MBE/WBE/DBE Frequently Asked Questions

A Minority Business Enterprise (MBE) is a small business that is primarily owned, controlled, and managed by one or more individuals who are economically disadvantaged and who belong to a minority group. A Women Business Enterprise (WBE) is a small business that is primarily owned, controlled, and managed by one or more individuals who are economically disadvantaged and who are women.

 For a business to qualify as an MBE or WBE in Rhode Island, at least 51% of the business must be owned by one or more individuals who meet the following criteria: 

Control: The MBE/WBE owner(s) must control the day-to-day operations of the business and have decision-making authority. Further, their ownership of the business must be “real, substantial, and continuous.” See 220-RICR-80-10-1.7(A).

Economic Disadvantage: An MBE/WBE owner’s personal net worth cannot exceed $2,047,000. See 49 CFR 26.68.

Membership in a Minority Group: The State of Rhode Island defines a member of a minority as an individual who is a citizen of the United States or a lawful permanent resident, who belongs to one of the racial or ethnic groups listed below. See R.I. Gen. Laws § 37-14.1-3(e). (Note that women who apply for WBE certification do not need to belong to a minority group.)

• Black (a person having origins in any of the black racial groups of Africa);
• Hispanic (a person of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race);
• Portuguese (a person of Portuguese, Brazilian, or other Portuguese culture or origin, regardless of race);
• Asian American (a person having origins in any of the original peoples of the Far East, Southeast Asia, the Indian subcontinent, or the Pacific Islands);
• American Indian and Alaskan Native (a person having origins in any of the original peoples of North America); or
• Members of other groups or other individuals found to be economically and socially disadvantaged by the Small Business Administration under § 8(a) of the Small Business Act, as amended, 15 U.S.C. § 637(a).

The Disadvantaged Business Enterprise (DBE) program is a federal program administered by the United States Department of Transportation (USDOT). This program was designed to provide socially and economically disadvantaged owners of small businesses with a fair opportunity to compete for federally funded transportation contracts nationwide. 

DEDI is responsible for determining if a firm meets the eligibility requirements for certification as either a DBE, as detailed in 49 CFR 26, or Airport Concession DBE (ACDBE), as detailed in 49 CFR 23.

DBE certification is valid for USDOT federally assisted programs with the Federal Highway Administration (FHWA) and the Federal Transit Administration (FTA). The ACDBE certification is applicable to airport concessions for federally assisted programs under the Federal Aviation Administration (FAA). 

DBE and ACDBE certifications are valid for contracts in the State of Rhode Island with the RI Department of Transportation (RIDOT), Rhode Island Public Transit Authority (RIPTA), and the Rhode Island Airport Corporation (RIAC). 

You may find the criteria for DBE and ACDBE certification here.

DEDI offers certification as a Disadvantaged Business Enterprise (see previous FAQ, above). In contrast, the Governor's Commission offers certification as a Disability Business Enterprise. The Disability Business Enterprise program certifies businesses that meet the State of Rhode Island’s criteria for businesses owned by or employing people with disabilities. You can learn more about the Governor’s Commission, and find a copy of the application for certification, here. 

A Veteran Business Enterprise (VBE) or Service-Disabled Veteran Business Enterprise (SDVBE) is a business that is primarily owned, controlled, and managed by individuals who are Veterans or Service-Disabled Veterans, respectively. 

The State’s annual goal for VBE participation is 3% of the total value of all state contracts. See R.I. Gen. Laws § 37-14.3-4.

To become certified, you must submit an application to the Division of Equity, Diversity & Inclusion (DEDI). Applications are reviewed in the order in which they are received. A member of DEDI’s staff will review your application and contact you to schedule a site visit. This process generally takes up to ninety (90) days. 

Please note that before applying for certification as an MBE or WBE in Rhode Island, firms located outside of Rhode Island must be certified in their home state. 

In contrast, DBE/ACDBE certification programs have reciprocity among the United States. If your firm is certified as a DBE/ACDBE in your home state, please submit a Declaration of Eligibility,  an Interstate DBE/ACDBE Certification Request Form, and a copy of your valid RI business license (if operating in a licensed industry).  

Spanish W/MBE/VBE Certification Application Form (NEEDED)

Spanish DBE/ ACDBE Certification Application (NEEDED)

To become certified as an MBE/WBE, a firm must meet the following requirements:

• The firm must be for-profit. 
• 51% of the firm must be owned by one or more socially and economically disadvantaged individuals.  
• The MBE/WBE owner must be able to prove that their ownership and control of the firm is real, substantial, and continuing. See 220-RICR-80-10-1.7(A).
• In the case of a licensed industry,  the firm must hold a valid RI business license.   
• The firm must have been in operation for at least six (6) months at the time of its application.  
• The personal net worth of the applicant cannot exceed $2,047,000.
• The firm’s gross receipts cannot exceed $30.72 million per year for the previous three (3) fiscal years. See 49 CFR 26.65. The ACDBE cap is currently set at $56.42 million per year for the previous five (5) fiscal years. See 49 CFR 23.33.
• Applicants must be U.S. Citizens or permanent resident aliens. 

