How to meet a Caltrans DVBE goal

Check which program the contract uses

Section 2-1.22 (DVBE) applies only to non-federal-aid contracts. Federal-aid contracts use section 2-1.20 and a DBE goal instead, and DVBE participation does not count toward a DBE goal. The Notice to Bidders and the goal shown on the advertisement tell you which one you are bidding.

Projects estimated over $5 million follow section 2-1.22C: there is no mandatory DVBE goal, but DVBE participation of 1% or more earns a bid-comparison incentive (see the incentive guide).

Know what counts toward the goal

The Caltrans Construction Manual (8-405A) states that DVBE subcontractors, suppliers and truckers receive full participation credit as long as they perform a commercially useful function. A DVBE supplier quoting materials you would buy anyway — signs and sign hardware, erosion control, traffic control devices, PPE, fasteners, tools, jobsite consumables — is often the fastest way to reach the goal without restructuring your subcontracting plan.

Section 2-1.22B also tells bidders to make work available to DVBEs and to select work parts consistent with the DVBE subcontractors and suppliers that are available.

Bid-day and post-bid checklist

From sections 2-1.22B and 2-1.33 of the 2025 Standard Specifications:

• Subcontractor List — due at time of bid. List every 1st-tier DVBE subcontractor regardless of its percentage of the total bid.
• Small Business/DVBE/DBE Certification Status form — due at time of bid.
• Certified DVBE Summary (DES-OE-0102.5) — list all DVBE participation. Due no later than 4 p.m. on the 4th business day after bid opening.
• A copy of each listed DVBE’s quote, describing the type and dollar amount of work shown on the Summary — same 4th-business-day deadline.
• If you use a DVBE joint venture, submit the joint venture agreement with the Summary.

Get the DVBE quote before bid day

Because the quote has to back up the dollar amount on the Certified DVBE Summary, get a written quote that names the items and extended amounts before you finalize your number. Tower turns bid-day material quotes around same day and itemizes them against the Caltrans bid item list so they line up with your Summary.

Plan to meet the goal outright. Section 2-1.22B says to meet the goal shown on the Notice to Bidders, and per Construction Manual 8-4, if the low bidder has neither met the requirement nor shown good faith efforts to do so, Caltrans may award to the next low bidder.

After award: keep the participation you committed

Per Construction Manual 8-4, you may not remove or substitute a listed DVBE without written consent from Caltrans. A DVBE must be replaced with another DVBE unless there is a demonstrated absence of available DVBEs, and Caltrans must get approval from DGS before the substitution proceeds.

At completion you submit Form CEM-2402S, Final Report — Utilization of Disabled Veteran Business Enterprises, showing actual amounts paid, firm names and payment dates for every DVBE used. Keep invoices and proof of payment from your DVBE supplier organized as you go.