Disadvantaged Business Enterprise PROGRAM 2015 …€¦ · DBE PROGRAM PROCEDURES Michigan...

PROGRAM PROCEDURES

Disadvantaged Business Enterprise

2015

Michigan Department of Transportation


DBE PROGRAM PROCEDURES


The Michigan Department of Transportation (MDOT) has established a Disadvantaged Business Enterprise (DBE) program in compliance with regulations of the U.S. Department of Transportation (US DOT) at 49 CFR Part 26. As a condition of receiving federal financial assistance, MDOT has signed an assurance with US DOT that it will comply with 49 CFR Part 26.

Federal DBE Program CommitmentThe Michigan State Transportation Commission (STC) established a policy for a DBE program consistent with US DOT objectives found at 49 CFR § 26.1. MDOT’s program procedures, incorporated in this document, are consistent with STC policy.

ResponsibilitiesMDOT has been delegated responsibility for the administration and management of public transportation sys-tems by Michigan’s Public Act 51 of 1951, as amended.

The Michigan Department of Technology, Management and Budget (DTMB) has delegated authority for man-agement of state-owned facilities, including related contracting processes, based on provisions of Michigan’s Management and Budget Act 431 of 1984, as amended.

The director of MDOT shall be responsible for implementation of the DBE program. The director shall designate a DBE liaison officer who shall be responsible for administering all aspects of the MDOT DBE program.

The DBE liaison officer and staff, supported by operating divisions, shall be responsible for developing, manag-ing and implementing the program on a day-to-day basis. The DBE liaison officer also shall be responsible for carrying out technical assistance activities, for disseminating information on available business opportunities so that DBEs are provided an opportunity to participate in MDOT’s contracts and for maintaining an accurate and up-to-date directory of DBEs certified in Michigan.

GoalsMDOT shall recommend DBE goals to the STC tri-annually, as required by amendments to federal regulations dated March 5, 2010, and also provides an annual update. Upon receiving the recommended goals, the STC shall establish appropriate goals as required by federal and state law.

The department will use race-neutral and race-conscious means to meet recommended DBE goals on projects funded in whole or in part with Federal Aviation Administration (FAA), Federal Highway Administration (FHWA), and Federal Transit Administration (FTA) funds.

Contract goal(s) shall be set for suitable US DOT-assisted construction, consulting, procurement, and service contracts or grants with subcontracting opportunities. Prospective recipients of department contracts must as-sure the department of their intent to meet the established goal(s) in order to be eligible for award.

The department will not use quotas in any way in the administration of this DBE program.

Adopted by MDOT, February 2012.

Kirk T. Steudle Director


TABLE OF CONTENTS

DBE PROGRAM AUTHORITY.......................................................................................................................................2 Funding Sources of the MDOT DBE Program ................................................................................................................2 DBE Program Overview ......................................................................................................................................................3

CIVIL RIGHTS PROGRAMS WITHIN MDOT .........................................................................................................4 MDOTs DBE Program .........................................................................................................................................................4 AmericanswithDisabilitiesAct(ADA)andTitleVI,IncludingLimitedEnglishProficiency ......................................5

EqualEmploymentOpportunity(EEO) .............................................................................................................................5 On-The-Job Training (OJT) Program ................................................................................................................................5

A. DBE PROGRAM GOALS .........................................................................................................................................6 Methodology .........................................................................................................................................................................7 Projecting Race-Neutral/Race-Conscious Portions of the Goal ...................................................................................9 TheCSTandDBEParticipationGoalsonMDOT-letHighwayProjects .....................................................................9 Setting Goals on Individual Projects ...............................................................................................................................11 DBE Participation Designations on Design-Build Projects ..........................................................................................12 Composition of the Contract Selection Team (CST) .....................................................................................................12

B. MICHIGAN UNIFIED CERTIFICATION PROGRAM (MUCP) ...............................................................13 MUCP-CertifyingAgencyRequirements ........................................................................................................................14 AnnualAffidavitRequirement ..........................................................................................................................................14 DBEDirectory .....................................................................................................................................................................14

C. CERTIFICATION STANDARDS FOR DBE APPLICANTS ....................................................................15 Small Business Size ..........................................................................................................................................................15 Social and Economic Disadvantage Status ...................................................................................................................15 Individual Determinations of Social and Economic Disadvantage .............................................................................16 Rebuttal of Presumption of Disadvantage .....................................................................................................................16 Ownership ...........................................................................................................................................................................17 Control and Independence ...............................................................................................................................................17

WorkClassifications ..........................................................................................................................................................19 AnnualAffidavitRequiredtoMaintainCertification ......................................................................................................20

D. MDOT DBE CERTIFICATION PROCEDURES ............................................................................................21 Processing of Applications ...............................................................................................................................................21 InterstateCertification .......................................................................................................................................................21 On-site Visits and Field Monitoring .................................................................................................................................23 MDOT Denial Process ......................................................................................................................................................24 Denial Appeals to the US DOT ........................................................................................................................................24 SummarySuspensionofCertification ............................................................................................................................24 DBECertificationEligibilityRemovalandAppealProcess ..........................................................................................25 IntenttoRemoveEligibilityHearing ................................................................................................................................26 Removal Appeals to the US DOT ....................................................................................................................................27

E. PUBLIC INFORMATION AND COMPLAINTS .............................................................................................28 MDOT Fraud and Abuse Hotline .....................................................................................................................................28 USDOTDirectivetoRemoveaFirm’sEligibility ..........................................................................................................29 Freedom of Information Act (FOIA) Requests ...............................................................................................................29

F. COMMERCIALLY USEFUL FUNCTION (CUF) ...........................................................................................30 CUF Reviews and Outcomes ...........................................................................................................................................32 Counting DBE Participation Toward Contract Goals ....................................................................................................34


DBE PROGRAM PROCEDURESDBE PROGRAM PROCEDURES

Counting and CUF .............................................................................................................................................................34 DBE Truckers .....................................................................................................................................................................34 DBE Suppliers ....................................................................................................................................................................35 Guidance for DBE Participation as Suppliers ................................................................................................................37 UseofJointCheckstoGuaranteePaymentforMaterialsandSupplies ..................................................................39

G. GOOD FAITH EFFORT (GFE) PROCESS .....................................................................................................40 GFE Applications ...............................................................................................................................................................40 Efforts to Obtain DBE Participation .................................................................................................................................40 Pre-Award GFE ..................................................................................................................................................................42 Timeline of GFE Process ..................................................................................................................................................43 Post-Award GFE and DBE Substitution Requests .......................................................................................................44 Composition of the GFE Committee ...............................................................................................................................46 GFE Appeals ......................................................................................................................................................................46 FederallyRequiredPotentialSanctions .........................................................................................................................47

H. MDOT’S SMALL BUSINESS PROGRAM (SBP) ........................................................................................48 EligibilityCriteria ................................................................................................................................................................48 Project Selection for MDOT-let Projects .........................................................................................................................49 Project Selection Criteria for Non-MDOT-let Sub-Recipient Grantee Projects .........................................................49 Direct Report Agencies .....................................................................................................................................................51 Implementation Schedule: ................................................................................................................................................51 Actions Taken to Foster Small Business Involvement and Recruitment ...................................................................52 MDOT Assurances ............................................................................................................................................................52

I. FEDERAL EQUAL EMPLOYMENT OPPORTUNITY (EEO) REQUIREMENTS FOR CONTRACTORS ......................................................................................................53

J. CONSTRUCTION CONTRACTOR RESOURCES .....................................................................................55 ConstructionPrequalification ...........................................................................................................................................55 VendorAvailabilityQuestionnaire ....................................................................................................................................55 Bid Lettings and Bidding Process ...................................................................................................................................56 Construction Subcontracting Process ............................................................................................................................56 Prevailing Wage .................................................................................................................................................................56 PromptPaymentRequirements ......................................................................................................................................57 Counting and CUF of DBE Firms on Construction Projects ........................................................................................57 Counting DBE Construction Contractor Joint Ventures ...............................................................................................58

K. CONSULTANT RESOURCES ..............................................................................................................................59 DBE Participation on Projects with DBE Goals .............................................................................................................59 PrequalifiedDBEConsultant ...........................................................................................................................................59 Goal-Setting Procedure for Consultant Contracts ........................................................................................................60

L. DBE CONTRACTING OPPORTUNITIES .......................................................................................................62

M. DBE SUPPORTIVE SERVICES ..........................................................................................................................64 DBE Basic Training Curriculum .......................................................................................................................................65 Business Development Program (BDP) .........................................................................................................................66 DBE Construction Engineers and Technicians ..............................................................................................................67

N. DEFINITIONS AND ACRONYMS .......................................................................................................................68

ATTACHMENT A – Assurances that Recipients and Contractors Must Make ...................................................................78

ATTACHMENT B – Mentor/Protégé Disadvantaged Business Enterprise (DBE) Development Program ..........................79

ATTACHMENT C – EXHIBIT 1-D – Disadvantaged Business Enterprise (DBE) Special Provisions for Design-Build Projects ....................................................83




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DBE PROGRAM AUTHORITYOn Feb. 2, 1999, the US DOT published in the Federal Register itsfinalruleat49CFRPart26,entitled “ParticipationbyDisadvantagedBusinessEnterprisesinDepartmentofTransportationPrograms,”asamendedSept. 8, 2000; June 16, 2003; Feb. 3, 2010; Jan. 28, 2011; and Oct. 2, 2014. It superseded all DBE regulations, orders,circularsandadministrativerequirementsconcerningfinancialassistanceprogramsissuedbytheUSDOT before March 4, 1999. This rule requires MDOT to implement a program to encourage the participation of DBEs in its federal-aid contracting activities.

TheMichiganLegislature,bySection6a(h)of1964PA286,asamended,MCL247.806(h);MSA9.216(6),authorizedthedirectorofMDOT“todoanythingnecessaryandpropertocomplyfullywiththeprovisionsofpresentorfuturefederal-aidacts.”

In addition to the procedures outlined in this program procedure, MDOT will adhere to all current federal and state laws, regulations, executive orders and directives of the governor concerning the DBE program and subjecttotheavailabilityoffederalandstatefunds.

Funding Sources of the MDOT DBE ProgramMDOT’sDBE program applies to federally-assisted projects awarded or administered byMDOT that arefunded from the following sources:

1. MovingAhead forProgress in the 21stCenturyAct (MAP-21) (2012P.L. 112-141),Title I,SubtitleA, Sec. 1101 (b)

2. Federal-aidhighwayfundsauthorizedunderTitlesI(otherthanPartB)andVoftheIntermodalSurfaceTransportationEfficiencyActof1991(ISTEA),Pub.L.102-240,105Stat.1914,orTitlesI,IIIandVoftheTransportationEquityActforthe21stCentury(TEA-21),Pub.L.105-178,112Stat.107.TitlesI,III,andVoftheSafe,Accountable,Flexible,EfficientTransportationEquityAct:ALegacyforUsers(SAFETEA-LU),Pub.L.109-59,119Stat.1144;andDivisionsAandBoftheMovingAheadforProgressinthe21stCenturyAct (MAP-21), Pub. L. 112-141, 126 Stat. 405.


Michigan Department of Transportation3

3. FederaltransitfundsauthorizedbyTitlesI,III,VandVIofISTEA,Pub.L.102-240orbyFederaltransitlaws in Title 49, U.S. Code, or Titles I, III and V of the TEA-21, Pub. L. 105-178. Titles I, III, and V of theSafe,Accountable,Flexible,EfficientTransportationEquityAct:ALegacyforUsers(SAFETEA-LU), Pub.L.109-59,119Stat.1144;andDivisionsAandBoftheMovingAheadforProgressinthe21stCenturyAct (MAP-21), Pub. L. 112-141, 126 Stat. 405.

4. Airportfundsauthorizedby49U.S.C.47101,et seq.

5. The2005SAFETEA-LUAct(Safe,Accountable,Flexible,Efficient,Transportation,EquityAct:ALegacyfor Users) Pub. L 190-59.

6. Federal-aidaviation,highway,andtransitfundsauthorizedbytheAmericanRecoveryandReinvestmentAct of 2009, Title XII.

DBE Program OverviewThe US DOT DBE (Disadvantaged Business Enterprise) program provides a vehicle for increasing the partici-pationbysociallyandeconomicallydisadvantagedbusinessownersinstateandlocalprocurement.DOTDBEregulations requirestateand local transportationagencies that receiveDOTfinancialassistance toestablishgoals for the participation ofDBEs.EachDOT-assisted state and local transportation agency is required toestablish annual DBE goals, review the scopes of anticipated large prime contracts throughout the year,andestablishcontract-specificDBEsubcontractinggoals.Alongwith theOfficeofSmallandDisadvantagedBusinessUtilization(OSDBU), theDepartmentalOfficeofCivilRights,andtheOfficeof theGeneralCounsel,there are three major DOT operating administrations involved in the DBE program: the Federal Highway Administration (FHWA), the Federal Aviation Administration (FAA), and the Federal Transit Administration (FTA).

Inadditiontoestablishinggoals,stateandlocalrecipientsalsocertifytheeligibilityofDBEfirmstoparticipateinDOT-assistedprojects.Somegroupsarepresumedtobesociallyandeconomicallydisadvantagedforthepurposes of participation in this program. The main objectives of the DBE program are:

• Toensurenondiscriminationintheawardandadministrationoffederallyfundedtransportation-relatedprojectsinthedepartment’shighway,transit,andairportfinancialassistanceprograms;

• TocreatealevelplayingfieldonwhichDBEscancompetefairlyforfederallyfundedtransportation- related projects;

• Toensurethatthedepartment’sDBEprogramisnarrowlytailoredinaccordancewithapplicablelaw;• Toensurethatonlyfirmsthatfullymeetthispart’seligibilitystandardsarepermittedtoparticipateas

DBEs;• TohelpremovebarrierstotheparticipationofDBEsinfederallyfundedtransportation-relatedprojects;• Topromote theuseofDBEs inall typesof federallyassistedcontractsandprocurementactivities

conductedbyrecipients.• ToassistthedevelopmentoffirmsthatcancompetesuccessfullyinthemarketplaceoutsidetheDBE

program; and• Toprovideappropriateflexibilitytorecipientsoffederalfinancialassistanceinestablishingandproviding

opportunities for DBEs.



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CIVIL RIGHTS PROGRAMS WITHIN MDOTMDOT’s DBE ProgramFor additional program information or documents call, e-mail, or visit the MDOT website:

Michigan Department of Transportation OfficeofBusinessDevelopmentDisadvantaged Business Enterprise (DBE) ProgramLisa S. Thompson, Administrator Website: www.michigan.gov/mdotdbeE-mail: [email protected]

LansingOffice: P.O. Box 30050 425 West Ottawa St. Lansing, MI 48909 Toll-free phone: 866-323-1264 Fax: 517-335-0945

DetroitOffice: 1060 W. Fort St., 2nd Floor, SE Detroit, MI 48226 Toll-free phone: 866-323-4009 Fax: 313-965-2383



Americans with Disabilities Act (ADA) and Title VI, Including Limited English ProficiencyTheAmericanswithDisabilitiesActof1990 (ADA)prohibitsdiscriminationandensuresequalopportunityforpersonswithdisabilities inemployment,stateand localgovernmentservices,publicaccommodations,commercial facilities, and transportation.

Title VI of the Civil Rights Act of 1964 (42 U.S.C. 200d), related statutes and regulations provide that no per-son shall on the ground of race, color, national origin, sex, or disabilities be excluded from participation in, be deniedthebenefitsof,orbesubjectedtodiscriminationunderanyprogramoractivityreceivingfederalfunds.

ForinformationabouttheADAorTitleVI,includinglimitedEnglishproficiency,contact:

Michigan Department of TransportationAttn:CherylHudson,EqualEmploymentOpportunityOfficerP.O. Box 30050 425 West Ottawa St.Lansing, MI 48909Phone: 517-373-0980E-mail: [email protected]

Equal Employment Opportunity (EEO) MDOT must ensure that all federal-aid contractors, subcontractors, vendors, and material suppliers do not discriminateinemploymentandcontractingpracticesbasedonrace,color,religion(inthecontextofemploy-ment),sex,nationalorigin,age,ordisability.

Anydeficienciesnotedinacontractor’sEEOprogramaretobeprovidedtotheMDOTOfficeofBusinessDevelopment (OBD) at 866-323-1264 or [email protected].

A contractor’s affirmative action plan is to be comprised of the following contractual requirements: EO provisions, training provisions, FHWA Form 1273, Title VI (under Appendix C of the project proposal) and DBE goals and provisions.

InformationregardingEEOcontractcompliancecanbefoundinthesectionentitled“FederalEqualOpportunity RequirementsforVendors”.

On-The-Job Training (OJT) Program MDOT’s OJT program is based on requirements of Appendix B to Subpart A of Title 23 Code of Federal Regulations Part 230 (23 CFR Part 230), which requires inclusion of training special provisions in federal-aid construction contracts. The OJT program provides opportunities for unskilled workers to acquire training inskilledconstructiontrades.TheprimaryobjectiveoftheOJTprogramistotrainandupgrademinorities,women,anddisadvantagedpersonstowardfulljourney-levelstatusandtoprovideopportunitiesfortraineesto become part of a contractor’s permanent workforce.

