April 12, 2024

By Lane Kimble

Some changes are coming to how the federal government handles the DBE program, but at least one proposed change won’t happen – a cap on supplier credits –  thanks in part to ARTBA’s efforts.

Prime contractors may continue counting 100 percent of the cost of materials or supplies from a DBE manufacturer toward its contract goal, ARTBA General Counsel Rich Juliano says.  They may also continue counting 60 percent of materials or supplies purchased from a regular dealer.

The rule creates a new category of “DBE Distributor” for which contractors may count 40 percent of their costs.

When the rule change process began back in 2022, U.S. DOT wanted to cap credits on DBE suppliers at 50 percent.

“ARTBA argued (in submitted comments) that U.S. DOT had not provided data to justify this major change in policy.  Also, it would limit state and local agencies’ flexibility in meeting DBE goals, not automatically lead to development of DBE firms in underrepresented disciplines,” Juliano wrote in a rule change recap.

Other changes include new requirements for DBE firms in their application process, updating DBE directories, increased responsibilities on state DOTs to ensure program compliance, and updates to DBE owners’ business size and personal net worth.

The revised rule goes into effect Thursday, May 9.  WTBA and ARTBA encourage members to read up on the changes via the link above and stay tuned for further updates and explanations.

You can contact Rich Juliano or Prianka Sharma with questions.