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DBE Interim Final Rule (IFR) information

DBE Interim Final Rule (IFR) information

 

DBE Interim Final Rule (IFR) Update

The U.S. Department of Transportation (USDOT) issued an Interim Final Rule (49 CFR Parts 23 & 26, Docket No. DOT-OST-2025-0897, RIN 2105-AF33). This ruling makes immediate and significant changes to the Disadvantaged Business Enterprise (DBE) and Airport Concession DBE (ACDBE) programs nationwide. The Arizona Department of Transportation has taken action to comply with the new requirements of the Interim Final Rule by establishing a dedicated resource page for DBE and ACDBE firms.

Notices from ADOT regarding USDOT DBE Interim Final Rule (IFR):

  1. IFR Implementation BECO Communication - Oct. 16, 2025
  2. Follow up Guidance BECO Communication - Nov. 21, 2025
  3. AZUCP Reevaluation Application Guidelines for DBE/ACDBE's in Arizona - updated December 12, 2025
  4. Notice to All DBE/ACDBE Firms - Jan. 6, 2026
  5. AZUCP Reevaluation Application Guidelines for DBE/ACDBE's in Arizona (Updated Feb. 2026)  - Feb. 17, 2026

Please reach out if you have any questions via the Questions Related to the Interim Final Rule (IFR) google form.

Reevaluation Process:

Effective October 3, 2025, the U.S. Department of Transportation (DOT) has issued an Interim Final Rule (IFR) that immediately changes how the Disadvantaged Business Enterprise (DBE) and Airport Concession DBE (ACDBE) Programs operate nationwide.

What This Means:

  • All DBE/ACDBE certifications will be reevaluated under new federal eligibility standards.
  • Until reevaluations are complete, existing DBE/ACDBE certifications are not valid for contracting purposes and cannot be counted toward goals.
  • Our Agency and all sub-recipients have paused goal setting and awards that include DBE/ACDBE goals.

Next Steps for DBE/ACDBE Firms:

  • The AZUCP is opening the reevaluation period as per the DBE IFR issued October 3, 2025.
  • The certifying agencies are now accepting applications for recertification under the new standards.
  • Please log in to your account at your agency's portal and submit the 2025 Reevaluation Application.
  • The AZUCP will wrap up the IFR reevaluation period for DBE/ACDBE firms on March 31, 2026. Recertification Applications submitted after this date will still be accepted and reviewed.
  • Review DBE IFR FAQ'S-Updated 12-1-25

Authority:

Federal Aid contracts and management of ADOTs DBE Program:

  • The DBE program still exists. The IFR did not eliminate the DBE program.
  • The submission of Bidders List is still a requirement per 49 Code of Federal Regulation (CFR) § 26.11(c).
  • The termination provisions identified under 49 CFR § 26.53(f) continue to apply to existing contracts. Approved committed DBEs cannot be terminated without ADOT’s prior written approval.
  • Compliance with the prompt payment requirement is still applicable and applies to all subcontractors, not just DBEs.
  • Prime contractors must continue to report prompt payments to all subcontractors in ADOTs contract management systems for ADOT contracts, and the LPA DBE System for ADOT subrecipient contracts.
  • ADOT paused the goal setting process for ADOT and subrecipient federally-assisted contracts.
  • ADOT paused the performance of Commercially Useful Function (CUF) reviews of DBE work on existing contracts during the reevaluation process.
  • ADOT will continue to provide Supportive Services to the Small Business community.

USDOT official Frequently Asked Questions (FAQ) on DBE Interim Final Rule (IFR):

  • Published Dec. 01, 2025 (updated the original FAQ, released Oct. 24, 2025)