Caltrans Moves to a Race-Neutral DBE Program
Published on 09/26/2006
The Disadvantaged Business Enterprise program in California has now been officially been moved to a race-neutral program as of May 1st 2006. According to Caltrans, this is likely an interim step until they are able to complete a full state-wide disparity study by May 2007.
This will affect only Federally funded transportation public works projects in California. Wholly funded projects by State and Local agencies will not be affected. Many of these projects will still carry DBE requirements. Also all contracts prior to May 1st will still carry the original project DBE requirements under the race-conscious program. And other programs, such as California's DVBE program, will not affected.
Under the race-neutral program, "all of the Department's Federal Aid contracts will include a DBE Availability Advisory Specification." This advises project bidders of the overall Statewide DBE goals and that Caltrans is required to report annually to the Federal Highway Administration (FHWA) on DBE participation. Projects will also include a DBE Availability Advisory Percentage for the project. Bidders are not required to to achieve the percentage indicated as a condition of award.
Caltrans further notes that under Federal law, when the State is unable to meet its DBE goals using race-neutral measures, states are required to use race-conscious measures, such as DBE participation goals on individual contracts.
Under the DBE race-neutral program, the Good Faith Effort process is not required. But the GFE methods used to outreach to DBE firms (sending faxes and emails, advertising and phone calls) is still the best way to find and hire DBE firms as subcontractors for projects.
