Strategies and Resources for Government Agencies to Utilize Disadvantaged Business Enterprises in Transportation Design-Build Projects

Abstract

The Disadvantaged Business Enterprise (DBE) Program was established to provide opportunities for businesses owned and controlled by socially and economically disadvantaged individuals, such as minority-owned and women-owned businesses, to participate in federally funded transportation-related projects. Such DBE participation has increasingly been achieved over the years with the appropriate guidance for traditional project delivery: design-bid-build. However, in recent times the onset of alternative project delivery methods, such as design-build (DB), has introduced challenges for state DOTs trying to implement the DBE program using traditional approaches. This paper presents a synthesis of strategies and resources being used in state DOTs to achieve effective DBE utilization and identifies opportunities for enhancing DOT DBE programs, gathered through both a literature review and a national survey of state DOTs. Major challenges to address DBE issues in DB highway projects are categorized in the following three groups: (1) setting DBE contract goals on DB projects with limited information; (2) identifying available and qualified DBE firms, spreading DBE usage in project stages other than construction, and diversifying DBE opportunities among different disciplines; and (3) achieving desired behavior to attain program goals to ensure DBE compliance for successful program implementation. State DOTs have developed the following seven innovative strategies to enhance the utilization of DBEs in DB projects: (1) requiring the submission of DBE performance plans at the time of proposal; (2) setting subgoals under the DBE project goal to address specific program needs; (3) initiating new and enhancing existing programs that build DBE capacity; (4) unbundling work packages to offer more work opportunities; (5) enhancing communication between DBE staff and project planners; (6) using explicit language in DB contract documents; and (7) monitoring and ensuring program compliance by adopting a DBE compliance software tool in addition to enhancing traditional monitoring methods. The contributions of this research to the body of knowledge are (1) the identification of unique challenges for addressing the DBE issues in the integrated project delivery environment; and (2) the identification of effective strategies to enhancing the state of DBE utilization in DB projects. It is anticipated that this research will provide transportation owner agencies with a recommended set of best practices to elevate their current practices in engaging DBE organizations in the integrated project delivery environment.