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Disadvantaged Business Enterprise (DBE) Certification Monetary Thresholds

Whether it is from projects with CTA, Metra or IDOT, there are millions of dollars in contracts that are bid each year which include a Disadvantaged Business Enterprise (DBE) goal.  To be qualified as a DBE, the business owner or owners must meet specific requirements in three categories: ownership, control, and financial conditions. These are set forth by federal statute.   https://www.govinfo.gov/content/pkg/CFR-2011-title49-vol1/pdf/CFR-2011-title49-vol1-sec26-67.pdf

  • Ownership

The owner must be part of a presumed group, including women and specified minorities.  The company must be owned and controlled by a person or persons qualifying under the statute. This person must also be a US citizen.

  • Control

The owner or owners who qualify as DBE must both own more than 50% of the company and they must actually be in a position to control the company.  The owner must be able to demonstrate their control of the company including the ability to hire and fire, and knowledge of the business in terms of technical competency and financial matters.

  • Financial Conditions

Under the law, the owner or owners must have a net worth of less than $1.32 million dollars.  Items excluded from a person’s net worth calculation include an individual’s ownership interest in the company and their equity in their primary residence. 

The business itself must also be financially small. 
To qualify as a DBE, the company may not have annual gross receipts over $22,410,000 in the previous three fiscal years ($52,470,000 for airport concessionaires with some exceptions). Under recent law, this amount will be updated every year by the Secretary of the Department of Transportation.

So, is it worth it to get certified? YES

Once a business is certified, there is an annual renewal which is a minimal amount of work.  Whether you are a marketing firm, engineering firm, manufacturer or painter, there are opportunities for you to bid on government projects. The billions of dollars spent each year on these major infrastructure projects are outstanding opportunities for firms that qualify as a DBE.

All state and federal programs are subject to change, so it is essential to stay updated and informed.  If you are in need of a government procurement attorney please contact 1818.

The information in this blog post is provided for informational purposes only and is not intended to be legal advice. You should not make a decision whether or not to contact an attorney based upon the information in this blog post. No attorney-client relationship is formed nor should any such relationship be implied. If you require legal advice, please consult with an attorney licensed to practice in your jurisdiction.

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