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Disadvantaged Business Enterprise (DBE) Definition. A DBE is defined as a business that is owned
and controlled by one or more socially and economically disadvantaged person(s). For the purpose of this
definition:
A. “Socially and economically disadvantaged person” means an individual who is a citizen or lawful
permanent resident of the United States and who is a Woman, Black, Hispanic, Portuguese, Native
American, Asian American, or a member of another group, or an individual found to be
disadvantaged by an individual determination of social disadvantage as described in 49 CFR 26
appendix E, determinations of social and economic disadvantage.
B, “Owned and controlled” means a business which is:
(1) A sole proprietorship legitimately owned and controlled by an individual who is a disadvantaged
person,
(2) A partnership, joint venture or limited liability Company in which at least 51% of the beneficial
ownership interests is legitimately held by a disadvantaged person(s).
(3) A corporation or other entity in which at least 51% of the voting interest and 51% of the
beneficial ownership interests are legitimately held by a disadvantaged person(s).
The disadvantaged group owner(s) or stockholder(s) must possess control over management, interest in
capital, and interest in earnings commensurate with the percentage of ownership. Disadvantaged
participation in a joint venture must also be based on the sharing of real economic interest and must
include proportionate control over management, capital, and earnings, as above. If the disadvantaged
group ownership interests are real, substantial and continuing and not created solely to meet the
requirements of this program, a firm is considered a bona fide DBE.
Certified DBE Directory. The current New Hampshire Unified Disadvantaged Business Enterprise
(DBE) Directory is available online at www.nh.gov/dot. This directory contains all currently certified
DBE’s available for work in New Hampshire, and is updated monthly. Only firm’s listed in this directory
are eligible for DBE credit on NH Federal-aid projects. If you have questions about DBE certification, or
do not have access to the Internet, please call the DBE Coordinator at (603) 271-6612 for assistance,
Counting DBE Participation For Project Goals. In order for payments made to DBE contractors to be
counted toward DBE goals, the DBE contractors must perform a commercially useful function (CUF).
The DBE must be responsible for execution of the work of the contract and must carry out its
responsibilities by actually performing, managing, and supervising the work involved, consistent with
standard industry practices. This means that:
A. The DBE must also be responsible for ordering its own materials and supplies, determining quantity
and quality, negotiating price, installing (where applicable) and paying for the material itself;
B, The DBE must perform work commensurate with the amount of its contract;
C. The DBE’s contribution cannot be that of an extra participant or a conduit through which funds are
passed in order to obtain the appearance of DBE participation;
D. The DBE must exercise responsibility for at least fifty percent of the total cost of its contract with its
own work force;
E. None of the DBE’s work can be subcontracted back to the Prime Contractor, nor can the DBE employ
the prime’s, or other subcontractor’s supervisors currently working on the project;
F. The DBE’s labor force must be separate and apart form that of the Prime Contractor or other
subcontractors on the project. Transferring crews between primes, subcontractors, and DBE
contractors is not acceptable;
