VDOT pauses minority-, women-owned businesses program activities amid federal changes

States including Virginia are responding to changes by the U.S. Department of Transportation that removed the presumption that women- or minority-owned businesses are socially and economically disadvantaged. 

Now, every business owner in the Disadvantaged Business Enterprise program must recertify and show evidence that they have faced actual disadvantage — regardless of race or gender. The change has prompted concerns from minority business owners and groups in Virginia, and calls for VDOT to better support entrepreneurs who have historically faced barriers. 

While the Virginia Department of Transportation has paused measuring progress toward Disadvantaged Business Enterprise goals, the agency said Monday it is actively supporting business owners by providing guidance to the transportation community and holding information sessions to help businesses understand and comply with the new federal requirements.

All DBE and Airport Concessions DBE firms, current and new, must submit a personal narrative and personal net worth statement to demonstrate they are socially and economically disadvantaged based on individual circumstances under the new federal rule.

Further, VDOT said it has stopped tracking progress toward DBE goals and has paused certain reviews until the Virginia Department of Small Business and Supplier Diversity completes checks of all currently approved DBEs and makes the required updates to the certification process.

Joanne Payne, federal lobbyist and president of Women First, said VDOT is working hard under new rules, facing tight deadlines, and appears highly concerned about its responsibilities.

“I know that they have been very concerned and working as best they could under the rules and their authority to do what was best for the DBEs,” said Payne.

She said that after the federal agency changed the Unified Certification program — which allows small, disadvantaged businesses to get certified once and be recognized by multiple transportation agencies — liability concerns have also grown. These worries could trigger lawsuits, potentially caused by “subjective” evaluations, Payne said.

Virginia’s Disadvantaged Business Enterprise Transportation Association, which supports minority and disadvantaged businesses, was more critical of the state’s efforts. The association said VDOT is merely repeating guidance from the federal transportation secretary and not addressing the need for new opportunities for diverse business owners.

The association said this could be an area for incoming Gov. Abigail Spanberger to address. Spanberger’s administration recently signaled support for diverse groups by appointing Sesha Joi Moon as the state’s diversity, equity, and inclusion officer.

“Our members need opportunities now. Some businesses are teetering and can’t wait six months or a year for a workable solution,” the association told the Mercury.

In November and December, the agency hosted an informational session on the new Interim Final Rule to update firms on key provisions and the reevaluation process. It also held an event on preparing personal narratives and required documents under the new DBE eligibility standards. The agency said it worked in collaboration with the Virginia Department of Small Business and Supplier Diversity (DSBSD) and the Metropolitan Washington Airport Authority (MWAA), to assist firms in understanding and preparing personal narratives.  

“As the certifying entities for Virginia, the agencies also have dissemination notification to firms of the recent changes affecting the DBE and Airport Concessions DBE (ACDBE) programs,” VDOT said in a statement.   

VDOT said it will provide updates on the program as additional information becomes available. If business owners or advocates have questions or concerns, VDOT’s Office of Civil Rights Division can be contacted at CRLMS@vdot.virginia.gov.

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