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On Friday, the U.S. Department of Transportation (USDOT) announced a proposed rule designed to help more economically and socially disadvantaged businesses participate in federal highway, transit and airport construction projects, while making the states and agencies that run the Disadvantaged Business Enterprise (DBE) Program more accountable.

The rule would require greater accountability from state and local transportation agencies, according to a USDOT press release. Agencies that fail to meet established goals to include disadvantaged business enterprises in their spending plans would be required to analyze the reasons for the shortfall and offer corrective actions. In addition, safeguards would be added to ensure prime contractors fulfill commitments to use DBE subcontractors. State and local agencies would be required to conduct post-award monitoring of each contract.

The rule also would prevent DBEs from being removed from the program prematurely. It would raise the personal net worth limit for DBE owners from the present $750,000 to an inflation-adjusted $1.3 million, according to the USDOT.

The DBE program helps for-profit small businesses — in which socially and economically disadvantaged individuals own at least a 51 percent interest and control management and daily business operations — to compete for government contracts by requiring state and local transportation agencies to establish goals for DBE participation.