The U.S. Department of Transportation (DOT) has issued an interim final rule (IFR) that ends the use of race- and sex-based presumptions of disadvantage for establishing eligibility under the Disadvantaged Business Enterprise (DBE) and Airport Concessions DBE (ACDBE) Programs.
In its IFR, DOT states that it has “determined that the race- and sex-based presumptions of social and economic disadvantage in DOT’s DBE programs are unconstitutional.” Therefore, it is replacing the race- and sex-based presumptions with a requirement that DBE/ACDBE applicants make “individualized demonstrations of social and economic disadvantage” that are not based in whole or in part on race or sex.”
The IFR requires all current DBE/ACDBE firms to undergo reevaluation to prove their eligibility under the new standards. According to the IFR, each state or territorial Unified Certification Program (UCP) must identify all currently certified DBE/ACDBEs, provide them with the opportunity to submit documentation demonstrating its eligibility under the new standards, and issue a written decision to each firm indicating that it has either been recertified or is decertified.
USDOT is accepting comments on the IFR until early November. ACRA wants to hear from all firms about how this change will affect them before submitting its comments. You can view a policy brief on this issue here. Please send any information about the change’s impact on your firm to info@acra-crm.org by October 27.