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<classification authority="sudocs">GA 1.13:GAO-01-586</classification>
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 <subject>Audits</subject>
 <subject>Minority business assistance</subject>
 <subject>Reporting requirements</subject>
 <subject>Small business assistance</subject>
 <subject>Small disadvantaged business contractors</subject>
 <subject>Statistical data</subject>
 <subject>Transportation contracts</subject>
 <subject>DOT Disadvantaged Business Enterprise</subject>
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<titleInfo>
 <title>Disadvantaged Business Enterprises: Critical Information Is Needed to Understand Program Impact</title>
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<abstract>The Department of Transportation&apos;s (DOT) Disadvantaged Business
Enterprise (DBE) program seeks to remedy the effects of current  
and past discrimination against small businesses owned and	 
controlled by socially and economically disadvantaged persons and
to foster equal opportunity in transportation contracting. This  
report provides information on (1) important changes made to the 
program since 1999; (2) characteristics of DBEs and non-DBEs that
receive DOT-assisted highway and transit contracts; (3) evidence 
of discrimination and other factors that may limit DBEs&apos; ability 
to compete for DOT-assisted contracts; and (4) the programs	 
impact on costs, competition, and job creation and the impact of 
discontinuing the federal and nonfederal DBE programs. GAO found 
that the program has changed significantly since DOT issued new  
regulations in 1999 in response to a 1995 Supreme Court decision 
that heightened standards for federal programs that use race or  
ethnicity as a criterion in decision-making. The new regulations 
overhauled the DBE goal-setting process. For example, states and 
transit authorities are no longer required to justify goals lower
than 10 percent--the amount identified in the statutory DBE	 
provision. Rather, goals are to be based on the number of &quot;ready,
willing, and able&quot; DBEs in local markets. GAO was unable to	 
determine the characteristics of DBE participants because of a	 
lack of information. Without this information, it is impossible  
to define the universe of DBEs, compare them with the		 
transportation contracting community as a whole, or gain a clear 
understanding of the programs impact. DOT does not systematically
track information on discrimination complaints filed by DBEs.	 
Although DOT receives written discrimination complaints filed by 
DBEs, it could not provide the total number of such complaints,  
the total number of investigations launched, or the outcomes of  
the investigations.</abstract>
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<identifier type="preferred citation">GAO-01-586</identifier>
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<subject>
 <topic>Audits</topic>
 <topic>Minority business assistance</topic>
 <topic>Reporting requirements</topic>
 <topic>Small business assistance</topic>
 <topic>Small disadvantaged business contractors</topic>
 <topic>Statistical data</topic>
 <topic>Transportation contracts</topic>
 <topic>DOT Disadvantaged Business Enterprise</topic>
 <topic>Program</topic>
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