Examining the disadvantaged business enterprise (DBE) program.
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2012-09-01
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NTL Classification:NTL-PLANNING AND POLICY-PLANNING AND POLICY;NTL-ECONOMICS AND FINANCE-ECONOMICS AND FINANCE;
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Abstract:U.S. Department of Transportation (US DOT) Disadvantaged Business Enterprise (DBE) program
regulations require recipients of US DOT financial assistance, namely, state and local transportation
agencies, to establish goals for the participation of disadvantaged entrepreneurs and certify the
eligibility of DBE firms to participate in their US DOT-assisted contracts.
The Michigan Department of Transportation (MDOT) has established a DBE program in accordance with
regulations of the U.S. Department of Transportation at 49 CFR Part 26. MDOT has received federal
financial assistance from US DOT, and, as a condition of receiving this assistance, MDOT has signed an
assurance that it will comply with 49 CFR Part 26.
A recent audit by the Federal Highway Administration (FHWA) with MDOT field engineers and other
staff identified a need for improved communications with respect to the MDOT DBE program.
Specifically, after interviewing four Resident and Project Engineers, it was evident that their level of
engagement in the DBE program did not meet the minimum expectations, and the MDOT Construction
Manual contained little or no references to the DBE requirements.
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