Hundreds of Iowa contractors and engineering firms are bracing for the loss of a key contracting advantage once the federal government shutdown ends, a shift that could specifically affect women- and minority-owned businesses.The Disadvantaged Business Enterprise Program is intended to give smaller contracting companies and engineering firms owned by women or racial minorities a competitive edge. On projects that use federal funding, agencies are required to direct a portion of the work to DBE-certified firms. The current statewide goal is for DBE-certified companies to complete 5.7 percent of the labor on construction projects.New guidance the U.S. Department of Transportation published on Sept. 30 will change that. The document says “not all individuals have been treated equally under the program,” and that eligibility cannot be based solely on whether a firm is minority- or women-owned.To address this, all DBE companies will have to reapply for the certification so that they can be reassessed under the updated criteria. The Iowa Department of Transportation will be charged with reconsidering the applications for nearly 400 certified businesses. Each one will require a full audit of the business.“The DBE program is to encourage the creation of more contracting opportunities for smaller businesses and businesses that might not traditionally have had an opportunity,” Iowa DOT government and community relations director Daniel Yeh said.Cassie Cannon, who owns FC Trucking, says she is used to being the exception.“There aren’t a whole lot of trucking companies that are owned by females,” Cannon said.She credits the program with helping her company grow, but said the initial DBE application process took her around a year and a half to complete.“It has given me a very good foundation, shown me the path and guided me toward trainings and networking meetings that have opened doors to me that I never would have known were possible,” Cannon said.The change deemphasizes opportunities for women and racial minorities and prioritizes small businesses instead. Cannon said she welcomes that expansion, but she is still worried.Until all the companies are reevaluated, current requirements to direct a portion of work to DBE-certified firms are suspended. For Cannon, that means uncertainty will cloud the upcoming construction season.“I have some concerns because right now would be the time that I would be bidding on some of the larger DOT projects for next year,” Cannon said. “I’m worried about what I might lose in the meantime.”The new guidance will take effect when the government shutdown ends.
Hundreds of Iowa contractors and engineering firms are bracing for the loss of a key contracting advantage once the federal government shutdown ends, a shift that could specifically affect women- and minority-owned businesses.
The Disadvantaged Business Enterprise Program is intended to give smaller contracting companies and engineering firms owned by women or racial minorities a competitive edge. On projects that use federal funding, agencies are required to direct a portion of the work to DBE-certified firms. The current statewide goal is for DBE-certified companies to complete 5.7 percent of the labor on construction projects.
New guidance the U.S. Department of Transportation published on Sept. 30 will change that. The document says “not all individuals have been treated equally under the program,” and that eligibility cannot be based solely on whether a firm is minority- or women-owned.
To address this, all DBE companies will have to reapply for the certification so that they can be reassessed under the updated criteria. The Iowa Department of Transportation will be charged with reconsidering the applications for nearly 400 certified businesses. Each one will require a full audit of the business.
“The DBE program is to encourage the creation of more contracting opportunities for smaller businesses and businesses that might not traditionally have had an opportunity,” Iowa DOT government and community relations director Daniel Yeh said.
Cassie Cannon, who owns FC Trucking, says she is used to being the exception.
“There aren’t a whole lot of trucking companies that are owned by females,” Cannon said.
She credits the program with helping her company grow, but said the initial DBE application process took her around a year and a half to complete.
“It has given me a very good foundation, shown me the path and guided me toward trainings and networking meetings that have opened doors to me that I never would have known were possible,” Cannon said.
The change deemphasizes opportunities for women and racial minorities and prioritizes small businesses instead. Cannon said she welcomes that expansion, but she is still worried.
Until all the companies are reevaluated, current requirements to direct a portion of work to DBE-certified firms are suspended. For Cannon, that means uncertainty will cloud the upcoming construction season.
“I have some concerns because right now would be the time that I would be bidding on some of the larger DOT projects for next year,” Cannon said. “I’m worried about what I might lose in the meantime.”
The new guidance will take effect when the government shutdown ends.