OJT program details are available on the web at www.michigan.gov/ojt.

mailto:[email protected]



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A. DBE PROGRAM GOALSPursuant to requirements of 49 CFR Part 26, MDOT submits its overall goal for DBE participation oncontracts funded inwholeor inpartwith funds fromFHWA,FAAandFTAbyAug.1onastaggered three-yearschedule.Theyearofsubmission isestablishedbyeach federalagencyand is published on its website.

MDOTregularlyreviewsitsprogresstowardmeetingitsoverallgoalandmaymakeadjustmentstotheoverallgoalduringthethree-yearperiodbasedonchangedcircumstances.

MDOT’sproposedoverallDBEgoalmethodologyispresentedtotheMichiganStateTransportation Commission(STC)forapproval.OncetheDBEgoalmethodologyisapprovedbytheSTC,thegoalisforwardedforreviewandapprovalbytheFHWAMichiganDivisionandFHWAlegalcounsel.

DBE participation goals are designated on individual projects in order to meet the race-conscious portionoftheoverallgoal.Referto“TheContractSelectionTeamandDBEParticipationGoals”for detailed information about the project-level process.

MDOT’sproposedFAAandFTAgoalsaresubmittedtotherespectiveGreatLakesRegionOfficefor review and approval.

TheoverallgoalreflectstherelativeavailabilityofDBEswhoareready,willingandabletoworkforMDOT, incomparison toall firmswithinMDOT’smarketplace.Theoverall goal isMDOT’sdetermination of the level of DBE participation which could be expected, absent the effects of discrimination.

Based on revisions to the federal regulations that took effect Jan. 28, 2011, if MDOT does not meetitsprojectedoverallDBEgoalattheendofafiscalyear,thereasonsfornotachievingthegoalmustbeanalyzedandspecificstepstakeninordertofullymeetthegoalinthenewfiscalyear.Theanalysisandcorrectiveactionsmustbesubmittedwithin90daysoftheendofthefiscalyeartotheappropriateUSDOToperatingauthority.

Everythreeyears,pursuanttotheFeb.3,2010,amendmenttoDBEregulationsat49CFRPart26, MDOT will publish a notice of its proposed overall DBE participation goal. This is done to inform the public that the proposed goal and its rationale are available for inspection, and to solicit comment.



Methodology MDOT uses a two-step process to determine its overall DBE participation goal:

Step1. Determinethebasefigurefortheoverallgoal

- CalculatetheactualrelativeavailabilityofDBEstoperformthetypesoffederallyassistedprime and subcontractsMDOT intends to let: heavy construction,materials supply, engineering and other professional services, and transit services.

- Weighavailabilityfiguresbytherespectivecontractdollarstobeexpendedineachtypeoffederally assisted prime and subcontract.

- Disaggregatetheresultingweightedavailabilityfigures.

Step2. AdjustthebasefigureusingfactorsrelevanttoMDOT’smarketplace.Iftheevidencedoesnotsug-gestanadjustmentisnecessary,thennoadjustmentshallbemade.

Themethodologyusedincludesanexplanationofhowportionsoftheforecastedtri-annualoverallgoalareachieved using race-neutral and race-conscious means.

ADDITIONAL INFORMATION ABOUT STEPS 1 AND 2

TheStep1basefigure iscalculated individually forheavyconstruction,professionalservices,and transitservicespursuanttoguidanceprovidedbyfederalregulationsat49CFR§26.45andFederal Register Vol.64, No.21 dated Feb. 2, 1999.

Step1: Determinethebasefigurefortheoverallgoal

MDOT’sdirectoriesofcertifiedDBEs,prequalifiedfirmsandapprovedsuppliersproviderelevantandreliabledata to measure its marketplace. These data sources are used for the following reasons:

- The State of Michigan requires prime contractors and subcontractors wishing to do business with MDOTtobeprequalified.

- MDOT maintains a database of approved suppliers and publishes the list on the Web.

- MDOT’s Vendor Availability Questionnairewebsiteisusedtosurveytheuniverseofvendorsseeking work with MDOT. A review of submissions supports MDOT’s determination that its marketplace consistsofvendorswhoareDBE-certified,prequalified,orapprovedsuppliers.

TheStep1basefigureisdeterminedforeachoperatingauthority(FHWA,FAAorFTA)byaddingweightedDBE-relativeavailabilityinheavyconstruction,professionalservices,ortransitservices,asapplicable.



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Projected weighted dollar value x DBE relative availability = Weighted DBE-relative availability

Estimated federally assisted heavy construction contract dollars = Projected weighted dollar value heavy construction (%) Total Federally-assisted program dollars

Number of DBEs in heavy construction = DBE relative availability in heavy construction (%) Number of non-DBEs and DBEs in heavy construction

Projected weighted dollar value x DBE-relative availability = Weighted DBE-relative availability heavy const.

ThebasefigurereflectsonlythesumoftheweightedrelativeDBEavailabilityinheavyconstruction,profes-sional services or transit services for FHWA, FAA, or FTA-assisted contracts, as applicable, and is not in itself adirectmeasureofcapacity.

Step2: Adjustingthebasefigurefortheoverallgoal

FactorsrelevanttoMDOT’scontractingmarketareusedtomakeadjustmentstotheStep1basefigure.

Thesefactorsmayinclude:

• MedianDBEparticipationforthepastfiveyears

• Comparative analysis of themix of projects, the dollar volume of the projected program and theavailabilityofDBEsinthetypesofworkneeded

• ThenumberofprojectsthatmaynotbeconducivetoDBErace-consciousparticipationdesignationsdue to small project size

• Publication of the goal within the media

• Thenumberofprojects thatmaynotbeconducive toDBEparticipationdue to the locationof thecontract

• DBEcertificationactivity

• InitiativestakenbyMDOTtoencouragesmallbusinessparticipation

• Historicaldatainvolvingapprovedwaiver/modificationrequests

• Feedbackandconsultationregardingtheproposedgoalwithindustry,minorityandwomen’sgroupsasrequiredby49CFR§26.45(g)(1)andpostedonourDBEwebsiteatwww.michigan.gov/mdotdbe.



Projecting Race-Neutral/Race-Conscious Portions of the GoalOncetheStep1basefigurehasbeenadjustedtodeterminetheoverallgoal,MDOTprojectstheportionofthe goal to be met using race-neutral (RN) or race-conscious (RC) means.

• RNDBEparticipationincludesinstanceswhenaDBEwinsaprimecontractthroughcustomarycom-petitiveprocurementprocedures,isawardedasubcontractonaprimecontractthatdoesnotcarryaDBE goal, or is awarded a subcontract from a prime contractor that did not consider its DBE status in makingtheaward(e.g.,aprimecontractorthatusesastrictlowbidsystemtoawardsubcontracts).

- The projected RN portion of the overall goal is based on median RN DBE participation achieved duringthepreviousfiveyears.

- To promote RN participation, MDOT uses small business outreach, technical assistance and networking sessions, conferences, reimbursement programs, support, license subsidies and targeted training.

• RC DBE participation includes instances when a DBE receives subcontracts from a prime contractor because of required DBE contract goals.

- RCparticipationisassignedtofederallyassistedconstructionprojectsbyMDOT’sContract Selection Team (CST). The selection process is described below.

NOTE: MDOT will ensure that its DBE program continues to be narrowly tailored to overcome the effects of discrimination by tracking and examining actual RN and RC DBE participation obtained during the course of the year and, as necessary, will make appropriate modifications in its use of RN and/or RC measures in accordance to 49 CFR § 26.45.

The CST and DBE Participation Goals on MDOT-let Highway ProjectsMDOT’s CST reviews federally funded trunkline projects for DBE participation potential. CSTmembersinclude individuals from MDOT’s DBE program and the bureaus of Finance and Administration,Highways,TransportationPlanning, andAeronautics.TheCSTmeets at leastmonthly to reviewproject details andassign a DBE participation goal to suitable projects.

ProjectsaretypicallyreviewedbytheCSTforDBEparticipationpotentialatleasttwice:

1. Programmed projects that have not had prior CST review are downloaded from MDOT’s Administrative CustomizableReportingSystem(ACRS)database.TheCSTreviewsprojectdetails,includingestimatedcost,location,typesofwork,andavailabilityofDBEs.SuitableprojectsareassignedaDBEparticipationgoal.

a. DBEparticipationrecommendationsaretrackedusingMDOT’sMAPProjectInformationSystem (MPINS) database. This database feeds into ACRS and MDOT’s Trns●port Preliminary EngineeringSystem(PES).

2. Prior toprojectadvertisement,approximatelysixweeksbeforeeach letting, theCSTperformsasec-ondreview.Trns●portPESisusedtogeneratea“CostSummary”foreachproject.TheCostSummaryincludes project identification numbers, location and general type of work (preventive maintenance,



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roadsideconstruction,etc.),projectdescription,engineer’sestimatedvalue,projectworkclassifications,alistofDBEfirmscertifiedand/orprequalifiedtoperformeachworkclassification,andtheprimarybusinessaddressofeachDBEfirm.UsingastandardalgorithmtocalculateDBEavailability,theCSTdetermineswhether or not the project should have a DBE goal, and, if so, sets the goal.

b. AversionoftheCostSummaryspecificallycreatedforvendoruseisavailableonthe“letting”link at www.michigan.gov/mdotdbe.

FollowingeachCSTmeeting,DBEprogramstaffpreparesmeetingminutesthatareelectronicallydistributedto MDOT region representatives for review and comment. Region comments are provided to the CST. Once the CST and region representatives agree with the DBE participation goals set on each project, the list is forwarded to the Contracts Services Division (CSD) for project advertisement

Aflowchartof thecontractselectionandreviewprocess for trunklineand localagencyprojects isshownbelow. The process for CST review of service contracts is under development.

RC DBE participation is checked against overall DBE goals. Results are provided to the CST.

Run ACRS report of programmed federal projectswhich have not been reviewed.

Approximately six before letting, run ACRS reviewedprojects report and PES Trnsport cost summaries.

DBE participationdesignations are enteredinto the MPINS database,

which feeds in ACRSand PES Trnsport.

Contract Selection Team (CST)reviews projects and assigns DBEparticipation goals to projects with

DBE participation potential.

CST meeting minutes with proposedDBE project participation goals aresent to MDOT regions for review

and comment.

An ACRS report of reviewedprojects is generated. DBE RCparticipation is checked againstoverall DBE goals. Results are

provided to the CST.Projects are advertised



Setting Goals on Individual ProjectsAlgorithm for computing the science portion of the project-specificDBEparticipationgoals:

Step1: Run“CostSummarybyProposal”statementsforeachprojecttogeneratetheengineer’sestimate,requiredworkclassifications,andthepercentageoftotalprojectforeachworkclassification.

Step2:Review the Cost Summary by Proposal for prime contract 40 percent work classifications. ThisamountwillnotbeusedinthecalculationoftheDBEgoal.Ifthereismorethanoneprimeclassifi-cation,thealgorithmwillberunforeachprimeclassification.Thelowestpercentagewillbeusedforthisportionoftheoverallprojectgoal.Iftheprimeclassification(s)amountisgreaterthan40percent,theremainingportionofthatworkclassificationwillbeusedinthecalculationoftheDBEgoal.

Step 3: Calculate the DBE multiplier using the following formula:

#activepreqandcertDBEcontractorsintheprojectregionperworkclassification #activepreqsubcontractorsintheregionperworkclassification(includingDBEs)

Note: For purposes of this process, “active” is defined as the DBEs/non-DBEs working on a contract on which an estimate has been processed in the last two years.

Step4: Foreachworkclassificationcompute: $valueofworkclassificationxDBEmultiplierbyregion(seestep3)= DBE$valueofworkclassification

Step 5: Compute Total Project DBE Participation Goal for contractors:

SumofallDBE$valuesofworkclassifications Engineer’s estimate of project

Note: The use of “active” in this algorithm is not to be considered a bidders list as defined by 49 CFR 26.45(c)(2). The portion of DBEs who have been unable to secure a subcontract will be a part of the “art” portion of the DBE goal calculation. Other “art” portion considerations will include, but are not limited to, trucker and supplier opportunities, emerging new DBE contractors, community issues, political concerns, and historical DBE attainment in the area/work type.

Non-mathematical considerations related to DBE participation goal designations: comments regarding service firms, truckers, brokers and newly certified DBE firms; the political environment; relevant current DBE issues; relevant historical issues; relevant project location issues; relevant project scope issues; any additional con-siderations; comments regarding the algorithm (construction projects only); other.



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DBE Participation Designations on Design-Build ProjectsDesign-build (DB) is a construction project contract that combines engineering design services, con-struction services and sometimes maintenance services into a single contract. The design-builder isusuallythegeneralconstructioncontractorbutinsomecasesitalsoistheengineeringdesignfirm.TheCSTreviewsaDBprojectsummary toestablishaDBEparticipationgoal inadvanceofadvertisement.AtemplateoftheDBESpecialProvisionthatisincludedineveryDBprojectisincluded as Attachment D in this document.

Composition of the Contract Selection Team (CST)Note: All CST members will have alternate representatives:

a. OfficeofBusinessDevelopment-Threerepresentatives(includingtheteamchair)

b. Regions - Two representatives

c. Finance and Administration - One representative

d. Construction Field Services Division - Two representatives

e. Transportation Planning - One representative

f. ExecutiveOffice-Onerepresentative(onanas-neededbasis)

g. Aeronautics - One representative

h. When the CST reviews service consulting contracts, representatives from the respective contracting area will participate. Service consulting includes Construction Services, Design Services, Real Estate, PassengerTransportation,Planning,TrafficandSafety,etc.

ThechairoftheCSThastheauthority,withtheadvisementofthechiefoperationsofficer(COO),tomakefinaldecisionsonindividualprojectgoals.ThismayoccurininstanceswheretheCSTcannotagreeonaprojectDBE percentage, or when a decision must be made within a short time frame and it is not possible to get CST input to meet a critical deadline.


13 Michigan Department of Transportation

B. MICHIGAN UNIFIED CERTIFICATION PROGRAM (MUCP) USDOTregulationsat49CFR§26.81(b)(2)state:“TheUCPshallprovide‘one-stopshopping’toapplicants for certification, such that anapplicant is required toapplyonlyonce for aDBEcertificationthatwillbehonoredbyallrecipientsinthestate.”

All recipients of funds from the FAA, FHWA and FTA in each state were required to unite and implementtheUnifiedCertificationProgram(UCP).

In support of this requirement, the State of Michigan established an MUCP Committee. This com-mitteeagreedtocertifyDBEfirmsbasedonmandatoryreciprocityamongthecertifyingentitiesinthestate.Asaresult,theseorganizationswillcertifyDBEsinMichigan:

Michigan Department of TransportationOfficeofBusinessDevelopment425 West Ottawa St.P.O. Box 30050Lansing, MI 48909Telephone:LansingOffice-866-323-1264orDetroitOffice-866-323-4009Fax: 517-335-0945E-mail: [email protected] WayneCountyHumanRelationsDivision 600 Randolph, 5th Floor Detroit, MI 48226 Telephone: 313-224-5021 Fax: 313-224-6932 Detroit Department of Transportation Contract Compliance 1301 E. Warren Detroit, MI 48207 Telephone: 313-833-769 Fax: 313-833-5523



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MUCP-Certifying Agency RequirementsEachcertifyingagencywillnotifyallMUCPagenciesandcertificationapplicantsoftheircertificationdecisions.Certifyingagenciesmustkeepcompletefilesonapplicantsandprovideinformationasrequired.Certificationsthat do not follow MUCP guidelines will not be valid.

Eachcertifyingagencyagreestoprovideinformationanddocumentation,uponrequest,toanyout-of-statecertifyingagencywhereanMUCPDBEfirmisseekingcertification.AllMUCPagenciesagreetoreferanyUCPinquiriesfromout-of-stateUCPstotheappropriatecertifyingagency.Informationonthecertifyingagen-cywillbeincludedontheDBEapprovalletterandcertificate.

Eachcertifyingagencyagreestorequirehome-statecertificationasaprerequisitetocertifyinganout-of-statefirm.Thecertifyingagencywhereanout-of-stateDBEfirmisseekingcertificationmaycontacttheapplicantor the home state in order to address questions and concerns.

Annual Affidavit Requirement EachcertifyingagencywillannuallyrequireitsDBEfirmstosubmitanaffidavitofnochangeform,dueontheircertificationanniversarydate.Completionofthisformisrequiredforcontinuedcertificationeligibility.ThecertifyingagencieswillnotifyallMUCPagenciesofthefirm’scontinuedeligibility.

DBE DirectoryTheMUCPdirectoryofallcertifiedDBEfirmsinMichiganisavailableonlineatwww.michigan.gov/mucp.

TheMUCPhasdeterminedthefirmslistedintheMUCPdirectorymeettheDBEcertificationrequirementstoperformthespecificworkcodesgranted.AllrequestsforadditionalworkcodesmustbeapprovedpriortotheexecutionofanycontracttheDBEfirmwishestoperformworkonasaDBE.TheDBEfirmmustmeetMDOTprequalificationrequirements,aswellasallotherstateandfederalrequirements.

AhardcopydirectoryofDBE-certifiedfirmsisavailablefromMDOTandisavailabletothepublic.Theprinteddirectoryispublishedandupdateduponrequest.

TheDBEdirectoryincludesthefollowing:

AlphabeticallistofcertifiedDBEfirms;includingthename,address,telephone,NAICScoding,andworkclassificationsthatthefirmshasbeenDBE-certifiedtoperform.

