Small Business Program Information

MnDOT Office of Civil Rights administers three programs designed to assist women, minority, and/or socially and economically disadvantaged small businesses in contracting opportunities on MnDOT projects. The project funding determines which programs and goals apply.

Federally funded contracts

Disadvantaged Business Enterprise

MnDOT's DBE Program was established by the federal government to ensure women- and minority-owned businesses have the opportunity to participate in contracts financed in whole or in part by the U.S. Department of Transportation.

As a condition of receiving federal funds, MnDOT must establish an annual statewide goal for DBEs to participate over the next three years. MnDOT's annual goal for 2022–2024 is 12.6% of the sum of all FHWA-funded contracts to be performed by DBEs and 6.8% of the sum of all FTA-funded contracts to be performed by DBEs.

Reports

Proposed goal FFY2025-2027

MnDOT is in the process of calculating the proposed three-year DBE goal for FFY 2025-2027. Learn more about the proposed goals.

The participation goal is a percentage of the contract that is targeted for certified DBE firms to perform on the project. The Office of Civil Rights evaluates each proposal for participation goals on federally funded MnDOT projects or contracts before the project is advertised. The DBE participation goal considers the location, scopes of work to be performed and availability of DBE firms.

To be awarded a contract with a DBE participation goal, the apparent low bidder must:

Meet the DBE participation goal, or
Demonstrate adequate good faith efforts to meet the goal.

Apparent low bidder can get credit toward DBE goals by subcontracting work to DBEs, purchasing supplies from DBEs, and other methods detailed in the DBE Special Provisions (PDF).

Not all projects are required to have DBE goals. Smaller projects that are federally funded may not have a DBE participation goal and are considered race/gender-neutral contracts. These contracts are still monitored for DBE participation. The DBE Special Provisions outline the requirements and details for contract DBE goals.

State-funded contracts

Targeted Group Business and Veteran-Owned Small Business Programs

MnDOT’s TGB and Vet Programs provide small businesses with increased access to state-funded contracting opportunities.

When bidding as a prime contractor, certified Targeted Group Businesses and Veteran-Owned Small Businesses may receive a preference of up to 6% of the amount of its bid, not to exceed $120,000. To receive the preference, the small business must be certified as a TGB or Vet before the date and time set for opening the proposal. Starting Aug. 1, 2024, certified Targeted Group Businesses and Veteran-Owned Small Businesses may receive a preference of up to 12% of the amount of its bid, not to exceed $240,000, when bidding as a prime contractor.

To request this preference, the bidder must complete and submit theTGB/Vet preference form (PDF) prior to the deadline for proposals. This form must be submitted to MnDOT no later than the specified deadline for proposals.

The contractor may use one of the following means to submit their completed TGB/Vet preference form:

Email the form to biddocsubmittal.dot@state.mn.us and place the proposal number and state project number in the subject line.

On a contract, the TGB and Vet participation goal is a percentage of the contract that is targeted for firms to perform on the project. The Office of Civil Rights evaluates each proposal for TGB and Vet participation goals on state funded MnDOT projects or contracts before the project is advertised. The participation goal considers the location, scopes of work to be performed and availability of certified firms.

To be awarded a contract with a TGB or Vet participation goal, the apparent low bidder must:

Meet the TGB/Vet participation goal, or
Demonstrate adequate good faith efforts to meet the goal.

Certified TGB firms can receive credit toward TGB goals, and certified Vet firms can receive credit toward Vet goals. If a company is certified as a TGB and Vet firm, it can receive credit toward the TGB goal or the Vet goal, but not both for the same scope of work. See theTGB/Vet Special Provisions (PDF) or requirements and details.

Good faith efforts toward meeting a DBE, TGB or Vet goal

Program regulations governing the DBE, TGB and Vet Programs require that a bidder must meet the project goal or make adequate good faith efforts toward meeting the goal. Bidders who fail to meet the requirements are deemed non-responsible. Program regulation allows the bidder the opportunity for an administrative reconsideration of the determination.

The administrative reconsideration is an informal hearing before a Reconsideration Panel which acts as the MnDOT official. The panel is comprised of independent MnDOT personnel who were not involved in the determination that the contractor was a non-responsible bidder. The Reconsideration Panel reviews the good faith efforts of the bidder.

Read administrative reconsideration panel decisions (PDF).