DVBE vs DBE: which goal applies to your bid

California primes run into two different participation programs that sound alike but do not mix: the state DVBE program and the federal DBE program. Listing the wrong kind of firm can leave you short on a goal you thought you met.

Side by side

DVBE — Disabled Veteran Business Enterprise. California program under Mil & Vet Code §999. Certified by DGS Office of Small Business and DVBE Services. Used on state-funded (non-federal-aid) Caltrans contracts, section 2-1.22, and on state agency contracts.
DBE — Disadvantaged Business Enterprise. Federal program under 49 CFR Part 26. Certified through the California Unified Certification Program (CUCP). Used on federal-aid Caltrans contracts, section 2-1.20.

Credit for suppliers is different

On DVBE contracts, Caltrans gives DVBE suppliers full participation credit as long as they perform a commercially useful function (Construction Manual 8-405A).

On DBE contracts, 49 CFR 26.55 and section 2-1.20 set supplier tiers: materials from a DBE manufacturer count 100%, from a DBE regular dealer 60%, and from other DBE suppliers only the fees or commissions count. Those tiers apply only to DBE-certified firms.

They do not substitute for each other

A DVBE that is not also DBE-certified counts nothing toward a federal-aid DBE goal, and a DBE that is not DVBE-certified counts nothing toward a state DVBE goal. Some firms hold both certifications — check each one on the right registry before you list it.

Tower Sales and Consulting (Tower DVBE) is DVBE and Small Business (Micro) certified. We are not DBE-certified, so we are a fit for DVBE goals and the DVBE incentive, and we will tell you up front when a contract’s goal is DBE.

How to tell on a Caltrans advertisement

The goal line on the advertisement and Notice to Bidders names the program: a DVBE goal or DVBE participation incentive means section 2-1.22; a DBE goal means a federal-aid contract under section 2-1.20. Our Caltrans project pages label every contract accordingly.

Common questions

Does a DVBE count toward a DBE goal?

No. DBE goals on federal-aid contracts count only DBE-certified firms certified through the CUCP. A DVBE counts only if it is separately DBE-certified.

Where do I verify DVBE and DBE certification?

DVBE and California Small Business certifications are on Cal eProcure (caleprocure.ca.gov). DBE certifications are in the California Unified Certification Program (CUCP) directory.

Sources

General information for bidders, not legal advice. Always follow the Notice to Bidders and special provisions for your contract.