In order to apply for certification as a Disadvantaged Business Enterprise (DBE), your firm must meet the following eligibility criteria stated in 49 CFR Part 26:

• The disadvantaged individual must be a U.S. citizen (or resident alien) and be a member of a socially or economically disadvantaged group:

a. African American

b. Hispanic American

c. Native American

d. Asian-Pacific American

e. Subcontinent-Asian American

f. Woman

g. Others certified as disadvantaged (an individual who is not a member of the groups listed above can still be certified as a DBE  by establishing their socially  disadvantaged status).

• The disadvantaged individual must have a personal net-worth (PNW) of less than $1,320,000. 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.
• Depending upon the nature of work performed, a firm (including its affiliates) must not have average annual gross receipts over the firm’s previous three fiscal years in excess of $22,410,000 ($52,470,000 for airport concessionaires in general with some exceptions). This size standard is for construction related work. Depending on the type of work the business performs, other lower size standards may apply.
• The firm must be a for-profit small business where socially and economically disadvantaged DBE owner(s) own at least a 51% interest, and have managerial and operational control of the business operations; the firm must not be tied to another firm in such a way as to compromise its independence and control.
• The socially and economically DBE owner(s) must possess the power to direct or cause the direction to the management and policies of the firm and to make day-to-day, as well as long-term decisions on matters of management, policy and operations.
• If state or local law requires the persons to have a particular license or other credential in order to own and/or control a certain type of firm, then the socially and economically disadvantaged persons who own and control a potential DBE firm of that type must possess the required license or credential. (This rule varies from state to state. For example, if your state allows someone else to qualify your business then you should be able to certify your firm without possessing the particular license or credential on your own.

At Kleiner & Cazeau we are prepared to assist eligible firms in obtaining DBE certification, appealing certification denials, defending eligible firms in bid protests or initiating bid protests against firms not eligible to participate in the program. If you are interested in obtaining DBE certification or have questions or concerns about the program please call us at (305) 517-1392 ext 102.