businesses is less than 1% of this Federalized project.
The FRA is under the authority of USDOT, the $2.25 billion grant to California is federal financial assistance and as such FRA and its funding source is required to comply with Title VI. The FRA does not have statutory authority for a DBE program, however; they have established a statement to “encourage” contractors to utilize DBEs on FRA funded contracts. California has the evidence that without a formal DBE program that includes race-conscious measures (individual DBE contract goals on contracts) the “encouragement” to engage DBEs on the contract will result in no DBE participation.
|Rendering from the California High-Speed Rail Authority|
and Newlands & Company Inc.
USDOT cannot ignore the evidence as presented in the recent and current California disparity studies. USDOT cannot ignore its authority to pursue a “Presidential Executive Order” to establish emergency regulations to incorporate the existing 49 Code of Federal Regulations Part 26 (49CFRPart 26) onto FRA funded contracts. USDOT cannot ignore Title VI and Simple Justice in its requirement to at a minimum establish a policy in the interim of formal regulations to require DBE participation in FRA funded projects.
• The High-Speed Rail Project (HSRP) in California must be brought under the U.S. DOT-DBE Program with specific, significant achievable goals (such as DOT DBE goal of 13.5% in California). The American Recovery and Reinvestment Act (ARRA) and 49 CFR Part 26 states that a recipient of federally assisted USDOT funds must implement a DBE Program with a minimum goal of 10 percent and a higher goal where there is evidence for such a goal. California has a minimum DBE
goal of 13.5%.
• The High-Speed Rail Project (HSRP) in California must establish firm, fixed goals
(not an aspirational goal as currently exists) for small business participation. The HSRP must set a firm 25% Goal for small businesses and a 5% Disabled Veteran Business Enterprise goal for all California funded HSRP activities.
The Phase One section from San Francisco to Anaheim is scheduled to begin initial revenue service in 2020. The cost of the system is $45 Billion, estimated by the Authority as of 2009. (Source: APAC Paper)