USDOT proposes multiple changes to DBE program
Published on 11/09/2012
The U.S. Department of Transportation (USDOT) is considering changes to its disadvantaged business enterprise (DBE) program and is giving the public until December 24th to submit comments. The proposed changes are related to good faith efforts, goal-setting, termination/replacement of DBE subcontractors, certification, and trucking services.
Some of the significant modifications include:
- An increase in the personal net worth limit for DBE certification to $1.32 million.
- A statement that a minimum track record not be required for DBE certification.
- A declaration that once a firm is DBE certified, they will remain certified until they withdraw or are decertified.
- A requirement that bidders show that each DBE they will be using is certified in the NAICS code for the work it will perform.
- A requirement that bidders provide all good faith effort documentation related to DBE outreach at the time of the bid or the day following the bid opening.
- An authorization for government agencies awarding projects with DBE goals to terminate the contract, withhold monthly payments, and/or levy sanctions if DBE requirements are not met during the duration of the contract.
- An authorization for government agencies awarding projects with DBE goals to allow DBE credit for DBE trucking firms that lease equipment.
The USDOT provides funds to recipients in each state for highway and airport, and other transportation projects. The primary recipient of USDOT dollars are state transportation departments. The state DOTs also provide grants for transportation infrastructure improvements to local governments.
