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Guide to FHWA Funded Wrap-Up Projects

III. Disadvantaged Business Enterprise Participation

All federal-aid projects, regardless of system or "state-approval" status, are subject to the legislative and regulatory DBE requirements. The main objective of the federal Disadvantaged Business Enterprise Program is to ensure that DBE firms have an opportunity to participate in DOT funded contracts.

  1. Definition - A (DBE) is a for-profit small business that is:
    1. At least 51 percent owned by one or more individuals who are socially and economically disadvantaged.
    2. Managed by one or more of the socially and economically disadvantaged individuals who own it.
  2. Participation Requirements

    The DBE participation requirements in Federal-aid highway contracts are contract provisions like any other contract provisions (i.e., predetermined minimum wage, Buy America provisions, and statements and payrolls, etc.), and should be administered as such.

  3. References
    • "DBE Program Administration Manual" (HIPA-30)
    • 49 CFR Part 26 (DBE Regulations)
    • 49 CFR Part 21 (Title VI Regulations)
    • 23 USC 140(c)
    • 23 CFR 200 & 230
  4. Benefits to DBEs

    A wrap-up is both a race-neutral and race-conscious program to increase DBE participation on DOT projects. Wrap-ups help to level the playing field by eliminating or reducing conventional insurance expenses that for DBEs tend to be higher than those expenses for large contractors.In addition to the opportunity to work on construction projects, wrap-ups also provide these firms with work experience references, recordkeeping experience and project safety training.

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Updated: 04/07/2011

United States Department of Transportation - Federal Highway Administration