NEW DBE Regulations Proposed - LAW OFFICE OF ELIAS M. GORDAN

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0 height="100%"><tr> <td valign="top" width=175 BGCOLOR="#A6CAF0" TEXT="#080000"> <div> <B> <TABLE BORDER="0" CELLPADDING="2" CELLSPACING="1" WIDTH="132" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 35 ><NOBR><div> <IMG BORDER="0" SRC="1x1.gif" HEIGHT="29" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" WIDTH="21"></div> </NOBR></tD> <tD VALIGN=TOP><NOBR><div> <IMG BORDER="0" SRC="1x1.gif" HEIGHT="29" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" WIDTH="21"></div> </NOBR></tD> <tD VALIGN=TOP WIDTH="20"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="35" ALIGN="bottom" WIDTH="20" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP><NOBR><div> <A HREF="id42.htm" TARGET="_top" TITLE="ARCHIVE PAGE LAW OFFICE OF ELIAS M. GOR"><U><B><IMG SRC="00d0d1d0.gif" border=0 width="13" height="29" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></U></A></div> </NOBR></tD> <tD VALIGN=TOP><NOBR><div> <IMG BORDER="0" SRC="1x1.gif" HEIGHT="29" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" WIDTH="27"></div> </NOBR></tD> </tR> </TABLE></B></div> <div> <B>© </B>2001 Elias M. Gordan</div> <div> All rights reserved</div> <bR> <div> <B>Law Office of</B></div> <div> <B>Elias M. Gordan</B></div> <div> Post Office Box 60</div> <div> Palos Park, IL  60464</div> <bR> <div> Phone  708.923.9735</div> <div> Email  gordanlaw@att.net</div> <div> Web    www.gordanlaw.com</div> <div> <A HREF="index.htm" TARGET="_top" TITLE="HOME PAGE LAW OFFICE OF ELIAS M. GORDAN"><U><B>HOME</B></U></A></div> <div> <A HREF="id24.htm" TARGET="_top" TITLE="LAW OFFICE OF ELIAS M. GORDAN About Us"><U><B>About Us</B></U></A></div> <div> <A HREF="id30.htm" TARGET="_top" TITLE="LAW OFFICE OF ELIAS M. 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Gordan.  All rights reserved.</div> <div>         The USDOT published new proposed regulations for State DOTs and their programs .  The regulations, published in the May 8 Federal Register (NOT May 15, as reported in ENR), are in volume 66, #89, pgs. 23208-23227.  There are four major changes proposed:</div> <div> - a move toward one application form, for certification by the Small Business Administration (for general Federal projects) and DOTs, abolishing the artificial distinction between the SBA's SDBs (small disadvantaged businesses) and DOTs' DBEs (disadvantaged business enterprises)</div> <div> - a standard reporting form and application form to be used from state to state, across different DOTs, without the need for special supplemental State forms</div> <div> - changes to DBE credentialing/proof requirements in the areas of personal net worth, size, race/ethnicity, confidentiality, retainage, economic disadvantage, and trucking credits</div> <div>         The retainage changes would eliminate the controversial USDOT requirement that State DOTs force prime contractors to pay subs in full upon the completion of the sub's work, even as the State DOT holds back retainage.  Three alternatives would be available for State DOTs:</div> <div>      1) No retainage held back for prime contractors, no holdback permitted for subs work </div> <div>      2) No retainage held back for prime contractors, and a contractual "prompt pay provision" for subcontractor payment</div> <div>      3) Retainage from prime contractor permitted, plus incremental acceptances of portions of the prime contract, and a contractual "prompt pay provision" for subcontractor payment</div> <div> I urge you to read the full text of the regulations for yourself.  The Web page (in PDF format, requires "Adobe Reader"):</div> <div> <http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2001_register&docid=01-11317-filed.pdf> </div> <div> The question: will the Adarand case, now before the Supreme Court, have an effect?</div> <div> <A HREF="id56.htm" TARGET="_top" TITLE="DBE Case Reviewed, then Declined, by Sup"><U>(click here for details on Adarand)</U></A></div> <bR> <div> <A HREF="index.htm" TARGET="_top" TITLE="HOME PAGE LAW OFFICE OF ELIAS M. GORDAN"><U><B>BACK TO HOME PAGE AND RECENT NEWS</B></U></A></div> <bR> <DIV ALIGN="LEFT"></DIV> <div> <B>Law Office of Elias M. Gordan, </B><FONT SIZE="3" COLOR="#0000BF" FACE="Times New Roman" ><A HREF="http://www.gordanlaw.com" TARGET="_top" TITLE="http://www.gordanlaw.com"><U><B>http://www.gordanlaw.com</B></U></A></FONT><B> </B></div> <div> <B>Post Office Box 60, Palos Park, IL, 60464   </B><FONT SIZE="3" COLOR="#0000BF" FACE="Times New Roman" ><A HREF="http://www.gordanlaw.com/id26.htm" TARGET="_top" TITLE="http://www.gordanlaw.com/id26.htm"><U><B>email gordanlaw@att.net</B></U></A></FONT></div> <div> <B>708.923.9735</B></div> </td> </tr></table></body>