Problem: Microstation v.8 DGN files are created with the unit 'international foot' by default
Microstation® software, produced by Bentley Corporation, uses the international foot for data creation by default. The international foot is defined as exactly 0.3048 of a meter.
The U.S. survey foot, which is defined as 1200/3937 of a meter, is more commonly used in the United States.
The difference between the international foot and the U.S. survey foot is 6.0960121920e-7 m, or 0.0000006096012192 m.
This difference can become significant when multiplied by the False Easting or False Northing values used in the State Plane Coordinate System.
Solution or Workaround
When a Microstation created Design File (DGN) is obtained from a source which created the file using units of 'feet', be sure that the source provides information about the units, i.e., whether the file was created with the international foot or the U.S. survey foot.
With this information, it is possible to define the coordinate system (projection) correctly for the DGN file and the data will align properly.
The link below provides documentation about the 'foot' definition used in Microstation version 8.