Disadvantaged Business Enterprise
DBE
The DBE program goal is to increase participation of firms owned by disadvantaged individuals in all federal aid and state transportation facility contracts.
The program started with the Surface Transportation Assistance Act of 1982. The act set a national goal of placing at least 10 percent of federal highway and transit funds with persons who qualify as disadvantaged small business operators. A subsequent act in 1987 included women.
The Disadvantaged Business Enterprise (DBE) program is a federally mandated program intended to ensure nondiscriminatory contracting opportunities for small business concerns owned and controlled by socially and economically disadvantaged individuals in the United States Department of Transportation’s
(USDOT) highway, mass transit and airport financial assistance programs.
The statutory provision governing the DBE program in the highway and mass transit financial assistance programs is 1101(b) of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), Public Law 109-59, August 10, 2005. The statutory provision governing the DBE program as it relates to the airport financial assistance programs is 49 U.S.C. 47113.
The DBE program administered by the Illinois Department of Transportation (IDOT) provides minorities, women and other eligible small businesses an opportunity to participate in highway, mass transit and airport contracts that are federal and state funded.
The presumptive groups that are eligible for the DBE program 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.
Also considered eligible is any individual who IDOT finds to be socially and economically disadvantaged on a case-by-case basis.
DBE, MBE, FBE, WBE and PBE are acronyms for various state/county/local agency programs that provide contractual opportunities for disadvantaged, minority, female and woman-owned business enterprises. The acronyms are explained below:
- DBE – Disadvantaged Business Enterprises (includes minority and woman-owned businesses)
- MBE – Minority Business Enterprises
- FBE – Female Business Enterprises
- WBE – Woman-owned Business Enterprises
- PBE – Persons with disabilities Business Enterprises
In Illinois, the following programs are offered by the listed agencies:
DBE program
The Illinois Department of Transportation, City of Chicago, CTA, Metra and Pace have a federally funded statewide program for DBEs. These agencies have established the Illinois Unified Certification Program (IL UCP), which is based on the concept of reciprocity among the agencies. “One stop shopping” is provided to DBE program applicants, such that an applicant need only apply once for statewide DBE certification that will be honored by all participating agencies in the IL UCP. Although the Cook County Highway Department does not have its own DBE program, it utilizes IL UCP-certified DBEs on its highway projects.
MBE/WBE program The City of Chicago has a locally funded program for MBEs and WBEs that covers
the City of Chicago and the six-collar county area.
MBE/FBE/PBE program
The Illinois Department of Central Management Services has a state-funded
statewide Business Enterprise Program for MBEs, FBEs and PBEs.