DBE_Goal_Notice_1-27-2026.pdf

This is a DBE Goal-Setting Process Update notice issued by the Arizona Department of Transportation (ADOT) Business Engagement and Compliance Office (BECO) on January 27, 2026, regarding the Western Hills Neighborhood Revitalization project funded by the Federal Highway Administration (FHWA). The notice addresses changes to ADOT's DBE goal-setting procedures following the U.S. Department of Transportation's Interim Final Rule (IFR) effective October 3, 2025. ADOT has paused the DBE goal-setting process for federally assisted contracts and has not assigned a DBE participation rate for this project phase. The agency requests that goal requesters continue submitting DBE goal requests for USDOT-assisted contracts to populate the Bidders List in the AZ UTRACS system, which remains a condition of award under ADOT's interim DBE "without goal" contract language per 49 CFR 26.11(c). ADOT's Information Technology Group is implementing system updates to ensure that goal-setting assessment communications comply with the USDOT DBE IFR, with BECO expected to resume sending goal assessment memos to goal requesters shortly.

The notice reflects a transitional regulatory environment where DBE participation requirements remain suspended pending full implementation of updated federal guidelines. While the current DBE goal for the Western Hills Neighborhood Revitalization project is set at zero percent, contractors are encouraged to employ reasonable means to obtain DBE participation. The project involves coordination between the City of Tucson and ADOT, with bidding scheduled for May 1, 2026, at 2:00 p.m. Arizona time and an Engineer's Estimate of $9,076,594.00. Contractors must register in AZ UTRACS and submit a Bidders/Proposers List within four business days following bid opening, ensuring compliance with federal requirements including prevailing wage provisions, Section 3 employment benchmarks, and Small Business Enterprise participation goals as established by the City's Business Services Department.