US DOT proposes DBE program changes
Published on 05/11/2010
The U.S. Department of Transportation (DOT) is proposing to expand its disadvantaged business enterprise (DBE) program and crackdown on agencies that fail to meet their annual DBE goals.
"When we help small businesses, we're helping get the economy going," said DOT Secretary Ray LaHood. "This is an important rule that can help small businesses owned and controlled by women and minorities."
The proposed rules would:
- Require state DOTs that do not meet their annual DBE participation goals to analyze why they fell short and offer corrective action;
- Prevent DBEs from being removed from the program without a full review;
- Adjust the DBE certification size requirements for inflation, raising the personal net worth ceiling from $750,000 to $1.3 million (this requirement has not been changed since 1989);
- Mandate increased oversight by state and local agencies to ensure that prime contractors fulfill their DBE commitments on contracts; and
- Mandate that DBE certifications be accepted between states unless there is good cause. Currently, state and local agencies only recognize DBEs certified by the state DOT.
The DOT will be accepting comments on the proposed changes to the DBE program through July 11, 2010.