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Transportation Dept. Eases Net-Worth Rule for DBEs The Transportation Department plans to raise the net-worth limit for its Disadvantaged Business Enterprise program to $1.3 million, from the present $750,000. The change is part of a proposed broad overhaul of rules for 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 is an important rule that can help small businesses owned and controlled by women and minorities.” DOT said the net-worth limit is an inflation adjustment; the limit has not been changed since 1989. The proposed rule attempts to stop bait-and-switch subcontracting by requiring primes to show cause before dismissing a DBE sub from the team. DOT asked for an additional round of comments on how to make it easier for DBEs certified in one state to gain certification in another. The department is proposing that states be required to accept another state’s certification unless there is a valid reason not to. But DOT said it does not have the resources to establish a nationwide certification system. The department said the proposed rule would require greater accountability from state and local transportation agencies that administer the program. Those that fail to meet their DBE contracting goals plans must analyze the reasons for the shortfall and offer corrective actions. The proposed rule is DOT Docket ID Number OST-2010-0118. Comments are due July 9.
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