b'LEGALLY SPEAKING CSIA 29caused measurable economic harm. race- and sex-neutral.A personal net worth statement, establishing genuineCheckcurrentcontractstoidentifychangesin economic disadvantage relative to non-disadvantagedaffirmative action obligations.peers.Prepareforrecertification:collectyournarratives, The burden of proof now rests entirely on applicants.documentation, and financial statements early.Failure to meet the individualized standards will result in decertification.Notably, current DBEs that fail toEvaluateyourvendorandsubcontractornetworkto comply or respond to the new requirement will haveensure continued credit eligibility.no access to a hearing before losing their existing certification. Anticipate procurement delays and potential shortfalls in the availability of DBE-certified partners.Effects on Current Contracts and GoalsUntil each Unified Certification Program (UCP) completesStay alert for developments, including court attacks on reevaluations under the new process, federal and staterevised DBE programs and their eligibility criteria.recipients of DOT funding must pause race- and sex-based DBE participation goals, substituting race-neutralSubmitpubliccommentsontheInterimFinalRule measures only. The Ohio Department of Transportation,by November 3, 2025, via the Federal Register docket for example, has suspended its DBE contract goals(refer to DOT-OST-2025-0897).and will no longer require certification of compliance with older affirmative action requirements during this transition.While existing DOT contracts that began before October 3, 2025, are generally expected to remain valid, participation goals under those projects may not count until recertification concludes. DOT has pledged further By Marc Fleischauer guidance to address this uncertainty.CENTRAL STATES INSULATION ASSOCIATIONAnticipated Impacts Quick Reference: Old vs. New SystemExpect substantial administrative delays, as thousands of firms undergo recertification and as every UCPConclusionreevaluates eligibility. With the elimination of automaticThis rule represents a seismic shift in the federal group-based eligibility, the pool of certified DBEsgovernments approach to affirmative action and small is likely to shrink, creating potential disruptions inbusiness contracting. Businesses should act swiftly to procurement and vendor availability. Small Businessunderstand the new criteria and preserve eligibility in this Enterprise programs, which are purely economic andredefined legal and regulatory environment.already race-neutral, will continue unaffected.For more information on this and other business, labor We anticipate additional court challenges to the revisedand construction issues, contact Bob Dunlevey or Marc rule, either from those seeking reinstatement of group- Fleischauer, Board Certified Labor and Employment Law based preferences or from businesses disputingSpecialists at Taft Law, at (937) 2282838 or viadecertification decisions. rdunlevey@taftlaw.com or mfleischauer@taftlaw.com.What Contractors Should Do NowCarefully review new solicitations to confirm criteria are csiaonline.org'