As discussed in a previous post on SmallGovCon, the Department of Transportation (DOT) recently issued a interim final rule removing certain presumptions of disadvantage from its eligibility requirements for the Disadvantaged Business Enterprise (DBE) Program. As part of that change, DBE Program participants and applicants will have to submit new narratives discussing their social disadvantage. The DOT has released further guidance on the changes felt by the interim final rule, including impacts on the disadvantage narrative and current contracts.
Continue readingTag Archives: DOT DBE program
DOT Ditching DBE Program’s Presumed Social Disadvantage
The Department of Transportation (“DOT”) has administered aspects of the Disadvantaged Business Enterprise (“DBE”) program for decades for work to be performed for state and local transportation agencies. The DBE program’s eligibility requirements are quite similar to those under the Small Business Administration’s (“SBA”) 8(a) Program. As is well known, over the past few years the 8(a) Program has undergone many changes and legal challenges, altering its application and eligibility processes, especially with respect to presumed social disadvantage. Now the DOT DBE program seems to be undergoing very similar changes regarding disadvantage requirements.
Continue readingSmallGovCon Week In Review: February 29-March 4, 2016
Now that the calendar says March, I’m getting ready for March Madness. The basketball excitement is building here in Lawrence, home of the #1 ranked Jayhawks. Tomorrow, I’ll be at Allen Fieldhouse for the last home game of the season, and a farewell to senior standout Perry Ellis.
But don’t worry, I won’t let my excitement over March Madness deter me from bringing you our SmallGovCon Week In Review. This week’s collection of government contracts stories brings great news for WOSBs and EDWOSBs, an update on the abrupt cancellation of a major DHS contract, an effort to permit SDVOSBs to obtain disadvantaged status with the Department of Transportation, and much more.
SmallGovCon Week In Review: February 8-12, 2016
Love is in the air this weekend as Valentine’s Day approaches. And even if that special someone isn’t the chocolate-and-flowers type, nothing says true love like giving the gift of the latest government contracting news and notes. And best of all, it’s free!
In this week’s edition of SmallGovCon Week In Review, the government appears to have hit its 23% small business goal for the third year running, a contractor will fork over $1 million to settle DOT DBE fraud claims, new data suggests that agencies are cutting back on lowest-price, technically acceptable contracts, and much more.
DBE Fraud: $5 Million Settlement In Pass-Through Case
A large business has agreed to pay nearly $5 million to resolve False Claims Act allegations that it participated in a “pass-through” scheme designed to take advantage of the Department of Transportation’s Disadvantaged Business Entity program.
According to a Department of Justice press release, HD Supply Waterworks conspired with subcontractors to list a now-defunct Native American-owned company as a subcontractor, when in fact the subcontractor’s work was passed through to Waterworks.
DOT DBE Fraud: Construction Company Admits False Statements In “Pass-Through” Case
A Connecticut construction company has agreed to pay more than $2.4 million to resolve fraud claims related to an alleged DOT DBE “pass through” scheme.
According to a DOJ press release, as part of the resolution, the construction company has admitted that it made false statements to the government that a DBE performed more than $3 million in subcontracted work, when in fact, that work was performed by a non-DBE.
DOT DBE Fraud: Government Announces Two Large Settlements
If you are planning to defraud the U.S. Government (and I certainly hope that you are not), your best bet is to avoid the U.S. Department of Transportation’s Disadvantaged Business Entity program.
Yesterday, the Department of Justice announced that a DOT DBE subcontractor had agreed to settle “pass-through” fraud claims for $936,000. The DOJ’s announcement comes on the heels of a June 6 press release touting a settlement of nearly $3 million, also stemming from alleged DOT DBE fraud.