The USDOT’s Interim Final Rule (IFR) marks a significant change for DBE firms nationwide, raising immediate questions about how certifications will be handled and how DBE participation will be tracked on both new and existing federally funded contracts.
Key changes of the ruling include:
- Re-certification Required: Every currently certified DBE must undergo reevaluation. Firms will be required to submit new documentation and personal narratives to establish eligibility.
- Suspension of Goals and Counting: Until reevaluation is complete, recipients may not set DBE contract goals or count DBE participation toward existing goals, which could impact reporting on current projects.
- Tracking Requirements Changed: Collection and reporting of race and gender data for bidders and DBE certifications will be eliminated.
- Higher Documentation Burden: Firms must now submit individualized evidence of disadvantage, which may increase certification time.
There are so many questions to be clarified:
- What does this mean for the transportation program in your state?
- Will DBEs in some states be automatically decertified, but not in others?
- Does being certified in your home state automatically certify your company in other states?
- How will existing contracts be handled during the transition?
- What happens if a certified DBE cannot meet the new standard?
- How will contractors demonstrate good faith efforts while DBE counting is on hold?
These are just a few unknowns, but I am sure there are many more.
We are working to understand the impact on DBEs in navigating these changes. While compliance with the new IFR is mandatory, the practical implications for DBE firms and ongoing projects are still being clarified. We will have more information to share with you in the next few weeks.
Due to the uncertainty surrounding this immediate change from USDOT, I recommend that you continue with your existing contractual requirements until your Department of Transportation provides more precise guidance.
You may submit comments identified by the docket number DOT-OST-2025-0897 by the Federal Rulemaking Portal.
You can find additional instructions from the USDOT on how to submit comments, as well as more in-depth information regarding the changes to the DBE Program below.
We will have a few guidelines to help you navigate the Personal Narrative (PN) and comments to USDOT as soon as possible.
Remember, we are in this fight together.