Achieving DBE Contractor Goals and More

Size: px

Start display at page:

Download "Achieving DBE Contractor Goals and More"

Brent Bell
5 years ago
Views:

1 Achieving DBE Contractor Goals and More David Pinckney, FHWA HQ // Carlos Gonzalez, FHWA RC

2 Overview Introduction Case Studies Q & As Review / Wrap Up

3 Case Studies 1, 2, and 3 Contract Goal Setting

4 Contract Goals (26.51) A State DOT must meet the maximum portion of its overall goal by using RN participation. A State DOT must use RC measures to meet any portion of the overall goal not attained through RN participation. Contract Goals: State DOTs should have a system in place for setting DBE contract goals 4

5 Contract Goals (26.51) The State DOT may use contract goals only on DOTassisted contracts that have subcontracting possibilities. The State DOT is not required to set a contract goal on every DOT-assisted contract or set each contract goal at same percentage as the overall goal. The goal for a specific contract may be higher or lower than that percentage level of the overall goal, depending on: type of work; the location of the work, and availability of DBEs for the work of the particular 5 contract.

6 Case Studies 4 & 5 Good Faith Efforts

7 GFEs (26.53) GFEs only apply to contract goals Award contract to lowest responsive bidder: o Responsive if DBE goal met o Responsive if demonstrate GFEs Appendix A lists GFEs Matter of Responsiveness or Responsibility

8 GFE Evaluation Factors Did bidder make enough work items available to meet the goal? Did bidder break out work items? Did Bidder choose to self perform? Did bidder solicit available DBEs for work items Did bidder follow up with specific DBEs? Did 2 nd & 3 rd bidders get more DBE commitments? (new rule update) 8

9 Utilize Listed DBE Firms 2014 Final Rule Update: 26.53(f)(1) Each prime contract must include a provision: The contractor must utilize the specific DBEs listed to perform the work and supply the materials; The contractor will not receive any payment for work or materials that is not performed by the listed DBE (unless State provides written consent of changes). 9

10 Termination /Substitution Cannot remove DBE without your prior written consent. Written consent only for good cause, (i.e., DBE fails or refuses to execute contract, fails to perform, becomes bankrupt, others,) 10

11 Case Study 6 Prompt Payment

12 Prompt Payment and Return of Retainage (26.29) Prompt Payment Must have contract provision that requires primes to pay all subcontractors, material suppliers, truckers no later than 30 days after completion and acceptance Satisfactory Completion means portion of the work has been completed and accepted. Return of Retainage There are 3 options The State DOT must select one of them 12

13 Prompt Payment and Return of Retainage USDOT guidance (March 24, 2016) DBE Program must include Prompt Payment clause (Retainage clause where applicable); State DOT must ensure compliance; Dispute Resolution Process; DO NOT rely on complaints USDOT guidance (April 25, 2018) Prompt Payment Section Sample Template 13

14 Case Study 7 & 8 Commercially Useful Function

15 Commercially Useful Function (CUF) A DBE performs a CUF when it executes the contract and carries out its responsibilities by actually: 1. Performing 2. Managing 3. Supervising the work involved. With respect to materials & supplies, the DBE must be responsible for: 1. Negotiating price 2. Determining quality & quantity; 3. Ordering materials & installing (if applicable) 4. Paying for materials.

16 Case Study 10 State & Local Minority Programs

17 Minority/Women Owned Business Enterprise The Department does not allow recipients to establish Minority and Women-owned Business Enterprise (MWBE) participation goals on federally-funded contracts. The only participation goals allowed on a federal-aid contract are goals applied through the federal Disadvantaged Business Enterprise (DBE) program under the Department s DBE regulations at 49 CFR Part

Thank you for your participation! David Pinckney DBE Program Analyst E-mail: David.Pinckney@dot.

18 Thank you for your participation! David Pinckney DBE Program Analyst Phone: (202) Carlos A. Gonzalez Civil Rights Specialist Phone: (404)

SRC CONSENSUS EVALUATION

SRC CONSENSUS EVALUATION PROPOSAL EVALUATION WORKSHEET PROPOSER: Keolis DATE: 9/2/13 CONSENSUS RATING: NARRATIVE SUMMARY: Keolis' DBE plan proposal generally meets the standards of the DBE requirements