ToobtainacopyoftheDBEdirectory,contactMDOTat:

Michigan Department of TransportationOfficeofBusinessDevelopmentP.O. Box 30050425 West Ottawa St. Lansing, MI 48909Toll-free phone: 866-323-1264

http://www.michigan.gov/mucp



C. CERTIFICATION STANDARDS FOR DBE APPLICANTSTheintegrityoftheMUCPDBEprogramdependsupontheestablishmentofsystematicproce-durestoensureonlysmallfirmsindependentlyownedandcontrolledbysociallyandeconomicallydisadvantagedpersonsarecertifiedtoparticipateintheUSDOTDBEprogram.TheMUCPwillusethefollowingstandardstoestablishDBEcertificationeligibility inaccordancewith49CFRPart 26, formal US DOT guidance, the MUCP Memorandum of Understanding, and US DOT interpretations of the regulations contained in their appeal decisions.

Small Business Size Inorder tobecertified,abusinessmustqualifyasasmallbusinessasdefinedbyU.S.SmallBusiness Administration (SBA) regulations at 13 CFR Part 121, as amended. Size standards for eachapplicantshallbedeterminedbyidentifyingthefirm’sprimaryarea(s)ofwork,therelatedNorthAmericanIndustryClassificationSystem(NAICS)code(s)andapplyingthecorrespondingSBA size standard.

No business shall be considered small if average annual gross receipts of the business and its affiliatesexceed$23.98millionoverthepreviousthreefiscalyears,eventhoughreceiptsdonotexceed the threshold for the applicable NAICS code. This maximum size standard is adjusted periodicallytooffsetinflation.

Social and Economic Disadvantage Status AllapplicantsforDBEcertificationmustsubmitasigned,notarizedcertificationthatthepresump-tivelydisadvantagedowneris,infact,sociallyandeconomicallydisadvantaged.

A signed, notarized statement of personal net worth must be submitted for each individual owner ofafirmwhoseownershipandcontrolarerelieduponforDBEcertification.Supportingdocumen-tation, including personal tax returns, is required as evidence. If an individual’s personal net worth exceeds$1.32million(excludingthevalueoftheindividual’sprimaryresidenceandownershipinterestinthefirmseekingcertification),theindividual’spresumptionofeconomicdisadvantageisrebuttedandheorshewillnotqualifyforthisprogram.

If an individual’s presumption of social and/or economic disadvantage is rebutted, his or her own-ershipandcontrolofthefirminquestioncannotbeusedforpurposesofDBEeligibility.

Under 49CFR §§ 26.5 and 26.67,U.S. citizens (or lawfully admitted permanent residents oftheUnitedStates)whoaremembersof the followinggroupsarepresumed tobesociallyandeconomicallydisadvantaged:

1. BlackAmericans,whichincludespersonshavingoriginsinanyoftheBlackracialgroupsofAfrica;

2. Hispanic Americans, which includes persons of Mexican, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race;



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3. NativeAmericans, who are enrolled members of a federally or state-recognized Indian tribe,Alaska Natives, or Native Hawaiians;

Note: Special rules apply to certification of firms related to Alaska Native Corporations (ANC). See 49 CFR § 26.73(h).

4. Asian-Pacific Americans, which includes persons whose origins are from Japan, China, Taiwan, Korea,Burma(Myanmar),Vietnam,Laos,Cambodia(Kampuchea),Thailand,Malaysia,Indonesia,the Philippines, Brunei, Samoa, Guam, the U.S. Trust Territories of the Pacific Islands (Republic of Palau), Republic of the Northern Marianas Islands, Samoa, Mac4cao, Fiji, Tonga, Kiribati, Tuvalu, Nauru, Federated States of Micronesia, or Hong Kong;

5. Subcontinent Asian Americans, which includes persons whose origins are from India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal or Sri Lanka;

6. Women;

7. AnyadditionalgroupswhosemembersaredesignatedassociallyandeconomicallydisadvantagedbytheSBA, at such time as the SBA designation becomes effective.

Note: Being born in a particular country does not, standing alone, mean that a person is necessarily a member of one of the groups listed in this definition.

Personswhoarevisibly identifiableasaminorityneednotprovidedocumentationof their racialheritage.Personswhoarenotvisiblyidentifiableasaminoritymustprovidedocumentationoftheirracialheritageonacase-by-casebasisinaccordancewith49CFR§26.63(b).

Individual Determinations of Social and Economic Disadvantage EachindividualownerofafirmapplyingtoparticipateasaDBE,whoseownershipandcontrolarerelieduponforDBEcertification,mustcertifythatheorshehasapersonalnetworththatdoesnotexceed$1.32million.Apersonal networth statement is requiredaspart of theapplication inorder toaccuratelydetermineanindividual’spersonalnetworth.Onacase-by-casebasis,theMUCPrecipientmayrequireadditionalfinancialinformationfromtheownerofanapplicantfirm.

Rebuttal of Presumption of DisadvantageAnindividual’spresumptionofeconomicdisadvantagemayberebuttedintwoways,per49CFR§26.67.

1. If the statement of personal net worth and supporting documentation that an individual submits shows that the individual’s personal net worth exceeds $1.32 million, the individual’s presumption of economic disadvantage is rebutted.

2. If theindividualdemonstratesthattheyareabletoaccumulatesubstantialwealth,theindividual’spre-sumption of economic disadvantage can be rebutted.



Personswhoarenotpresumedtobesociallyandeconomicallydisadvantaged,includingindividualswhosepresumeddisadvantagehasbeenrebutted,mayapplyforDBEcertification.Theapplicanthastheburdenofdemonstrating,byapreponderanceofevidence,thattheyaresociallyandeconomicallydisadvantaged.Noindividualwhosepersonalnetworthexceeds$1.32million(excludingthevalueoftheapplicant’sprimaryres-idenceandinterestinthefirmseekingcertification)maybedeemedeconomicallydisadvantaged.Inmakingdeterminations of social and economic disadvantage for non-presumptive individuals, the MUCP will use the standardsputforthby49CFRPart26,AppendixE.

Ownership Inestablishingownership,theMUCPisrequiredby49CFR§26.69toconsiderallthefactsintherecord,viewed as a whole. Ownership is determined as follows:

1. TobeaneligibleDBE,afirmmustbeatleast51percentownedbysociallyandeconomicallydisadvan-taged individuals.

2. Toestablishownership,thesociallyandeconomicallydisadvantagedowner(s)musthavemadea“realandsubstantial”contributiontoacquiretheirownershipinterest.Thecontributionmaybecapital,otheras-sets, or expertise. Contributions of capital or other assets must derive from the disadvantaged person(s) individually and independently owned resources.Resources acquired from another source through atransferorgiftmaybescrutinizedtoassuretheyare,infact,individuallyandindependentlyowned.

3. Allapplicantsforcertificationarerequiredtoestablishthesourceoftheircontribution(s)toacquiretheirownership interest.

Control and Independence Control,asdefinedin49CFR§26.71,iscomprisedofthreeparts:operationalcontrol,managerialcontrolandindependence.Toestablishcontrol,thedisadvantagedowner(s)musthavesufficientexpertiseandauthority,specificallyinthefirm’sfieldofoperations,tocontroltheoveralldestinyandtheday-to-dayoperationsofthefirm.Additionally,afirmmustbeanindependentbusinesswhoseviabilitydoesnotdependonitsrelationshipwithanotherfirmornon-disadvantagedindividual.Indeterminingwhetherthedisadvantagedowner(s)con-trolsthefirm,thefollowingfactorswillbeconsidered:

1. Operational Control

A.Ofprimaryimportanceistheextenttowhichthedisadvantagedowneractuallyoperatesthebusiness.Thedisadvantagedownermustshowheorshemakesthebasicdecisionsinthedailyoperationsofthefirm.

B. The disadvantaged owner must have an overall understanding of and technical competence and expe-riencedirectlyrelatedtothetypeofbusinessinwhichthefirmisengagedandinthefirm’soperations.Technicalcompetenceisdefinedasexperience,education,expertiseand/orbackgroundsufficienttoaffordthedisadvantagedowneranabilitytocontrolthecriticaloperationsofthefirm’sbusiness,includ-ingbutnotlimitedtooperationssuchasestimating,marketing,sales,fieldsupervisionandbidding.Technical competence in this sense does not mean expert knowledge. It means substantial knowledge ofthetechnicalrequirementsoftheindustryforwhichthebusinessseekscertification.



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C. If state or local law requires a particular license or other credential in order to own and/or control acertain typeof firm, then thesociallyandeconomicallydisadvantagedperson(s)whoownsandcontrolsapotentialDBEfirmmustpossesstherequiredlicenseorcredential.

D.Thedisadvantagedownershouldbeabletoshowthatbasicdecisionspertainingtothedailyoper-ations of the business aremade independently. If a disadvantagedowner relies on the decisionsofotheremployees in thecriticaloperationsof thefirm’sbusiness, thedisadvantagedownermustshowheorshecanintelligentlyuseandcriticallyevaluateinformationpresentedinmakingdecisionsconcerningthedailyoperationalactivitiesofthebusiness.

E.Generally,expertiselimitedtoofficemanagement,administration,orbookkeepingfunctionsunrelatedtotheprincipalbusinessactivitiesofthefirmisinsufficienttodemonstratecontrol.

F. Inordertobeviewedascontrollingafirm,adisadvantagedownercannotengageinoutsideemploy-mentorotherbusinessintereststhatconflictwiththemanagementofthefirmorpreventtheindividualfromdevotingsufficienttimeandattentiontotheaffairsofthefirmtocontrolitsactivities.

2. Managerial Control

A. The disadvantaged owner must have the power to direct or cause the direction of the management andpoliciesofthefirmandtomakeday-to-day,aswellaslong-term,decisionsonmattersofman-agement,policyandoperation.

B. The disadvantaged owner should be able to show there are no restrictions through corporate charter provisions,by-lawprovisions,contracts,votingrightsorpowers,banksignatures,oranyotherformalorinformaldeviceswhichwouldlimitcontrolofthefirm.

C.Thedisadvantagedownershouldbeabletoshow,clearlythroughdocumentaryevidence,thatheorshecontrolsthefirminareassuchas,butnotlimitedto:

(1) The disadvantaged owner must hold the highest officer position in the company (e.g.,chiefexecutiveofficerorpresident).

(2) In a corporation, disadvantaged owners must control the board of directors.

(3) In a partnership, one or more disadvantaged owners must serve as general partners with control over all partnership decisions.

(4) The disadvantaged owner must have the power to hire and fire any persons to whom key control operations have been delegated.

D. Differences in wages and other compensation between the disadvantaged owner and non-disadvan-tagedindividualswillbeconsideredasafactorindeterminingwhocontrolsthefirm.



3. Independence

A.An independentfirm isonewhoseviabilitydoesnotdependon its relationshipwithotherfirmsorindividuals.Factors,whichwillbereviewedindeterminingindependencepursuantto49CFR§26.71,includerelationshipswithnon-DBEfirmsinareassuchaspersonnel,facilities,equipment,financialand/or bonding support and other resources.

B.Thecertifyingagencyalsowillconsiderwhetherpresentorrecentemployer/employeerelationshipsbetweenthedisadvantagedowner(s)ofthepotentialDBEandnon-DBEfirmscompromisetheinde-pendence of the potential DBE.

C. The potential DBE’s relationships with prime contractors will be examined to determine whether a patternofexclusiveorprimarydealingswithaprimecontractorcompromisestheindependenceofapotential DBE.

D.Recognitionofabusinessasaseparateentityfortaxorcorporatepurposesisnotnecessarilysuffi-cienttoshowthatafirmisanindependentbusiness.

E.Abusinessoperatingunderafranchiseorlicenseagreementmaybecertifiedifitmeetsthestandardsandthefranchiserorlicenserisnotaffiliatedwiththefranchiseeorlicensee.

F. DBEfirmsenteringintoajointventurewithanotherDBEfirmmusthavethejointventurecertifiedasaseparateentity.

Work ClassificationsMUCP-certifyingagencieswillgrantcertificationonly inspecific typesofwork inwhich thedisadvantagedownershavetheabilitytocontrolthefirm.Thetypesofworkafirmcanperform(whetheroninitialcertificationorwhenanew typeofwork isadded)aredescribed in termsof themostspecificavailableNAICScode.MDOT-certifiedfirmsarealsoassignedMDOT-specificworkclassificationcodes.

VendorswhowishtoworkforMDOTinareasthatrequireserviceorconstructionprequalificationalsomustbecome prequalified. Prequalification andDBE certification are not the same.Applications for service orconstructionprequalificationareavailableonlineatwww.michigan.gov/mdot.Choosethe“DoingBusiness”link, then choose either the construction or service prequalification link, as applicable, under the sectionentitled“Howto…”.



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Annual Affidavit Required to Maintain CertificationDBEcertificationisvalidaslongasthefirmcontinuestomeetalleligibilitystandards,unlesscertificationisremoved.Certifiedfirmswillberequiredtosubmitayearlyaffidavitstatingthattherehavebeennochangesthatwouldaffectthefirm’seligibilitytoparticipateasaDBE,dueontheircertificationanniversarydate.

Complete,notarizedaffidavitsmustbereturnedannuallyontheanniversarydateofyourcertificationwiththe appropriate supporting documentation. DBEs are no longer required to submit PNW statements with their annualaffidavit.AspartoftheannualaffidavitdocumentsthedisadvantagedownermustsubmittheDBEfirmandallaffiliatefirm’smostrecentcompletefederalincometaxreturn(s)orrequestforanextensionfiledbythefirm.Acompletereturnincludesallforms,schedules,andstatementsfiledwiththeInternalRevenueService(IRS). All income tax returns must be signed.

Ifafirmfailstoprovidetheirannualaffidavitandtaxinformationinatimelymanner,theywillbedeemedtohavefailedtocooperateunderregulatoryrequirement49CFR§26.109.

AccuracyoftaxformsandotherdocumentationprovidedmaybeconfirmedbytheMichiganDepartmentofTreasuryand/ortheIRS.

TheMUCP-certifyingagencymustbenotified,inwriting,ofanychangesthatwouldaffectthesize,disadvan-tagedstatus,ownership,orcontrolrequirements,orofanymaterialchangesintheinformationprovidedinthecertificationapplicationasfollows:

1. Writtennotificationmustbeprovidedwithin30daysofthechange.

2. Supporting documentation describing in detail the nature of the changes must be attached.

3. Failure tonotifyMDOT ina timelymannerofchangeswhichaffectcertificationeligibilitycan result incertificationbeingremoved.

Note: It is the responsibility of the DBE to notify their MUCP-certifying agency of any changes in any current contact information within 30 days of making the changes.



D. MDOT DBE CERTIFICATION PROCEDURESCertificationproceduresaredesignedtoensureallbusinessesparticipatingintheMDOTDBEprogrammeet theeligibilitystandardsdefined inUSDOTregulationsat49CFRPart26.AbusinesscertifiedasaDBEcanbidonallprojectsinthestateofMichigan,providedindividualagencyrequirementsthatapplytoallfirms,DBEandnon-DBEalike,alsohavebeenmet.

FirmswishingtobeconsideredforDBEcertificationmustcompletetheMUCPDBECertificationApplication and submit all information requested on the application. The application is designed tosolicitinformationtodeterminewhetheranapplicantbusinessiseligibleforcertificationasa DBE under 49 CFR Part 26.

Goto“downloadforms”atwww.michigan.gov/mucpforaDBEapplication.

Processing of Applications ThecompletedMUCPDBECertificationApplicationandallotherrequiredinformationshouldbe mailed or delivered to MDOT using the address provided with the application.

Thesignedandnotarizedcertificationapplicationandrelateddocumentswillbereviewedforcompleteness.Incompleteapplicationpackageswillbereturnedwithin15calendardayswitha list of information needed to complete the application package.

Certifyingagencieswillcertifyeligiblefirmswithin90calendardaysafterreceiptofallinforma-tionrequiredby49CFR§26.73(c).Regulationsallowaone-timeextensionof60additionalcalendardaysuponprovidingwrittennoticetothefirmofthereasonfortheextension.

Application packages are processed based on date of receipt.

Interstate CertificationADBEwhoseprimarybusinessisnotbasedinMichiganmustbeDBE-certifiedintheirhomestatebeforetheyareeligibletoapplyforcertificationinMichigan.Non-MichigancertifiedDBEshavetwooptionsforapplyingforcertificationinMichigan:

1. ProvideMDOTwithacompletecopyof theoriginalapplicationsubmitted to theirhomestate,includingallthesupportingdocumentsandacopyofthecertificationapprovalletterthat indicates the NAICS code(s), or

2. CompleteanewUSDOTDBECertificationapplication, includingsupportingdocumentsandacopyoftheDBEcertificationapprovalletterthatindicatestheNAICScode(s).

Non-Michigan applicants must also include with their application an “Out of State Applicant Affidavit of Certification”, which can be found atwww.michigan.gov/mucp, “Download Forms”.Itmustbesigned,dated,notarizedandsentwiththecertification.




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OBDwill obtain confirmation of the applicant’s DBE certification from the applicant’s home state.Within 60daysofreceivingthecompletedapplicationandallrequireddocumentationtodetermineeligibility,MDOTwillsendthenon-Michiganapplicantwrittennotificationofitsdecisiontoapproveordeny.

