The federal and state programs for disadvantaged business enterprises (DBE), historically underutilized businesses (HUB) and small business enterprises (SBE) have been developed to encourage participation in the construction industry by a wide variety of contractors and therefore expand diversity in the industry.

All federal-aid projects are subject to the DBE requirements. The U.S. Department of Transportation (USDOT) must approve each state’s DBE program and its annual goals to ensure compliance with all DBE program requirements. FHWA has determined a LG must operate under TxDOT’s even if it has its own program already approved by USDOT. Participation in TxDOT’s approved DBE program is accomplished through a provision in the advance funding agreement (AFA) executed by both. LGs are encouraged to contact TxDOT’s for assistance, as well as review the Local Government DBE Compliance and Monitoring Guide manual. Guidance may also be found at USDOT’s .

The LG must implement an appropriate DBE program and coordinate closely with the TxDOT district. Details regarding the application of DBE, HUB and SBE programs that must be followed and properly documented during the project are found in of this Manual and in Chapter 9 of the .