WSDOT seeks amended DBE goal, removal of women businesses from program
Published on 01/14/2014
The Washington State Department of Transportation (WSDOT) is proposing a new disadvantaged business enterprise (DBE) participation goal for contracts receiving federal funding. If approved by the the federal Department of Transportation (USDOT), the current DBE goal of 15.17 percent would be revised down to 11.6 percent ? a change that would remain in place until Fiscal Year 2017.
In addition to the amended goal, WSDOT is seeking a waiver from USDOT to prevent Caucasian women-owned business participation from contributing to Federal Highway Administration-funded contracts' DBE goals. According to a recent study commissioned by the department, there is insufficient statistical evidence of discrimination to justify the continued inclusion of Caucasian women-owned businesses in the program. Currently, these firms receive more contract dollars than expected considering their availability to participate on WSDOT projects.
Other disadvantaged groups, including minority women, African American, Asian-Pacific Americans, Hispanics, Native Americans and South Asians would still be eligible for DBE contract goals.
The department says that if participation by Caucasian women-owned businesses dips as a result of the waiver, it will request that the waiver by revoked by USDOT. The plan to exclude Caucasian women from the DBE program, however, has encountered stiff resistance. A new group, Women in Highway Construction, is threatening to sue the WSDOT if they move ahead with the waiver.
If WSDOT receives a waiver from USDOT, Caucasian women-owned firms will still be eligible for other contracting preference programs in Washington state, such as the Small Business Enterprise Program, which has a 10 percent goal, and the state's Minority and Women's Business Enterprise Program. Moreover, the waiver would not impact their DBE status on Federal Transit Administration and Federal Aviation Administration-funded contracts.
In the past, the USDOT has granted waiver requests to remove specific disadvantaged groups from DBE programs, only to revoke the waivers a few years later. In 2008, for instance, the California Department of Transportation began implementing a modified DBE program that excluded Hispanic and Asian Subcontinent American-owned businesses but, after their participation on contracts fell dramatically, it was forced to reinstate these groups to the program in 2012.
WSDOT is currently accepting public comments on the amended goal and the wavier request. A webinar will be held on January 16 from 10 a.m. to noon. Registration is required, and those interested can do so by emailing DBEss@wsdot.wa.gov, with the subject line "DBE webinar."
Comments can also be emailed to disparitystudy@wsdot.wa.gov or mailed to:
Office of Equal Opportunity
Washington State Department of Transportation
P.O. Box 47314
Olympia ,WA 98504-7314
All comments must be received by February 3rd.
For more information, email
disparitystudy@wsdot.wa.gov or call 888-259-9143.
