Many DBE companies may not realize how influential their comments can be in the rulemaking process of the Department of Transportation’s evolving DBE program, according to Don O’Bannon, Airport Minority Advisory Council (AMAC) Board of Directors Chairman. The DOT issued a federal register notice that addresses significant proposed changes to the program and is calling for comments by July 7.
“AMAC has always encouraged involvement in the federal policy making process and such involvement is particularly important today,” says O’Bannon. “This notice provides a direct and timely way for DBE firms–from small concessionaires to multi-city contractors–to make their voices heard. Ultimately, submitting comments to the notice places the concerns of individual business owners directly before the policy makers that write program rules.”
O’Bannon makes several other important points in the following interview with Airport Revenue News.
ARN: Why is it important for industry participants to submit comments on the notice?
O’Bannon: Above all, I urge DBEs to keep in mind that the notice topics address some very significant airport DBE program issues. From contract bundling to DBE certification procedures, regulations developed as a result of this notice and comment period will have a real, tangible effect on business operations and program administration. It is crucial for individual DBEs to be part of this process.
ARN: How can industry participants get more involved in helping to make these improvements to the DBE program?
O’Bannon: First, and at the risk of being redundant, we encourage submitting comments to the notice. Comments from stakeholders tell a personal on-the-ground story that often is not heard by those making decisions in Washington.
Second, we encourage participation in groups that are working with Congress and relevant federal agencies to address these issues. AMAC, for example, works closely with Congressional leadership, key House and Senate aviation-related committees, the Department of Transportation (DOT), and the Federal Aviation Administration (FAA). We have been at the frontline of every major policy debate affecting airport DBE programs.
We cannot, however, operate without our diverse membership, which includes DBE concessionaires and contractors, airport executives, DBE liaison officers, and others in the industry. The involvement of local DBEs in AMAC events, including our Industry Day on Capitol Hill in March, helps to inform Senators, Members of the House of Representatives, DOT, and FAA about the positive impact aviation sector minority and women-owned businesses have on the communities in which they operate and the nation as a whole.
Third, we encourage industry stakeholders to develop a relationship with their federal, state, and local representatives. Members of Congress are often surprised by the positive economic impact that DBE businesses have in their local communities and the aviation sector in general. DBEs should take available opportunities to educate their elected officials of these facts. In addition, DBEs also must emphasize that there is still a need for airport DBE programs. We hear countless stories of minorities and women encountering discrimination in contracting, lending, and operations arenas. Yet, some are not convinced that the airport DBE programs continue to be necessary. Protecting the continuance of the DBE program requires that firms share their stories of discrimination with Congress and federal agencies. Remember, telling our stories is always necessary and no two stories are ever the same.
ARN: What is AMAC’s plan in moving forward on these issues?
O’Bannon: Going forward, AMAC will continue to work with President Obama’s Administration, and particularly with DOT and the FAA. AMAC is devoted to addressing discrimination in the aviation sector and DBE improvements that will further that goal are a top priority for us.
In particular, AMAC will be submitting comments to the notice and looks forward to listening to our members and related stakeholders on this issue at our 25th Annual Airport Business Diversity Conference. We encourage everyone to attend the conference and, specifically, the FAA Forum on June 8, 2009 to voice their opinion in person.
In addition, our work on these issues extends beyond regulatory advocacy with DOT/FAA. AMAC engages in legislative advocacy. For example, the House of Representatives just passed an FAA Reauthorization bill that includes key DBE improvements. The bill includes provisions that would provide an upward inflationary adjustment of the existing personal net worth cap to which DBE firms must comply and would provide certification training for those making DBE certification decisions. As the FAA Reauthorization bill moves through the Senate, AMAC will remain involved in the process and will encourage the inclusion of the same provisions in the Senate bill.
Outline of DOT’s Federal Register Notice
The first part of the notice is proposing that any recipient of financial assistant under Part 26 submit overall goals for approval every three years instead of annually. Currently, recipients are required to provide these goals for review every year on Aug. 1. In 2005, the DOT’s ACDBE regulation established a staggered three-year schedule to better manage the work load for the FAA and airports. The DOT is suggesting a similar system for Part 26 DBE goals, arranging the schedule so an airport would not have to submit a part 23 and Part 26 goal in the same year. More information can be found at http://edocket.access.gpo.gov/2009/pdf/E9-7904.pdf.
The second part addresses improvements to the DBE program, which lists six issues that may require alteration to current DBE rules: counting of DBE credit for items obtained by DBE subcontractors from other sources; “unbundling;” changes to the DBE application and personal net worth forms; improving program oversight; easing burdens on firms seeking DBE certification in more than one state; and limiting the discretion of prime contractors to terminate DBEs for convenience after the prime contractor has committed to using the DBE as part of its showing good faith efforts. More information can be found at http://edocket.access.gpo.gov/2009/pdf/E9-7903.pdf.
Comments are due by July 7.
