Bill Overview
Title: Disadvantaged Business Enterprise Supportive Services Expansion Act
Description: The bill increases funding for and expands the disadvantaged business enterprise supportive services program of the Department of Transportation (DOT). The program provides training, assistance, and services to minority-owned small businesses to help them achieve proficiency to compete, on an equal basis, for federal aid highway project contracts and subcontracts. Specifically, the bill (1) increases the annual funding cap for the program from $10 million to $25 million, and (2) authorizes DOT to implement the program at the Federal Transit Administration and Federal Aviation Administration so that small businesses owned and controlled by socially and economically disadvantaged individuals may achieve proficiency to compete for contracts and subcontracts regarding public transportation and airport projects.
Sponsors: Rep. Aguilar, Pete [D-CA-31]
Target Audience
Population: Disadvantaged minority-owned small business owners
Estimated Size: 1200000
- The legislation impacts minority-owned small businesses, which are targeted under the Disadvantaged Business Enterprise (DBE) Supportive Services.
- These businesses are defined as socially and economically disadvantaged entities, often comprising racial and ethnic minorities, and sometimes women.
- The bill expands supportive services and training which directly impacts how these businesses can compete for federal contracts, especially in construction, transportation, and related fields.
- Globally, disadvantaged small business owners face challenges such as access to education, training, and equal opportunities in bidding for large projects.
Reasoning
- This policy targets minority-owned small businesses in specific sectors like transportation and aviation, where federal contracts are substantial.
- The impact of this policy will be greater for individuals currently running businesses in these sectors, particularly those lacking resources to effectively compete for contracts without additional support.
- The policy may also benefit aspiring entrepreneurs within the target demographic by improving access to training and support services.
- Companies not classified under minority-owned entities are unlikely to be affected.
- The overall number of minority-owned businesses in the U.S. suggests a wide-ranging potential impact, but realistically the budget constraints will limit the direct impact to a subset of these businesses.
Simulated Interviews
Owner of a small construction company (Atlanta, GA)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I have often found it hard to compete for federal contracts because bigger companies have more resources.
- This policy could finally give me the training I need to better compete and possibly secure a major contract.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Tech startup founder (Los Angeles, CA)
Age: 38 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- I think it's a positive change, but my business doesn't directly benefit because we're in tech, not construction or transport.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Public transportation consultant (Chicago, IL)
Age: 52 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- The expanded programs could open up new consulting opportunities that align with my expertise.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Freelance project manager (Miami, FL)
Age: 29 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- I believe this policy can help me build the skills and network to finally start my business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 4 |
| Year 20 | 9 | 4 |
Retired engineer, mentors minority-owned businesses (Seattle, WA)
Age: 60 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This policy will be beneficial for the businesses I mentor, giving them the edge needed to thrive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Owner of a landscaping business (Dallas, TX)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 4/20
Statement of Opinion:
- I've been thinking about bidding on government projects, and this could provide the training I need.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 9 | 5 |
Finance advisor (New York, NY)
Age: 40 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 2/20
Statement of Opinion:
- It's a good initiative, but my clients won't be directly affected as we're not in the target sectors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Owner of a small airline service company (Phoenix, AZ)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 1/20
Statement of Opinion:
- As someone already in the aviation sector, this could open doors to larger federal contracts that seemed unreachable before.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Owner of a minority-owned architect firm (Houston, TX)
Age: 48 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- With proper training and support, we could finally break into the federal market, which has been a goal for years.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Urban planner (Portland, OR)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- While I appreciate the intent, it's unlikely to impact my day-to-day work much as I don't usually deal with contracts in this specific sector.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $15000000 (Low: $14000000, High: $16000000)
Year 2: $15000000 (Low: $14000000, High: $16000000)
Year 3: $16000000 (Low: $15000000, High: $17000000)
Year 5: $17000000 (Low: $16000000, High: $18000000)
Year 10: $20000000 (Low: $19000000, High: $21000000)
Year 100: $40000000 (Low: $35000000, High: $45000000)
Key Considerations
- The potential effectiveness of the program expansion in achieving its goals may vary depending on the execution by DOT and the extent of outreach and training provided.
- The long-term benefits in terms of business growth and economic empowerment may outweigh initial costs, but require sustained effort and monitoring.
- Synergies with other federal programs aimed at supporting small and minority businesses could amplify impact.