49 C.F.R. § 26.65

Business size determinations

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(a) By NAICS Code. A firm (including its affiliates) must be a small business, as defined by the Small Business Administration (SBA). The certifier must apply the SBA business size limit in 13 CFR part 121 which corresponds to the applicable primary industry classifications (NAICS codes). The firm is ineligible when its affiliated “receipts” (computed on a cash basis), as defined in 13 CFR 121.104(a) and averaged over the firm's preceding five fiscal years, exceed the applicable SBA size cap(s).

(b) Statutory cap. Even if a firm is a small business under paragraph (a) of this section, it is ineligible to perform DBE work on FHWA or FTA assisted contracts if its affiliated annual gross receipts, as defined in 13 CFR 121.104, averaged over the firm's previous three fiscal years exceed $30.72 million (as of March 1, 2024). The Department will adjust this amount annually and post the adjusted amount on its website available at https://www.transportation.gov/DBEsizestandards.

[89 FR 24970, Apr. 9, 2024; 89 FR 55089, July 3, 2024]

Notes of Decisions

Cited in 5 cases, 2000–2015 · leading case: Dunnet Bay Constr. Compan v. Erica J. Borggren, 799 F.3d 676 (7th Cir. 2015).

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Dunnet Bay Constr. Compan v. Erica J. Borggren, 799 F.3d 676 (7th Cir. 2015). · cites it 2× “” 49 C.F.R. § 26.65 (b) (2009). States must set an overall goal for DBE participation in federally assisted contracts.”

Midwest Fence Corp. v. United States Dep't of Transp., 84 F. Supp. 3d 705 (N.D. Ill. 2015). · cites it 2× “49 C.F.R. § 26.65 ; 13 C.F.R. § 121.201 .”

Adarand Constructors, Inc. v. Slater, 228 F.3d 1147 (10th Cir. 2000). · cites it 2× “001 (2000); 49 C.F.R. §§ 26.65 , 26.67(b) (2000) (providing for an individual net worth limit for DBE certification).”

Geod Corp. v. New Jersey Transit Corp., 746 F. Supp. 2d 642 (D.N.J. 2010). “§ 682 ; 49 C.F.R. § 26.65 . “Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.”

N. Contracting v. State of Illinois, 473 F.3d 715 (7th Cir. 2007). “See 49 C.F.R. § 26.65 (b). NCI is not a DBE. It is not owned by women or members of any racial minority group.”

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