DBE reevaluation process.

(a) Reevaluation. Effective October 3, 2025, each UCP must: (1) Identify each currently certified DBE; (2) Provide each firm identified pursuant to subparagraph (a)(1) with the opportunity to submit documentation demonstrating its DBE eligibility under the standards set forth in this part; (3) Determine whether each firm identified pursuant to subparagraph (a)(1) meets the DBE eligibility standards set forth in this part; and (4) Issue a written decision to each firm reevaluated pursuant to paragraph (a)(3) of this section, stating either that it has been retained as a DBE or has been disqualified from the DBE program. For disqualified firms, the decision must follow the requirements of § 26.86(a). (b) Relationship to § 26.87. The provisions of § 26.87 of this part shall not apply to any action taken pursuant to paragraph (a). (c) Deadline for completion. Each UCP must complete the reevaluation process required under this section no later than December 24, 2026. (1) Extension. A UCP may request a one-time extension of up to 90 days to complete the reevaluation process. The Office of Small and Disadvantaged Business Utilization (OSDBU) may grant this extension if it determines that good cause exists. UCPs must request extensions in advance of the reevaluation deadline. (2) Notice of completion. Following the completion of the reevaluation process, each UCP must promptly email the Department's OSDBU at DBEreevaluations@dot.gov. The email must clearly state that the reevaluation process is complete for all UCP members, not just a subset of certifiers. Within three business days of emailing OSDBU, the UCP must send a copy of the email to all recipients of DOT funding (certifying and non-certifying agencies) within its jurisdiction. The email must provide the following data: (i) Total DBEs that remain certified. The number of DBEs that remained certified following the reevaluation, including a certification that the UCP is the Jurisdiction of Original Certification (JOC) that certified the DBEs; (ii) Total DBEs disqualified. The number of DBEs disqualified because an owner failed to meet the requirements of § 26.67; and (iii) DBEs not processed due to nonresponse. The number of DBEs that the UCP did not reevaluate because the owner failed to respond to the notice requiring the submission of Personal Narratives (PNs) and Personal Net Worth (PNW) statements. (3) Right of review. The Department reserves the right to review the UCP's reevaluation process and the underlying documentation for any firm reported under paragraph (c)(2) of this section. (d) Non-responsive firms. Any DBE that fails to submit its owner's PN and PNW statement by the date the UCP completes its reevaluation process, as reported to the Department under paragraph (c)(2) of this section, must be issued a written notice of nonresponse by the UCP. The DBE has until March 24, 2027 to submit the PN and PNW statement to the UCP. If the UCP is granted an extension under paragraph (c)(1) of this section, the DBE must submit the PN and PNW statement within 90 days of the UCP's extended deadline. Any firm that fails to submit the required documentation by the applicable deadline provided in this paragraph (d) will be automatically disqualified by the UCP without further administrative proceedings. The UCP need only issue a NOD, under § 26.86(a), informing the firm that it has been disqualified for failure to meet the requirements of § 26.67. [90 FR 47982, Oct. 3, 2025, as amended at 91 FR 60900, Sept. 25, 2026]