AGC, Chapters, Members Comment on DOT DBE Proposal

AGC of America submitted a comprehensive assessment of proposed changes to the Department of Transportation’s (DOT) Disadvantaged Business Enterprise (DBE) regulations. In addition, 15 AGC chapters submitted their own unique comments on the proposal and 125 members commented through AGC’s Legislative Action Center website. Additional AGC member comments were submitted directly to DOT. The comment period closed on December 24, 2012. AGC’s comments urged DOT to not adopt the bulk of the proposed rule changes and instead to open a dialogue with all segments of the industry to find a more realistic approach to expanding participation of DBE businesses. AGC suggested that DOT, “use this rulemaking as an opportunity to solicit ideas for moving the DBE program in a new direction. Instead of having the program focused exclusively on goals and what can and cannot be done in meeting those goals, AGC encourages DOT to explore creating opportunities for giving incentives to contractors and DOT funding recipients for DBE utilization such as banking DBE utilization credits and other possibilities. AGC believes an open dialogue should take place to examine new ways of expanding DBE contracting opportunities.” AGC also commented on the specific proposed rule changes. AGC questioned the justification supporting many of these significant suggested amendments such as requiring prime contractors to submit at bid time the list of DBEs that will be used on the project along with certification from those DBEs that they intend to carry out that work. AGC’s comments also pointed out the problems that would be caused if the proposed requirement that contractors who do not meet contract goal requirements submit documentation of the “Good Faith Efforts” made to achieve the goal with their bid. AGC also objected to DOT’s proposal for states to set annual DBE utilization goals based on a directory of certified DBEs rather than DBEs that are actually ready, willing and able to participate on DOT funded contracts. AGC also called into question numerous other proposed rule changes. A summary of the DOT proposal can be read here and AGC’s comments can be read here. DOT will now assess the volume of comments received on the proposal and determine how it intends to move forward. AGC will continue to press for more open discussion of the proposal and on ideas for improving the program’s implementation.