Highway prime says leased trucks don't count toward our DBE credit. Is that right?

Question

We're a small dump truck outfit in Joliet, certified DBE through the Illinois Unified Certification Program. A highway prime wants us hauling on an IDOT resurfacing job and is counting our work toward the contract DBE goal.

Problem is our own fleet isn't enough during paving season. On private work last summer we leased trucks with drivers from another hauler to cover peak days. That hauler isn't certified.

The prime's DBE liaison told me only the trucks we own and run with our own drivers get full credit, and anything leased from a non-DBE only counts for our fee. One of my drivers swears he's seen leased trucks counted in full on other jobs.

I don't want to sign a commitment letter for an amount we can't back up. How does the DOT count trucks a DBE hauler leases, and does it matter who owns the truck versus who employs the driver?

Corinne B. · Accepted Answer

The liaison is half right. 49 CFR 26.55(d) sorts leased trucks by who supplies the driver, and that detail is what changes your number.

Here's how the rule counts hauling by a DBE trucker:
- Trucks you own, insure and run with drivers you employ: full credit.
- Trucks leased from another certified DBE: full credit.
- Trucks leased bare from a non-DBE leasing company and driven by your own employees: full credit.
- Trucks leased with drivers from a non-DBE hauler: full credit only up to the value hauled by your own trucks and your DBE-driven leased trucks. Anything past that counts for your fee or commission only.

That fourth category is what your driver saw. 26.55(d)(5) also says a recipient using that matching credit needs written consent from the DOT operating administration, so ask IDOT's DBE staff whether their program has it before you count on it.

Two more conditions apply to every leased truck under 26.55(d)(7): the lease gives you exclusive use and absolute priority, and the truck displays your company name and ID number. And (d)(2) requires you to own and operate at least one fully licensed, insured truck on the job yourself.

When I build DBE commitment sheets for our state DOT design work, the reviewers want the hauling broken out by truck source. Do that in your commitment letter: own trucks, DBE leases, bare leases with your drivers, non-DBE leases with drivers. Then the amount you sign for matches what the rule credits.

Keisha W. · Answer

The prime's DBE liaison is correct that trucks leased with drivers from a non-DBE hauler only count for your fee. Corinne is right about 49 CFR 26.55(d) but the key piece for your situation is that the Illinois Department of Transportation (IDOT) DBE program specifies how they implement the federal regulation. You need to check the specific details in the IDOT DBE program manual or contact their DBE office directly to confirm their interpretation and any specific forms they require for leased equipment. State DOTs often have their own forms and procedures that clarify how they want to see these details reported, especially for the matching credit provision. Make sure your commitment letter accurately reflects how IDOT will credit the work from each type of truck arrangement you plan to use.

Highway prime says leased trucks don't count toward our DBE credit. Is that right?

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Highway prime says leased trucks don't count toward our DBE credit. Is that right?

2 answers

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