Michiganlawmayrequirecredentialsthatthehomestatedoesnot;i.e.,theownerofanelectricalfirmmustbealicensedelectrician.FailuretohavecredentialsrequiredtooperateinMichiganwillresultincertificationdenial.

WhenMDOTdeterminesthatanapplicant’shomestatecertificationshouldnotapplyinMichigan,MDOTwillprovidewrittennotificationcontainingspecificreasonsforanintendeddenialofcertificationandofferthefirmanopportunitytorespond.Thenon-Michiganfirmmayrespondinwritingorrequestanin-personmeeting.Ifthefirmrequestsameeting,MDOTwillschedulethemeetingtotakeplacewithin30daysofreceivingthefirm’srequest.Thefirmbearstheburdenofdemonstrating,byapreponderanceofevidence,thatitmeetsDBEeligibilityrequirementswithrespecttotheissuesraisedbyMDOT’swrittennotice.

A non-Michigan applicant receiving an intended denial must provide all notices or correspondence from states otherthanitshomestate,andanyotherinformationsubmittedtothehomestateoranyotherstaterelatedtoitscertification.AnapplicantwhofiledacertificationappealwiththeUSDOTmustinformMDOTandprovidelettersofappealandUSDOT’sresponse.Lastly,thesedocumentsmustincludeanaffidavitsworntobythefirm’sownersbeforeapersonwhoisauthorizedbylawtoadministeroathsoranunsworndeclarationexe-cutedunderpenaltyofperjuryofthelawsoftheUnitedStates,thatallinformationrequiredbyregulationhasbeensubmitted,thattheinformationiscomplete,andthattheinformationisanidenticalcopyofinformationsubmitted to the home state.

MDOTwillissueawrittendecisionwithin30daysofthereceiptofthewrittenresponsefromthefirmorthemeetingwith the decision-maker, whichever is later. The firm’s application for certification inMichigan isstayedpendingtheoutcomeofthisprocess.

Anyapplicantwhohasbeendeniedcertificationmayappealthedecision.Foradditionalinformation,pleasereferto“AppealstotheUSDOT”below.

INTAKE OF APPLICATIONS

ApplicationsarereceivedbyMDOT,loggedandreviewedforcompleteness.Completeapplicationpackagesarescheduledforanon-sitevisit.Incompleteapplicationpackagesmaybereturned.

OBDsupportiveservicesstaffareavailabletoanswerquestionsifthecertificationapplicationisreturned.

PleasekeepacopyofyourcertificationapplicationandallsupportingdocumentationsenttoMDOT.



On-site Visits and Field MonitoringOn-sitevisitsrequiredby49CFR§26.83(c)(1)areconductedattheapplicant’sprincipalplaceofbusinesswithfirmsseekingfirst-timecertification.Duringtheon-sitevisit,thefirm’sprincipalofficersandkeyemploy-eesmustrespondinwritingtoquestionsdesignedtoclarify informationcontainedeither intheapplicationpackage or received at the on-site visit. Questions are designed to verify whether or not the applicant meets DBE certification standards.

Accommodationsforthosewithdifficultyreadingorwritingareavailableuponrequest.

Duringtheon-sitevisit,compliancestaffmayreviewafirm’sfinancial,corporate,payrollandotherrecords.

On-sitevisitswillbescheduledatamutuallyconvenienttimeforthecertifyingagencyandthefirm.Asubse-quenton-sitevisitmaybenecessaryifthebasisuponwhichthecertificationwasgrantedhaschanged.Inaddition, on-site visits are conducted as a result of:

1. US DOT request

2. MUCP-certifyingagencyrequests

3. Otherstate’sDBEcertificationagencyrequests

4. Companychangesaffectingeligibility

5. Third-partywrittencomplaint

6. Changesinthefirm’sprinciplebusinessactivity

Following theon-sitevisit, a reportbasedon factscontained in theapplicant’s filewill bedevelopedandpresentedformanagerialreviewandacertificationeligibilitydecision.

USDOTregulation49CFR§26.73(c)states:“DBEfirmsandfirmsseekingDBEcertificationshallcooperatefullywith[DOT]requests(andUSDOTrequests)forinformationrelevanttothecertificationprocess.Failureorrefusaltoprovidesuchinformationisagroundforadenialorremovalofcertification.”

Areasonableperiodoftimewillbeallowedtoenablethefirmtoassembletherequestedinformation.

At theendof theon-site visit, thefirm’sprincipalofficersmaycopy thewrittenquestionsand thewrittenresponses.Intheeventthatcopyingisnotavailable,MDOTstaffconductingtheon-sitevisitwillcopythequestions and the written responses upon their return to the office andmail them to the firm’s principalofficers,ifrequested.

Compliancestaffmayconductfieldmonitoringatjobsiteswheretheapplicantfirmisworking.

COMPLETION OF APPLICATION PROCESS

The report of the on-site visit is completed by compliance staff and a recommendation ismade toOBDmanagement. OBD management reviews the recommendation in the report and determines if the applicant meetseligibilitystandardsestablishedinfederalregulationsandstatelaw,andapprovesordeniesthefirm.



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MDOT Denial ProcessIfgroundsforadeterminationofcertificationineligibilityaresufficient,theOBDfieldservicesmanagerswillmail the firmaNoticeofCertificationDenial,whichwill contain reasons for thedecisionandadvises theapplicant of its right to appeal to the US DOT.

Denial Appeals to the US DOTApplicantshave90daysfromthedateoftheNoticeofCertificationDenialtoappealtotheUSDOT.ShouldanapplicantappealtotheUSDOT,thedenialwillnotbeeffectiveuntiladecisionhasbeenrenderedbytheUSDOT.TheappeallettertotheUSDOTmustcontaininformationandargumentsonwhythedenialshouldbe reversed. 49 CFR Part 26.89 describes the process for appeals to the US DOT.

Appeals should be mailed to:

U.S. Department of Transportation DepartmentalOfficeofCivilRights 1200NewJerseyAvenueSE Washington, DC 20590-0001 Phone: 202-366-4754 TTY: 202-366-9696 Fax: 202-366-5575

NOTE:FirmsdeniedDBEcertificationmustwait12monthsaftertheeffectivedateofthefinaldecisionbeforereapplyingforDBEcertification.IfanappealispendingwiththeUSDOT,thefirmdoesnothavetowaitforadecisionbutmayreapplyattheendofthe12-monthwaitingperiod.

Summary Suspension of CertificationTheMDOTOBDshallsuspendtheDBEcertificationofafirmif:

• Afirm’sownerwhoseownershipandcontrolofthefirmarenecessarytothefirm’scertificationdiesoris incarcerated.

• When there is adequate evidence to believe that there has been a material change in circumstances thatmayaffecttheeligibilityoftheDBEfirmtoremaincertified.

• WhenaDBEfailstonotifytherecipientorUCPinwritingofanymaterialchangeincircumstancesasrequiredby§26.83(i)ofthispartorfailstotimelyfileanaffidavitofnochangeunder§26.83U).

• TheconcernedoperatingadministrationmaydirectOBDtotakeactionifitdeterminesthatinformationavailableissufficienttowarrantimmediatesuspension.

Whenafirmissuspendedpursuant49CFRPart26(paragraphs(a)or(b),OBDshallimmediatelynotifytheDBEofthesuspensionbycertifiedmail,returnreceiptrequested,tothelastknownaddressoftheowner(s)of the DBE.



Suspensionisatemporarystatusofineligibilitypendinganexpeditedshowcausehearing/proceedingunder49CFRPart§26.87todeterminewhethertheDBEiseligibletoparticipateintheprogramandconsequentlyshould be removed. The suspension takes effect when the DBE receives, or is deemed to have received, the Notice of Suspension.

Whilesuspended,theDBEmaynotbeconsideredtomeetacontractgoalonanewcontract,andanyworkit does on a contract received during the suspension shall not be counted toward a recipient’s overall goal. TheDBEmaycontinuetoperformunderanexistingcontractexecutedbeforetheDBEreceivedaNoticeofSuspensionandmaybecountedtowardthecontractgoalduringtheperiodofsuspensionaslongastheDBEisperformingacommerciallyusefulfunctionundertheexistingcontract.

FollowingreceiptoftheNoticeofSuspension,iftheDBEbelievesitisnolongereligible,itmayvoluntarilywithdraw from the program, in which case no further action is required. If the DBE believes that its eligibil-ityshouldbereinstated, itmustprovide to therecipient informationdemonstrating that thefirm iseligible,notwithstanding its changed circumstances, within 30 days of receiving this information. The decision toimmediatelysuspendaDBEisnotappealabletotheUSDOT.

Uponreviewoftherequestforreinstatement,OBDwilleitherliftthesuspensionandreinstatethefirm’scerti-ficationorcommenceadecertificationactionunder49CFRPart§26.87,listedwithinthisprogramprocedureunder“DBECertificationEligibilityRemovalandAppealProcess.”

IfOBDcommencesadecertificationproceeding, thesuspension remains ineffectduring theproceeding.Thefailureofarecipient toeither lift thesuspensionandreinstate thefirmorcommenceadecertificationproceeding, as required, is appealable to the US DOT.

DBE Certification Eligibility Removal and Appeal ProcessIfgrounds for removalofDBEcertificationeligibilityaresufficient, theDBE ismailedaNoticeof Intent toRemoveEligibilitywiththereasonsforthedecisionandadvisedoftheopportunityforahearingbeforetheMUCPRemovalofEligibilityCommittee.Theapplicanthas30calendardaysfromthedateofdeliveryofthenoticeofintendedremovalofeligibilitytoappealtothecommittee.

TheRemovalofEligibilityCommitteeismadeupofrepresentativesfromeachMUCPDBE-certifyingagency.ThecommitteeprocessesDBEremovalsofeligibilityinaccordancewith49CFR§26.87andmeetsonanas-needed basis.

Membersof theMUCPRemovalofEligibilityCommittee,other than theagency thatperformed the initialcertification,willhaveonevoteeach.Theagencyrequestingremovalofeligibilitywillabstainfromvotingor,ifnecessarytobreakatie,willberepresentedbyanalternatemember.Inaccordancewiththeregulations,eachfirmwillbeallowedtopresenttheircaseinpersonorthroughanadministrativereviewofdocuments.

RemovalofeligibilitytoparticipateintheDBEprogrammayoccurforanyofthefollowingreasons:

A.NotificationbythefirmthatitnolongermeetsfederalregulationsforDBEcertification.

B.If theDBE’sbusinessentityhaschangedto theextent thebusiness isno longerasmallbusinessconcern.



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Smallbusinesssizeisdeterminedintwoways:

Afirmand itsaffiliatescannotexceed theoverall size limitationestablished for theDBEprogram. The current overall dollar limitation is $23.98million in gross receipts averagedover a three-year period.Thisisadjustedperiodicallyforinflation.

ADBE cannot exceed the size standard assigned to individualNAICS codes inwhich the firm is certified.Atableofsizestandardsisavailableatwww.sba.gov/size.

C.Forfederal-aidprojectsfundedbyFHWA,FAAandFTAfunds,ifthesociallyandeconomicallydis-advantaged individual’s status has been challenged and MDOT has found the individual does not meet the definition of a “socially and economically disadvantaged individual” used in 49CFR §§26.63,26.67andAppendixE,”IndividualDeterminationsofSocialandEconomicDisadvantage,”andthat thefirm isno longerownedandcontrolledat least51percentbyasociallyandeconomicallydisadvantaged individual(s).

D.Ifthefirm’sbusinessentityhaschangedtotheextentthebusinessisnolongerownedandcontrolledbysociallyandeconomicallydisadvantagedindividual(s)asdefinedbythefederalregulation.

E.For federal-aidprojects, if theMUCPagencyreceivesanorder fromtheOfficeof theSecretaryofTransportation,USDOT,toremovetheeligibilityofaDBEfirm.

F. If an investigation uncovers evidence of violations of 49 CFR Part 26, with regard to the actual work performedbyaDBE,andthefindingsandconclusionsshowthatthefirm’sownershiporcontrolhaschangedtotheextentthatthefirmisnolongereligible.

Intent to Remove Eligibility Hearing TheMUCP-certifyingagencywillscheduleahearingwithin30daysofreceiptofarequest.Attheconference,reasonsfortheintendedremovalofeligibilitywillbediscussed,eitherinpersonbytheDBEorthroughanadministrativereviewofdocuments,ifrequestedbythefirm.TheRemovalofEligibilityCommitteewillreceiveinformationandevidence intended toshowthatcertificationeligibilityshouldnotberemovedandwillaskquestionsrelatedtotheintendedremovalofeligibility.

ThepanelwillonlyreviewthefindingsoftheNoticeofIntenttoRemoveEligibility,thecertificationfileandtheappealing firm’s rebuttal of these findings.The committeewill not consider any changes in the firm’sorganization,structureoroperationsthatoccurredafterthedateoftheNoticeofIntenttoRemoveEligibilityorthatwerenotdocumentedinthecertifyingagency’sfileasofthatsamedate.Thecommitteewillrenderawrittendecisionbasedonitsfindingswithin60calendardaysaftertheconference.

Thecommittee’sdecisionwilldeterminewhethertheintendedremovalofeligibilitywillbesustainedorover-ruled. The committee’s determination will have full force and effect.

Ifnowrittenrequestforappealisreceivedasspecifiedabove,theintendeddeterminationtoremoveeligibilitywillbecomefinalandhavefullforceandeffect.Firmsthathavetheireligibilityremovedmustwait12monthsaftertheeffectivedateofthefinaldecisionbeforereapplyingforDBEcertificationwithanyUSDOT-certifyingagencyinthestateofMichigan.



Removal Appeals to the US DOTFirmsmayappealtotheUSDOTwithin90calendardaysofthedateofthefinaldecision.Theappeallettermustcontaininformationandargumentsonwhytheremovalofeligibilityshouldbereversed.MDOT’sdeci-sion remains in effect, pending the US DOT’s decision in the matter.

49CFR§26.89describestheprocessforappealstotheUSDOT.

Appeals to the US DOT should be sent to the following address:

U.S. Department of TransportationDepartmentalOfficeofCivilRights1200NewJerseyAvenueSEWashington, DC 20590 Phone: 202-366-4754TTY: 202-366-9696 Fax: 202-366-5575

AfirmshouldfollowtheMUCP-certifyingagency’sadministrativeappealprocessesbeforeproceedingwithan appeal to the US DOT.

28Michigan Department of Transportation


E. PUBLIC INFORMATION AND COMPLAINTSMDOTrecognizesitsresponsibilitytorendercourteousandtimelyservicetothepublic.Comments/ concerns regarding the DBE program should be forwarded to:

Michigan Department of TransportationOfficeofBusinessDevelopmentLisa S. Thompson, DBE Program AdministratorP.O. Box 30050425 West Ottawa St.Lansing, MI 48909Phone: 517-373-2377Fax: 517-335-0945Email: [email protected]

1. Complaints must be submitted to MDOT in writing. Complainants must include facts and supporting documentation regarding the complaint.

2. If a response is requested, the complainant must sign the complaint and/or give an address andtelephonenumber.Referto49CFR§26.109(b)fordetails.

3. MDOTwillprovideawrittenresponsetocomplaintswithin15calendardaysofreceipt.

Asprovidedby49CFR§26.87,anypersonmayfileawrittencomplaintallegingthatacurrentlycertifiedfirm is in violationofDBE regulations. Information receivedaboutaDBEprior to theinitialcertificationdecisionbeingmadewillbeconsideredintheinvestigationoftheapplicationforcertification.

MDOT isnot required toacceptageneralallegation thatafirm is ineligibleorananonymouscomplaint.Confidentialityofcomplainants’identitiesisprotectedtotheextentprovidedin49CFR§26.109(b).

If MDOT determines there is no reason to believe that the DBE against whom the complaint is filedisineligible,MDOTwillinformtheDBEandthecomplainantinwritingper49CFRPart26.87.

IfMDOTintendstoremovetheDBE’seligibilitytoparticipateintheDBEprogram,theprocessforremovalofeligibilityshallbefollowed.

MDOTwillreportanyfalse,fraudulent,ordishonestconductinconnectionwiththeDBEprogramtotheUSDOTOfficeoftheInspectorGeneralforappropriateaction.

MDOT Fraud and Abuse HotlineMDOThasestablishedahotline foremployees, contractors, consultants,andothers to reportsuspected fraud or abuse, such as:

• Prevailing wage non-compliance



• Theft• Kickbacks• Wrongful claims• Contract fraud• Useofmaterialsthatdonotcomplywithspecifications• Unapproved substitution of materials, commodities, or test samples• Failure to follow contract procedures

To reach the hotline, call toll-free: 866-460-6368, or 517-241-2256.

Norecipient,contractor,orotherpersonshallintimidate,threaten,coerce,ordiscriminateagainstanyindivid-ualforthepurposeofinterferingwithanyrightorprivilegesecuredbythispartorbecauseheorshemadeacomplaint,testified,assisted,orparticipatedinanymannerinaninvestigation,proceeding,orhearingunderthis part.

US DOT Directive to Remove a Firm’s Eligibility1. IftheUSDOTbelievestherecordprovidesreasonablecausetobelievethataDBEcertifiedbyMDOTis

noteligible,theUSDOTmaydirectMDOTtobeginproceedingstoremovetheDBE’scertification.

