Economic development, Disadvantaged Business Enterprise Program

The Disadvantaged Business Enterprise (DBE) Program's goal is to increase participation of firms owned by disadvantaged individuals in all federal aid and state transportation facility contracts. The DBE program strives to ensure a level playing field and foster equal opportunity for firms owned and operated by disadvantaged individuals on USDOT-assisted contracts and procurements.

The program started with the Surface Transportation Assistance Act of 1982. The act set a national goal of placing at least 10% of federal highway and transit funds with persons who qualify as disadvantaged small business operators. A subsequent act in 1987 included women.

WisDOT invests between $600 and $700 million annually in federal and state dollars for highway, airport and transit projects. These funds translate into millions of dollars in transportation-related contracts and project work for DBE firms.

DBE Program role in economic development

Support of DBE firms helps Wisconsin's economy by encouraging capital development and job creation, especially in urban areas that have high minority unemployment. According to recent statistics, the 9.0% unemployment rate for minorities in Milwaukee County was more than twice the overall unemployment rate of 3.8%. The DBE program helps to eliminate the effects of historical discrimination by assisting small businesses owned and controlled by socially and economically disadvantaged individuals. From an economic perspective, it is important to increase the level of employment and income for all wage earners and businesses in order to have a healthier regional economy.

WisDOT created the Bureau of Equity and Environmental Services in 2003 to help guide and coordinate efforts to retain DBE firms and increase overall awareness of minority labor issues. Through BEES and other internal and external partners, the state is working to build expertise, ability and awareness in the DBE community to bid on a number of traditional and non-traditional contracts for the Marquette Interchange Project and other projects.

Case study

For the Marquette Interchange Project, DBE firms have already earned a significant portion of preliminary contracts:

For the Becher Street on-ramp contract (awarded January 13, 2004), the DBE share is 61% of the $349,000 total contract.
On the 28th Street on-ramp contract (January 13, 2004), DBE participation is 48% of the $277,000 total contract amount.
For work on realigning Clybourn Street (February 17, 2004), several DBE firms combined to account for 27% of the $8.86 million contract.
Finally, for landscaping on Clybourn Street, WisDOT awarded the $79,000 contract to a DBE firm as the prime contractor that will account for 78% of the contract.

For more information on DBE contracting in Wisconsin, see WisDOT's DBE Web page, or contact Michele Carter, Bureau of Equity and Environmental Services, (608) 266-6961.

DBE Training Session

Additional information about the DBE Program