A recently released California Department of Transportation (Caltrans) report has found that substantial disparity exists between the expected and actual participation of some disadvantaged groups on contracts funded by the Federal Transportation Administration (FTA).
The study examined over 699 FTA-funded contracts between 2008 and 2013 and found that while minority- and women-owned businesses (MBEs/WBEs) received 10.4 percent of federally-funded contract dollars, certified disadvantaged businesses enterprises (DBEs) only received 0.2 percent of those dollars. Non-Hispanic white women-owned businesses, Black American-owned businesses, Asian-Pacific American-owned businesses, and Native American-owned businesses were the most likely to be shut out of the contracting process, while Subcontinent Asian American-owned businesses and Hispanic American-owned businesses particpated at a higher rate than expected.
Caltrans has sought to meet its annual DBE participation goal of 4 percent without applying participation goals on individual FTA-funded contracts, but during the study period the annual goal was only acheived twice. To acheive the goal, the report suggests that the department communicate more effectively with MBEs and WBEs about the benefits of DBE certification, count the participation of potential DBEs and find new ways to certify them as DBEs, and more closely monitor prime contractors' compliance with DBE participation obligations.
The department is accepting public comments until January 31st. Comments can be sent to Lea.Simpson@dot.ca.gov. Public meetings to establish goals for Fiscal Years 15/16, 16/17 and 17/18 will be announced in February.
To read the entire study, visit http://www.dot.ca.gov/hq/bep/disparity.htm.
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