DBE Interim Final Ruling (IFR) update

How to prepare for reevaluation with the TUCP

Review and update contact information in the TUCP DBE Directory now to ensure notifications are received by the appropriate person.

Document submissions will be time-sensitive. A submission deadline has not been set at this time; however, DBEs are encouraged to prepare now. As stated in the revised 49 CFR 26.67, the following documents are required:

1. Personal narrative  establishing the existence of disadvantage with individualized evidence. This includes specific instances of economic hardship, systemic barriers, and denied opportunities that have impeded the owner’s progress or success in education, employment, or business. Evidence should also highlight difficulties in obtaining financing on terms available to similarly situated, non-disadvantaged individuals.

2. Personal Net Worth Statement

Clarifications related to DBE contractor compliance

• The DBE program still exists. The IFR did not eliminate the DBE program.
• The termination provisions at 49 CFR §26.53(f) continue to apply to existing contracts. Approved committed DBEs cannot be terminated without TxDOT’s prior written approval.
• If the prime contractor self-performs the work of the committed DBE or another firm does so, then the prime contractor is not entitled to payment for the work.
• Compliance with the prompt payment requirement is still applicable. Prompt pay applies to all subcontractors, not just DBEs.
• For contracts executed prior to October 3, 2025, prime contractors must enter payments in TxDOT DMS. Confirmation of prompt payment is required by the subcontractor even if the reported payment is zero.
• TxDOT will not conduct CUF reviews during the reevaluation process. Prime contractors should conduct their own internal CUF reviews.