ARTBA Advocates for DBE Program Improvements

What happened: Transportation agencies should adopt improvements to the Disadvantaged Business Enterprise (DBE) program, such as more accurate DBE directories and a flexible approach to ensuring DBE participation on design-build projects, according to comments submitted by ARTBA to the U.S. Department of Transportation (U.S. DOT) Oct. 31. In its first rulemaking on the matter since 2014, U.S. DOT is asking for comments on various proposals for revising implementation of the program, which Congress reauthorized in the Infrastructure Investment and Jobs Act (IIJA). ARTBA was one of 443 public and private sector individuals and entities, including many of its members and chapters, to submit comments.

Why it matters: As ARTBA noted in its detailed submission, the IIJA is providing record federal highway and transit investment to state transportation departments. This should translate into greatly expanded opportunities for minority- and women-owned businesses that are part of the DBE program; but only if all parties focus collaboratively on improving its implementation and removing related bureaucratic obstacles.

U.S. DOT’s notice of proposed rulemaking includes potential changes in deployment of DBE suppliers on federal-aid projects. Most notably, it proposes that prime contractors only use products from DBE suppliers, manufacturers and distributors to fulfill a maximum of 50 percent of a project’s goal. ARTBA expressed opposition to this provision, pointing out the program has never included such a cap before, and it could limit opportunities for DBE regular dealers and other firms providing skilled services on projects. The association argued U.S. DOT plans to impose this cap based solely on anecdotes, while in fact there is no available data suggesting the industry relies disproportionately on suppliers to meet DBE goals.

What’s next: ARTBA’s DBE Program Policy Task Force provided significant input as ARTBA developed its comments over the past several weeks. The diverse group meets periodically to assess potential improvements and emerging challenges in implementing DBE requirements, including dialogues with U.S. DOT and state officials. ARTBA will continue to engage in the current rulemaking process as well. For more information, please contact Rich Juliano or Nick Goldstein.