The term local government (LG) includes municipalities, counties, county and regional toll authorities, metropolitan planning organizations (MPOs), regional mobility authorities (RMA) and some private entities. FHWA refers to this program as local public agency (LPA).

A LG is required to manage and monitor federal-aid projects to ensure that prime contractor and their subcontractors comply with DBE Program provisions.

Prior to letting a construction project a DBE goal will be set by TxDOT. Prior to contract execution, the LG will ensure the prime contractor’s DBE commitments meet the goal and if not, reviews and evaluates the prime contractor’s good faith efforts.

During construction, the LG is responsible for managing and monitoring the project to ensure DBE Program compliance. This includes conducting CUF reviews and ensuring the prime contractor does not terminate or substitute the DBE without its written approval. And finally, in the post award phase, payments made to DBE subcontractors should equal the DBE goal commitment.

TxDOT is responsible for ensuring such projects are completed in conformance with the DBE requirements in 49 CFR, Part 26.