731-065-0001
Purpose

As required by ORS 184.906, ODOT has established a small business development program. These rules are to implement and administer this program. They detail eligibility criteria, program duration, disqualification factors, and the process for requesting reconsideration of program disqualification.

Statutory/Other Authority: ORS 184.619
Statutes/Other Implemented: ORS 184.906
History:
DOT 7-2024, adopt filed 12/04/2024, effective 12/04/2024

731-065-0010
Definitions

The following definitions apply to terms used in ORS 184.906 and these rules:

(1) “Active Project” is an SBDP project where a contract has been awarded but not yet reached Second Notification. “Second Notification” is a written acknowledgment by the ODOT Engineer of the end of Contract Time according to Oregon Standard Specification for Construction 00180.50(g).

(2) “Applicant” means a business owner or business representative who completes the application process and attests that their Business meets eligibility requirements for the SBDP.

(3) “Business” means a for-profit construction business.

(4) “COBID” means the Certification Office for Business, Inclusion and Diversity. It is the sole certification authority for Oregon state programs, which include the Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Veteran Business Entity (VBE), and Emerging Small Business (ESB), and certified for the federal Disadvantaged Business Enterprise (DBE) program.

(5) “Expired” means the SBDP participation term of 2 years following program acceptance has been completed and the Business did not renew participation. The Business is no longer eligible for program participation unless it reapplies.

(6) “Misconduct Disqualification” is disqualification of the Business due to specific conduct that includes but is not limited to conduct that is intentionally false or misleading to gain access to the program.

(7) “ODOT” or “Department” means the Oregon Department of Transportation.

(8) “Participation” means the business’s ability to participate in the SBDP and compete for public improvement contracts that the Department procures under the SBDP.

(9) “SBA” means the United States Small Business Administration.

(10) “SBDP” means the Oregon Department of Transportation (ODOT) Small Business Development Program.

(11) “Self-Qualification” is a mechanism by which Applicant qualifies for SBDP participation by attesting that it meets required program criteria.

(12) “Termination” means the Business may no longer participate in the program.

Statutory/Other Authority: ORS 184.619
Statutes/Other Implemented: ORS 184.906
History:
DOT 7-2024, adopt filed 12/04/2024, effective 12/04/2024

731-065-0020
Qualifying Criteria

(1) A Business may qualify to participate in the SBDP through proof of valid SBA registration, Certification from COBID, or Self-Qualification.

(2) Qualification through valid SBA registration or Certification. A Business may qualify for participation in the SBDP if the Business meets any of the following criteria:

(a) Has registered with the SBA, or a successor agency, as a small disadvantaged business;

(b) Is certified as an emerging small business under ORS 200.055;

(c) Has registered with the SBA, or a successor agency, and is eligible to participate in any SBA small business contracting assistance program; or

(d) Has been certified by COBID as a Minority Business Enterprise (MBE), a Woman Business Enterprise (WBE), a Disadvantaged Business Enterprise (DBE), a Veteran Business Enterprise (VBE), or an Emerging Small Business (ESB).

(3) Self-Qualification. An Applicant may self-qualify their Business for participation in the SBDP if it meets all the following criteria:

(a) The Business is for-profit;

(b) The Business is in the construction industry;

(c) The Business is independently owned and operated; 

(d) The Business is not a subsidiary of another business;

(e) The Business is registered with the Secretary of State;

(f) The Business has employed an average of fewer than 500 employees annually, over the past 2 calendar years;

(g) The gross receipts of the Business do not exceed an average of $45 million annually, over the past 2 calendar years; and

(h) Following completion of the online SBDP application, the Applicant attests that all information provided about the Business is true, accurate, and willingly provided.

(4) The Department retains the right to require proof of meeting qualifying criteria at any time.

Statutory/Other Authority: ORS 184.619
Statutes/Other Implemented: ORS 184.906
History:
DOT 7-2024, adopt filed 12/04/2024, effective 12/04/2024

731-065-0030
Application Process, Program Participation Term, and Renewal

(1) A Business may submit an application to participate via the SBDP application online through the ODOT website or by delivering a hard copy to 355 Capitol St. NE, MS11, c/o SBDP, Salem, OR 97301.

