US DOT Halts DBE Project Goal Setting

On September 30, the US DOT sent out new guidance and established a final rule on the DBE program. Effective immediately, federal entities must halt setting DBE goals on projects.

The Department has removed race and sex-based presumptions to determine eligibility for DBE certification and establish new criteria. As such, all DBEs will have to recertify under the new requirements as noted in the guidance letter. Until all DBEs go through recertification, goals will not be set on new projects. There will likely be lawsuits regarding this since:

• • The new ruling on the Mid America Milling vs DOT legal decision has not been made.
  • The administration did not follow government processes through a proposed rulemaking and 30-day public comment period.

I am working with our partners within the agencies to get clarity, we anticipate this will take a little time. Additionally, I am out of town prepping for the AWC Women’s Retreat. I understand this information will spark many questions and concerns. Please note I am unavailable to take calls until next week. I hope to have more information at that time.  Meanwhile, feel free to email me and I will respond when we have answers.

 —B