Biden, DOT propose Disadvantaged Business Enterprise program updates
Biden, DOT propose Disadvantaged Business Enterprise program updates
Abstract
Dive Brief: The White House and DOT have proposed updates to regulations for the Disadvantaged Business Enterprise Program, which aims to prevent discrimination and remedy ongoing effects of past discrimination against small firms owned and controlled by disadvantaged individuals. The goal of the updates is to further level the playing field for disadvantaged businesses that want to compete for federal aviation, highway and transit contracts. The changes would update personal net worth and program size limits for inflation, modernize rules regarding material suppliers, make technical corrections that have led to substantive misinterpretations of the rules and more. Dive Insight: If approved, the DOT's DBE program updates would come at a critical time as small construction firms will help build federal projects funded through the $1.2 trillion Infrastructure Investment and Jobs Act. The IIJA stipulates that at least 10% of federal transportation and transit project funds go to DBE enterprises, and it also places an emphasis on prompt payment to DBE subcontractors. "These critical updates would help ensure that small and disadvantaged businesses continue to have a fair chance to compete for federally assisted contracts." Proposed updates to the DBE program regulations include: Increase the personal net worth limit from $1.32 million to $1.6 million and exclude retirement assets from personal net worth calculations. Help more small businesses participate in Federal Aviation Administration-assisted airport projects by requiring airports to proactively remove obstacles and adopt more race-neutral strategies.