Small Business FAQs
DBE Certification
The DBE Program is a legislatively mandated USDOT program that applies to Federal-aid highway dollars expended on federally assisted contracts issued by USDOT recipients such as the Texas Department of Transportation (TxDOT).
A Disadvantaged Business Enterprise is a for-profit small business:
That is at least 51 percent owned and operated by one or more individuals who are both socially and economically disadvantaged.
The owner(s) personal net worth must not exceed $2,047,000; the firm’s average 3-year gross receipts must not exceed $30,072,000.
Firms are not required to be DBE certified prior to working on a TxDOT project, however if the project has a DBE goal, having the DBE certification may be helpful.
Firms interested in DBE certification may apply online through the Diversity Management System (DMS).
Certified DBEs must submit a Declaration of Eligibility each year on the anniversary of the firm’s certification confirming the firm still meets the eligibility standards. DBEs are certified for life unless they are decertified in accordance with 49 CFR Part §26.87 and given due process.
NAICS stands for North American Industry Classification System (NAICS). NAICS codes are the Federal standard used to determine the type of work performed.
Visit the official NAICS website and use the search function to enter keywords or the 2–6-digit code related to your business.
On your dashboard within DMS you will find an Expansion Request form. Include the additional codes you would like to add and attach supporting documentation (purchase agreements, resume, contracts, invoices) showing you can provide the products or services in those new codes. When completed, submit the form for review.
DBE Compliance
Yes, prime contractors report payments to DBEs using the online Diversity Management System (DMS). DBEs confirm receipt of the payment and the amount in DMS.
The DBE receives payment from the prime contractor or the entity with which it has entered into a subcontract agreement or purchase order.
The prime contractor is contractually obligated to pay subcontractors for work performed within 10 days after receiving payment from TxDOT.
Subcontractors must pay any suppliers or 2nd tier subcontractors within 10 days after receiving payment from the prime contractor.
Follow the escalation ladder for the project, initiating a conversation with the area engineer for that project. It is also recommended to file a claim on the prime contractor's payment bond.
A contractor must pay any retainage on a subcontractor’s work within 10 days after satisfactory completion of all work. See Item 9, Section 9 in the 2024 Standard Specification Book for more information.
A CUF review is performed to assure the DBE is carrying out its responsibilities by performing, managing, and supervising the work included in the contract.
Yes, each construction contract includes a Special Provision to Item 7, mandating electronic submission of all certified payrolls. For more information, please view the LCPtracker frequently asked questions.
Construction letting process
Yes, a DBE can be a prime contractor.
Bid letting is the monthly statewide posting of construction and maintenance jobs that are open to receive bids. TxDOT will award the contract to the lowest bidder.
TxDOT conducts its statewide low-bid construction and maintenance contract letting in Austin on two consecutive days each month.
A DBE only needs to be prequalified if they are working on a project as a prime contractor.
Yes. TxDOT requires prime contractors and subcontractors to be registered and remain active in the Department of Homeland Security’s E-Verify Program throughout the contract.
Yes. You can subscribe to receive bid information and letting updates.
Contract letting provides a list of upcoming construction projects and other helpful information.
Yes, DBE prime contractors must be bonded at the time of contract execution. DBEs performing as a subcontractor are not required to be bonded, but some prime contractors may request a bond.
TxDOT requires proof of insurance including workers’ compensation, commercial general liabilities, and Texas business automobile insurance prior to contract execution and throughout the life of your contracts.
Yes, the 2024 Standard Specifications for Construction and Maintenance of Highways, Streets, and Bridges are available online.
Looking for work
Search the Electronic State Business Daily, reach out to your local TxDOT office and ask about upcoming projects, or contact the Business & Community Engagement Team for a one-on-one meeting.
To sell directly to TxDOT, material suppliers must first obtain approval from the Maintenance Division to ensure their products meet specifications. You can explore opportunities through the Electronic State Business Daily. Prime contractors are also a valuable avenue for collaboration, as they frequently require specific materials for their projects.
You can find opportunities on Bonfire and the Electronic State Business Daily. We also suggest that you attend Consultant Information Meetings.
TxDOT uses qualification-based selections to procure engineering, architectural, and surveying services. Prior to being awarded a professional services contract with TxDOT:
- Firms must file with the Secretary of State.
- Firms must register with Texas Comptroller of Public Accounts.
- Firms must be precertified.
- Firms must become administratively qualified.
The PEPS Division hosts trainings and fireside chats periodically. The schedule of upcoming events, as well as presentations and recordings from past events, are found on the PEPS Division training and events page. Additionally, the PEPS Division has a statewide service center designed to provide one-on-one support.
You can explore opportunities on the Electronic State Business Daily and register on the Centralized Master Bidders List. More information about selling goods and services can be found online.
Search for prime contractors on the Bidders List Index.
Explore projects in your area.
View bids submitted for projects on the Bid Tabulations dashboard.
Yes, you can find a dashboard of the single-bid and no-bid projects online.
I got my first job. Now what?
It is recommended that you attend pre-construction meetings. These meetings will include the project timeline, job requirements, scope of work and introduce you to the contractors involved. You can find the meeting dates by reaching out to the TxDOT area office for the project.
All documents listed in the Contractor’s Assurance Section of the proposal should be included in the contract, along with the Scope of Work and relevant contracting language.
Additional resources
Under the Do Business tab on the website homepage, you will find links for a variety of project related information.
Civil Rights Division has programs that can connect you with candidates who are ready to work. Reach out to our Business & Community Engagement Team for more information.
Yes, if you are in engineering, architectural, or surveying consultant industries, the PEPS Division has a mentor-mentee program called DRIVE (Diverse Relationships of Informative Value Exchange).
Additionally, the TxDOT Mentor-Protégé Program helps HUB certfied vendors grow and secure state contracts, while mentors benefit by finding subcontractors and meeting HUB requirements. For more information, contact our HUB team.
Certainly! Reach out to our Business & Community Engagement Team. We're here to help!