No, the State of Rhode Island does not charge a fee to applicants seeking certification as an MBE/WBE/VBE/DBE.

Yes, you may appeal the decision by writing to the Associate Director of DEDI within forty-five (45) calendar days of the date of the decision. In your letter, you may request a hearing before the Certification Review Commission (“CRC”), an independent body that will review DEDI’s decision and make its own determination. You may appeal a decision of the CRC to the Rhode Island Superior Court. See R.I. Gen. Laws § 42-35-15.

If you are a DBE/ACDBE, you may appeal to the U.S. Department of Transportation, Office of Civil Rights, DBE Division, 1200 New Jersey Avenue SE, Washington, DC 20590.

Yes, your firm must submit updated information to the Division of Equity, Diversity & Inclusion (DEDI) on an annual basis. This includes an Annual Declaration of Eligibility, corporate federal tax returns, and (for licensed industries) a valid RI business license. 

DBE/ACDBE firms must provide a new Declaration of Eligibility, along with the documentation specified in 49 CFR § 26.65(a), including gross receipts for the most recent fiscal year, calculated on a cash basis regardless of the DBE's overall accounting method. This information is due each year on the anniversary date of the firm’s original certification.

In order to bid on a State contract, you should register with the Rhode Island Division of Purchases at its website, www.purchasing.ri.gov. You can learn how to register and find online training videos at the Division of Purchases website, here. You can also review bidding opportunities at the Division of Purchases website.

Once a firm is approved as either an MBE or a DBE, firms do not have to apply for recertification. However, firms are required to provide annual update information including applicable “No Change Affidavits” and documentation that the firm still meets the eligibility criteria. Additionally, every five (5) years the firms will undergo a more substantive review including a new site visit and interview. Note, however, that failure of a certified firm to provide annual update information as required, and/or failure by a certified firm to cooperate with requests for information by ODEO is grounds for the initiation of certification removal proceedings.

The State of Rhode Island requires that at least fifteen percent (15%) of the dollar value of all state contracts be performed by firms certified as MBE/WBE. See R.I. Gen. Laws § 37-14.1-6.

During the procurement or bid process, prime vendors must submit either an ISBE (Independent Small Business Enterprise) Form, or an MBE Utilization Form. This FAQ addresses when each document is required. 

•  If you are bidding on a Request for Proposals (RFP) (NEEDED), you are required to submit an ISBE Form, which is available here[SS1] . This form is submitted as part of your bid package and is an opportunity for you to identify how much MBE participation will be included in the project. If your MBE Plan contains a higher percentage of MBE participation than the Plans submitted by other bidders, your bid may receive a higher score, which could result in you winning the bid. 
• If you have received a tentative award letter for an MPA, RFQ or RFI, you are required to submit an MBE Utilization Form, which is available here. This form is submitted directly to DEDI and asks you to identify the subcontractors you have selected for the project. DEDI will review this form to ensure you meet the State’s requirement that fifteen percent (15%) of the dollar value of the contract be performed by MBE/WBEs. See R.I. Gen. Laws § 37-14.1-6.

Once DEDI has approved a prime vendor’s MBE Utilization Plan, the prime vendor is required to provide DEDI with a monthly report, which is available here. This report must include any changes to the amount of work being performed by the MBE/WBE firm. DEDI may also request supporting documentation, such as copies of subcontracts, cancelled checks, and invoices. 

Yes, a firm must be certified by DEDI as an MBE/WBE at the time of tentative award or submittal of an MBE Utilization Plan in order to be counted toward the State’s MBE/WBE participation requirements.

Unless the prime vendor is self-performing 100% of the work with its own forces, the prime vendor must subcontract at least fifteen percent (15%) of the work to a certified MBE/WBE firm in order to fulfil the State’s MBE participation requirement. Any work subcontracted to a non-MBE firm does not count toward the State’s MBE participation requirement. 

Prime vendors may count 60% of expenditures for materials and supplies obtained from an MBE/WBE firm if the firm is certified as a dealer/supplier. Prime vendors may count 100% of expenditures for materials and supplies obtained from an MBE/WBE firm if the firm is certified as a manufacturer. 

Possible sanctions include, but are not limited to, 1) Suspension of payments; 2) Termination of the contract; 3) Recovery by the State of ten percent (10%) of the contract price; and 4) Denial of the right to participate in future projects for up to three (3) years. See R.I. Gen. Laws § 37-14.1-8.

DEDI maintains a directory of firms certified as MBE/WBE/VBE/DBE at its website, dedi.ri.gov. You can use the directory to search for a service or product, or for a particular firm.