Disadvantaged Business Enterprise (DBE) provisions apply to United States Department of Transportation (USDOT) assisted contracts for airports, highways and transit. This includes the use of Federal Transit Administration (FTA) planning, capital, and/or operating funds spent on contracts. The FTA requires organizations receiving these federal funds to make efforts to purchase from, or use, DBE firms. A DBE is a for-profit small business that is:
- At least 51% owned by one or more individuals who are socially or economically disadvantaged or, in the case of a corporation, in which 51% of the stock is owned by one or more such individuals.
- Controlled (management and daily business operations) by one or more of the socially and economically disadvantaged individuals who own it.
As a recipient of these FTA funds, the Wisconsin Department of Transportation (WisDOT) has a DBE program that addresses FTA funded contracting activities conducted by WisDOT, as well as those of its grant subrecipients.
Policy statement
The objectives of the DBE program are, in part, to:
- Ensure nondiscrimination in the award and administration of USDOT-assisted contracts
- Create a level playing field on which DBEs can compete fairly for USDOT-assisted contracts
- Help remove barriers to the participation of DBEs in USDOT-assisted contracts
This is reflected in the
policy adopted by WisDOT.
When entering into grant agreements for FTA assistance, WisDOT and its subrecipients agree to adhere to the DBE requirements (49 CFR Part 26). This is a condition of receiving the federal financial assistance and is assured to in writing. In addition, the requirements apply at the contract level. This means each contract signed with a contractor and each subcontract a prime contractor signs with a subcontractor must include DBE language which states:
The contractor, subrecipient, or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of USDOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate.
DBE Goal Setting
The establishment of a three-year DBE participation transit goal is another requirement of U.S. Department of Transportation, 49 CFR Part 26 regulations. Three-year goal setting is for DBE participation on contracts assisted by the Federal Transit Administration awarded by WisDOT and its subrecipients. Progress toward goal achievement is monitored throughout the year. In some instances, a separate contract goal may be established to assist in attaining the overall goal. If a contract specific goal is set, additional monitoring and reporting on the performance of the contract will apply.
2023 – 2025 Transit DBE Goal
The WisDOT three-year transit DBE goal is 1.61%, for the period beginning October 1, 2022, and ending September 30, 2025. WisDOT followed its public participation and public notice procedures to provide the opportunity for public comment. The FFY 2023-2025 WisDOT transit DBE goal was submitted to the Federal Transit Administration on August 1, 2022.
FFY 2026-2028 Proposed Transit DBE Goal
WisDOT announces its proposed three-year transit DBE goal of 2.21% for the period beginning October 1, 2025, and ending September 30, 2028.
WisDOT is hosting two virtual public input meetings regarding its proposed draft DBE goal for FFY 2026-2028. The meetings are being held on Wednesday, June 4, 2025, at 10:00am (CT) and Thursday, June 19, 2025, at 2:00pm (CT). WisDOT will present its anticipated transit contracting activities for the next three years, provide an overview on its DBE goal setting process, and seek input on its transit-specific draft DBE goal. Contact Becky.soderholm@dot.wi.gov, or (608) 266-1650, for information on how to participate in the public input meetings.
The proposed goal and its rationale are also available for public review, inspection, and public comment during normal business hours until Friday, July 18, 2025. The final FFY 2026-2028 WisDOT transit DBE goal will be submitted to the FTA by August 1, 2025.
Comments should be sent to:
Becky Soderholm, Compliance Manager
WI Department of Transportation
4822 Madison Yards Way, 6th Floor South
Madison, WI 53705
(608) 266-1650
Becky.soderholm@dot.wi.gov
Procurement process
The DBE requirements include provisions that must be addressed in the procurement process. These provisions include required contract clauses, contract goal-setting, and required information from bidders. The required contract clauses address non-discrimination, Transit Vehicle Manufacturer (TVM) certification, termination, and remedies for prime contractors that do not comply. Prompt payment by prime contractors to their subcontractors is also required, including the return of retainage. While separate contract goals are not required on each contract, if a contract specific goal is established, additional information must be collected from bidders prior to contract award. The WisDOT transit website has information on transit procurement procedures.
State program
WisDOT is committed to a Civil Rights Program for the participation of
Disadvantaged Business Enterprises.
Resources
WisDOT Compliance Manager
Becky Soderholm
Wisconsin Department of Transportation
Bureau of Transit, Local Roads, Railroads and Harbors
(608) 266-1650
becky.soderholm@dot.wi.gov