2. TheUSDOTwillprovideMDOTand theDBEfirmanoticesetting forth thereasons for thedirective,includinganyrelevantdocumentationorotherinformation.

3. MDOTmust immediately take steps to remove theDBE’s certificationeligibility.MDOTwill follow theprocessforremovalofeligibility.

All participants in the DBE program, including contractors using DBEs to meet contract goals, are required tocooperatefullywithMDOTinacomplianceorcertificationreview,investigationorrequestforinformation.Failuretocooperatemayresultinafindingthatthefirmisnotincompliancewithprogramproceduresandappropriateactionagainstthefirmmaybetaken.

Freedom of Information Act (FOIA) RequestsFor a FOIA request, contact:

Michigan Department of TransportationMetroRegionOfficeAttn: Bill Perod18101 W. Nine Mile RoadSouthfield,MI48075FOIA phone: 248-483-5206 FOIA fax: 248-569-3302FOIA cell phone: 248-470-3508

Allinquiriesbythegeneralpublic,contractors,newsreportersandattorneysshallbehandledinaccordancewith the provisions of 1976 PA 442, MCL 15.231; MSA 4.1801(1), as amended.



F. COMMERCIALLY USEFUL FUNCTION (CUF)DBEs are required to perform a Commercially Useful Function (CUF) on US DOT-assistedcontracts.CUFrequirementsare included in49CFR§26.55.Additional informationregardingDBECUFcompliancecanbefoundinBureauofHighwaysInstructionalMemorandum(BOHIM)2013-12,titled“DisadvantagedBusinessEnterprise(DBE)CommerciallyUsefulFunction(CUF)Compliance”.TheproceduresinthisBOHIMapplytoallfederallyfundedMDOTandlocalagencyprojectsthatincludeparticipationofaDBE-certifiedcompany.ItshouldbenotedthatthisBOHIMappliestoallprojectswithworkcompletedbyDBEfirms,notjustprojectswithaDBEgoal.

BOHIMs are available at www.michigan.gov/mdot.Click“Reports,PublicationsandSpecs”“Manuals,Guides,AdvisoriesandMemos,”“HighwayInstructionalMemos”.

FailuretoperformaCUFcanresultinremovalofeligibilitytoparticipateasaDBEifitisdeterminedthat theDBEowner(s)no longermeetscertificationstandards forownershiporcontrol.Primecontractorsalsoaresubject tosanctionswhenDBEsdonotperformaCUFon their federallyfunded projects.

IN ORDER TO PERFORM A CUF ON A US DOT-ASSISTED CONTRACT:

• DBEsmust be responsible for execution of thework of the contract and carry out itsresponsibilitiesbyactuallyperforming,managing,andsupervisingtheworkinvolved.

• The DBE must also be responsible, with respect to materials and supplies used on the contract,fornegotiatingprice,determiningqualityandquantity,orderingthematerial,andinstalling(whereapplicable)andpayingforthematerialitself.

A DBE does not perform a CUF if:

• Its role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of DBE participation. Such pass-througharrangementsareinviolationoffederalregulationandmayresultinremovalofthefirm’seligibilitytoparticipateasaDBE.

• ADBEdoesnotperformorexerciseresponsibilityforatleast50percentofthetotalcostof its subcontract with its own work force, or the DBE subcontracts a greater portion of the workofacontractthanwouldbeexpectedonthebasisofnormalindustrypracticeforthetypeofworkinvolved.

The following bullets describe possible CUF violations:

MANAGEMENT

• Supervisionof theDBE’semployee(s) isperformedbyanothercontractororpersonnelassociatedwithanothercompany

• The DBE provides little or no supervision of contracted work

• TheDBE’ssuperintendentisnotaregular,full-time,exclusiveemployeeoftheDBE

http://www.michigan.gov/mdot



• The DBE hasn’t been issued a subcontract, purchase order, or other contractual document

• TheDBEfirm’sownerisnotawareofthestatusofthework,theemployeesand/ortheperformanceof the business

• TheDBEcompanyownersarerarelyorneverseen

EQUIPMENT

• TheequipmentisusedbytheDBEfirmbutthepaymentsaredeductedbytheprimecontractor

• TheequipmentusedbytheDBEfirmbelongstoanothercontractorwithnoformallong-termleaseagreement (large equipment, such as a crane, is an exception)

• Magneticequipmentsignsandmarkingscoveranothercompanylogoorotherinformation

WORKFORCE

• MovementofDBEemployeesto/fromothercontractors

• Employee(s)paidbytheDBEand/orprime

• Employee(s)workingfortheDBEandanothercompany

• Employee(s)notfamiliarwithDBEcompanysupervisors/keypersonnel

MATERIALS

• MaterialsfortheDBEareorderedand/orpaidforbyanothercontractor

• Joint(two-party)checksaresentdirectlytoDBEsupplierswithouttheknowledgeorconsentoftheDBE

• The DBE does not deliver the agreed to joint check to its supplier(s)

• Materialsorsupplies tobeobtainedby theDBEaredelivered to,billed to,orpaid forbyanothercontractor

• The prime puts requirements on the DBE regarding where and/or from whom to purchase the project materials

PERFORMANCE

• DBEfirmworkisbeingdonejointlybytheDBEfirmand/oranothercontractor

• TheworktobeperformedisoutsideoftheDBE’sknownexperienceorcapability(DBEcertification/prequalificationcategories)

• The DBE performs work without a subcontract, purchase order, or other signed contractual document

• ADBEsubcontractsmoreofitsworkthaniscustomaryorstandardindustrypractice

• DBEparticipationonaprojectisartificiallyinflated



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• Lack of evidence of ownership, control and/or independence of the DBE

• TheDBEworksforonlyoneprimecontractororalargeportionofthefirm’scontractsarewithonecontractor

NOTE: Not every red flag means there is a CUF violation. However, notice of red flag(s) should be documented and reported to OBD.

A DBE subcontractor listed and approved in the prime contractor’s commitment (MDOT Form 0178) or an approved substitute DBE (MDOT Form 0196) cannot be terminated without MDOT’s prior written consent for goodcause(seethe“PostAwardGoodFaithEffortsandDBESubstitutionRequests”sectionfoundinthe“GoodFaithEffortProcesses”).Per49CFRPart26.53(f),theprimecontractorshallutilizethespecificDBEslistedtoperformtheworkandsupplythematerialsforwhicheachislistedunlesstheprimecontractorobtainswrittenapproval (byMDOTusing form0196).Unlessapproval isprovidedforDBEsubstitution, theprimecontractorshallnotbeentitledtoanypaymentforworkormaterialunlessitisperformedorsuppliedbythelistedDBE(approvedbyMDOTusingform0178).

PrimesarerequiredtosubmitMDOTForm2124A,PrimeContractorBi-WeeklyStatementofSubcontractor/SupplierPayments, as specifiedon the formand in theproject proposal.MDOTuses this information tomaintainarunningtallyofpaymentsmadetoDBEs,asrequiredbyregulation.Allformsareavailableonlineat www.michigan.gov/mdot,“DoingBusiness”,“Forms”.

CUF Reviews and Outcomes MDOTconductsfieldmonitoringofcontractorstoassurethatDBEfirmsperformaCUFandthatworkcom-mittedtoDBEcompaniesisactuallyperformedbysaidcompanies.Thiswillbeaccomplishedthroughtheuseofform4109,CommerciallyUsefulFunction(CUF)Review.CompletionofthisformisrequiredforallDBEcompaniesonallfederallyfundedprojects,includingprojectswithnoDBEgoal.ThisincludesDBEtruckers,suppliersandothervendorswhereasubcontractisnotrequired.Inmanycases,constructionstaffwillneedtoreference the DBE commitment information to ensure that all companies are reviewed. Form 4109 is available online at www.michigan.gov/mdot,“DoingBusiness”,“Forms”.

Atthecompletionoftheproject,theconstruction/projectengineerwillcertifythatallDBEcompaniesprovidedaCUF.ThiscertificationwillbenotedonForm1105,FinalEstimatePackageMemo.Thecertificationlan-guage options will be as follows:

q I certify that to the best of my knowledge the contracting records have been reviewed, the Disadvantaged Business Enterprise (DBE) companies have been monitored on the project site and work committed to DBE companies has been performed by the respective companies.

q I certify that to the best of my knowledge the contracting records have been reviewed, the Disadvantaged Business Enterprise (DBE) companies have been monitored on the project site and work committed to DBE companies has been performed by the respective companies with the exception of the following companies which have been forwarded to the Office of Business Development (OBD) for further investigation.

Companies: ______________________________________________________



InvestigationsaredoneonDBEfirmsthatmaynotbeperformingaCUFasaresultoffieldmonitoringorbasedonreceiptofa third-partycomplaint. InvestigationsshowingaDBEmaynothavecompliedwithallCUFrequirementsonaproject(s)willresultinthefirmbeingcalledinforaconferencewithMDOTtodiscusstheallegedviolation(s).TheDBEfirmwillbegivenanopportunitytopresentmaterial(s)torebuttheallegedviolation(s).

Failuretoattendaconferencemayresultintheremovalofworkclassification(s)and/orNAICScodes.Fol-lowing the CUF conference, the DBE administrator will review information received and make a determination regardingtheDBEfirm’scompliancewithfederalregulations.Firmsarenotifiedinwritingofthedetermination. Determinations include the following possible outcomes:

1. No violation of federal regulations found.

2. Minorviolation(s)offederalregulationswillresultinthefirmbeingcitedandwarnedthatfutureviolationsmay result in removalofeligibility toparticipateasaDBE.Thecitedfirm issubject to increasedfieldmonitoringofthefirm’sprojects.

3. MDOTmay removework classifications related toCUFviolations.Firmsdonothave the right toap-pealremovedworkclassifications;however,firmsmayreapplyforremovedworkclassification(s)and/or NAICScode(s)onacase-by-casebasisoncetheCUFinvestigationisresolved.

4. MDOTmayremoveafirm’sDBEcertificationifitisdeterminedthatviolationsoccurredonmorethanoneprojectandthattheseviolationsindicatealackofindependenceorcontroloftheDBEfirmordisadvan-taged owner.

5. Onemajorviolationshowingwillfulintenttosubvertfederalregulationsmayresultinremovalofthefirm’seligibilitytoparticipateasaDBE.

FurtherinformationonremovalofaDBE’seligibilitymaybefoundin49CFR§26.87.

Primecontractorsareresponsiblefortheirsubcontractors.IfDBEfirmsaredeterminedtohaveviolatedfed-eralregulationsbyfailingtoperformaCUF,primecontractorsarenotifiedinwritingandgiventheopportunityto provide explanation. Prime contractors unable to show compliance with federal regulations are subject to a varietyofsanctions.Sanctionsarebasedontheseverityoftheviolationandmayinclude:

1. TheprimecontractorisresponsiblefornotifyingtheprojectengineerandOBDimmediatelyiftheyhaveevidencethataDBEmaynotbeperformingaCUF.Theprimecontractorwillbedeterminedtohaveadeficiency inDBEparticipationcorresponding to thedollarvalueof theDBE’swork thatdidnotmeetfederal regulations.

2. The violation will be reported to the Contract Performance Evaluation Review Team (CPERT). The CPERT will, per its procedures, review the violation to review the next steps.

3. Serious violations or evidence of DBE program fraud may also be referred directly to the MDOTPrequalificationCommitteeforsanction,perthe“AdministrativeRulesGoverningthePrequalificationofBiddersforHighwayandTransportationConstructionWork.”



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Counting DBE Participation Toward Contract Goals Per49CFRPart26.55,whenaDBEparticipatesinacontract,onlythevalueoftheworkactuallyperformedbytheDBEiscountedtowardDBEgoals.Thefollowingguidelinesdetailwhatcanbecounted:

1. Count the entire amount of that portion of a construction contract (or other contract not covered in #2below)thatisperformedbytheDBE’sownforces.IncludethecostofsuppliesandmaterialsobtainedbytheDBEfortheworkofthecontract,includingsuppliespurchasedorequipmentleasedbytheDBE(except supplies and equipment the DBE subcontractor purchases or leases from the prime contractor or itsaffiliate).

2. CounttheentireamountoffeesorcommissionschargedbyaDBEfirmforprovidingabonafideservice,such as professional, technical, consultant, or managerial services, or for providing bonds or insurance specifically required for theperformanceofaDOT-assistedcontract, towardDBEgoals,provided it isdeterminedthatthefeeisreasonableandnotexcessiveascomparedwithfeescustomarilyallowedforsimilar serves.

3. WhenaDBEsubcontractspartoftheworkofitscontracttoanotherfirm,thevalueofthesubcontractedworkmaybecountedtowardDBEgoalsonlyiftheDBE’ssubcontractorisitselfaDBE.WorkthataDBEsubcontractstoanonDBEfirmdoesnotcounttowardDBEgoals.Theonlyexceptiontothisruleislistedunder Trucking.

Counting and CUFCount expenditures to aDBEcontractor towardDBEgoals only if theDBE is performingaCUFon thatcontract.ADBEcontractor’sworkcannotbecountedtowardaprimecontractor’sfinalcompliancewith itsDBE obligation until the DBE has been paid in full for the work performed.

DBE Truckers The following factorsareused indeterminingwhetheraDBE truckingcompany isperformingaCUF,per 49 CFR Part 26.55:

1. The DBE must be responsible for the management and supervision of the entire trucking operation for which it is responsible on a particular contract, and there cannot be a contrived arrangement for the purpose of meeting DBE goals.

2. TheDBEmustitselfownandoperateatleastonefullylicensed,insured,andoperationaltruckusedonthe contract. OBD requires the DBE trucker to submit its updated equipment information on an annual basisorwhenchangesaremadetoitsfleetusedforDBEcredit.

3. The DBE receives credit for the total value of the transportation services it provides on the contract using trucksitowns,insures,andoperatesusingdriversitemploys.

4. TheDBEmayleasetrucksfromanotherDBEfirm,includinganowner-operatorwhoiscertifiedasaDBE.The DBE who leases trucks from another DBE receives credit for the total value of the transportation services the lessee DBE provides on the contract.



5. TheDBEmayalsoleasetrucksfromanon-DBEfirm,includingfromanowner-operator.TheDBEthatleases trucks equipped with drivers from a non-DBE is entitled to credit for the total value of transportation servicesprovidedbynon-DBEleasedtrucksequippedwithdriversnottoexceedthevalueoftransporta-tionservicesonthecontractprovidedbyDBE-ownedtrucksorleasedtruckswithDBEemployeedrivers.Additionalparticipationbynon-DBEownedtrucksequippedwithdriversreceivecreditonlyforthefeeorcommission it receives as a result of the lease arrangement. If a recipient chooses this approach, it must obtain written consent from the appropriate DOT operating administration.

Example to paragraph (5): DBE Firm X uses two of its own trucks on a contract. It leases two trucks from DBE Firm Y and six trucks equipped with drivers from non-DBE Firm Z. DBE credit would be awarded for thetotalvalueoftransportationservicesprovidedbyFirmXandFirmY,andmayalsobeawardedforthetotalvalueoftransportationservicesprovidedbyfourofthesixtrucksprovidedbyFirmZ.Inall,fullcreditwouldbeallowedfortheparticipationofeighttrucks.DBEcreditcouldbeawardedonlyforthefeesorcommissions pertaining to the remaining trucks Firm X receives as a result of the lease with Firm Z.

6. TheDBEmay lease truckswithoutdrivers fromanon-DBEtruck leasingcompany. If theDBE leasestrucksfromanon-DBEtruck leasingcompanyanduses itsownemployeesasdrivers, it isentitled tocredit for the total value of these hauling services.

Example to paragraph (6): DBE Firm X uses two of its own trucks on a contract. It leases two additional trucksfromnon-DBEFirmZ.FirmXusesitsownemployeestodrivethetrucksleasedfromFirmZ.DBEcreditwouldbeawardedforthetotalvalueofthetransportationservicesprovidedbyallfourtrucks.

For purposes of this section regarding trucking, a lease must indicate that the DBE has exclusive use of and control over the truck. This does not preclude the leased truck from working for others during the termoftheleasewiththeconsentoftheDBE,solongastheleasegivestheDBEabsolutepriorityforuseoftheleasedtruck.Leasedtrucksmustkeepacopyofthesignedleaseagreement(senttoOBD)inthetruckcoveredbytheleaseagreementandfurnishedtoMDOTrepresentativesuponrequest.Aleaseagreement template (MDOT Form 4111) is available on the forms page.

DBEtruckersmustsubmitacompletedDBEHeavyConstructionTruckingWorksheet(MDOTForm4101)for approval byOBDprior toworking on a project.The trucks listed onForm4101mustmeet the initialrequirements above for approval. Form 4101 accompanies the signed DBE participation (MDOT Form 0178) commitment.Bothformsareavailableatwww.michigan.gov/mdot,“DoingBusiness”,“Forms”.

Throughout the lifeof theprojectanduntilfinalpayment isreceived, theDBEtruckermustsubmitaDBETruckingCUFReport(MDOTForm4100)foreachDBEparticipationformapproved,asrequestedbyOBD.

DBE Suppliers DBE supply credit can be counted towardsDBEgoals as amanufacturer, regular dealer or broker on acontract-by-contractbasisasfollows:

If the materials or supplies are obtained from a DBE acting as a manufacturer, 100 percent of the cost of the materials or supplies count toward DBE goals.



