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: Sen. Padilla, Alex [D-CA]
Target Audience
Population: Socially and economically disadvantaged individuals owning small businesses
Estimated Size: 2000000
- The bill targets socially and economically disadvantaged individuals who own small businesses.
- The focus is specifically on minority-owned small businesses within the transportation industry.
- The program is under the Department of Transportation, expanding from highway projects to also include public transit and airport projects.
- The bill is relevant globally wherever US DOT funded projects take place, but primarily in the US.
Reasoning
- The policy targets minority-owned small businesses in the transportation sector, which are substantial in number across the United States.
- Due to the limited starting budget, the program will initially have a focused scope, impacting smaller segments of the target population significantly while providing some benefits to a wider group.
- The expansion from highway projects to public transit and airport projects increases the potential reach of this policy, making it relevant for businesses involved in various types of transportation project contracts.
- We must consider the variability in the initial impact based on location, business size, and current access to opportunities.
Simulated Interviews
Owner of a small construction company (Atlanta, Georgia)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- This policy is a great opportunity for my business to expand and gain more federal contracts.
- It would help us grow and hire more employees, which is something I've been striving for.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Owner of a small logistics business (Chicago, Illinois)
Age: 34 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I hope this policy will open the door for new ventures related to airport contract opportunities.
- Currently, I'm finding it hard to break into federal projects.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Owner of a small tech supply business (San Francisco, California)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- We're already working on a few transportation projects, and this expansion could solidify our growth.
- Interested to see how the integration with FAA projects will pan out.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Employee in a small landscaping business (Dallas, Texas)
Age: 28 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- While I'm not a business owner, my company might gain new contracts, perhaps leading to more stable work.
- There's a chance this indirectly benefits me if the company grows.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Owner of a medium-sized civil engineering firm (Miami, Florida)
Age: 52 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- We don't qualify as minority-owned, so the direct benefits are limited.
- However, having more skilled minority partners could enhance project quality overall.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Owner of a small architectural firm (New York, New York)
Age: 39 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 6.0 years
Commonness: 7/20
Statement of Opinion:
- The increase in funding might help us finally win some contracts for local subway station improvements.
- I hope the additional training can better position us competitively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Consultant for minority-owned businesses (Los Angeles, California)
Age: 42 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- This could drive more clients to seek advice on securing contracts, ultimately growing my consulting business.
- It's a step forward for minority business empowerment.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Retired civil engineer (Houston, Texas)
Age: 60 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- Retirement means this doesn't directly affect me, but I support any move to create a more level playing field in business.
- I might consider a consultancy role seeing this interest in minority expansion.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Co-owner of a minority business hub (Phoenix, Arizona)
Age: 30 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 6/20
Statement of Opinion:
- The potential increase in minority-owned businesses winning contracts will likely increase demand for our services.
- This is a promising development for the minority entrepreneurship ecosystem.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 9 |
| Year 20 | 8 | 8 |
Owner of a small cleaning business (Detroit, Michigan)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 8/20
Statement of Opinion:
- I see this as an opportunity to expand our client base if we can successfully bid for airport cleaning contracts.
- My main concern is ensuring we meet the required standards to qualify.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $15000000 (Low: $10000000, High: $20000000)
Year 2: $15000000 (Low: $10000000, High: $20000000)
Year 3: $15000000 (Low: $10000000, High: $20000000)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The effectiveness of the program will largely depend on the ability to successfully integrate and support minority-owned businesses in the targeted federal sectors.
- Monitoring and evaluation metrics should be established to assess the impact of services and quantify enhanced competitiveness and participation.
- Coordination among DOT, FAA, and FTA is critical to ensure consistent implementation and efficient use of resources.