DDOT IFR Directive

UPDATED 10/10/2025
IMPORTANT NOTICE:  

Since its inception, the District Department of Transportation (DDOT) has supported small and disadvantaged entrepreneurs participating in federal transportation contracting opportunities, usually in partnership with the federal government. DDOT is committed to ensuring fairness across the marketplace, supporting small businesses, and being a strong steward of public dollars.   On October 3, 2025, the U.S. Secretary of Transportation issued an Interim Final Rule (IFR) that makes significant changes to the Disadvantaged Business Enterprise (DBE) program. The Interim Final Rule became effective upon publication in the Federal Register and a copy is available at DOT-OST-2025-0897-0001_content.pdf. 
DDOT remains committed to working with all stakeholders and federal partners on a path forward.  First, this new rule does not impact the District’s Small Business Enterprise (SBE) Program.  Regarding federal transportation contracting opportunities, the IFR:

• Removes the use of race- and sex-based presumptions of social and economic disadvantage in the certification process, contains new requirements that replace race- and sex-based presumptions of social and economic disadvantage, and

• Requires that all businesses currently certified as DBE and Airport Concessions Disadvantaged Business Enterprise (ACDBE) be re-evaluated in accordance with the new rules.

This rule mandates an immediate suspension of DBE goals from projects and requires a thorough review of all firms that were not previously certified by an individualized determination of disadvantage. This will likely result in at least a one-year pause in setting and enforcing DBE contract goals.
DDOT’s ability to be forward-thinking with the joint certification of firms as DBEs and SBEs has put us in a unique position to honor our commitment to support small firms that provide heavy highway construction, engineering, and design services by seeking approval to evaluate federally funded projects for SBE goal participation from FHWA, so please look for a follow-up to this request.
Until further notice is received from USDOT, DDOT intends to manage the program as follows:

1. Management of all Federally Funded Contracts
   1.  
      1. Executed contracts with DBE goals: DDOT will continue to enforce the existing goals and contract language;
      2. Contracts recently awarded, but not executed: DDOT will continue with execution of the awarded contract, and will not enforce the existing goals and contract language as stated in the procurement documents;
      3. Projects currently advertised for procurement/letting with goals: DDOT will remove the DBE goals from these advertisements;
      4. Future contracts to be advertised: DDOT will not set any goals on projects to be advertised until guidance is received from USDOT regarding the Unified Certification Program (UCP) and the reevaluation process of existing certified DBEs.
2. Management of the DBE Program
   1.  
      1. DBE applications: DDOT will amend an existing DBE/SBE firm Determination of Eligibility (DOE) that has been recertified with the revised PNW established in 2024 and as stated in the IFR, however, a Personal Narrative (PN) will need to be submitted by October 31, 2025.
      2. DDOT will accept new DBE applicants with the remittance of both the Personal Net worth (PNW) and the Personal Narrative (PN)
         1. Personal net worth: Must be less than $2.047 million, excludes retirement assets, equity in a primary home, and the individual's ownership interest in the applicant firm.
         2. Personal Narrative: an Owner is socially and economically disadvantaged based on their experiences and circumstances; the owner must provide a detailed narrative of chronic, substantial individualized experiences backed by supporting evidence showing chronic bias and its negative impact.
      3. DDOT will continue to monitor Prompt Payments on all subcontracts.
      4. DDOT will provide updates on changes to the DBE and ACDBE programs as additional information becomes available.
      5. DDOT will host virtual office hours along with providing workshops on the IFR and how to write a Personal Narrative based on the attached supplemental information.
3. Contractor Requirements
   1.  
      1. DBEs and ACDBEs with current contracts or subcontracts should not be removed from those contracts. 
      2. Prime contractors and consultants must honor contracts and concessions agreements with all subcontractors consistent with relevant contract provisions, nondiscrimination law and applicable District contract law.

The information above is based solely on interpretation of public information provided by USDOT and is not intended as legal advice. For any questions as to how the IFR impacts your individual circumstances, please seek advice of counsel.
 
LaKisha Love-Pettis
Chief Transportation Officer