Rep. Johnson, Sen. Ossoff Introduce Bill to Boost Opportunities for Disadvantaged Businesses

WASHINGTON, D.C. – Today, Congressman Hank Johnson (GA-04) introduced the Small Business Contracting Fairness Act of 2022, critical legislation to standardize treatment of Disadvantaged Business Enterprises (DBEs) within the U.S. Department of Transportation (USDOT). The bill would strengthen the U.S. Department of Transportation's Disadvantaged Business Enterprise (DBE) program to help more minority and women-owned small businesses compete for contracts and competitive funding opportunities.

Sen. Jon Ossoff (GA) introduced the Senate companion legislation.

Unlike all other federal agencies, the USDOT, Federal Highway Administration (FHWA) and Federal Transit Administration (FTA) apply different standards to DBEs than the Small Business Administration (SBA), which has resulted in fewer DBEs that are able to qualify for federal contracts originating from these agencies.

The Infrastructure Investment and Jobs Act (IIJA) funds $550 billion in new infrastructure investments and is anticipated to add 1.5 million jobs a year for the next five years. Changing the DBE size standard to reflect the SBA's size standard will mean that small businesses owned and operated by minorities and women will be given equal access to federal contracting opportunities to execute these projects.

"With the recent passage of the Infrastructure Investment and Jobs Act, which provides USDOT with billions of new dollars, it's more important than ever to ensure our DBEs are eligible to apply for these wide-ranging construction contracts," said Rep. Johnson, a senior member of the Transportation & Infrastructure Committee. "In order to address past and ongoing discrimination in federal contracting, we must pass this bill. I appreciate Senator Ossoff picking up the mantle in the Senate."

"As we upgrade America's infrastructure, Georgia's small businesses have a vital role to play. My legislation will help ensure women- and minority-owned small businesses in Georgia have the opportunity to secure infrastructure contracts," Sen. Ossoff said.

Congress set a goal that a portion of the dollars spent on building highways and other infrastructure projects should be extended to certain small businesses, known as DBEs -- businesses owned by African Americans, Hispanics, Native Americans, Asian-Pacific and Subcontinent Asian Americans, and women.

Currently, a DBE firm must meet SBA size criteria and have average annual gross receipts for the last three years not to exceed $26.29 million. This cap on gross receipts is currently more than $13.3 million lower than the SBA size limit for construction. As construction projects tend to have larger total project costs than in many other industries, the cap on gross receipts greatly reduces the pool of DBEs who can otherwise qualify for the program.

The Small Business Contracting Fairness Act of 2022 removes the gross receipts cap for the purpose of determining a DBE's eligibility. This is the same way in which the FAA currently determines eligibility for the DBE program after the cap on gross receipts was removed in the 2018 FAA Reauthorization Act.

The removal of the gross receipts cap will standardize the treatment of DBEs throughout the USDOT, including the three major operating administrations of USDOT -- the Federal Highway Administration, the Federal Aviation Administration, and the Federal Transit Administration.

To read the bill, click HERE.

Supporting groups: Hartsfield-Jackson Atlanta International Airport (ATL), MCP Enterprise BPO Services, Atlanta Black Chambers, Inc, Georgia Hispanic Chamber of Commerce (GHCC), Georgia Minority Supplier Development Council, Urban League of Greater Atlanta, Women First National Legislative Committee.

Cosponsors: Bennie Thompson (MS-02), Sheila Cherfilus-McCormick (FL-20), Sanford Bishop (GA02), David Scott (GA-13), Karen Bass (CA-37), Bonnie Watson Coleman (NJ-12), Shontel Brown (OH-11), Dwight Evans (PA-03), Bennie Thompson (MS-02), André Carson (IN-07), Danny K. Davis (IL07), Michael San Nicolas (GU-00), Sheila Jackson Lee (TX-18), Steve Cohen (TN-09).

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