Small Business Development

Small Business Development

DBE Interim Final Ruling (IFR) Update

Where are we now?
The Kentucky Transportation Cabinet (KYTC) is continuing the re-evaluation of previously certified Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) firms in accordance with the IFR.

Are DBE Applications Open?
KYTC is now accepting Interstate applications.

What happens if my firm has been Re-Evaluated?
If your firm has successfully completed the re-evaluation process with KYTC, your firm will be listed on the KYTC DBE Directory. However, the Kentucky Transportation Cabinet (KYTC) will not establish DBE contract goals until the re-evaluation process has been fully completed.

When will DBE goals resume?
Project specific DBE goals will resume once the applicable Federal Requirements have been satisfied and KYTC receives the necessary approvals.

Disadvantaged Business Enterprise (DBE) Program

If the firm has no intention of participating or bidding on DOT-assisted contracts or airport concessions contracts, KYTC recommends that you consider whether pursuing DBE/ACDBE certification is appropriate for your firm.

Should I Apply?

The Kentucky Transportation Cabinet encourages businesses to apply for DBE certification with the intention to bid work as a prime or subcontractor on DOT-assisted contracts or airport concessions contracts. This includes construction and non-construction work in the transporation industry.

To qualify as a DBE, a business must meet the following criteria:

Must be an existing “for-profit" business that is currently operational;
Must meet the federal definition of a small business concern;
Must be an independent business which does not depend on its relationships with another firm or firms. If it is a subsidiary of a corporation, the business must still operate in a self-sufficient manner;
The qualifying owner(s) must meet the federal definition of "socially and economically disadvantaged" individuals;
The qualifying owner(s) must own a minimum of 51% of the company; and have an investment in their company;
The qualifying owner(s) cannot have a net worth that exceeds the PNW cap as defined by 49 C.F.R. §23 and §26 (excluding the owner's business, primary residence, and retirement accounts);
The qualifying owner(s) must have day-to-day control of operations and possess an expertise in their work specialty.

How to Apply for DBE Status in Kentucky

The DBE certification process differs depending on if a firm is already DBE certified in other states. Certifying agencies are required to follow the Code of Federal Regulations (CFR) outlined in 49 CFR §23 and/or 49 CFR §26.

First Time Applicants

First time applicants applying for DBE certification must complete and submit the Unified Certification Application (UCA) and supporting documentation, then participate in an on-site interview conducted by the agency. If you fail to submit the required documents, your application may be delayed and/or denied. Firms already certified as a DBE in another state will need to follow the DBE Interstate Application process.

Businesses interested in becoming certified as a DBE and/or ACDBE can submit an application online at: KYTC Online DBE/ACDBE Application.

DBE Interstate Application

Firms that are already certified as a DBE in their state of Jurisdiction of Original Certification (JOC), are required to follow the Interstate Certification expectations as outlined in 49 CFR §26.85 of the Code of Federal Regulations. You MUST provide:

A Cover Letter - that specifies that the DBE is applying for interstate certification, identifying all UCPs in which the DBE is certified (including the UCP that originally certified it);
An Electronic Image - of the UCP directory that shows the DBE certification*;
A New Declaration of Eligibility (DOE).

Apply online at: KYTC Online DBE Interstate Application

What Happens Once I am a DBE?

Once you are certified as a DBE/ACDBE, your firm is placed our statewide directory. This directory is not a guarantee that you will get KYTC work. To maintain your DBE certification, you must submit annual documentation and comply with three-year certification reviews.

Annual Declaration of Eligibility

It is the DBEs responsbility to notify its certifying agency within 30 days of any change that can impact a firms eligibility. DBEs must also annually affirm that there have been no changes.

Report changes are required within 30 days of the occurence of the change:

Changes in a firm's circumstances affecting its eligibility, or material changes in the information provided in the firm's application form;
Submission of the Declaration of Eligibility (DOE) and most recent Federal tax return on the anniversary date of the firm's certification;
Work code change/expansion requests;
Notification of address, phone, or other contact information changes; and
Withdrawal of certification

Failure to notify your certifying agency of changes or failure to submit and Annual Declaration of Eligibility within the required time frame is deemed a failure to cooperate and is grounds for removal of a firm's certification.