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• Amanufactureroperatesormaintainsafactoryorestablishmentthatproduces,onthepremises,thematerials,supplies,articlesorequipmentrequiredasspecifiedunderthecontractandofthegeneralcharacterdescribedbythespecifications.

If the materials or supplies are purchased from a DBE acting as a regular dealer, 60 percent of the cost of the materials or supplies count toward DBE goals.

• Tobearegulardealer,thefirmmustbeanestablished,regularbusinessthatengages,asitsprincipalbusiness and under its own name, in the purchase and sale or lease of the products in question.

• A regular dealer owns, operates, or maintains a store, warehouse, or other establishment in which the materials,supplies,articlesorequipmentofthegeneralcharacterdescribedbythespecificationsandrequiredunderthecontractarebought,keptinstock,andregularlysoldorleasedtothepublicintheusual course of business.

- MDOTdoesnot insistthateverysingle itemtheDBEfirmsuppliesbephysicallypresent in thefirm’sstore,warehouse,etc.,beforeitissoldtoacontractor.However,theestablishment in which the firm keeps items it sells to the general public should bemore than a token location.Forexample,amereshowroom,theexistenceofahard-copyoronlinecatalog,or thepresenceofsmallamountsofmaterial thatmakequestionable theabilityof thefirm to effectively supply quantities typically needed on a contract, are generally not sufficient to demonstratethatafirmregularlydealsintheitems.

- In some circumstances, items are “drop-shipped” directly from amanufacturer’s facility to ajobsite,neverbeinginthephysicalpossessionofortransportedbyasupplier.Inmanysuch cases, the supplier’s rolemay involvenothingmore than contacting themanufacturer and placingajob-specificorderforanitemthatthemanufacturerthencausestobetransported tothejobsite.Insuchasituation,thesupplier’srolemayoftenbebetterdescribedasthatofa “broker”or “transactionexpediter” thanasa“regulardealer.” Insuchacase,DBEcredit is limitedtothefeeorcommissionthefirmreceivesforitsservices.

• Apersonmaybearegulardealer insuchbulkitemsaspetroleumproducts,steel,cement,gravel,stone, or asphalt without owning, operating, or maintaining a place of business as described above ifthepersonbothownsandoperatesdistributionequipmentfortheproducts.Anysupplementingofregulardealers’owndistributionequipmentshallbebyalong-termleaseagreementandnotonanadhocorcontract-by-contractbasis.

• Packagers, brokers, manufacturers’ representatives, or other persons who arrange or expedite transactions are not regular dealers.

A broker, with respect to materials or supplies purchased from a DBE that is neither a manufacturer nor a regulardealer,maycounttowardDBEgoalstheentireamountoffeesorcommissionschargedforassistanceintheprocurementofthematerialsandsupplies,orfeesortransportationchargesforthedeliveryofmaterialsor supplies required on a job site, provided MDOT determines the fees to be reasonable and not excessive as comparedtofeescustomarilyallowedforsimilarservices.However,anyportionofthecostofthematerialsand supplies themselves do not count toward DBE goals.



Ifthefirmdoesnotprovideanycommerciallyusefulfunction(i.e.,itissimplyinsertedasanextraparticipantin a transaction), then no DBE credit can be counted.

Guidance for DBE Participation as SuppliersThe successful bidder/prime contractor is responsible for compliance with the governing DBE regulations (49CFR26.55)thatareincludedineachMDOTprojectproposal.Primecontractorsaretomakeeveryeffortto ensure that arrangements and practices on the project are in line with the DBE regulations.

In order to count DBE supplier participation toward project goals, the following criteria must be met:

1. TheDBEmustdirectlynegotiate(makearrangementsfor,i.e.,receivingpricequotes,agreeingtopricing,andorderingofmaterials)withtheirsupplier(s)forthematerialstheyareprovidingfortheproject.Theprime is not to negotiate on behalf of the DBE with the DBE’s supplier. DBEs that act as regular deal-er-bulkitemswillneedtoprovideinformationontheirdeliveryequipmentandaccountswiththeirsuppliers(similar to what is done with liquid asphalt). This is done through submittal of MDOT Form 0192 (DBE Regular Dealer-Bulk Item Suppler Data Sheet).

2. TheDBEmustarrangeforthedeliveryofmaterialsitsuppliesfortheproject.DocumentationoftheDBE’sdelivery of thematerials (such as equipment information, bills of lading, delivery tickets, load tickets,invoices,bankstatements,etc.)mustbemaintainedbytheDBEandsubmittedifrequestedbyMDOT.

3. TheDBEmayuseleasedequipmentontheprojectonlyiftherearelong-termleaseagreementsfortheequipment.Anysupplementingoftheregulardealer’sowndistributionequipmentshallbebyalong-termleaseagreementandnotonanadhocorcontract-by-contractbasis.Thisequipmentmaynotbeleasedfrom theprimecontractor (oranyaffiliateof theprimecontractor) forwhom theDBE issupplying theproject’smaterial.TheDBEmustbeabletosupplyallleaseagreementsuponrequestbyMDOT.

4. DBEsmustpaytheirsupplierswiththeirownfunds.TheprimeisnottopaytheDBE’ssuppliersdirectlyforthematerialstheDBEisdesignatedtosupply.PaymentsmadebyDBEsformaterialtheypurchasemustcomefromtheirownindependentbankaccounts.ADBEmaynotacquirematerialusingfundsfrombank accounts belonging to or shared with the prime contractor.

5. NosalesbetweentheprimeandanyofitsaffiliatesviatheDBEaretobecountedtowardtheprojectDBEgoal.

6. Anyjointcheckarrangementmustbepre-approvedbyMDOTbeforethearrangementortransactiontakesplace.ThisisdonethroughsubmittalofMDOTForm0183.Ajointcheckisatwo-partycheckbetweenasubcontractor,aprimecontractor,andamaterialssupplier.Jointchecksareusedtoguaranteepaymenttothesupplierformaterialsusedbythesubcontractor.MDOTForm0183mustbeusedforalljointcheckarrangements.



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7. Verification of Regular Dealer-Bulk Item Suppliers:

Uponfirst receiptofaproposed transaction that includesaDBEactingasa regulardealer-bulk item(supplying petroleumproducts, steel, cement, gravel, stone or liquid asphalt),MDOTwill obtain fromthe DBE a completed MDOT Form 0192 (DBE Regular Dealer-Bulk Item Supplier Data Sheet) and all supplemental documentation, to ensure:

• The DBE owns its own delivery/distribution equipment and has valid lease agreements in place (ifsupplementingitsowndelivery/distributionequipment).

• The DBE has accounts and lines of credit with the suppliers from which it purchases the materials it issupplyingontheproject.

TheDBEmayprovideacompletedMDOTForm0192atanytimeandinanticipationofactingasaregulardealer-bulkitem;however,MDOTmayrequestanupdatedForm0192and/orsupplementaldocumenta-tionatanytime.

8. Pre-Award Approval:

Primeswillsubmit for review theDBESupplierParticipationAffidavit (MDOTForm0193) forapprovalalongwiththeDBEParticipationForm(MDOTForm0178).Theprimeaffirmsintheaffidavitthatithasreviewed the DBE requirements under 49 CFR 26.55 found in the project proposal, etc., and believes that its proposed arrangement with the DBE supplier is in compliance with the regulations. MDOT’s Contract ServicesDivisionwillreceiveandforwardtheSupplierParticipationAffidavittothedesignatedOBDstaffforapproval (similar towhat isdone for truckingand liquidasphalt).OBDstaffwillmakeeveryefforttocompletethereviewoftheAffidavitandmakeadeterminationwithinfiveworkingdays.Thisreviewincludes:

• DeterminingthattheprimehasselectedaneligibleDBE.ThisisdonebycomparingtheMDOTworkcode(s) and NAICS code(s) listed in the proposed arrangement with the MDOT work code(s) and NAICS code(s) assigned to the DBE. (Contract Services and OBD both do this). The DBE must be DBE-certifiedinthetypeofworkrequestedforDBEcredit.

• OBDstaffwillcross-checktheDBE’sfileandparticipationonotherprojectstodeterminethattheDBEisnotoveritsdistributioncapacityorcreditlimit.

• OBDstaffmayrequestapurchaseordertobesubmittedwitheachproject,post-awardandpriortodelivery.

• OBDstaffwillensurethatananticipateddateoftransactionwiththeDBEisincludedintheaffidavitthe prime submits.

• TheDBEisnotallowedtoleaseequipmentfromtheprimeortheprime’ssubsidiaries/affiliates.OBDstaff will review the DBE’s record to ensure that the DBE does not lease equipment from the prime specifiedontheprojectunderreviewandhasacceptableleasesonfilewithOBD.

• Ifalicenseorcertificationisrequiredfortheproductand/orservicetobeprovidedontheproject,theDBEmustholdthatlicenseand/orproductcertificationinordertoperformaCUF.



9. Follow-up review:

OBDstaffmayrequestadditionalinformationtoverifywhetheraCUFwasperformedonaproject.

DBE regular dealers-bulk items will be required to complete an MDOT questionnaire (MDOT Form 0194) regardingDBEsupplieractivitiesontheproject.OBDstaffwillcontacttheDBEwithin10daysfollowingthedatetheprimespecifiedontheaffidavittodetermineifthesaleanddeliveryofmaterialtookplace.Staff will continue to follow up until the transaction takes place. Once the date of transaction is deter-mined, the questionnaire will be forwarded to the DBE. The questionnaire is to be returned to OBD within 10days.

OBDstaffwillprovidetheprojectengineer/projectoffice/fieldstaffanyandalldocumentsonfilenecessaryto complete a CUF review on MDOT Form 4109.

Allformsareavailableonlineatwww.michigan.gov/mdot,“DoingBusiness”,“Forms”.

Use of Joint Checks to Guarantee Payment for Materials and SuppliesWithpriorapproval,ajointortwo-partycheckbetweenasubcontractor,aprimecontractor,andamaterialssupplier whoisneithertheprimecontractornoranaffiliateoftheprimecontractormaybeusedtoguaranteepaymentformaterials.TheApplicationtoUseJointChecksform(MDOTForm0183)isavailableonlineatwww.michigan.gov/mdot,“DoingBusiness”,“Forms”.

An acceptable joint-check arrangement must include the following:

• Theprimecontractor/payorcannotrequirethesubcontractortouseaspecificsupplierortheprimecontractor’s negotiated unit price.

• The subcontractor is more than an extra participant in releasing the check to the material supplier.

• Thesubcontractor (not theprimecontractor/payor) negotiates thequantities, priceanddeliveryofmaterials.

• Theprimecontractor/payorissuingthecheckactssolelyasguarantor.

• The subcontractor releases the check to the supplier.

• The arrangement is short-term (no more than two seasons) with the purpose being the subcontractor’s establishment or increase of a credit line with the material supplier.

• The subcontractor is responsible for both furnishing and installing the material/work item.

Copies of cancelled joint checks must be provided to MDOT personnel for review and approval upon request.




G. GOOD FAITH EFFORT (GFE) PROCESSThere are two circumstances in which an application must be submitted for consideration of a vendor’sgoodfaithefforttowardmeetingtheDBEparticipationrequirementforaspecificproject:

1. Before a contract can be awarded, when the bidder does not propose to meet the project goal, a pre-award GFE request must be submitted and a determination made on the bidder’s efforts to meet the DBE requirement.

2. During execution of the contract when DBE participation needed to meet the requirement does not materialize or falls short, a post-award GFE request must be submitted.

GFE ApplicationsIf either of the two lowest bidders, regardless of bid status (as checked, if available, or as submitted, if TBA) are unable to meet the DBE participation goal, an Abbreviated Contractor GoodFaithEffortApplication(MDOTForm0188A)mustbesubmittedwithinfivecalendardaysof the bid letting to [email protected]. This submission must include the signed DBE ParticipationDetailSheets(MDOTForm0178)thatwillbeusedtomeetanyportionoftheDBEgoal.Submissionsmustalsocomplywiththerequirementsofthepre-awardGFEprocess.

Determinedlowbiddersandprimevendorsrequestingeitherapre-orpost-awardmodificationofa contract’s DBE participation goal must submit a completed Contractor GFE Application (MDOT Form0188).Informationshowingwhythecontractgoalshouldbemodified,includingdocumenta-tion of efforts made to meet the goal, must be attached to the application. Incomplete applications will be returned.

TheContractorGFEApplication (MDOTForm0188)containsachecklist identifying the types ofdocuments thatshouldaccompany theapplication.Forms0188and0188Aareavailableatwww.michigan.gov/mdotdbe,under“ResourcesandForms”.

Submit completed applications with supporting documentation, including the DBE Participation DetailSheets(MDOTForm0178)thatwillbeusedtomeetanyportionoftheDBEgoaltomdot-gfe@michigan.gov.

Efforts to Obtain DBE ParticipationEfforts toobtainDBEparticipation shouldbe intense,aggressive, andsincere for the specificprojectandshouldgobeyondsimplepaperworkexercises.Effortsshould includewrittencom-munication, personal contact, follow-up and, where appropriate, earnest negotiation with DBEs. MDOT expects all primes bidding on a project with a DBE contract goal to be aware of the DBE participationrequirementandtomaketimelyandadequateeffortstorecruitDBEs.

TypesofactionsMDOTwillconsideraspartofthecontractor’sGFEtomeetDBEparticipationgoals (examples are taken from Appendix A of 49 CFR Part 26):

A. (1)Conductingmarketresearchtoidentifysmallbusinesscontractorsandsuppliersand

http://www.michigan.gov/mdotdbe



solicitingthroughallreasonableandavailablemeanstheinterestofallcertifiedDBEsthathavethecapabilitytoperformtheworkofthecontract.Thismayincludeattendanceatpre-bidandbusinessmatchmaking meetings and events, advertising and/or written notices, posting of notices of sources soughtand/orrequestsforproposals,writtennoticesore-mailstoallDBEslistedinthestate’sdirectoryoftransportationfirmsthatspecializeintheareasofworkdesired(asnotedintheDBEdirectory)andthat are located in the area or surrounding areas of the project.

(2)ThebiddershouldsolicitthisinterestasearlyintheacquisitionprocessaspracticabletoallowtheDBEstorespondtothesolicitationandsubmitatimelyofferforthesubcontract.Thebiddershoulddeterminewith certainty if theDBEsare interestedby takingappropriate steps to followup initialsolicitations.

B.SelectingportionsoftheworktobeperformedbyDBEsinordertoincreasethelikelihoodthattheDBEgoals will be achieved. This includes, where appropriate, breaking out contract work items into eco-nomicallyfeasibleunits(forexample,smallertasksorquantities)topromoteDBEparticipation,evenwhen the prime contractor might otherwise prefer to perform these work items with its own forces. This mayinclude,wherepossible,establishingflexibletimeframesforperformanceanddeliveryschedulesin a manner that encourages and promotes DBE participation.

C.Providing interestedDBEswith adequate information about theplans, specifications, and require-mentsofthecontractinatimelymannertoassisttheminrespondingtoasolicitationwiththeirofferfor the subcontract.

D. (1)NegotiatingingoodfaithwithinterestedDBEs.Itisthebidder’sresponsibilitytomakeaportionof the work available to DBE subcontractors and suppliers and to select those portions of the work or material needs consistent with the available DBE subcontractors and suppliers, so as to facilitate DBE participation. Evidence of such negotiation includes the names, addresses, and telephone numbers of DBEs that were considered; a description of the information provided regarding the plans and specificationsfortheworkselectedforsubcontracting;andevidenceastowhyadditionalagreementscould not be reached for DBEs to perform the work.

(2) A bidder using good business judgment would consider a number of factors in negotiating with subcontractors,includingDBEsubcontractors,andwouldtakeafirm’spriceandcapabilitiesaswellascontractgoalsintoconsideration.However,thefactthattheremaybesomeadditionalcostsinvolvedinfindingandusingDBEsisnotinitselfsufficientreasonforabidder’sfailuretomeetthecontractDBEgoal,aslongassuchcostsarereasonable.Also,theabilityordesireofaprimecontractortoperformtheworkofacontractwithitsownorganizationdoesnotrelievethebidderoftheresponsibilityto make good faith efforts. Prime contractors are not, however, required to accept higher quotes from DBEs if the price difference is excessive or unreasonable.

E.(1)NotrejectingDBEsasbeingunqualifiedwithoutsoundreasonsbasedonathoroughinvestigationoftheircapabilities.Thecontractor’sstandingwithinitsindustry,membershipinspecificgroups,orga-nizations,orassociations,andpoliticalorsocialaffiliations(forexample,unionvs.non-unionstatus)are not legitimate causes for the rejection or non-solicitation of bids in the contractor’s efforts to meet theprojectgoal.AnotherpracticeconsideredaninsufficientGFEistherejectionoftheDBEbecauseits quotation for the work was not the lowest received. However, nothing in this paragraph shall be



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construedtorequirethebidderorprimecontractortoacceptunreasonablequotesinordertosatisfycontract goals.

(2)Aprimecontractor’sinabilitytofindareplacementDBEattheoriginalpriceisnotalonesufficienttosupportafindingthatgoodfaitheffortshavebeenmadetoreplacetheoriginalDBE.Thefactthatthecontractorhastheabilityand/ordesiretoperformthecontractworkwithitsownforcesdoesnotrelievethecontractoroftheobligationtomakegoodfaitheffortstofindareplacementDBE,anditisnot a sound basis for rejecting a prospective replacement DBE’s reasonable quote.

