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ODOT will apply interim federal guidance to DBE data; staff calls it a mechanical adjustment, not a KPM change
Summary
Staff told the committee it will adjust how disadvantaged business enterprise (DBE) utilization is calculated based on an interim federal rule; the change will alter reported numbers and must be narrated carefully for legislative reviewers, but it does not require legislative approval because it is a data/mechanical adjustment.
Phil Case explained the department will change the DBE utilization dataset to reflect an interim federal rule rather than alter the headline KPM. "This will not be a key performance measure change. However, it will be a mechanical adjustment," he said, adding that staff will need to explain the new data basis to the legislative fiscal office because the reported number will change.
Committee members asked whether Oregon compares itself with other states on DBE performance; staff said comparisons are possible but cautioned that federal definitions remain uncertain while interim guidance is in effect. Case noted Oregon's DBE utilization grew substantially from 2023 to 2024 but that the definition of DBE is in flux pending a final federal rule.
