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ODOT to evaluate expanding SBE eligibility to include DBEs

The Ohio Department of Transportation (ODOT) is launching a pilot program in late spring or early summer of 2025 to explore using Small Business Enterprise (SBE) goals on ODOT's heavy highway projects. Previously, SBE certification was reserved primarily for firms that could compete as prime contractors on heavy highway design and construction projects.

In order to promote opportunities for firms that could potentially have subcontracting opportunities on these SBE pilot projects, ODOT will begin evaluating the eligibility of certified DBE firms, based on NAICS codes and gross receipts, for SBE certification. DBEs who are currently certified with ODOT may receive a notice in the coming weeks that they have been awarded SBE certification or that they are potentially eligible, but that ODOT will need to request additional information to verify their gross receipts.

Currently, ODOT SBE certification size standards are as follows: $22.5 million gross receipts cap for "construction & material supply", and $12.25 million gross receipts cap for "engineering, design, and inspection-related industries".

Firms not identified as eligible by ODOT in the initial rounds of certification based on NAICS codes will be given the opportunity to request this designation with additional reviews. Certification will still require a firm to be able to participate in heavy highway-related projects. Firms that cannot provide a good or service directly on roads, bridges, and highway projects do not qualify.

DBEs are instructed by ODOT to take note of the fact that the SBE program requires an annual Declaration of Eligibility (DOE), just like the DBE program. The DOE for SBE firms is aligned with the due date for their DBE DOE, so no additional burdens are added to the firm with this additional certification.

More information about the SBE goal pilot program and the projects selected for the pilot are set to be announced soon. A Notice to Industry will be released in mid-April of 2025. In the meantime, if DBEs have questions, they are instructed to contact the ODOT Certification Section at DOT.SDBE@dot.ohio.gov.