Understanding DBE Rules During a Period of Transition
January 26, 2026Resuming the Administration of the DBE Program
The California Unified Certification Program (CUCP) has recently published its DBE database after completing the reevaluation of DBEs and ACDBEs as required by the Interim Final Rule (IFR). The CUCP DBE database reflects the new certification status of firms meeting the new DBE eligibility criteria as required by the IFR. These firms submitted personal narratives and personal net worth statements as required by the IFR. Certifying agencies are now accepting new DBE applications and applications from former DBEs that missed the initial deadline. Although this is good news for recipients of USDOT funds because they can now get back to establishing goals on newly advertised USDOT assisted contracts when appropriate, the CUCP's reboot of the DBE program means that recipients must also make other changes. These include submitting:
- A revised triennial goal, and
- A DBE Program Plan
Once these submittals are provided to the cognizant DOT operating administration as soon as practicable, recipients should review other aspects of their DBE Program to ensure their program is compliant and effectively providing DBEs and small businesses with reasonable opportunities to participate in USDOT procurements. Recipients should consider the following when revising their programs:
- Revised targeted outreach to new stakeholders that are now eligible for DBE certification
- Increased training or technical assistance to new DBEs not experienced in federal contracting
- Review and revision of SB programs that include USDOT-assisted funds
- Continual monitoring of the CUCP DBE database to ensure triennial goals and DBE contract goals reflect the unsettled DBE certification database.
The IFR transformed the DBE program from having a presumption of social disadvantaged status for specific minorities and women-owned businesses to now determining social disadvantaged status based on individual experiences. The IFR's impact to the DBE program is significant, but it's only the beginning of the DBE program's transformation. Congress is likely to pass the reauthorization of the DBE program when it passes the "Build America 250 Act". This bill is to authorize funding for Federal-aid highways, bridge construction, transit programs, rail programs, and other purposes. The draft of this bill includes new requirements to standardize the meaning of "socially and economically disadvantaged individual". It also requires new reporting and uniform certification criteria for states.
Once the draft bill is passed by Congress, you can expect a new proposed DBE Final Rule that shores up any gaps, inconsistencies, and possibly revises key provisions of the DBE program. The bottom line is that although the CUCP has completed the initial DBE reevaluation phase, the DBE program will continue to change over the next year or two. Your DBE and small business policy must evolve to meet the new regulatory requirements and to address the needs of new DBE stakeholders.
Let us know if GCAP can help you. Please don't hesitate to Contact Us.
Written By: Edward Salcedo, Jr., Esq., President of GCAP