(2) Upon notification that it has received an application from a Business, the Department will determine whether it meets the qualifying criteria.

(3) If the Business meets the qualifying criteria, the Department will notify the Business that the business has been accepted as an SBDP Participant for a two-year term. The Business will be notified of acceptance in writing, and the two-year participation term will be identified in the acceptance letter.

(4) If the Department determines that the Business does not meet the qualifying criteria, the Department will issue a Notice of Intent to Deny Participation for Failure to Meet Qualifying Criteria by Certified Mail, which will include:

(a) An explanation supporting the reasons for failure to qualify and,

(b) A statement of the Business's ability to request Administrative Reconsideration of program qualification and applicable deadlines.

(c) The Business has 20 calendar days from the date of the Notice of Intent to request Administrative Reconsideration.

(5) If the Department does not receive a request for Administrative Reconsideration within 20 calendar days, the Notice of Intent to Deny Participation for Failure to Meet Qualifying Criteria will become the Department’s final determination of program eligibility.

(6) Renewal. The process to renew participation at the end of the term is as follows:

(a) The Department will notify the Business that the two-year participation term is expiring.

(b) Notifications will be provided to the Business 30 calendar days prior to expiration and 7 calendar days prior to expiration. The notifications will be in writing with the first sent by Certified Mail.

(c) The Business may renew program participation for another two-year term upon timely attestation confirming continued eligibility as set out in Section 731-065-0020.

(7) If the Business does not timely attest to its eligibility, then the Business’ participation term will expire, and participation is terminated on its expiration date.

Statutory/Other Authority: ORS 184.619
Statutes/Other Implemented: ORS 184.906
History:
DOT 7-2024, adopt filed 12/04/2024, effective 12/04/2024

731-065-0040
Change In Qualifying Criteria

(1) If a Business no longer meets SBDP qualifying criteria, the Business must notify the Department of the change within 30 calendar days. A change in qualifying criteria only impacts future bidding opportunities in the SBDP.

(2) If the Department suspects that a Business no longer meets SBDP qualifying criteria, the Department may request documentation to assess Business eligibility. The Department retains the right to require proof from a Business of qualifying criteria at any time.

Statutory/Other Authority: ORS 184.619
Statutes/Other Implemented: ORS 184.906
History:
DOT 7-2024, adopt filed 12/04/2024, effective 12/04/2024

731-065-0050
Disqualification

(1) The Department may disqualify and terminate the participation of a Business if it determines that a Business no longer meets the eligibility criteria set out in section 731-065-0020.

(2) When the Department determines that the Business no longer meets the eligibility requirements, the Department will send by Certified Mail, a Notice of Intent to Disqualify and Terminate Participation. The Notice will include:

(a) The effective date of program disqualification;

(b) An explanation supporting the reasons for disqualification; and

(c) A statement of the Business's ability to request Administrative Reconsideration and applicable deadlines.

(3) The Business has 20 calendar days from the date of the Notice of Intent in which to request Administrative Reconsideration. If the Department does not receive a request for Administrative Reconsideration within 20 calendar days, the Notice of Intent to Disqualify and Terminate Participation will become the Department’s final determination of program eligibility.

(4) A disqualified Business may reapply for the SBDP following the procedures set out in section 731-065-0020.

Statutory/Other Authority: ORS 184.619
Statutes/Other Implemented: ORS 184.906
History:
DOT 7-2024, adopt filed 12/04/2024, effective 12/04/2024

731-065-0060
Misconduct Disqualification

(1) The Department may disqualify a Business and terminate SBDP participation due to misconduct.

(2) Reasons for Misconduct Disqualification include, but are not limited to:

(a) The Applicant knowingly made a false claim, or misrepresented existing certification status, during the qualifying process.

(b) The Business entered into an agreement with another organization to leverage Business qualification in the program.

