rights Programs Division (S-33)
1200 New Jersey Ave, S.E.
Washington, DC 20590
Phone: (202) 366-4754     TTY: (202) 366-9696
Fax: (202) 366-5575

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