The 35-year-old club captain was hailed as a major capture for the Pars, bringing with him several years experience of playing in the English Premier League with West Brom, as well as 12 Scotland caps.
John Hughes was appointed but was unable to save their season with Simon Murray's 89th minute winner, after Efe Ambrose had earlier been sent off for a last man challenge on the striker, condemning the Fifers to League One next season, and sending Queen's Park into the play-off final against Airdrie.
"Everybody is bitterly disappointed. It sums up our season really. Everyone is devastated in there," said a crestfallen Dorrans.
"It's not been lost today. The sending off doesn't help us, but over the course of the season we are where we are for a reason. Simply, we haven't been good enough and we've found ourselves in this position.
"It's never easy when you get relegated with a football cub. It's very raw at the minute.
"I came here to try and get promoted, but over the course of the season, we are where we are for a reason. It's not because of lack of effort, we've just not been good enough.
"The league doesn't lie when it comes to this time of the year and we've found ourselves in this position with very little chance to save it. We've found ourselves being relegated and it's not a nice one to take."
Whether Dorrans takes the drop with the Pars is yet to be seen. The skipper is under contract for another year but negotations will take place over his future.
"I'm under contract but we'll sit down over the next couple of weeks, speak to the gaffer and speak to the club and see what's going on," he said.
"It's going to be a tough league [next season]. There's some decent teams in there already and two teams going down from the Championship. At the minute, it's too raw to be looking ahead to next season. The boys are devastated in there. We have to let it sink in and we'll have our meetings over the next couple of weeks and see what happens from there."
Queen's match-winner Murray, who came off the bench at half-time, put the goal among the most important of his career.
"It's another special one for me. I'm just buzzing with it," he said.
"It's massive and now it's a great opportunity [to get promoted]. Airdrie are a good team as well so it's going to be a good final, but we're in it and when you're in the final you've got as good a chance.
"All the form over the season goes out the window and it comes down to who wants it the most."