2024 DBE Rule Updates

2024 DBE Program Rule Updates

Key revisions to DBE and ACDBE programs are effective May 9, 2024. 

Online STAR Town Hall

Join us to discuss these updates and ask questions at 10:00am (NM time) on June 26
with NMDOT representatives and Lawrence Moquino, Federal Highway Administration Program and Management Analyst (Civil Rights). 
Click Here to Register

Here’s what you need to know:

What These Changes Mean

The proposed changes to the Disadvantaged Business Enterprise (DBE) Program and the Airport Concession Disadvantaged Business Enterprise (ACDBE) Program aim to enhance the effectiveness and access of these programs for Disadvantaged Business Enterprises. Here’s a breakdown of how these changes could impact current and future participants in the NMDOT DBE program:

  1. Personal Net Worth and Program Size Adjustments for Inflation: An update to the personal net worth and program size thresholds for inflation means that more businesses could qualify as “disadvantaged,” enhancing opportunities for a broader range of businesses to participate and benefit from the DBE and ACDBE programs.
  2. Modernization of Rules for Material Suppliers: Modernizing the rules for how material suppliers are counted will likely streamline processes and ensure more accurate and equitable participation metrics – a positive step, particularly for suppliers who may have previously faced challenges in being accurately counted within the programs.
  3. Procedural Flexibilities from COVID-19: Enactments made during the COVID-19 pandemic aimed to introduce procedural flexibility. Making these permanent could allow for greater adaptability in operations and potentially reduce administrative burdens on DBEs and ACDBEs, which is particularly advantageous in adjusting to economic shifts and crises.
  4. Introduction of New Program Elements for Greater Usage of DBEs: The addition of new program elements to foster greater DBE and ACDBE usage coupled with proactive monitoring and oversight might offer enhanced support and growth opportunities for disadvantaged businesses, ensuring they not only participate in programs but also thrive.
  5. Updated Certification Provisions: Less prescriptive rules that offer more flexibility in determining eligibility could lead to increased participation by making the certification process less daunting and more accessible to businesses that might have found the previous requirements too restrictive.
  6. Technical Corrections for Misinterpretations: Addressing misinterpretations of the rules can help clarify program requirements, ensuring that all potential participants understand how to comply with and benefit from the DBE and ACDBE programs. This could lead to increased participation and fewer compliance issues.

Overall, these changes are designed to make the DBE and ACDBE programs more accessible, equitable, and effective in supporting disadvantaged businesses, reflecting ongoing shifts in economic landscapes and business practices. These adaptations should benefit small and disadvantaged businesses by providing clearer guidance, fairer access to opportunities, and more robust support frameworks, aligning with broader goals of economic inclusion and equality.

Additional Details

Watch the Announcement from Irene Marion, Director of the Office of Civil Rights

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