A new Interim Final Rule (IFR) issued by the U.S. Department of Transportation (DOT) fundamentally changes the operation of the Disadvantaged Business Enterprise (DBE) and Airport Concessions Disadvantaged Business Enterprise (ACDBE) programs. The IFR was published in the Federal Register and became effective October 3.
The DOT has mandated that every firm, whether newly applying or currently certified, must demonstrate social and economic disadvantage on an individualized basis, the Airport Minority Advisory Council (AMAC) said in a summary of the rule.
In the interim, all existing certifications are in a suspended state. Firms remain certified in name, but their participation cannot be counted toward DBE or ACDBE goals until a reevaluation of all currently certified firms is conducted. Additionally, airports cannot set new goals during this interim period.
The new rule upends what has been standard practice for more than four decades. Previously, both the DBE and ACDBE programs relied on a “rebuttable presumption of disadvantage” based on race and gender. Per the IFR, the rebuttable presumption of social disadvantage based on race and gender has been eliminated.
“The U.S. Department of Transportation’s (DOT) Interim Final Rule (IFR) marks the most significant change to the DBE and ACDBE programs in more than four decades,” said Eboni Wimbush, president & CEO of AMAC. “These programs have long served as a gateway for minority- and women-owned businesses to access airport opportunities. The removal of the rebuttable presumption of social disadvantage based on race and gender fundamentally alters how certification is determined.”
“This is a pivotal moment,” Wimbush continued. “Despite the challenges embedded in the IFR, the DBE and ACDBE programs remain essential to equity and opportunity in airport contracting. This IFR introduces significant uncertainty and administrative burden, placing minority and women-owned firms at risk of disruption during recertification.”
AMAC is committed to transforming disruption into opportunity, reaffirming the value of inclusion and ensuring that small, local businesses continue to thrive within the aviation ecosystem, Wimbush added, noting that “AMAC is actively developing resources, advocating for our stakeholders, and providing clarity to our members and partners.”
