USDOT 's official FAQs provides further guidance on the Interim Final Rule

Alert

Published October 24, 2025, USDOT’s official FAQs interprets the Interim Final Rule (IFR) that took effect on Oct. 3, 2025, which had made monumental changes to the Disadvantaged Business Enterprise (DBE) and Airport Concession DBE (ACDBE) programs. The FAQs clarify key questions regarding interpretation of the IFR. 

USDOT FAQs aims to ensure a uniform national approach while UCPs conducts reevaluations, which include guidance on interstate certifications, deadlines, and goal counting to provide guidelines to prime contractors working with DBE certified firms.

Key Guidance: UCP Deadlines for Narratives; Certification and Decertification

The following are USDOT answers to the FAQs:

  • Scope of reevaluation and interstate certifications: Each UCP must reevaluate only those firms it originally certified. Firms certified through interstate procedures are reevaluated by the UCP in the jurisdiction of original certification. After recertification, firms may need to reapply for interstate certification in other jurisdictions where they seek recognition.
  • No mass decertification without individualized review: UCPs must identify existing certified firms and provide each with the opportunity to submit documentation demonstrating eligibility under the new standards. Mass decertification without individualized review and an opportunity to be heard is inconsistent with the IFR.
  • UCP deadlines for reevaluation submissions. If firms do not submit the required documentation they will remain ineligible for DBE goal counting until they do. However, they cannot be summarily decertified for failing to meet a UCP deadline. 
  • Personal Narrative statements—who must submit: For currently certified firms undergoing reevaluation, UCPs must offer an opportunity to submit documentation demonstrating continued eligibility; no narrative submission deadline applies. New DBE applicants must provide a personal narrative statement in addition to the other certification requirements. DOT will provide an updated Uniform Application Form for new applicants.
  • Timeline to complete reevaluations: There is no fixed date in the regulations. UCPs must complete reevaluations “as quickly as practicable.” During this period, recipients may not set contract goals and may not count DBE participation toward overall goals.
  • Right to appeal decertification: Firms decertified through the reevaluation may appeal to DOT under the Department’s administrative appeal procedures.
  • Goal counting during reevaluation: UCP recipients were directed to suspend DBE contract goal setting until the UCP completes reevaluation. Counting goals at this time depends on whether solicitations were advertised but not let, let but not awarded contracts or contracts executed before Oct. 3, 2025. 
  • Termination and prompt payment rules remain in effect: A prime contractor cannot terminate or reduce a listed DBE’s scope absent prior written consent and good cause, but which may include loss of eligibility after reevaluation. Prompt payment and retainage timelines continue to apply during the reevaluation period.

What’s Next?

UCPs are directed to complete reevaluations promptly; until then, DBE goal setting and counting are suspended. Thus, it is recommended to proactively prepare and submit your PN and PNW, as DBE host agencies will undoubtedly be flooded with submissions by existing certified firms and new applicants that can now be eligible under the new eligibility requirements, translating to longer wait times for review and decisions. 

If you would like further guidance and assistance, please contact McDonald Hopkins' Michelle Kantor or Rachel Yaffe.

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