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 professional services and construction industry by a wide variety of firms 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. The Federal Highway Administration (FHWA) has determined a LG must operate under TxDOT’s DBE program 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 AFA executed by both parties. LGs are encouraged to contact TxDOT’s Civil Rights Division for assistance. Guidance may also be found at USDOT’s Office of Small and Disadvantaged Business Utilization Office.

The LG must implement TxDOT’s DBE program and coordinate closely with the TxDOT district. This includes TxDOT pre-approval of procurement procedures and sub-agreements and periodic LG reporting requirements. Additional guidance and references to federal and state regulations related to DBE, HUB and SBE programs may be found in .