Disadvantaged Business Enterprise

MnDOT Policy #AD014
Effective: October 30, 2026

Please go to the MnDOT Org Chart to find specific contact information: Org Chart.

Responsible Senior Officer: Deputy Commissioner/Chief Administrative Officer
Policy Owner: Director, Office of Civil Rights
Policy Contact: Operations Manager, Office of Civil Rights

Policy statement

The Minnesota Department of Transportation (MnDOT) must establish and maintain a Disadvantaged Business Enterprise (DBE) program in accordance with regulations of the U.S. Department of Transportation (DOT), 49 Code of Federal Regulations (CFR) part 26. MnDOT is committed to implementing its DBE Program Plan and provides this assurance that it will fully comply with 49 CFR part 26.

As required by 49 CFR part 26.1, MnDOT must ensure that DBEs have an equal opportunity to receive and participate in DOT-assisted contracts. It is also MnDOT’s policy to:

Ensure nondiscrimination in the award and administration of DOT-assisted contracts in MnDOT’s highway, transit, and airport financial assistance programs.
Create a level playing field on which DBEs can compete fairly for DOT-assisted contracts.
Ensure that MnDOT’s DBE program operates in a nondiscriminatory manner and without regard to race or sex, while maximizing efficiency of service.
Ensure that only firms that fully meet the eligibility standards in 49 CFR part 26 are permitted to participate as DBEs.
Help remove barriers to the participation of DBEs in DOT-assisted contracts.
Promote the use of DBEs in all types of federally assisted contracts and procurement activities conducted by recipients.
Assist the development of firms that can compete successfully in the marketplace outside the DBE program.
Provide appropriate flexibility to recipients of federal financial assistance in establishing and providing opportunities for DBEs

Implementation

MnDOT must implement the DBE program with the same priority as compliance with all other legal obligations incurred by MnDOT in its financial assistance agreements with the DOT.
MnDOT must disseminate this policy statement to its senior leadership team and all MnDOT offices. MnDOT must also distribute this policy statement to DBE and non-DBE business communities that perform work for MnDOT on DOT-assisted contracts.

DBE liaison officer

The Office of Civil Rights Director is MnDOT’s DBE liaison officer. The liaison must have direct, independent access to the MnDOT commissioner concerning DBE program matters. The liaison is responsible for implementing all aspects of MnDOT’s DBE program and ensuring adequate staff to administer the program in compliance with 49 CFR part 26.

Fraud reporting

MnDOT employees must take actions to prevent and report fraud, abuse, or misuse of public funds. Employees must report suspected violations or unauthorized use to their supervisor, the Office of Chief Counsel, or by completing MnDOT’s anonymous MnDOT Report of Wrongdoing/Questionable Activity Form.

Reason for policy

As a recipient of federal-aid highway funds, MnDOT is required under 49 CFR part 26.23 to have a signed and dated policy statement. The DOT DBE regulations in 49 CFR part 26 apply to MnDOT’s programs with USDOT federal financial assistance.

Applicability

All MnDOT employees working on federally assisted projects must comply with this policy.

Key stakeholders with responsibilities under this policy include:

Commissioner
DBE Liaison Officer/Policy Owner
Office of Civil Rights

Definitions

These definitions are adopted from 49 CFR part 26.5.

Disadvantaged Business Enterprise or DBE

A for-profit small business concern—

That is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged; and
Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.

DOT-assisted contract

Any contract between MnDOT and a contractor (at any tier) funded in whole or in part with DOT financial assistance, including letters of credit or loan guarantees, except a contract solely for the purchase of land.

Recipient

Any entity, public or private, to which DOT financial assistance is extended, whether directly or through another recipient, through the programs of the Federal Aviation Administration (FAA), Federal Highway Administration (FHWA), or Federal Transit Administration (FTA), or that has applied for such assistance.

Small business concern

With respect to firms seeking to participate as DBEs in DOT-assisted contracts, a small business concern as defined pursuant to section 3 of the Small Business Act and Small Business Administration regulations implementing it (13 CFR part 121) that also does not exceed the cap on average annual gross receipts specified in 49 CFR part 26.65(b).

Socially and economically disadvantaged individual

According to the U.S. DOT, any individual who is a citizen (or lawfully admitted permanent resident) of the United States and who a certifier finds to be socially and economically disadvantaged on a case-by-case basis. A determination that an individual is socially and economically disadvantaged must not be based in whole or in part on a presumption based on race or sex. For that reason, all owners may qualify as socially and economically disadvantaged only if they can meet the relevant criteria described in 49 CFR part 26.67.

Responsibilities

Commissioner

Review and approve this policy.
Ensure the senior leadership and agency staff understand and implement the requirements of the policy.

DBE Liaison Officer/Policy Owner - Director, Office of Civil Rights

Review the policy every 2 years, or sooner as necessary, to ensure the policy remains up to date.
Monitor federal law that applies to the policy or procedures.
Ensure documents or training associated with the policy remain current and are integrated into MnDOT programs, projects, and planning.
Consult with the Office of Chief Counsel to ensure the policy and procedures remain compliant with all state, federal, enterprise, agency, or other requirements.
Ensure that necessary approvals by state or federal agencies are obtained before changes to the policy or procedures are implemented.
Work with the Policy Coordinator to revise the policy and/or confirm its accuracy.
Communicate policy revisions, reviews, and retirements to stakeholders.

MnDOT Policies