Contract Compliance reviews Metro procurements to determine S/D/M/WBE participation goals if applicable. The Contract Compliance Unit will establish contract goals only on those contracts with identifiable subcontracting opportunities to ensure small businesses have an equal opportunity to participate in Metro procurements.
Contract goals are established so that, over the period to which the overall goal applies, they will cumulatively result in meeting any portion of our overall goal that is not projected to be met through the race-neutral means.
For those contracts with identifiable subcontracting opportunities, an analysis is conducted by Contract Compliance staff, in conjunction with a Contract Administrator and Project Manager from the Procurement Department, to determine an S/D/M/WBE goal for a contract. Disadvantaged Business Enterprise (DBE) goals are established on Federally funded contracts. Small Business Enterprise (SBE) goals are established on state and/or locally funded contracts.
A: If there are DBE/SBE goal requirements on a contract, Contract Compliance staff will advise prospective bidders/proposers of goal requirements for the procurement. Attendance at the pre-bid or pre-proposal conference is optional, however, it does provide evidence of the contractor's "Good Faith" efforts. Attendees MUST SIGN-IN to receive credit for attending any pre-bid or pre-proposal conference.
Proposers are required to meet the established goal contracting with DBE/SBE entities to meet goals by performing the work as a DBE/SBE prime or subcontract with DBE/SBE firms. Proposers can meet the established contract anticipation goal by contracting with bona-fide DBE/SBE contractors or firms; or by using DBE/SBE suppliers or services providers in the submitted proposal or bid.
Should the proposers fail to meet the establish DBE/SBE contract goal, the proposer must document good faith efforts.
To determine whether a proposer who failed to meet the established contract goal may be further considered for contract award, Metro must determine whether the efforts taken to obtain DBE/SBE participation satisfy the good faith efforts (GFE) requirements.
A form 103 provides award, contract amendments, payments made, participation and other contract information necessary to monitor the status of contracts. Business Enterprise Subcontractors Paid Report is also known as Form 103. Information reported on Form 103 is compiled to fulfill federal reporting requirements. Prime contractors prepare and submit Form 103 via U.S. Mail, fax, or e-mail to the Contract Compliance Unit by the 15th of each month to report their progress on DBE/SBE utilization. Click here for a Sample Regular Form 103.
Pursuant to 49 Code of Federal Regulations (CFR) Part 26.5, a race neutral measure or program is one that is used to assist all small businesses. Race neutral measures focus on developing the business practices of all small businesses.
Federal regulations require that a recipient of federal highway and transit funds implement an approved DBE program that consists of establishing a statewide DBE utilization goal and using race-neutral means to achieve the goal to the maximum extent possible.
Where race-neutral measures prove inadequate to achieve the goal, states are required to use race-conscious measures, such as DBE participation goals for individual contracts. Like many State Transportation Agencies (STA), the Department and its sub recipients (local agencies) have employed race-conscious measures consisting of DBE contract participation goals established on individual contracts.
The use of race conscious DBE participation goals on individual contracts meant that where an apparent low bidder failed to meet the goal or to demonstrate “good faith efforts” to do so, its bid was deemed non-responsive and its bid was rejected.
In contrast, under a race neutral DBE program, none of the Department’s Federal Aid contracts will include DBE participation goal. The Department will continue, however to establish an overall Statewide DBE goal and will continue to semi-annually and annually report to the Federal Highway Administration (FHWA) on DBE participation.
Changing from a race conscious to a race neutral DBE program does not have retroactive application, so contracts executed and approved prior to the effective date of May 1, 2006, with race conscious DBE contract participation goals are not affected by the new race neutral DBE program.
In terms of contract monitoring, those prime contractors or prime consultants that were awarded contracts with race conscious DBE participation goals would still be required to meet those goals during performance of the contact. The request for DBE substitution process would also remain for the term of those contracts.
The race neutral DBE Program applies to any contract awarded by the Department and Local Agencies with federal funding. These are commonly known throughout the Department as Federal aid projects or contracts or US DOT assisted projects or contracts.
It is important to note that the race neutral DBE program has absolutely no impact on wholly state-funded contracts awarded by the Department, nor does it impact other State of California legislatively enacted preference programs like the Small Business Preference, the Recycled Paper Preference, the Target Area Contract Preference Act, etc. It also does not affect wholly State funded contracts with Disabled Veteran Business Enterprise (DVBE) contract participation goals.
The race neutral DBE Program also has no impact on any wholly local agency funded contracts awarded by the Department or local agencies.
Linda B. Wright
Director, Small Business Programs
Director, Economic Development Initiatives & Workforce Compliance
Director, Financial Management Services
Manager, PLA/CCP, Business Outreach
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