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Highway Contracting: Disadvantaged Business Eligibility Guidance and Oversight Are Ineffective

RCED-92-148 Published: Sep 01, 1992. Publicly Released: Oct 14, 1992.
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Highlights

Pursuant to a congressional request, GAO reviewed whether federal guidance and oversight engender effective and consistent state application of the legal eligibility standards governing the Department of Transportation's (DOT) Disadvantaged Business Enterprise Program.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
In view of past delays, Congress may wish to consider legislation establishing a deadline for DOT to issue a revised Disadvantaged Business Enterprise Program regulation if the Secretary of Transportation does not establish and meet an agreed-upon deadline.
Closed – Not Implemented
DOT published a notice of proposed rulemaking on December 9, 1992. Action to promulgate the final rulemaking is under way.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Transportation To improve the quality of federal guidance and the consistency of state eligibility decisions, the Secretary of Transportation should work with the Senate Committee on Environment and Public Works and the House Committee on Public Works and Transportation to establish a mutually agreeable timetable and deadline for issuing a revised regulation for the Disadvantaged Business Enterprise Program.
Closed – Not Implemented
DOT's Disadvantaged Business Enterprise Program, along with all federal affirmative action programs, is the subject of an ongoing executive branch review. The purpose of the review is to determine whether the program as constituted is consistent with the Supreme Court decision Adderand v. Pena, and if not, what changes need to be made. Pending the outcome of this review, revisions to the Disadvantaged Business Enterprise Program final regulations have been placed on indefinite hold.
Department of Transportation To improve the quality of federal guidance and the consistency of state eligibility decisions, the Secretary of Transportation should develop a uniform order or instruction delineating federal eligibility policy for state highway agencies certifying disadvantaged businesses, including procedures to update such an order or instruction in a timely manner to reflect and highlight new or revised guidance.
Closed – Not Implemented
DOT planned to address this recommendation as part of the proposed revisions to its Disadvantaged Business Enterprise Program regulations. Those revisions have been placed on indefinite hold pending the outcome of the ongoing executive branch review of governmentwide affirmative action programs.
Department of Transportation To improve the quality of federal guidance and the consistency of state eligibility decisions, the Secretary of Transportation should designate a lead office in DOT for developing, updating, and coordinating dissemination of Disadvantaged Business Enterprise Program guidance to the states, and establish formal coordination procedures among DOT and FHwA offices to ensure consistency.
Closed – Not Implemented
DOT planned to address this recommendation as part of the proposed revisions to its Disadvantaged Business Enterprise Program regulations. Those revisions have been placed on indefinite hold pending the outcome of the ongoing executive branch review of governmentwide affirmative action programs.
Department of Transportation To improve the quality of federal guidance and the consistency of state eligibility decisions, the Secretary of Transportation should issue interim clarifying eligibility guidance on the Disadvantaged Business Enterprise Program to the states until a new regulation and uniform guidance are completed and issued.
Closed – Not Implemented
DOT plans alternate measures--training and a DBE council.
Department of Transportation The Secretary of Transportation should direct the Administrator, FHwA, to establish a monitoring system to: (1) collect and analyze state eligibility decision in order to ensure that Disadvantaged Business Enterprise Program eligibility criteria are correctly and uniformly applied among the states; and (2) identify areas where revisions or clarifications to DOT and FHwA guidance are needed.
Closed – Not Implemented
DOT did not agree with this recommendation.

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Topics

Bidder eligibilityDisadvantaged personsEligibility criteriaFederal aid for highwaysstate relationsInteragency relationsMinority business assistanceSmall business contractsSource selectionState programs