(c) If a Business does not meet eligibility criteria and attempts to participate in the SBDP as a qualified small business on the basis of false, fraudulent, or deceitful statements or representations indicating a serious lack of business integrity or honesty, the Department may terminate program participation.

(3) If the Department determines that a Business should be disqualified for misconduct and have its participation terminated, the Department will issue a Notice of Intent to Disqualify for Misconduct and Terminate Participation, by Certified Mail, which will include:

(a) The effective date of program disqualification;

(b) An explanation supporting the reasons for disqualification; and

(c) A statement of the Business's ability to request Administrative Reconsideration and applicable deadlines.

(4) The Business has 20 calendar days from the date of the Notice of Intent in which to request Administrative Reconsideration. If the Department does not receive a request for request Administrative Reconsideration within 20 calendar days, the Notice of Intent to Revoke Participation Due to Misconduct and Terminate Participation will become the Department’s final determination of eligibility.

(5) A Business subject to the Department’s final determination of Misconduct Disqualification is not eligible to qualify for future program participation.

Statutory/Other Authority: ORS 184.619
Statutes/Other Implemented: ORS 184.906
History:
DOT 7-2024, adopt filed 12/04/2024, effective 12/04/2024

731-065-0070
Administrative Reconsideration Process and Final Determination

(1) Following the receipt of any Notice of Intent, a Business can request Administrative Reconsideration.

(2) Any request for Administrative Reconsideration must be in writing and received by the Department within 20 calendar days of the date of the Notice of Intent. This written request must include:

(a) The date; and

(b) A clear statement of the basis for Administrative Reconsideration; and

(c) Any supporting documentation, (including but not limited to updated financials or proof of current certification).

(3) Upon receipt of a request for Administrative Reconsideration, the disqualification or termination will be stayed while the Department reviews the request. The Department will complete this review within 30 business days and will inform the Business of the outcome of Administrative Reconsideration in writing either by rescinding the Notice of Intent or issuing a new Notice of Intent.

(4) If the Department does not rescind the Notice of Intent, the Department will issue, via Certified Mail, a Notice of Intent Following Administrative Reconsideration to Deny Participation for Failure to Meet Qualifying Criteria or Notice of Intent to Disqualify and Terminate Program Participation.

(5) The Business may request a contested case hearing under the provisions of ORS chapter 183 by submitting a written request. A written request for a contested case hearing must include:

(a) The date; and

(b) A clear statement of the basis for requesting a contested case hearing; and

(c) Any supporting documentation, (including but not limited to updated financials or proof of current certification).

(6) If no request is made, the Notice of Intent will become the Department’s final determination of program eligibility.

Statutory/Other Authority: ORS 184.619
Statutes/Other Implemented: ORS 183 & 184.906
History:
DOT 7-2024, adopt filed 12/04/2024, effective 12/04/2024

731-065-0080
Project Selection

(1) For purposes of this rule “SBDP participant” means a business that meets the qualifying criteria established in OAR 731-065-0020. 

(2) ODOT may select a public improvement project to be in the SBDP if it meets the following selection criteria, as determined by ODOT staff knowledgeable of the project and the SBDP: 

(a) Project can reasonably be performed by a SBDP participant serving as a prime contractor; 

(b) Selection of project supports the statutory purpose of expanding opportunities for small construction firms to compete for and perform public improvement contracts; and

(c) Project has an estimated construction cost of greater than $250,000 but no more than $5,000,000.

(3) ODOT may limit competition for projects in the SBDP to SBDP participants consistent with ORS 184.906. 

(4) ODOT may select no less than one public improvement project each calendar year to be in the SBDP. The aggregate estimated total of all projects in the SBDP awarded in one calendar year may not exceed $25,000,000.

(5) ODOT may remove a project from the SBDP if it determines a project no longer meets selection criteria set forth in paragraph (2) or if no SBDP participant bids on the project.

Statutory/Other Authority: ORS 184.619
Statutes/Other Implemented: ORS 184.906
History:
DOT 1-2026, adopt filed 06/11/2026, effective 06/11/2026