GCAP Services, Inc. (GCAP) is a California-based professional consulting firm that was founded in 1997 and is certified as both a Small Business Enterprise (SBE) and Disadvantaged Business Enterprise (DBE).
GCAP supports the public sector including highway, transit and energy projects by delivering practical, cost-effective solutions for business and administrative challenges. The GCAP project team has significant experience working on large capital and public works projects, and it has a staff of qualified personnel that have first-hand experience working with labor, project administration and compliance programs and systems.
California’s DBE Program Moves Forward After Reevaluation
Over the past year, the federal Disadvantaged Business Enterprise (DBE) program has undergone significant changes as a result of the U.S. Department of Transportation’s Interim Final Rule (IFR). One of the most notable changes was the shift away from presumed social disadvantage for certain groups and toward an individualized review process, requiring agencies across the country to reevaluate existing DBE certifications.
The California Unified Certification Program (CUCP) has now completed that reevaluation and republished its DBE database. With the certification process moving forward again, recipients of USDOT funding can resume many aspects of program administration, but they may also need to revisit goals, policies, and compliance procedures as the DBE program continues to evolve.
What USDOT Funding Recipients Should Do Now
Certifying agencies are now accepting new DBE applications and applications from former DBEs that missed the initial deadline. Although this is good news for recipients of USDOT funds because they can now resume establishing goals on newly advertised USDOT-assisted contracts when appropriate, the CUCP’s reboot of the DBE program also requires recipients to make additional changes. These include submitting:
- A revised triennial goal; and
- A DBE Program Plan
Additional DBE Program Updates to Consider
Once these submittals have been provided to the cognizant DOT operating administration, recipients should review other aspects of their DBE Program to ensure it remains compliant and continues to provide DBEs and small businesses with reasonable opportunities to participate in USDOT procurements. Recipients should consider the following when revising their programs:
- Revising targeted outreach efforts to engage new stakeholders that are now eligible for DBE certification.
- Increasing training and technical assistance opportunities for new DBEs that may not have experience with federal contracting.
- Reviewing and revising small business (SB) programs that include USDOT-assisted funds.
- Continually monitoring the CUCP DBE database to ensure triennial goals and DBE contract goals reflect ongoing changes to the certification database.
What Could Change Next for the DBE Program
The IFR transformed the DBE program from one that presumed socially disadvantaged status for certain minority-owned and women-owned businesses to one that determines socially disadvantaged status based on individual experiences. The IFR’s impact on the DBE program is significant, but it is only the beginning of the program’s transformation.
Pending federal legislation, including the proposed Build America 250 Act, could further reshape the DBE program. The bill would authorize funding for Federal-aid highways, bridge construction, transit programs, rail programs, and other purposes. The current draft also includes provisions intended to standardize the definition of a “socially and economically disadvantaged individual” and establish additional reporting requirements and more uniform certification criteria for states.
If the bill is passed by Congress, additional rulemaking may follow, including a proposed DBE Final Rule that addresses remaining gaps, inconsistencies, and key provisions within the program. The bottom line is that although the CUCP has completed the initial DBE reevaluation phase, the DBE program is likely to continue evolving over the next two years. DBE and small business policies should evolve alongside these changes to ensure compliance with new regulatory requirements and to address the needs of newly eligible DBE stakeholders.
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