On December 1, U.S. Department of Transportation (DOT) released an updated Frequently Asked Questions (FAQ) document that expands on the original October document and responds to several issues raised in AGC’s comment letter. The updated FAQs provide additional detail on the creation of race and gender neutral small business programs, the reevaluation process for currently certified DBEs, and additional information for personal narratives demonstrating disadvantage for certification purposes.
Earlier this fall, AGC of America submitted comments to the DOT regarding its Interim Final Rule (IFR) revising the Disadvantaged Business Enterprise (DBE) program. As previously reported, AGC emphasized the need for clearer federal guidance to prevent delays, reduce administrative burden, and ensure consistent application across states as the DBE program transitions to a race- and gender-neutral framework.
One notable update confirms that states may establish race- and gender-neutral Small Business Enterprise (SBE) programs, similar to Ohio’s SBE model, as long as those programs are approved by DOT.
The updated FAQs also address the DBE reevaluation process. While the IFR did not set a deadline for currently certified DBEs to submit required documentation, DOT now clarifies that Unified Certification Programs (UCPs) may establish submission dates to manage workflow. UCPs may notify DOT that reevaluation is complete once all timely submissions have been reviewed. Firms that miss submission dates may still be reevaluated later but remain ineligible for DBE counting until certification is complete.
In addition, DOT provided additional information and clarity on the personal narrative requirement used to establish social disadvantage. The updated FAQs clarify that a DBE owner does not need to meet all listed categories of disadvantage and that certifiers must evaluate narratives holistically. Narratives may draw on experiences throughout the owner’s life but may not rely wholly or in part on race or sex.
While the updated FAQs document addresses several concerns that AGC raised, additional clarity is still needed to ensure both non-DBE and DBE contractors are able to navigate these changes in the program. AGC will continue to work with DOT and state partners to seek additional guidance as implementation of the IFR progresses.
For more information, please contact Deniz Mustafa.