Question:

When the prime contractor executes a subcontract prior to your notification that the DBE firm is ineligible, do you count the subcontract amount toward the prime contractor’s goal? (49 CFR 26.87(j)(2))

Answer:

If a prime contractor has executed a subcontract with a DBE firm before you have notified the firm of its ineligibility, the prime contractor may continue to use the firm on the contract and my continue to receive credit toward its DBE goal for the firm’s work.