DBE & SBE Set-Aside Contracts: How to Win Disadvantaged Business Bids

Government agencies reserve billions in annual construction spending for small and disadvantaged businesses. These set-aside contracts provide reduced competition and dedicated opportunities for certified firms. Understanding the programs and certification process unlocks significant bid pipelines.

Opportunity Snapshot

Federal agencies must award at least 23% of prime contracts to small businesses, with specific goals for disadvantaged, women-owned, and veteran-owned firms. State and local programs add billions more in set-aside opportunities.

Understanding Set-Aside Contracts

Set-aside contracts limit competition to certified businesses within specific categories. Instead of competing against large contractors, you compete only against other certified firms—dramatically improving your win rate.

Benefits

• Reduced competition pool
• Higher win rates on bids
• Access to sole-source opportunities
• Subcontracting opportunities with large primes
• Price evaluation preferences

Common Programs

• Federal small business set-asides
• 8(a) Business Development
• HUBZone preferences
• State DBE/SBE programs
• Local MBE/WBE programs

Certification Types

Certification	Full Name	Key Requirements
SBE	Small Business Enterprise	Meet SBA size standards for NAICS code
DBE	Disadvantaged Business Enterprise	51%+ owned by socially/economically disadvantaged
MBE	Minority Business Enterprise	51%+ owned/controlled by minority individuals
WBE	Women Business Enterprise	51%+ owned/controlled by women
SDVOSB	Service-Disabled Veteran-Owned	51%+ owned by service-disabled veteran
8(a)	8(a) Business Development	DBE + SBA-approved 9-year program

How to Qualify

General Eligibility Requirements

Size – Meet SBA size standards (revenue or employees) for your NAICS code
Ownership – 51%+ owned by qualifying individuals (minority, women, veteran, etc.)
Control – Qualifying owners must control daily operations and decision-making
Independence – Business must be independent, not controlled by larger firms
Personal net worth – DBE/8(a) have personal net worth limits (typically under $1.32M)

Construction Size Standards

General construction (NAICS 236) size standard is typically $45M in average annual receipts. Specialty trades (NAICS 238) vary from $16.5M to $22M. Check current SBA size standards for your specific NAICS codes.

Certification Process

Determine Program Fit

Review eligibility for various programs based on ownership, size, and target agencies.

Gather Documentation

Tax returns, financial statements, ownership documents, resumes, personal financial statements.

Submit Application

Apply through appropriate agency (SBA, state DOT, local programs). Many use SAM.gov or state systems.

Site Visit/Interview

Certifying agency may conduct on-site visit to verify operations and control.

Certification Awarded

Timeline varies: 30-90 days typical. Annual or periodic recertification required.

Finding Set-Aside Opportunities

Federal Sources

• SAM.gov (formerly FedBizOpps)
• Agency-specific small business offices
• SBA SubNet for subcontracting
• GSA schedules (if applicable)

State/Local Sources

• State DOT DBE programs
• City/county procurement portals
• Transit agency opportunities
• Utility company programs

Find Set-Aside Construction Bids

ConstructionBids.ai aggregates set-aside opportunities from 500+ government sources. Filter by certification type and get matched to SBE, DBE, MBE, and WBE opportunities.

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Compliance Requirements

Maintaining Good Standing

Annual updates – Report changes in ownership, size, or control
Self-perform requirements – DBE contracts often require self-performing core work
Commercial useful function – Must actually perform work, not pass-through
Size recertification – Verify continued compliance with size standards

FAQ

How long does certification take?

Federal SBA certifications typically take 60-90 days. State DBE programs vary from 30-90 days. Local programs may be faster. Complete applications with thorough documentation process more quickly.

Can I hold multiple certifications?

Yes. Many contractors hold SBE, DBE, MBE/WBE, and other certifications simultaneously. Each opens different opportunities. The application processes often share documentation requirements.

What happens if I outgrow size standards?

You may need to graduate from small business programs. Some programs have transition periods. Federal contracts allow completing existing work. Focus on building capacity and relationships during certified period.

Maximize Your Certifications

ConstructionBids.ai helps certified contractors find set-aside opportunities matched to their qualifications.

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