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The Federal Transit Administration (FTA) has issued guidance to explain the requirements for FTA Tier II recipients (Tier 2s) under the new Disadvantaged Business Enterprise (DBE) program regulations. The U.S. Department of Transportation published a DBE Final Rule in the Federal Register on April 9, 2024. Beginning in federal fiscal year 2025, FTA will move to a tiered system for DBE compliance. FTA recipients of planning, capital, or operating assistance that award more than $670,000 in FTA funds annually (excluding transit vehicle purchases) are considered Tier I recipients and are subject to all provisions in 49 CFR part 26. Recipients that award $670,000 or less are considered Tier 2s and are only subject to certain specified provisions in part 26.
The guidance covers:
- Generally, what is and what is not required of Tier 2s and timing
- How and when Tier 2s comply with recordkeeping and reporting requirements, including the DBE Uniform Report and bidders list
- Requirements for contract assurances
- Expectations for the policy statement
- Procedural and substantive requirements for the small business element
- Transit vehicle procurement reporting
- Goal methodology and program plan considerations
FTA encourages all recipients to review this guidance. Recipients that typically award less than $670,000 in FTA funds per year will find the guidance especially useful.
The guidance is available on FTA’s DBE Guidance webpage.
Questions related to the guidance may be emailed to FTACivilRightsSupport@dot.gov.
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