Question:

When a DBE subcontracts part of its work to a non-DBE, does the STA have a mechanism to deduct that amount from the overall contract goal? (49 CFR 26.55(a)(3))

Answer:

Work that a DBE subcontracts to a non-DBE firm does not count toward DBE goals. The STA’s normal subcontracting approval procedure is an effective way to monitor such possible situations.