All Disadvantaged Business Enterprise (DBE) Program Partners
On October 3, 2025, the US Department of Transportation (USDOT) issued an Interim Final Rule (IFR) making significant changes to the Disadvantaged Business Enterprise (DBE) and Airport Concession DBE (ACDBE) Programs that are summarized below under Key Changes. The rule has been published in the Federal Register and is effective immediately. ODOT and all subrecipients of federal transportation funding subject to the DBE Program are required to comply.
ODOT has long operated programs to support small businesses, and our values of fairness and opportunity have led us to seek a level playing field in which disadvantaged businesses can compete and secure contracting opportunities to ensure the benefits of transportation spending flow to all communities. While our values have not changed, the way we seek to achieve them will need to shift given these new federal requirements. We are actively reviewing the directions and assessing the options we have before us in the new IFR; however, we want to share information to keep you informed on the ongoing developments and new requirements. We will share additional information when available.
To ensure compliance with federal direction below are DBE program changes effective immediately:
Key Changes:
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Elimination of Presumptions: Race-and gender-based presumptions of social and economic disadvantages are removed. All applicants must now demonstrate social and economic disadvantages through individualized evidence, including personal narrative and financial documentation.
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Re-evaluation of All Firms: Every currently certified DBE will undergo re-evaluation. Firms meeting the new standards will be recertified; those that do not will be decertified.
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Temporary Suspension of Goals and Counting: Until re-evaluations are complete, ODOT and all subrecipients must not:
- Set DBE contract goals.
- Count DBE participation toward overall program goals.
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Existing Contracts: Contracts already awarded remain valid; however, DBE commitments and participation under those contracts cannot be counted toward goal attainment during the reevaluation period. Those DBEs that are actual subcontractors (not just material suppliers), primes still need to follow subcontracting rules (i.e., termination, substitution, etc.) even if the DBE subcontractors are no longer DBEs.
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Goal Setting: All DBE goal requirements are suspended effective October 3, 2025. ODOT and subrecipients cannot set DBE goals on contracts. Contracts currently advertised must have their DBE goals zeroed out or removed. The overall statewide DBE triennial goal of 18.9%, effective October 1, 2025, is still effective.
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Compliance Monitoring: All DBE compliance activities including commercially useful function (CUF) site visits on existing and future contracts are suspended.
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Reporting Requirements: USDOT has eliminated the collection of race-and sex-specific ownership data; reporting will instead focus on certification status and individualized eligibility. We await USDOT guidance on the collection of data for future reporting.
Next Steps:
Prime Contractors: Do not submit utilization plans, commitments or reporting tied to DBE credit during this transition. Ensure solicitations to your subcontractors on advertised projects pending award are amended to reflect zero DBE goals until further notice.
Certified DBEs: Be prepared to submit individualized documentation on disadvantaged status as part of the reevaluation process. Templates and technical assistance will be provided by the Certification Office of Business, Inclusion and Diversity (COBID).
From COBID:
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Clear Guidance: COBID will publish updates through their website, B2G certification database, and direct communications.
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Staff Preparedness: Staff will be briefed on the most current information available to ensure you receive accurate and uniform answers to your questions.
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Support: As federal guidance is released and best practices emerge across states, COBID will keep you informed and provide the tools you need to navigate the changes confidently.
ODOT will continue to provide specific detailed information related to project impacts, we will also host listening and training sessions and provide outreach to ensure all partners understand and comply with the new requirements.
We recognize the hardships these immediate changes create for firms, contractors and local agencies.
ODOT is committed to supporting you through this difficult transition.
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