Implementing Race-Neutral Measures in State Disadvantaged Business Enterprise Programs

As state departments of transportation (DOTs) carry out their highway construction programs, they are required to direct a portion of their federal-aid fund expenditures toward small businesses called Disadvantaged Business Enterprises (DBEs). A DBE is defined as a small, for-profit business concern that is at least 51% owned and controlled by one or more socially and economically disadvantaged individuals. States are required to meet the maximum feasible portion of their DBE participation goals using race-neutral means designed to remove barriers and enhance opportunities for all small businesses, not just DBEs. This synthesis compiles and documents race-neutral strategies being used effectively by state DOTs to meet their DBE participation goals. It also reviews and synthesizes problems faced by state DOTs in the administration of their DBE programs and identifies race-neutral remedies used to overcome these challenges. Information used in this study was acquired through a review of the literature and a survey of state DOTs. Follow-up interviews were conducted with three states as case examples.