The Department of Transportation IG has alerted the department that it found three suspended or debarred firms currently listed in state Disadvantaged Business Enterprises directories as eligible to participate in the DBE program.
The IG issued a management advisory stemming from a recent audit into the DBE program, noting that federal regulations explicitly exclude suspended or debarred firms from receiving federally funded contracts.
Because DoT lacks sufficient DBE guidance to help state and local transportation agencies safeguard against federally funded awards to firms that are suspended or debarred, instances like those found by the IG point to the possibility that other ineligible firms may be listed on state DBE directories, the IG said.
It added that DBE certification and oversight weaknesses further increase the risk that DBE work may be awarded to suspended or debarred firms.
