Project Goal-Setting Methodology

Determination of DBE Goals on Projects

Federal regulations (49 Code of Federal Regulations 26.45) require the establishment of an overall Disadvantaged Business Enterprise (DBE) goal based on demonstrable evidence of the availability of ready, willing, and able DBEs to participate on DOT-assisted projects. 

In order to attain the aforementioned goal, all projects are individually evaluated, with DBE goals established only on those projects having DBE-subcontracting possibilities.

Project goals are expressed as a percentage of the total amount of a U.S. Department of Transportation (USDOT) assisted contract. The following methodology will be utilized:

Guidelines for Determining DBE Goals on Projects

  1. Obtain estimate, including the location of the project by coordinates, the estimated cost of each item to be constructed and the estimated total contract value.
  2. Verify the location of the project and obtain and verify the names and locations of DBEs who are currently certified and prequalified to perform work for VDOT, and are ready, willing and able to perform on the contract.
  3. Analyze the estimate for items potentially constructible by DBEs.
  4. Calculate the total value (sum) of the selected items.
  5. Calculate the total percentage of the gross (unadjusted) DBE goal for the project
    • Example
      • Total Dollar Value of Selected Items divided by Total Dollar Value of the Contract = DBE Goal Percentage

6.   Analyze the results of this calculation, considering:

  • On-going projects approaching completion, newly awarded projects, currently advertised projects and projects proposed for advertisement
  • Historical performance of prime contractors on similar projects
  • Type of work activities considered
  • Cost (dollar value) of the work activities considered
  • Availability of DBEs who are ready, willing and able to bid on the project under consideration for goals

7.   Adjust the goals in accordance with the results of the aforementioned analysis.

Page last modified: Oct. 30, 2019