New Audit Announcements
Audit Initiated of New Participants in FAA’s Airport Disadvantaged Business Enterprise Program for Fiscal Year 2013
Each year, the Federal Aviation Administration (FAA) distributes more than $3 billion in Federal grants for airport projects. In accepting these grants, airports are required to establish disadvantaged business enterprise (DBE) and airport concession DBE (ACDBE) programs. These programs provide small businesses owned and controlled by socially and economically disadvantaged individuals with opportunities to compete for construction, professional services, and concession contracts.
In the FAA Modernization and Reform Act of 2012, Congress directed us to report annually for 3 years on new DBE participation at the Nation’s largest airports. Congress also directed OIG to identify reasons why some airports have been more successful than others at hiring new DBEs. Our first report, which we plan to issue later this month, identifies the number of new and existing DBE/ACDBE firms at the Nation’s largest airports in fiscal year 2012 and the factors that led some airports to award more contracts or leases to these firms. The objectives of this second audit will be to (1) determine the number of new and existing DBE/ACDBE firms receiving contacts or leases at the Nation’s largest airports in fiscal year 2013 and (2) assess the factors that aided or hampered new DBE/ACDBE firms that pursued contracts or leases at these airports.