VDOT Issues Official Guidance to USDOT DBE IFR
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By now, you should be aware of the unprecedented changes to the Federal Disadvantaged Business Enterprise program, which directly impact all VDOT and local projects. The federal action is unprecedented and will have a profound, lasting impact on the industry.
On October 3, in response to the USDOT Interim Final Rule, VDOT Commissioner Stephen Brich issued a memorandum that immediately stopped all reporting activities associated with tracking DBE goals on active and all upcoming contracts. Additionally, all race- or gender-based DBE certifications issued by VDSBSD (Va. Department of Small Business and Supplier Diversity) are no longer valid.
VTCA was one of the first to break this news, recognize its significance to members like you, and immediately engage with VDOT and VDSBSD to understand the changes. We remain focused on working with VDOT to mitigate the impact, and most importantly, help guide all our members through the resulting uncertainty.
We anticipate that, as a certified DBE, you should have or will shortly receive communication from VDSBSD with the steps required to recertify your firm as a DBE. Once VDSBSD communicates the details of the recertification process, your response will be time-sensitive (expected to be within 10 business days), so please prepare to respond promptly.
Background
- VTCA Heard Along the Highway - USDOT Announces Significant, Immediate Changes to the Federal DBE Program
- USDOT DBE Interim Final Rule (10-3-25)
- VTCA Heard Along the Highway - VDOT Issues Official Guidance to USDOT DBE IFR
- VDSBSD Memorandum to DBEs
Historically, DBEs could be certified based on race- or gender-based presumptions of disadvantage. The new federal rule requires all DBEs previously certified under those presumptions to undergo a fresh certification review. This review is based on individualized proof of disadvantage, meaning firms must demonstrate specific economic or social barriers they have faced.
Key Changes and Expectations
Recertification: All DBE firms certified under presumptions of disadvantage must now be reevaluated by VDSBSD.
Personal Narrative: Business owners must submit a written personal narrative explaining the economic and social barriers they have faced, including specific examples of denied opportunities or financial challenges.
Personal Net Worth Statement: Owners must also submit a current personal net worth (PNW) statement and any relevant financial documentation.
Deadline: VDSBSD will be contacting firms directly by October 10, 2025, with instructions on how to submit the required materials. Failure to comply will result in decertification without a hearing. Once the notice is sent, we anticipate a response window of 10 business days.
