The US DOT this week issued a Notice of Proposed Rulemaking proposed changes in several sections of the Disadvantaged Business Enterprise regulations. Comments will be accepted until July 9, 2010. AGC will be submitting comments. The proposed revisions are as follows:
- Requires a state to present justification if they have not met the annual DBE goal and the steps it will take to remedy this situation in the future. States not meeting these requirements could lose their federal funding;
- Instead of annually submitting a DBE goal for Federal approval, states would now be required to submit its goal every third year;
- New oversight requirements are proposed;
- The personal net worth of an individual characterized as economically disadvantaged would be increased from $750,000 to $1.31 million with an annual adjustment for inflation;
- DBE certification would be transferrable from state to state;
- Requires states to develop steps to increase DBE participation such as unbundling contracts or offering bonding assistance;
- Requires states to approve the termination or substitution of a DBE after contract award in order to receive DBE credit;
- Retains existing policy denying states the ability to count material purchased from the prime by a DBE towards DBE accomplishment.