Civil Rights

Oct. 23, 2025

DBE Interim Final Rule

The Disadvantaged Business Enterprise (DBE) program is a critical part of ensuring Minnesota has a broad and diverse base of contractors and subcontractors working on federally funded Minnesota Department of Transportation projects. On Oct. 3, the U.S. Department of Transportation announced significant changes to the DBE program and removed race- and gender-based presumptions that have helped small businesses qualify as DBEs since 1983.  

In order to comply with this new federal mandate, more than 1,300 businesses in Minnesota will need to be reevaluated and recertified by the Minnesota Unified Certification Program (MnUCP). We recognize the extraordinary burden this places on contractors, consultant partners, and staff at the agencies who participate in the MnUCP. According to the federal rule, MnDOT cannot set DBE goals on contracts or count DBE participation towards its annual goal until the MnUCP completes this process. 

MnDOT is taking the following actions to comply with this change and ensure federal funds are not put at risk: 

• For contracts already approved and executed, MnDOT will not remove the DBE goals, but also will not count participation until the recertification process is completed. Once the recertification is complete, MnDOT will resume counting participation. MnDOT understands that this interim period may make it difficult for contractors and consultants to achieve their DBE commitments, so contracts will be cleared on a good faith efforts basis as appropriate. Please note that the DBE Description of Work and Field Monitoring Report (Exhibit A) commits the responder to using the specified DBEs to perform work or supply materials. This commitment is binding on the responder unless the responder requests and is granted prior written approval from MnDOT Office of Civil Rights. MnDOT strongly urges prime contractors to follow through on DBE commitments.  
• For contracts already awarded before October 3 but not yet approved/executed, MnDOT will not remove the DBE goals, but also will not count participation until the recertification process is completed. Once the recertification is completed, MnDOT will resume counting participation. MnDOT understands that this “interim” period may make it difficult for contractors and consultants to achieve their DBE commitments, so contracts will be cleared on a good faith efforts basis as appropriate. Again, the Exhibit A commits the responder to using the specified DBEs to perform work or supply materials. This commitment is binding unless the responder requests and is granted prior written approval from MnDOT OCR. 
• For new contracts advertised/posted after October 3, MnDOT will not set numeric goals and will post addenda to remove goals from contracts posted on or after that date. MnDOT anticipates using a new “DBE Neutral” special provision, replacing what was previously called the “Race/Gender Neutral” special provision. 

It is important to note that the DBE program has not been eliminated and that certain obligations remain, such as prompt payment requirements and DBE substitution requirements. This change does not affect on-the-job training requirements, tribal requirements, or workforce goals. This change also does not affect Targeted Group Business goals on projects without federal funding.  

The MnUCP is committed to completing its review process as quickly as reasonably feasible. MnDOT will continue to review this direction from the federal government and assess options we have to successfully deliver a multimodal transportation system that maximizes the health of people, the environment, and our economy. Thank you for your continued support of small and disadvantaged businesses.  

Sincerely, 
Sean Skibbie
Director, Office of Civil Rights

Updated DBE Special Provisions effective for Feb. 26, 2025 letting

The Minnesota Department of Transportation Office of Civil Rights will be publishing the updated DBE Special Provisions with the MnDOT Letting taking place on February 26, 2025. The updated provisions will be effective for all projects let on and after February 26, 2025. A few of the updates in the special provisions include:

• DBE Documentation due on fifth day after letting (no time specified, can be submitted anytime on fifth day)
• Submissions due electronically via email only
• The updated credit category for distributor at 40% DBE credit
• Updated Exhibit A
• Regular dealer/distributor affirmation form

Contractors should continue to follow the special provisions that are published in any current lettings.

Special Provision links

• DBE Special Provisions
• Exhibit A
• DBE Regular Dealer/Distributor Affirmation Form

Disadvantaged Business Enterprise program

DBE Final Rule

On April 9, 2024, USDOT published the updated Final Rule for the DBE program under 49 CFR 26.  This rule went into effect on May 9, 2024.

1. MnDOT is working on the implementation plan for the updated regulations. 
2. There have not been changes to how MnDOT counts credit on project or collects data related to the DBE Final Rule at this time.
3. Our goal is to be open and transparent about any process changes on our end and provide our stakeholders with the resources to be compliant through training, documentation, and technical assistance.

Implementation of DBE Final Rule

Certification actions are being evaluated under the new rule.  Any decision made by the MnUCP will be reviewed by the USDOT using the new rule. 

Changes include (but are not limited to):

1. Increased Personal Net Worth (PNW) cap, adjusted for inflation
2. Certain assets excluded from PNW calculation
3. Five-year calculation for NAICS
4. Changes to decertification, appeal, summary suspension procedures
5. Audio recording required of onsite interview during certification actions
6. Expedited Interstate certification process
   A firm located outside the state of Minnesota must obtain certification from the jurisdiction of original certification (JOC) before seeking certification in Minnesota. The JOC is the state in which the firm maintains its principle place of business at time of application. If you are DBE-certified in your JOC and would like to become certified in Minnesota, please provide:
   1. A cover letter that specifies interest in applying for interstate certification and identifies all UCPs in which the DBE is certified including the JOC UCP
   2. An electronic image of the UCP directory of the original UCP that shows certification, and
   3. A new Declaration of Eligibility
      Email this to MnDOT Office of Civil Rights.
7. Annual Affidavit of Eligibility – “No Change” affidavit – sent out on firm’s anniversary date
8. Calculating supplier/distributor/broker DBE participation credit
   On Jan. 1, 2025, MnDOT will start counting DBE credit per the federal regulation updates to the regular dealer and new distributor category.
   
   • For more details on these updates, see 49 CFR 26.55(e).
   • For training slides, see DBE final rule training - regular dealer and distributor (PDF).

Additional Resource:

• https://www.transportation.gov/DBEFinalRule