Submit the DBE/ACDBE Annual Declaration of Eligibility online at: KYTC Online DBE Annual Declaration of Eligibility.

Three-Year Certification Review

In accordance with 49 CFR 26.83(h), it is the KYTC’s policy to conduct a review process for all certified firms. A review of the certified firm will be performed every three (3) years of certification beginning from the date of the initial notice of certification.

Submit the DBE/ACDBE Three-Year Review online at: KYTC Online DBE Three-Year Review.

Clarifications Related to DBE Contractor Compliance

Prime contractors and consultants must continue to comply with all existing DBE requirements (IFR; FAQ Section B). These include:

Prompt payment (§26.29)
Termination protections (§26.53(f))
Nondiscrimination requirements (§26.13)

The FAQ also states that CUF reviews are not required while DBE counting is paused (FAQ Section B). If a DBE used on a contract is not recertified, the recipient (the public agency that holds the federal funds and administers the contract, such as the State DOT or local agency) must take appropriate action, such as modifying the contract or adjusting DBE commitments (§26.111; FAQ Section B).

The FAQ clarifies that the reevaluation process does not interrupt contract performance and that FHWA will not participate in delay claims related to reevaluation (FAQ Section B). Contractors should ensure their DBE subcontractors respond promptly to UCP requests and be prepared for adjustments if DBE eligibility changes.

DBE Reciprocity

The Kentucky Transportation Cabinet has established a DBE reciprocity agreement with Indiana DOT for statewide projects allowing DBEs certified in either Kentucky or Indiana to be used for any transportation federal aid project in the partner state. For the most up to date list of DBE's certified in Indiana please click here: Indiana DBE Directory.

There is also an agreement with Ohio DOT exclusively for the Brent Spence Bridge Project.

DBE Reciprocity Agreements - please click here:

Small Business Enterprise (SBE) Program

The Kentucky Transportation Cabinet's SBE Program is administered by the Office for Civil Rights and Small Business Development. The certification criteria are the same as those used for the DBE program, but applicants are evaluated without regard to the social disadvantage component of eligibility.

Firms certified as a DBE by the Cabinet will automatically be certified as an SBE unless they choose to opt out of the SBE program.

How to Apply for SBE Status in Kentucky

First Time Applicants

First time applicants applying for SBE certification must complete and submit the Small Business Enterprise Application and supporting documentation. If you fail to submit the required documents, your application may be delayed and/or denied.

Businesses interested in becoming certified as a SBE can submit an application online at: KYTC Online SBE Application.

What Happens Once I am a SBE?

Annual Declaration of Eligibility

It is the SBEs responsbility to notify its certifying agency within 30 days of any change that can impact a firms eligibility. SBEs must also annually affirm that there have been no changes.

Report changes are required within 30 days of the occurence of the change:

Changes in a firm's circumstances affecting its eligibility, or material changes in the information provided in the firm's application form;
Submission of the annual SBE Affidavit and most recent Federal tax return on the anniversary date of the firm's certification;
Work code change/expansion requests;
Notification of address, phone, or other contact information changes; and
Withdrawal of certification

Failure to notify of changes or failure to submit an Annual SBE Affidavit within the required time frame is deemed a failure to cooperate and is grounds for removal of a firm's SBE certification.

Three-Year Certification Review

SBE certification is valid for three (3) years from the date of initial certification. KYTC will notify you of upcoming renewals and it is the firm's responsibility to submit the required documentation. If you are also DBE/ACDBE certified, the SBE review will take place during the DBE/ACDBE review.

Submit the SBE Three-Year Review online at: KYTC Online SBE Three-Year Review.

Supportive Services

The Kentucky Transportation Cabinet provides supportive services to DBEs conducting business with or seeking to conduct business with KYTC. Supportive Services are designed to contribute to the growth and business efficiency of DBEs so that they may achieve proficiency in competing for contracts and subcontracts. For more information, please visit the CEI Supportive Service webpage.