F. Making efforts to assist interested DBEs in obtaining bonding, lines of credit, or insurance as required bytherecipientorcontractor.

G.Makingefforts toassist interestedDBEs inobtainingnecessaryequipment,supplies,materials,orrelated assistance or services.

H.Effectivelyusingtheservicesofavailableminority/womencommunityorganizations;minority/womencontractors’groups;local,state,andfederalminority/womenbusinessassistanceoffices;andotherorganizationsasallowedonacase-by-casebasistoprovideassistanceintherecruitmentandplace-ment of DBEs.

Thisisnotintendedtobeamandatorychecklistnorisitintendedtobeexclusiveorexhaustive.Otherfactorsortypesofeffortsmayberelevantinappropriatecases.

In determining whether a bidder has made good faith efforts, it is essential to scrutinize its documented efforts. At a minimum, MDOT must review the performance of other bidders in meeting the contract goal. As providedin§26.53(b)(2)(vi),MDOTmustalsorequirethecontractortosubmitcopiesofeachDBEandnon-DBE subcontractor quote submitted to the bidder when a non-DBE subcontractor was selected over a DBE forworkonthecontracttoreviewwhetherDBEpricesweresubstantiallyhigher;andcontacttheDBEslistedonacontractor’ssolicitationtoinquireastowhethertheywerecontactedbytheprime.ProformamailingstoDBEsrequestingbidsarenotalonesufficienttosatisfygoodfaitheffortsundertherule.

A promise to use DBEs after contract award is not considered to be responsive to the contract solicitation or to constitute good faith efforts.

Pre-Award GFE Requirements for all projects with race-conscious (RC) DBE goals will include the following contract require-ments:

1. The two lowest bidders, regardless of bid status (as checked, if available, or as submitted, if TBA) must submitsignedDBEParticipationSheets(MDOTForm0178)[email protected].

2. If either of the two lowest bidders, regardless of bid status (as checked, if available, or as submitted, if TBA) are unable to meet the DBE participation goal, an Abbreviated Contractor GFE Application (MDOT Form0188A)mustbesubmittedwithinfivecalendardaysofthebidlettingtomdot-gfe@michigan.gov.This submission must include the signed DBE Participation Detail Sheets (MDOT Form 0178) that will be usedtomeetanyportionoftheDBEgoal.




ContractorsunabletoobtainasignedForm0178fromtheDBEwithinfivecalendardaysofthebidlettingmust submit one of the following, with a completed Form 0178:

A. QuotefromtheDBE’sverifiede-mailorfaxnumber(includinganyattachments),or

B. QuoteontheDBE’scompanyletterhead(includingasignatureoftheDBEfirm).

• Quotesmustbedatedandincludetheprice(s)anddescriptionofworktobeperformed.

- Quotesreceivedfromtruckersorsuppliersmustbeforaspecificproject,letting,ortimeperiod.

IfeitherofthetwolowestbiddersfailstomeetSteps1or2ofthisprocess,MDOTmayawardthecontracttothe next low bidder, or otherwise exercise its discretion in accordance with subsection 102.13 of the Standard SpecificationsforConstruction.ShouldMDOTrejectthebid,thedeterminedlowbiddercanappealthebidrejectioninaccordancewithSubsections102.11and102.12oftheStandardSpecificationsforConstruction.

Prior to award, if theDBE is performing truckingor supplywork, thedetermined lowbiddermust submitform(s)4101(DBEHeavyConstructionTruckingCreditWorksheet)and/or0193(DBESupplierParticipationAffidavit),respectively,toContractServicesDivisionasspecifiedonForm0178.

Contracts will not be awarded without completed Form(s) 0178 with all appropriate signatures and, if neces-sary,truckingandsupplierattachments.

Timeline of GFE Process• Within 28 calendardaysofthedepartment’s: 1) Transmittal of the contract and bond forms to the determined low bidder for a construction

contract, or

2) Final cost negotiations for a consultant contract, the determined low bidder/prime consultant who cannot meet the DBE participation goal must submit either:

1) MDOT Form 0188 with all supporting documentation, or

2) AllGFEdocumentationtofullysupportapreviouslysubmittedMDOTForm0188A.

Supporting documentation must include all signed DBE participation forms (Form 0178) where accept-ablealternatedocumentationwaspreviouslysubmittedand,asapplicable,completedDBEtruckingand/orDBEsupplierforms(forms4101and0193,respectively).

• Within 12calendardaysofthedepartment’sreceiptofacompletedGFErequest,thedeterminedlowbidder/primeconsultantwillbenotifiedoftheGFECommittee’sdetermination.

• Within two calendardaysof their receiptofanadversedetermination, thedetermined lowbidder/primeconsultantmay,inwriting,appealthatdetermination.

• Within seven calendardaysofreceiptofthedeterminedlowbidder’s/primeconsultant’sappeal,theGFE Appeals Panel will meet and issue their determination. The determination of the Appeal Panel is administrativelyfinal(notappealabletotheUSDOT).



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If thedeterminedlowbidderdoesnotadheretothetimelineabove,MDOTmayawardthecontracttothenext low bidder, or otherwise exercise its discretion in accordance with subsection 102.13 of the Standard SpecificationsforConstruction.

IfadeterminedlowbidderisunabletofulfilltheDBEparticipationgoalandsubmitsapre-awardrequesttomodifythegoal,thecontractwillnotbeawardeduntiladecisionismadebythedepartment.Onceadecisionis rendered no additional efforts will be considered.

IftheGFECommitteedeniestherequesttomodifytheDBEparticipationgoal,thedeterminedlowbidderwillbenotifiedbyMDOTandwillhavetwocalendardaysfromthedateofthenotificationtoappeal.Ifthebidderfailstoappealthedecisionwithintwocalendardays,MDOTmayawardthecontracttothenextlowbidder,orotherwiseexerciseitsdiscretioninaccordancewithsubsection102.13oftheStandardSpecificationsforConstruction.

Post-Award GFE and DBE Substitution Requests Post-awardgood faithefforts canbedefinedasefforts takenby theprimevendor tomeet theDBEgoalafterthecontracthasbeenawardedandanapprovedDBEfirmwillnotorcannotperformtheirwork.TheseprovisionsonlyapplytoprojectswithRCDBEgoals.

OnceDBEparticipationcommitmentsareapprovedbyMDOT(includingapprovedsubstituteDBEs),primecontractors are prohibited from terminating a DBE for convenience and then substituting with the prime con-tractor’s own forces. The prime contractor is required to make good faith efforts to replace a DBE that could notcompleteitscontractwithanotherDBEfirm,totheextentneededtomeetthecontractgoal.

BeforetheidentifiedsubstituteDBE(s)canbeginwork:

1. TheDBESubstitutionRequest(MDOTForm0196)mustbeapprovedbytheprojectengineerandOBD,and

2. TheDBEParticipationform(s)(MDOTForm0178)forthesubstituteDBEfirm(s)mustbesubmittedandapprovedbyContractServicesDivision.

a. IfasubstituteDBEisperformingtruckingorsupplywork,forms4101and/or0193,respectively,mustbe included with Form 0178.

Per 49CFRPart 26.53, ifwrittenapproval byMDOT,using forms0196and0178 (asapplicable), is notgranted,theprimecontractorshallnotbeentitledtoanypaymentorcredittowardacontractgoalforworkormaterialcommittedororiginallycontractedtotheDBEfirm.

DBEfirmscanbeterminatedorreplacedforgoodcauseonlywithpriorapprovalbyMDOTperForm0196.Inallcases,DBE’smustbegivenwrittennoticeandprovidedfivecalendardaystorespondpriortoForm0196being sent to OBD for approval.

Good cause includes:

• DBE fails or refuses to execute a written contract;



• DBEfailsorrefusestoperformtheworkofitssubcontractinawayconsistentwithnormalindustrystandards.Provided,however,thatgoodcausedoesnotexistifthefailureorrefusaloftheDBEfirmtoperformitsworkofthesubcontractresultsfromthebadfaithordiscriminatoryactionoftheprimecontractor;

• DBE fails or refuses to meet the prime contractor’s reasonable, non-discriminatory bond requirements;

• DBE becomes bankrupt, insolvent, or exhibits credit unworthiness;

• DBE is ineligible to work on federally assisted contracts because of suspension and debarment proceedings;

• DBEisdeterminedbyMDOTtonotbearesponsiblevendor;

• DBEvoluntarilywithdrawsfromtheprojectandprovideswrittennoticetoMDOTofitswithdrawal;

• DBEisineligibletoreceiveDBEcreditforthetypeofworkrequired;

• DBE owner dies or becomes disabled and is unable to complete the work;

• OrotherdocumentedgoodcausethatMDOTdeterminestorequiretheterminationoftheDBEfirm.

Note: If required in a particular case as a matter of public necessity (e.g., safety), MDOT may require a response period shorter than five days.

Inadditiontopost-awardterminations,theprovisionsofthissectionapplytopre-awarddeletionsoforsubstitu-tionsforDBEfirmsputforwardbyofferorsinnegotiatedprocurements(consultantcontracts;design-build,etc.).

If during the course of completing an awardedMDOT project a prime vendor is unable to fulfill its DBEparticipation requirements, a GFE application must be submitted. To request a post-award reduction of the DBE goal, the prime vendor must submit a completed GFE Application (MDOT Form 0188) with supporting documentation.Post-awardapplicationsmustbesubmittedwithin14daysoftheprimevendorbeingmadeawareoftheirinabilitytomeettheDBEparticipationgoal.

Modificationrequestsshallbereviewedby theGFECommittee.MDOTwillnotify theprimevendorof thecommittee determination.

GFEinvestigatorsmayrequestadditionaldocumentationtoclarifyorsupplementinformationprovidedbytheprime vendor. Additional documentation received prior to the meeting will be discussed at the meeting. Once a decision is rendered, no additional efforts will be considered.

IftheGFECommitteedeterminesthevendordemonstratedsufficientgoodfaithefforttoachievethegoal,MDOTwillmodifythegoalasrequested.IfMDOTdeniestherequestormodifiesthegoalinamannerotherthanthatrequested,MDOTwillnotifytheprimevendorwithin17calendardaysofreceiptoftherequest.

IfquantitiesforitemssubcontractedtoDBEfirmsaredecreasedorcompletelydeletedbyMDOT,theprimevendorshouldconsidersubcontractingotherworktoDBEfirmstomeettheDBEgoal.AlleffortstomeettheDBE participation goal should be documented. On the date the prime vendor becomes aware that the DBE goalwillnotbemet,theamountofcontractworkleftatthatpointmustbecarefullyreviewedtodetermineavailableworkthatmaybesubcontractedtoDBEfirms.



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Composition of the GFE Committee Note: Each committee member will have an alternate:

• DBE administrator, OBD (Chair)

• BureauofHighwayDevelopmentdesignee

• Contract Services Division administrator or designee

• Construction Field Services Division administrator or designee

• One region engineer or designee

Two-thirds of the members must be present in order to have a quorum and conduct business. When schedul-ingconflictsoccur,committeemembersmaysubmittheirdecisionandanyadditionalquestionsorcommentselectronically.FinalGFEapplicationdecisionsrequireamajorityofconsentingvotes.

TheGFEapplicantwillbenotifiedofthedateandtimeoftheGFECommitteemeetingatwhichtherequestwill be considered. The applicant is allowed to appear before the GFE Committee and make an oral presenta-tion to supplement the written request. The oral presentation cannot take the place of the written request, and documentaryevidencemustbesubmittedtoshowtheeffortsundertakenbytherequestor.Requestfororalpresentations must be submitted to the appropriate GFE investigator in advance of the meeting.

The committeewill consider themerit of the request, the sufficiency of the evidence and documentationsupportingtherequest,andmakeadecision.Thecommitteemaygrantthemodification,ordenytherequest.

GFE AppealsVendorswhoserequestforwaiverormodificationoftheDBEparticipationgoalhasbeendeniedmayappealthe decision. The GFE Appeals Committee will not consider information or documentation that was not includ-ed in the original GFE application package.

Writtenappealsmustbesubmittedwithintwocalendardaysofthevendor’sreceiptoftheGFECommittee’sdecision via e-mail to [email protected].

The composition of the GFE Appeals Committee (each member will have an alternate) is as follows:

• MDOTchiefoperationsofficer(Chair)

• MDOTchiefadministrativeofficer

• Bureau of Finance and Administration director

TheGFEAppealsCommitteemeetsasneeded.Theappellantwillbenotifiedof thedateand timeof themeeting at which the appeal will be considered. The appellant is required to be present at the meeting in person or via phone.

TheGFEAppealsCommittee’sdecisionwillbeprovidedbythechairoftheAppealsCommitteetotheprimevendor. Two-thirds of the members or a representative must be present in order to have a quorum and conduct business.



DecisionsoftheGFEAppealsCommitteeareadministrativelyfinal.

This material has been prepared to provide contractors with an explanation of MDOT’s minimum requirements forconsideringarequestforwaiverormodificationofthecontractgoals.Sinceeverysituationisconsideredunique, depending on the pertinent facts, each request is evaluated on its own merit.

Simplysubmittingthedocumentationintheformatspecifiedandfollowingthenecessarystepsdoesnotguar-anteethatawaiverormodificationwillbeapproved.MDOTmustbeconvincedthatthecontractorexerciseddiligenceinseekingDBEfirmsforsubcontractinginordertomeetthecontractgoals.

Federally Required Potential SanctionsPer49CFRPart26.53,MDOTmustincludeineachprimecontracttheclauserequiredby§26.13(b)statingthatfailurebythecontractortocarryouttherequirementsofthispartisamaterialbreachofthecontractandmayresultintheterminationofthecontractorsuchotherremediessetforthiftheprimecontractorfailstocomplywiththerequirementsofthissection.

MDOTmustapplytherequirementsofthissectiontoDBEbidders/offerorsforprimecontracts.Indeterminingwhether a DBE bidder/offeror for a prime contract has met a contract goal, MDOT counts the work the DBE hascommittedtoperformingwithitsownforces,aswellastheworkthatithascommittedtobeperformedbyDBE subcontractors and DBE suppliers.

MDOTmustrequirethecontractorawardedthecontracttomakeavailable,uponrequest,acopyofallDBEsubcontracts. The prime, and all subcontractors, suppliers and service providers shall ensure that all contract-ed work be performed in accordance with this part’s provisions.



H. MDOT’S SMALL BUSINESS PROGRAM (SBP)MDOT’s Small Business Program (SBP) is a race- and gender-neutral program designed to providecontractingopportunities forsmallbusinessesonprojectsassistedby theFAA,FHWAand FTA.

ThisprogramwillbeimplementedbyMDOTuponreceiptofUSDOTapprovalandfullyoperation-al within six months of approval.

Firms bidding on work under this program must meet the same conditions and standards required of all contractors, consultants, suppliers and subcontractors performing work for the department andsub-recipientgranteeswho report to their respectiveUSDOToperatingauthority throughMDOT.

Eligibility CriteriaIn order to bid as a small business on SBP projects, vendors must:

1. SubmitdocumentationneededtodeterminewhethertheymeetUSSmallBusinessAdminis-tration(SBA)andDBEsmallbusinesssizestandardrequirements.CertifiedDBEfirmssubmitthisdocumentationasaconditionofcertification.

a. Documentationmustbesubmittedannuallyoratleastonemonthpriortosubmittingabid on a SBP project.

b Documentation will be reviewed by the MDOT OBD to ensure only small businesses participate in this program.

c. Novendor,includingaffiliatefirms,withthree-yearaveragegrossreceiptswhichexceed $23.98millionwillqualifyfortheSBP.

2. Submit documentation needed to determine whether the owners exceed the personal net worth requirement of the DBE program. The current personal net worth maximum per owner is$1.32millionperyear;thisfigureexcludesassetsownedbythebusinessapplyingfortheSBPandthevalueoftheprimaryresidenceofeachowner.

3. BeapprovedtoworkintheclassificationrequiredtobidonarespectiveprojectwhenrequiredbyMDOTorstatepolicy.

a. Prequalificationrequirementsforconstructioncontractorsarelocatedat www.michigan.gov/mdot,Click“DoingBusiness”,“GetConstructionPrequalified”.

b. Prequalificationrequirementsforconsultantcontractorsarelocatedat www.michigan.gov/mdot,Click“DoingBusiness”,“GetServicePrequalified”.

4. Highwayconstructioncontractorsmusthavesufficientcapacityavailabletobeeligibletobid,asdeterminedbyMDOT,inaccordancewithexistingrequirements.

5. Consultantsandsuppliersmustcomplywithstateandfederalrequirements.



Project Selection for MDOT-let ProjectsMDOT-let projects will be designated as SBP prime set-aside projects when theymeet selection criteriaspecifiedbelow.TheMDOTContractSelectionTeam(CST),withinputfromtheresponsibleMDOTregionoffice,usingthefollowingcriteriashallselectSBPprojects:

a. ProjectsconsideredfortheSBPmustbefundedinwholeorinpartbytheFAA,FHWAorFTA.

b. Theremustbeatleastthreesmallbusinessesqualifyingtobidasaprimeoneachrespectiveproject.

c. Projects must have small business subcontracting opportunities.

Largeprojectswillbereviewedtodeterminethefeasibilityofunbundlingprojectelementstopromotecom-petitionbysmallbusinessconcerns.AnoticedetailingSBPparticipationrequirementsandexpectationswillbe provided to potential bidders as part of the project advertisement and incorporated in contract documents.

