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Contractors, lawmakers call for federal change after hearing on DBE program costs
Summary
Supporters of Senate Concurrent Resolution 40-21 told the House Finance and Taxation Committee the federal Disadvantaged Business Enterprise (DBE) program raises costs and requires special administration; the committee gave the resolution a do-pass recommendation.
Senator Justin Gearhart urged the House Finance and Taxation Committee to give a do-pass recommendation to Senate Concurrent Resolution 40-21, which asks the state’s congressional delegation to pursue changes to the federal Disadvantaged Business Enterprise program.
Nut graf: Testimony from contracting trade groups and contractors argued the DBE program — a federal requirement for federally aided contracts — creates administrative overhead and can drive up project costs when state goals force prime contractors to accept higher-priced DBE quotes.
Senator Gearhart told the committee he views the DBE rules as “in direct conflict with the nondiscrimination provision” in federal-aid contracts and said the program…
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