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Office of Program Policy Analysis and Government Accountability

Performance Audit of the Minority Business Enterprise Program Administered by the Department of Transportation , Report No. 12234, January 1994
 


  • Although the DOT reports meeting its overall Minority Business Enterprises (MBE) expenditure goal, goal attainment has been overstated. In calculating its expenditures made with MBEs, the Department has included MBE expenditures that are not part of the MBE program.
  • DOT has not met its MBE construction goal and has not met selected race/gender goals contained within the four industry categories. DOT officials have attributed not meeting all of their MBE goals to such factors as too few MBEs available to perform the work needed, MBEs not being the lowest bidder for contracts requiring acceptance of the lowest bid, and difficulty in locating MBEs matching the race/gender compositions specified in statute. Our reviews of DOT's MBE files generally supported these claims. However, DOT may be able to increase its use of MBE construction contractors by changing its bidding procedures and require prime contractors to formally commit to using certified minority contractors prior to executing a fixed capital outlay construction contract.


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