Disadvantaged Business Enterprise (DBE)

In response to the Interim Final Rule (IFR) regarding 49 CFR Parts 23 and 26, the Disadvantaged Business Program (DBE) is suspended until California’s disadvantaged businesses can be recertified under the IFR’s new DBE certification requirements. For more information, contact your District Local Assistance Engineer or DBE Coordinator.

During the temporary suspension, there will be:

• No contract goals
• No Good Gaith Effort Documentation
• No counting of DBE participation
• No monitoring of DBE program compliance
• No DBE forms submission

Regarding Contracts:

• Executed Contracts signed on or before October 3:
• Existing contracts remain valid but should be amended to remove the DBE contract language.
• No compliance monitoring is required.
• DBE commitments and participation under existing contracts cannot be counted toward goal attainment during suspension period.
• Good faith effort documentation is no longer required for termination and replacement.

• Contracts at Bid Solicitation and Procurement
• Bid solicitation and procurement must not include a DBE goal, and contracts will not follow DBE program requirements. Subsequently, Good Faith Efforts are no longer required.
• Currently advertised projects require an addendum removing the DBE goal and requirements from the bid package.  The addendum may extend the bid opening period, if necessary, for bid adjustments.

• Contracts at Bid Evaluation and Selection
• Projects at the bid selection stage are the most difficult. Re-advertisement is an option.  Another option is selecting the lowest most qualified bidder without regard to DBE commitment.
• Caltrans recommends all agencies consult with their legal team to determine how to proceed in these situations.

• Prevailing wage, certified payroll, or prompt payment, termination/replacement continue as they are upheld by other subcontractor regulations.

Contact your District Local Assistance Engineer or District DBE Coordinator for specific questions regarding your project.

Caltrans is required under 49 CFR 26 to administer a Disadvantaged Business Enterprise (DBE) Program. The DBE Program is intended to ensure a level playing field and foster equal opportunity in federal-aid contracts.

Subrecipients (local agencies) receiving Federal financial assistance through Caltrans are also subject to the requirements of 49 CFR Part 26, and therefore are required to adopt and comply with Caltrans' DBE Program Plan. Subrecipients will follow the Program Plan. Subrecipients will follow the in administrating their DBE Program obligations.

Subrecipients will work collaboratively with the Caltrans Local Compliance Branch (LCC) and Office of Civil Rights (OCR) in conducting periodic compliance reviews to ensure their compliance with the Caltrans DBE Program Plan.

Caltrans Overall DBE Goal

The Caltrans overall DBE goal is 21.35% for federal fiscal years (FFY) 2025-2027