{"id":33278,"date":"2025-11-18T10:05:16","date_gmt":"2025-11-18T18:05:16","guid":{"rendered":"https:\/\/essential.construction\/news\/dots-hit-pause-on-dbe-goals-to-recertify-firms\/"},"modified":"2025-11-18T10:05:16","modified_gmt":"2025-11-18T18:05:16","slug":"dots-hit-pause-on-dbe-goals-to-recertify-firms","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/dots-hit-pause-on-dbe-goals-to-recertify-firms\/","title":{"rendered":"DOTs hit pause on DBE goals to recertify firms"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?500116090725\" alt=\"-\"><br \/>\n        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">4 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/text-to-speech.divecdn.com\/newspost\/805806\/2025-11-18_11.52.50\/dot-dbe-goals-updated-guidance.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<h3>Dive Brief:<\/h3>\n<ul>\n<li><span><span><span><span><span><span>The Department of Transportation\u2019s new interim final rule for its Disadvantaged Business Enterprise program has spurred state <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.jdsupra.com\/legalnews\/usdot-s-new-dbe-rule-triggers-8356034\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>DOTs to pause workforce contracting goals<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> as they review certification status of approximately 41,000 firms nationally, lawyers say.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>While all participating firms must be recertified under the new rule, the process impacts women- and minority-owned businesses the most, according to attorneys, since they previously qualified automatically on the basis of sex or race, but no longer do.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>DBE goals in existing contracts executed prior to Oct. 3 still apply and DBE firms who won work under prior rules <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.pilieromazza.com\/update-on-the-dbe-interim-final-rule-dot-issues-key-guidance-for-dbe-program-stakeholders\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>can\u2019t be removed from a contract<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> just because the recertification process is taking place. Firms may also appeal a decision of decertification.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3>Dive Insight:<\/h3>\n<p><span><span><span><span><span><span>On Oct. 3, DOT\u2019s new interim final rule, which <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/construction-inclusion-week-dbe-program\/802475\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>barred the use of sex or race<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> as a basis for certification, became effective immediately and caused confusion for existing DBE firms that questioned whether they would suddenly be terminated from the program. <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.transportation.gov\/sites\/dot.gov\/files\/DBE_IFR_FAQs.pdf\" target=\"_blank\"><span><span><span><span><span><span><span><span>Follow up guidance from DOT<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> issued Oct. 24 made clear that wasn\u2019t the case.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>However, it also emphasized that all participating firms, including those owned by women and minorities, would need to seek recertification and provide a personal narrative explaining what disadvantage owners had experienced in their businesses. That narrative cannot cite sex or race as a qualifying reason. Along with the personal narrative, owners must also submit a personal net worth statement, which was previously capped at $2.047 million.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In blog posts and interviews, attorneys spelled out how those changes are taking shape approximately six weeks into the process. The heaviest burden during recertification will fall on women- and minority-owned firms, according to attorneys Robyn St. Hilaire and Natalie Nicole Mark of law firm Offit Kurman.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201c<\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.jdsupra.com\/legalnews\/usdot-s-interim-final-rule-a-new-era-3618135\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>Female- and minority-owned businesses<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> will feel the most immediate impact,\u201d St. Hilaire and Mark wrote in a recent blog post. \u201cOwners must now prepare a detailed personal narrative and financial disclosure demonstrating disadvantages based on lived experience not related to race or gender.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>While the DBE program runs nationally, state-level DOTs handle certification via unified certification programs for agencies across their jurisdiction. DOT\u2019s interim final rule directed all UCPs to reevaluate the eligibility of all existing DBEs. As that process takes place, which DOT didn\u2019t put a deadline on but directed to happen \u201cas quickly as practicable,\u201d DBE goals going forward are effectively negated, at least temporarily.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe DBE goals are being removed only until all existing DBEs are recertified without using the rebuttable presumption of social disadvantage,\u201d Chris Slottee, an attorney at Schwabe in Anchorage, Alaska, told Construction Dive.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Although that\u2019s the case currently, firms should still seek recertification, since participation goals for disadvantaged businesses in federal contracts should eventually go back into effect.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe goals will come back into play on future contracts once this reevaluation process is complete,\u201d attorney Jacqueline Unger, a partner at PilieroMazza in Washington, D.C., told Construction Dive. \u201cFirms should get recertified so that they\u2019ll be eligible to bid on that DBE work down the line.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Several states have already taken steps to roll out the recertification process for their UCPs, according to St. Hilaire\u2019s and Mark\u2019s blog post. Attorneys recommended DBE reach out to their state\u2019s UCP as soon as possible for guidance and to start the process.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>For many current DBE firms, the program represents the lifeblood of their business, and recertification could become an existential must, Danielle Dietrich, a partner at Potomac Law Group in D.C., told Construction Dive.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe DBE certification is the only way for many of them to compete against the larger, private-equity backed firms,\u201d Dietrich said. \u201cIt\u2019s absolutely worth the time and effort for them to put together the personal narrative and new personal net worth statement if it means more of a chance of keeping their business alive.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/dot-dbe-goals-updated-guidance\/805806\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 4 min This audio is auto-generated. Please let us know if you have feedback. Dive &#8230; <a title=\"DOTs hit pause on DBE goals to recertify firms\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/dots-hit-pause-on-dbe-goals-to-recertify-firms\/\" aria-label=\"Read more about DOTs hit pause on DBE goals to recertify firms\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-33278","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/33278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=33278"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/33278\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=33278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=33278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=33278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}