Who Benefits From the Federal Aviation Administrations DBE Program?
George R. La Noue University of Maryland, Baltimore County The Disadvantaged Business Enterprise (DBE) component of federal transportation programs creates important competitive advantages for firms considered to be socially and economically disadvantaged. Every recipient of federal transportation funds must set annual and contract goals targeting the DBE share of contract dollars. All firms owned by women and minorities are presumed to be socially disadvantaged and can become certified DBEs. DBE programs have been subject to legal and political controversy since they were enacted in 1982. This article is based on data of 5,385 contracts’ worth $1.94 billion awarded by 423 recipients of the Federal Aviation Administrations fund in FY 2004. Findings show that race-conscious rather than race-neutral goals are predominantly used, that DBEs are greatly overutilized as subcontractors given the goals airports have set, and that the principal DBE group beneficiary of the awards is White women
