Office of Civil Rights News
MnDOT surpassed its Disadvantaged Business Enterprise participation goal on Federal Highway Administration-funded contracts in federal fiscal year 2023, marking the first time that MnDOT has met or exceeded this goal.
The DBE participation goal for FHWA-funded projects in 2023 was 12.6%. This goal is calculated by determining what percentage of FHWA-funded contracts, awarded during federal fiscal year 2023, were committed to certified DBE firms. MnDOT not only met its annual goal but exceeded it, with 14.1% participation in federal fiscal year 2023.
MnDOT’s DBE program is designed to level the playing field for women- and BIPOC-owned businesses, to remedy ongoing discrimination and the continuing effects of past discrimination. The DBE program is mandated by the U. S. Department of Transportation and authorized by Congress. DBE firms are for-profit small businesses that are at least 51% owned and managed by socially and economically disadvantaged individuals.
“Having a DBE program has been instrumental in helping women get into the industry and prove that we belong here,” LouAnne Loewen, CEO of J&L Steel Erectors and J&L Jobsite Solutions said. Because of the DBE program, “prime contractors are always looking for ready, willing and able subcontractors to help them reach the DBE goals on their projects. It’s not a ‘get rich quick’ opportunity. You have to work hard and perform to the end of the project. You must earn the respect of your contractor.”
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 Achieving this goal is part of MnDOT’s strategic plan and is the result of years of work advancing equity in transportation. MnDOT’s Civil Rights programs have supported this work through certification, compliance, and business development. This achievement also reflects the support of agency leadership, numerous other departments, MnDOT District Offices, and the prime contractors who subcontract with these businesses. Most important, this would not be possible without the disadvantaged businesses themselves who perform this work to achieve a safe, accessible, efficient and reliable multimodal transportation system throughout the state.
MnDOT’s DBE participation in 2023 represents a high point for the agency and reflects an upward trend in DBE participation on these contracts since 2012. In 2012, DBE participation on these contracts was 6.6% compared with 14.1% in federal fiscal year 2023 – an overall increase of 114%. In actual dollars, this means more than $129 million went to certified DBE firms in federal fiscal year 2023.
The methodology for setting DBE goals considers availability of qualified firms and their location, firm size, credit risk and other characteristics of DBE versus non-DBE contracts. MnDOT’s Office of Civil Rights contracts with the Center for Transportation Studies at the University of Minnesota for a factual foundation for this purpose. The Office of Civil Rights proposes a goal and receives public comment. After considering public comment, the final proposal is sent to the FHWA and FTA for approval. Once approved, these goals are used as a condition of receiving federal funds and as a performance measure of MnDOT’s DBE program.
MnDOT meets its overall DBE program goal through DBE participation on individual projects, which themselves may have a specific DBE participation goal. The DBE participation goal is a percentage of the contract that is targeted for certified DBE firms to perform on the project.
The Office of Civil Rights evaluates construction projects and professional technical proposals for participation goals on federally funded MnDOT projects or contracts before the project is advertised. The DBE participation goal considers the location, scopes of work to be performed and availability of DBE firms.
To be awarded a contract with a DBE participation goal, the apparent low bidder or selected responder must meet the DBE participation goal or demonstrate adequate good faith efforts to meet the goal. Apparent low bidders can get credit toward DBE goals by subcontracting work to DBEs, purchasing supplies from DBEs, and other methods detailed in the DBE Special Provisions (PDF).
Not all projects are required to have DBE goals. Smaller projects that are federally funded may not have a DBE participation goal and are considered race/gender-neutral contracts. The Office of Civil rights monitors these contracts for DBE participation as well.
MnDOT’s agency goal is set for a three-year period, so the goals for federal fiscal year 2024 remains 12.6% for projects funded by FHWA and 6.8% of projects funded by FTA. The Office of Civil Rights is currently working with the University of Minnesota on the new goals for 2025-2027.
For more about for DBE participation increase since 2012, visit the Performance Measures page on the MnDOT website.
Photo caption: The DBE firm AMKA Safety performed pavement striping on the Highway 55 to Highway 52 project, SP 1909-99. Photo provided by Bocar Kane, AMKA Safety
Chart caption: DBE participation on FHWA-funded projects has increased significantly since 2012. Chart provided by Office of Civil Rights
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