Caltrans Announces Major Changes to DBE Program

Changes effective June 15, 2012.

The California Department of Transportation (Caltrans) has a Disadvantaged Business Enterprise (DBE) Program waiver which was granted in August 2008 and extended through September 2010. The waver allows Caltrans to set contract goals for some, but not all, certified DBEs. In early May, Caltrans received a letter from the U. S. Department of Transportation (US DOT) stating the Uniform Reports submitted by Caltrans to the Federal Highway Administration (FHWA) on DBE awards and commitments covering Fiscal Years 2007 through 2011 show levels of underutilization of Hispanic-Americans and Subcontinent-Asian-Americans owned DBEs sufficient to warrant terminating the Caltrans DBE Program waiver. Therefore, race-conscious measures (i.e. contract goals) used by Caltrans to meet its overall DBE goal must include all certified DBEs, including Hispanic-American and Subcontinent-Asian-American contactors. All Federal-aid contracts with DBE goals advertised by Caltrans after June 15, 2012, must ensure the contract goals apply to all DBEs. Additionally, all Federal-aid local agency-administered contracts with DBE goals authorized after June 30, 2012, must ensure the goals apply to all DBEs.   The letter from US DOT requires that Caltrans adjust its race-neutral and race-conscious split to make proper use of race-neutral and race-conscious means, consistent with 49CFR 26.51, that will allow Caltrans to meet its overall DBE goal. The FHWA recognizes these program modifications require Caltrans to make several process changes and has granted Caltrans some flexibility in adjusting its race-neutral and race-conscious split.   If you have any questions, please contact Ms. Rene Halverson, Assistant Director, Office of Business & Economic Opportunity, at 916.324.0990.