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 TxDOT 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, TxDOT 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 TxDOT
staff.