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U.S. DOT announces it will broaden DBE eligibility

The United States Department of Transportation (DOT) has announced that it will raise the gross receipts cap on eligibility for businesses to participate in its Disadvantaged Business Enterprise (DBE) program. The effective date for the change is January 13, 2021.

Currently, DBEs must have gross receipts over an average of three years that do not exceed $23.98 million in order to maintain their eligibility for the program. After the change, this cap will be raised to $26.29 million. The raise in the gross receipts cap is in part due to the Fixing America's Surface Transportation (FAST) Act of 2015, which instructed the DOT to periodically adjust the gross receipts cap to reflect inflation.

This change is only applicable to federal-aid highway and transit programs under DOT, as the gross receipts cap was done away with entirely in 2018 for work on airport projects and programs. The latter type of work is subject to size limits under which the Small Business Administration (SBA) determines eligibility for its own programs, those being the NAICS size limits. While the U.S. Congress has not yet passed a similar removal of the gross receipts cap for highway and transit programs, if it were to do so, the annual cap for that type of work under NAICS standards would be $39.5 million.

Read more at https://www.govinfo.gov/content/pkg/FR-2020-12-14/pdf/2020-26549.pdf.