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Federal officials have sought to address a lack of diversity in government contracting, but one Congressman with deep San Antonio roots insists more must be done to narrow disparities and expand participation.
U.S. Rep. Joaquin Castro, D-San Antonio, is leading a group of six members of Congress that is introducing the Expanding Opportunities for Diverse Entrepreneurs Act, legislation that would expand the reach of the Department of Transportation’s Disadvantaged Business Enterprise program.
The proposed legislation seeks to ensure federal contracting dollars are distributed more equitably, while removing barriers that have limited minority- and women-owned businesses from securing more federally assisted transportation work.
“I'd like to see more disadvantaged businesses and small businesses get a larger slice of the pie,” Castro told me during a one-on-one interview. “Right now, there are programs in place to help with that, but their effectiveness is questionable.”
The DBE program is intended to provide small businesses owned and controlled by socially and economically disadvantaged individuals, including women and minorities, a fair opportunity to compete for federally funded transportation contracts. Yet, according to Castro, problems persist.
The Expanding Opportunities for Diverse Entrepreneurs Act, endorsed by the Conference of Minority Transportation Officials and Latinos in Transit, would require more transparency from the Department of Transportation in its publishing of DBE commitments and award payments. It would also require the DOT to report annually to Congress on its DBE program, while DBE liaison officers would have to report to the DOT on their efforts to advise such businesses of contracting opportunities.
“This bill really is a first step. It's about transparency, trying to get a clearer picture of what's going on, not just at the federal level, but also with state and local governments that received department of transportation money,” Castro said.
The proposed legislation could impact contracting tied to a variety of highway and airport projects. And it follows Castro’s March 23 introduction of the Transparency in Government Contracts Act intended to support congressional efforts aimed at improving such contracting opportunities for businesses owned by minorities, women and people with disabilities.
“Latino-owned businesses are among the fastest-growing across the United States but struggle to acquire the resources and support to compete for equitable federal contracts,” said Alva Carrasco, board president for Latinos in Transit.
Castro is hopeful there will be bipartisan support of this latest bill.
“It's not just Democrats that have diverse districts,” he said.
The impact of what Castro is seeking could be felt in San Antonio, which is embarking on a $2.5 billion airport expansion project that’s already received some federal funding support. He’s hopeful some of these businesses being overlooked nationally could get some of that work.
He believes there will be a significant payoff from a more transparent and equitable approach to transportation contracting.
“It will mean that there's money in the pockets of a lot more businesses and a lot more communities, including San Antonio,” Castro said. “There will be less income inequality.”