DOT's new DBE rule takes effect
Published on 02/28/2011
On February 28th, the U.S. Department of Transportation (DOT) will begin enforcing a new rule aimed at helping socially and economically business enterprises (DBEs) secure opportunities on federally-funded highway, transit, and airport contracts.
"When we help small businesses, we're helping to get the economy going," said Secretary LaHood. "This rule will help small and disadvantaged businesses get a fair shot at participating in state and local transportation projects."
According to the DOT, the rule will:
- Increase accountability for agencies receiving DOT funding with respect to meeting annual DBE participation goals;
- Adjust for inflation the personal net worth threshold required for DBE certification from $750,000 to $1.32 million;
- Provide for expedited interstate DBE certification by requiring that state programs accept DBE certification obtained in other states; and
- Adding provisions to foster small business participation, improving post-award oversight, and addressing other issues.
In the event that an agency is unable to meet its annual DBE participation goal, it will be required to submit a plan of action to the DOT outlining corrective measures that will facilitate the achievement of the goal.
DBE GoodFaith Inc. has been told that most local and state agencies will be forced to re-evaluate their DBE programs to ensure their compliance with the new rule. As a result, the evaluation of contractors' good faith efforts to reach out to DBEs may become more rigorous and the number of DBE utilization goals on individual contracts may increase.
