Transportation Dept. Overhauls DBE Program Rules The Transportation Department has raised the net-worth limit for its Disadvantaged Business Enterprise program to $1.32 million, from the present $750,000. The change is part of a final rule making broad changes in the program, which is designed to provide contract opportunities for DBEs on federally funded highway, transit and airport construction projects. Transportation Secretary Ray LaHood said, “This rule will help small and disadvantaged businesses get a fair shot at participating in state and local transportation projects.” DOT said the higher net-worth limit is an adjustment for inflation; the limit had not been changed since 1989. To stop bait-and-switch subcontracting, state and local agencies will be required to monitor each contract to make sure prime contractors are fulfilling their obligations and do not dismiss DBE subcontractors without good cause. To make it easier for DBE companies to work outside their home states, the rule requires all states to accept DBE certifications obtained in other states, unless the state finds good cause not to accept it. DOT has said it does not have the resources to establish a nationwide certification system, but will continue to work with states to improve their procedures. Some contractors complained that certification in some states is lax. making it possible for ineligible companies to qualify for DBE status. DOT said the rule will require greater accountability from state and local transportation agencies for including disadvantaged businesses in their spending plans. Agencies that fail to meet established goals for DBE participation will be required to evaluate why the goals were not met and offer a plan to help meet the goal in the future.