On October 3, 2025, the U.S. Department of Transportation published its Interim Final Rule related to the Disadvantaged Business Enterprise (DBE) Program and Disadvantaged Business Enterprise in Airport Concessions (ACDBE) Programs. USDOT followed up with an FAQ on October 24, 2025. As revisions to regulations are effective immediately, direct recipients of USDOT funds must move quickly to respond.

Keen Independent and its founders have helped state and local governments navigate changes to requirements concerning MBE, WBE, DBE and ACDBE programs since the U.S. Supreme Court set the current standard for defensible MBE programs in 1989 (in the City of Richmond v. J.A. Croson Co. decision).

Immediately after the IFR, we developed the following services and began working on them for some of our clients. We offer them to other certifying agencies and the state DOTs, transit agencies and airports that operate the DBE and ACDBE Programs.

Disparity Study and Overall DBE Goals and ACDBE Goals under new IFR Requirements

The IFR provides clarifications on how recipients should set new overall DBE goals.

• The IFR outlines a two-step process for agencies to set their DBE goal, starting with a “base figure.” The IFR mentions using a disparity study as a source for calculating the “base figure,” but only if the disparity study provides a detailed capacity analysis. (Keen Independent studies do so.)
• The IFR requires that USDOT recipients consider potential step 2 adjustments to the base figures when determining their overall DBE goals. (Keen Independent has a methodology for step 2 adjustments under the IFR.)
• The IFR requires the inclusion of a projection of the portions of the overall goal the recipient expects to meet through DBE-neutral and DBE-conscious measures. (Keen Independent has updated its approach for making these projections.)

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Keen Independent has adapted our current disparity studies/goals studies for USDOT recipients to adapt to the new requirements

The disparity/goals studies identify firms that are potential DBEs and ACDBEs and develop goals for the share of FHWA-, FTA- or FAA-funded contracts (or airport concessions) that might be expected to go to DBE/ACDBEs. Based on the disparity study/goals studies, we can also revise DBE and ACDBE Program Plans.

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Update DBE Program Plan under the new IFR Requirements

Keen Independent has extensive experience assisting entities in drafting and updating policy regulations. Keen Independent can review a current DBE Program and update it based on the new IFR. Keen Independent can also suggest additional activities to comply with the IFR.  

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Our approach addresses the IFR requirement for an availability analysis that considers bid capacity, which is specifically mentioned in the IFR

Keen Independent conducts availability surveys that collect information from firms about the largest contract or subcontract they bid on or performed in recent years. Keen Independent then estimates DBE availability while accounting for capacity, counting DBEs and non-DBEs as available for contracts within the size range for which they report bidding.

Recertification Assistance Program

All firms seeking certification (including firms currently certified as DBEs or ACDBEs) must individually demonstrate social and economic disadvantage (“SED”) based on their own experiences and circumstances within American society, and without regard to race or sex. Such information is to be provided through a Personal Narrative. This replaces the rebuttable presumption of social disadvantage for women business owners and owners from certain minority groups. Prior to this change, the regulations had only required non-minority male business owners to individually demonstrate social and economic disadvantage when applying for DBE or ACDBE certification. Now all applicants must go through this process.

Effective October 3, 2025, the IFR directs state and local agencies implementing the DBE and ACDBE programs to complete the following steps.

• Each firm currently certified as a DBE (or ACDBE) under the previous regulations must be provided the opportunity to demonstrate its continued DBE eligibility under the new standards and then, based on what was submitted, the certifying agency determines whether it has been recertified or is decertified.
• The IFR directs certifying agencies in each state’s Unified Certification Program (UCP) to reevaluate each firm and for the UCP to notify USDOT when it has completed this process. The IFR instructs certifying agencies to do this as quickly as practicable. Each state UCP’s process is subject to USDOT review.
• Certifying agencies in each state will also need to modify their process for new applications for DBE and ACDBE certification. This includes application forms and the processes for certification review.

Many DBEs do not know how to develop a Personal Narrative. We see certifiers as having a role in providing business assistance to DBEs and ACDBEs as they attempt to comply with this new requirement. Keen Independent is already conducting listening sessions with DBEs and provided summaries for them to use in their Personal Narratives as part of our Arizona Department of Transportation disparity study.  

This is an effort that certifiers or UCPs might be interested in funding. Our approach can help streamline the process for UCP certification staff and reduce the overall time needed to complete the reevaluation of certification of all DBEs and ACDBEs in a state.

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Please contact us at dkeen@keenindependent.com or 303-385-8515 to learn more.