Chapter 15: Assistance to DBE Firms

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Section 1: Overview

According to 49 CFR, Part 26, Appendix A, it is appropriate for prime contractors to provide assistance to DBEs in a variety of areas, such as bonding, credit, insurance, equipment, materials, and supplies.

In providing such assistance, a prime contractor should be careful not to provide so much assistance to a particular DBE in so many areas that the LG would conclude that the DBE is not viable without the relationship to the prime contractor. This assistance should be transparent and arms-length. As part of its contract performance oversight functions, the LG will continue to scrutinize the independence of DBEs as they work on projects.

Prime contractors with questions about the appropriateness of their assistance relationships with DBEs should consult the LG staff.

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