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MDOT: DBE goal near target; preliminary injunction in Kentucky case affects two contractors
Summary
MDOT Director Brad Refrick told the State Transportation Commission that the department’s negotiated DBE goal for 2023–25 is 9.5%; 2024 performance was about 9.0% and nearly $150 million flowed to DBE firms. Refrick also outlined a $300,000 small‑business loan program and a construction incubator.
Brad Refrick, director of the Michigan Department of Transportation, briefed commissioners on trunk‑line accomplishments and on MDOT’s disadvantaged business enterprise (DBE) and small business programs during the Commission’s Jan. 30 meeting.
Refrick said the department’s negotiated DBE goal for federal reporting years 2023–25 is 9.5%. For calendar year 2024 MDOT reported receiving 9.0% to DBE contractors, and he said roughly $150 million (state and federal dollars combined) was paid to DBE firms in the reporting window.
Refrick outlined additional small‑business initiatives:
- A short‑term loan program to provide working capital to contractors awarded projects; Refrick said the loan fund is fully funded, has a spring start and will provide a maximum of $300,000 per borrower to help contractors cover upfront costs while awaiting reimbursement.
- A small business construction incubator offering bonding and financial training, CDL assistance and mentor‑protégé arrangements with larger firms to help smaller contractors qualify for MDOT work.
Legal development affecting DBE goals
Refrick told commissioners that two Indiana contractors filed suit in the U.S. District Court for the Eastern District of Kentucky challenging DBE programs; a judge entered a preliminary injunction that, for those two companies, requires MDOT to set DBE goals to zero on projects where the companies declare intent to bid. He said the injunction applies only to those contractors, but that the Department of Justice and USDOT process means MDOT receives notice when either contractor intends to bid on work in Michigan; MDOT then must set the DBE goal to zero on those specific jobs. Refrick said the injunction affects a small slice of MDOT’s program and that MDOT is continuing to administer DBE requirements on other projects while monitoring the litigation.
Why it matters: Refrick said DBE and small‑business programs are intended to expand the pool of qualified contractors and to strengthen competition and workforce capacity for MDOT project delivery. He said the litigation’s timeframe and final outcome are unknown and MDOT is tracking possible impacts to future lettings.
Ending: Refrick invited questions and said MDOT will continue reporting DBE performance to federal partners.
