Caltrans announces changes to DBE contract goals
Published on 06/26/2012
In a June 22 letter to transportation industry stakeholders, the California Department of Transportation (Caltrans) announced it will no longer implement Underutilized Disadvantaged Business Enterprise (UDBE) goals on its contracts. The change in policy follows findings by the the United States Department of Transportation (US DOT) that Hispanic-American and Asian Subcontinent-American businesses certified as Disadvantaged Business Enterprises (DBEs) are also underutilized.
Instead, Caltrans will be implementing traditional DBE contract goals, which include Hispanic-American and Asian Subcontinent-American DBEs.
Hispanic-American and Asian Subcontinent-American DBEs were originally excluded from the UDBE category because a 2007 disparity study found that they had achieved reasonable parity with white male-owned businesses. As a result, the US DOT granted a waiver in August 2008 (which was later extended in September 2010) that permitted Caltrans to only set contract goals for DBEs owned by women, African-Americans, Asian Pacific-Americans, and/or Native-Americans.
On May 7, Caltrans received a letter from US DOT Secretary Ray LaHood stating that the waiver was being terminated due to the low-level of Hispanic-American and Asian Subcontinent-American DBE participation in Caltrans' contracting between Fiscal Years 2007 and 2011.
All questions concerning the change should be directed to Ms. Rene Halverson, Caltrans' Assistant Director of the Office of Business & Economic Opportunity, at (916) 324-0990.