Project Selection Criteria for Non-MDOT-let Sub-Recipient Grantee Projects Allbidsfortheseprojectswillbereceivedbythelocalagency.MDOTwillpartnerwithsub-recipientgranteesto identify alternative acquisition strategies and to structure procurements to promote the ability of smallbusinesses to compete for and perform prime contracts. Compliance with the provisions of this SBP will be required for all sub-recipients receiving federal funds through MDOT.

TheMDOTOfficeofAeronautics(AERO),withinputfromtherespectivegranteeusingthefollowingcriteria,shallselectFAA-assistedprojects,whicharenotletbyMDOT:

• Projects must have small business subcontracting opportunities; designated projects will be assigned a 5 percent small business participation goal.

• The number of businesses qualifying to bid as a small business at the time of advertisement.

• Thefeasibilityofunbundling largecontracts intosmallercontractstopromotecompetitionbysmallbusiness concerns.

• AEROwillencourageprimevendorstopromoteparticipationbysmallbusinesses.Accomplishmentsandgoalattainmentwillbetrackedyearlybysub-recipientsandAERO.Theseprojectsarelocallyletand bids are accepted at the local level, not through the MDOT bidding process.

• FTA-assisted projects that meet the following criteria must have a 5 percent small business participa-tiongoal,unlessawaiverisgrantedbytheMDOTOfficeofPassengerTransportation(OPT).

• All sub-recipient consultant projects costing more than $500,000 and construction (including rehabili-tation) projects costing more than $500,000.

OPT will add the following requirements to their procurement guidelines for all projects that meet the above criteria:

• If the sub-recipient is using the Invitation for Bid (IFB) method of procurement, the IFB must include the following:



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- Submissions that meet the 5 percent small business participation goal will be given a 5 percent price preference when determining the lowest qualified bidder. In determining the lowest bid amountofthequalifiedbids,thebidamountofthosebidsthatmeetthesmallbusinessgoalwill bereducedby5percent.Thecontractwillbeawardedbasedontheapprovedbidamountofthe selected bid.1

If the sub-recipient is using the Request for Proposal (RFP) method of procurement, the RFP must include the following:

• Five percent of the total possible points will be assigned to meeting the 5 percent small business participation goal. The bidder must meet the 5 percent goal to the associated points. The contract will be awarded to the bidder with the greatest number of points based on all scored items.

• OPT will use its existing methods for sub-recipient procurement oversight to ensure these require-mentsareincludedinbiddocumentsandfollowedinthevendorselection.Theseprojectsarelocallylet and bids are accepted at the local level, not through the MDOT bidding process.

Asub-recipientmayrequestawaiverfortheserequirementsiftheydeterminethatmeetingtherequirementswillbeasignificanthindrancetocontracting.Inapprovingawaiver,OPT,inconsultationwithOBD,willusethe following criteria:

• Projectdoesnotcontainworkinwhichsmallbusinessescancompetitivelybidintheirrespectiveareaof the state.

• There are a limited number of businesses available in NAICS codes needed to perform the contract in the respective area of the state where the project will be undertaken.

____________________1ForIFBprocurements,thismethodofshowingpreference;i.e.,discountingthebidpriceofthosethatmeetthepreferenceisalreadybeingusedinthestateofMichigan for veteran’s preference under section 261 of The Management and Budget Act, PA 431 of 1984, as amended.



Direct Report Agencies DirectreportagenciescurrentlydevelopandsubmitDBE-relatedplans,reports,andotheritemsdirectlytotheirrespectiveUSDOToperatingauthority.TheseMichiganagenciesarenotapartofthisplanbuthavesubmittedtheirownRNsmallbusinessprogramsdirectlytoUSDOT.ThefollowingagenciescurrentlyreportdirectlytoaUSDOToperatingauthorityandarethereforenotboundtothisagreement:

Detroit Department of Transportation

Kalamazoo MetroTransitSystem

Hancock-HoughtonCounty Memorial Airport

Detroit Transportation Corporation

Livingston Essential Transportation

Kalamazoo - Kalamazoo- Battle Creek International Airport

SEMCOG Macatawa Area Express (MAX) Lansing - Capital Region International Airport

SMART Muskegon Area TransitSystem

Marquette - SawyerInternationalAirport

Ann Arbor Transportation Authority Niles Dial-A-Ride MuskegonCountyAirport

Battle Creek Transit Twin Cities Area TransportationAuthority Pellston Regional Airport

BayMetroTransportationAuthority Charlevoix Municipal Airport Saginaw -

MBS International Airport

Blue Water Transportation Commission

DetroitMetropolitanWayneCountyAirport

Sault Ste. Marie - Chippewa CountyInternationalAirport

Capital Area Transportation Authority

Flint-Bishop International Airport

TraverseCity- CherryCapitalAirport

Flint Mass Transportation Authority

Grand Rapids - Gerald R. Ford International Airport Harbor Transit

Jackson Transportation Authority

Interurban Transit Partnership (RAPID)

Implementation Schedule:1. Within30daysofreceivingUSDOTapproval,MDOTwillbeginidentifyingpotentialprojects.

2. Within60daysofreceivingUSDOTapproval,noticeofthenewprogramwillbesenttoallfirmsthathaveregistered to bid on MDOT projects. This notice will include a list of required information that must be providedtodetermineeligibilitytobidasasmallbusiness.

3. Within60daysofreceivingUSDOTapproval,MDOTwillprepareandposttoitswebsiteadirectoryofeligible businesses.



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4. With120daysofreceivingUSDOTapproval,MDOTwillimplementtheapprovedprogram.

A notice detailing SBP participation requirements and expectations will be provided to potential bidders as part of the project advertisement.

Actions Taken to Foster Small Business Involvement and Recruitment MDOT routinely holds conferences and participateswith government and public partners to advertise itsopportunitiesandrecruitandtrainvendors.MDOTregularlymentionstheSBPattheseevents.Additionally,in advance of advertisement of SBP projects, MDOT will:

• Post notices to advise potential bidders about upcoming SBP projects,

• Hold public participation meetings as appropriate,

• Providepersonalnotification toeligiblesmallbusinessesusinge-mail, fax,or telephonecontact toidentifiedsmallbusinesses,and

• Advertisements and recruitment information will be posted on MDOT websites.

MDOT Assurances1. Toqualify for thisprogram,afirm, including itsaffiliates,mustbeasmallbusinessasdefinedby the

U.S. Small Business Administration (SBA) in 13 CFR Part 121.

a. EvenifafirmmeetstheSBAsizerequirementsabove,itisonlyeligibletoparticipateintheSBPifthe firm (including its affiliates) hasprevious three-year averageannual gross receipts that arebelow $22.14 million.

2. Nogeographicpreferencesorlimitationsshallbeimposedonanyfederallyassistedprocurementinclud-ed in the program.

3. The SBP is acceptable under state law.

4. Therearenolimitsonthenumberofcontractsawardedtofirmsparticipatingintheprogram,aslongasfinancialcapacityis not exceeded.

5. The SBP does not replace the MDOT DBE program or otherwise operate as a replacement for the DBE program. The SBP is race- and gender-neutral. DBE dollars earned under this program will count toward the race-neutral portion of MDOT’s overall DBE goal.

6. This program does not create barriers to new, emerging and untried businesses.



I. FEDERAL EQUAL EMPLOYMENT OPPORTUNITY (EEO) REQUIREMENTS FOR CONTRACTORSMDOTisresponsible forensuringthatvendorswhoworkonfederallyassistedprojectsdonotdiscriminateinemploymentandcontractingpracticesbasedonrace,color,religion,sex,nationalorigin, age or disability. Equal opportunity (EO) requirements ofRequiredContractProvisions(FHWA-1273),whichisalwaysincludedinfederal-aidprojectproposals,applytoallcontractorsand subcontractors with federal-aid contracts of $10,000 or more.

PrimecontractorsmustincludeFHWA-1273initsentiretyineachsubcontract/vendoragreement.ItisnotpermissibletoincludeFHWA-1273insubcontractagreementsbyreferenceonly.

TheOBDconductsEOcompliancereviewsofMDOTvendorstodeterminewhethertheyaremak-inggoodfaitheffortstoensurethegenderandethnicpopulationoftheirworkforcesreflectslocaldemographics.Projectworkforcesineachjobclassificationshouldreflecttheresidentpopulationdemographics in each trade surrounding a project as much as possible.

Michiganwork tradedemographicsareavailablebycountyontheU.S.Censuswebsiteat www.census.gov. On the left of the census page, choose the following links: Data Tools, Census 2000 Data Tool, Access to 2000 EEO Occupation Data, Online Access to the EEO DataTool,selectbothEmploymentbyCensusOccupationCodesand,underSelectGeography,Residenceandpress“next.”SelectMichiganattheCountySetsdropdownand“next.”Choosethe appropriate occupation categories under “Selectoneormoreoccupationcategories”(orCensusOccupationCodes)byholdingdownthe“CTRL”buttonasselectionsaremade,andDisplaytableatthebottomofthepage.

Following isasetofGFEcriteria forcontractorcompliance,asestablishedbyFHWAcontractprovisions:

1. Thecontractor’swrittenEEOpolicystatement.

2. ThecontractorsufficientlydistributestheEEOpolicystatement.

3. TheauthorityandresponsibilityoftheEEOofficerisadequate.

4. ThecontractorholdsperiodicEEOmeetingswithmanagementandemployeesresponsiblefor personnel decisions.

5. Thecontractorpostspropernoticesandpostersintheofficeandontheprojects.

6. The contractor includes “EEO Employer”clauseinadvertisements.

7. The contractormakes systematic and direct recruitment efforts with sources likely to yieldminorities andwomen.Recruiting relationshipswith specific recruiting sources and contactpersonsmustbeestablishedandrealrecruitingeffortsmustbedocumentedandeasilyverified.

8. ThecontractoreducatesallnewsupervisorsregardingEO/EEOrequirementswithin30daysofreportingtoduty.



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9. Thecontractorencouragespresentemployeestoreferminoritiesandwomentoapplyforjobopenings.

10. The contractor evaluates the spread of wages to determine whether discrimination exists.

11. Thecontractorinvestigatesandappropriatelyresolvesallcomplaintsofdiscriminationandharassment.

12.Thecontractorassistsinlocating,qualifyingandincreasingtheskillsofminoritiesandwomen.

13.Thecontractorfullyusestrainingprogramsandadvisesemployeesandapplicantsoftrainingopportunities.

14. The contractor has minorities and women in its training programs.

15.Thecontractorensuresnon-segregatedfacilitiesonitsprojectsandinitsoffices.

16.Thecontractoremploysminoritiesandwomeninalloccupations,craftsandjobclassificationsonanequalbasis. The contractor’s workforce should be representative of demographic data for the areas where its projects are located. The contractor’s good faith efforts to ensure this must be evident.

17. The contractor has procedures establishing the monitoring of subcontractors’ compliance with nondis-crimination, EO and EEO obligations.

18. The contractor maintains adequate records and provides the information requested during a compli-ancerevieworasotherwiserequestedbyMDOT,FHWA,Office of Federal Contract Compliance Programs (OFCCP), etc.

19. The women and minorities in the contractor’s workforce accumulate work hours that would be expected based upon their representation.

20.Thecontractorensuresallfieldemployeesarenotifiedoftheproceduresfordealingwithdiscriminationand harassment complaints.

FailureofavendortoshowitismakingEOgoodfaitheffortsmayresultinsanctions.Sanctionsmayrangefrom increasedmonitoringofvendorEOeffortsbyMDOTstaff to removalofbiddingprivilegesonMDOTprojects for serious violations.



J. CONSTRUCTION CONTRACTOR RESOURCESMDOT’s public website has the most up-to-date information about the department, at www.michigan.gov/mdot. Individuals interested in doing business with MDOT should click on “Busi-nessLinks,ContractorServices.”Generalinformationregardingexternalcivilrightsprocessesforfederal-aid construction projects can be found in the BOHIM 2014-09, titled “External Civil Rights Requirements,EqualEmploymentOpportunity(EEO),TitleIV,On-The-JobTraining(OJT),andDisadvantagedBusinessEnterprise(DBE)forFederal-AidConstructionProjects”.

BOHIMs are available at www.michigan.gov/mdot.Click“Reports,PublicationsandSpecs”“Manuals,Guides,Advisories&Memos,”“HighwayInstructionalMemos”.

Construction PrequalificationPrequalificationandDBEcertificationarenotthesame.WhileprequalificationisnotrequiredtobecomeDBE-certified,itisarequiredpartoftheMDOTcontractingprocessforspecificworkclas-sifications.Acompletelistofprequalificationworkclassificationscanbefoundintheconstructionprequalificationapplicationfollowingthewebsiteinformationbelow.

Ifprequalification is required toperformworkonaparticularproject, itwill bespecified in thecontractdocuments,andboththeprimeandsubcontractorsmustbeprequalifiedinthetype(s)ofwork desired.

ConstructionprequalificationapplicationsandadditionalinformationisavailableonMDOT’sweb-site at www.michigan.gov/mdot under “Doing Business”, “Get Construction Prequalified.” DBEsmaycontacttheDBEprogramtoll-freeat866-323-1264forassistance,orcallorwritetheMDOT Contracts Services Division:

Michigan Department of TransportationContracts Services DivisionP.O. Box 30050Lansing, MI 48909Telephone: 517-335-4281

Vendor Availability Questionnaire Firms bidding on prime contracts and bidding or quoting on subcontracts (including truckers, material suppliers and service providers/consultants) should complete and submit MDOT’s VendorAvailabilityQuestionnaire, (MDOTForm0168A).Cooperation inprovidingvendoravail-abilityinformationhelpsMDOTcomplywithfederalregulationsat49CFR26.11(c),whichrequireMDOTtomaintainalistoffirmsbiddingonprimecontractsandbiddingorquotingsubcontractsonDOT-assistedprojects.Thisinformationshouldbesubmittedannually.

Inthegoal-settingprocess,vendoravailabilitydataisusedtoverifyMDOT’sready,willing,andablevendorpopulation.Informationprovidedbyvendorsisconfidential.







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Bid Lettings and Bidding ProcessConstructionbid lettingsareheldmonthly.MDOTprovidescontractproposalsandplansforeachcontractelectronicallyatnocost.ProposalsandplansareavailableontheBidLettingwebsite.ToaccessMDOTbidletting information, go to www.michigan.gov/mdot, Click “DoingBusiness”,ContractorServices”, “BidLetting.”

MDOT construction requirements are often more strict than those found in private work. Before bidding on any MDOT contract as a prime contractor, or submitting a subcontract quote to a prime contractor, be sure you know what each project requires.Visit theproposedjobsitetocheckforanyunusualsiteconditions.Studythecontractproposalandrelevantstandardplans,specialplandetails,andtrafficcontrolrequirements, as well as the StandardSpecificationsforConstruction. To obtain copies of construction-related publicationsortoviewspecificationsonline,gotowww.michigan.gov/mdot, Click “Reports, Publications andSpecs.”

Forquestionsaboutthebidprocess,call517-373-2341ore-mailusingthe“ContactUs”linkontheContractorsService Center website www.michigan.gov/mdot,“DoingBusiness,ContractorServices”.

Construction Subcontracting ProcessMDOThasupdatedtheconstructionprojectsubcontractingprocessforcurrentspecificationsandreferences.Thesubcontractingprocess iseffectiveonallstateand federally fundedconstructionprojects.Contractorrequirementsforsubcontractingaredescribedinsubsection108.01ofthe2012StandardSpecificationsforConstruction.Subsection108.01referstothedepartment’sproceduresforsubcontracting,whichisdefinedintheBOHIM2014-08,titled“ConstructionSubcontractingProcess”.


Prevailing WageAllcontractorsarerequiredtopaythecorrectprevailingwageratestoemployeesfunctioningaslaborersandmechanicsasdefinedbytheDavisBaconAct.Thisincludesworkerswhosedutiesaremanualorphysicalinnatureandanyoneworkingwith toolsorperforming theworkofa trade.TheDavisBaconAct requiresthepaymentofapplicableprevailingwageratestoalllaborersandmechanicsregardlessofanycontractualrelationshipwhichmaybeallegedtoexist.Laborratescanbelocatedinthebackofeachprojectproposalunlesssupersededbyaddendumpostedonthebidlettingwebsite.Thelaborcompliancespecialprovisionand applicable wage rate schedules are required attachments of a subcontract (MDOT Form 1302). Please readBOHIM2009-07,titled“PrevailingWageOversightProcedures”availableonthePrevailingWageCom-pliance webpage.









Need wage rate help? Contact Adam Strong at [email protected] or call 517-719-7344.

Prompt Payment Requirements49CFR 26.29 requires DBE and non-DBE subcontractors to be paid promptly.MDOT interprets promptpaymenttomeantheprimecontractorwillpayeachsubcontractorforsatisfactoryperformanceofitscontractno later than 10 calendar days from receipt of each payment the prime contractor received fromMDOT.Satisfactorycompletionmeansworkiscompletedinaccordancewiththecontract,requiredpaperworkisin,andMDOThasinspectedandapprovedtheworkanddeterminedthefinalquantities.

Theprimecontractorisrequiredtoprovidepaymentinformationforpaymentsmadetosubcontractorsandsuppliersthroughsubmittaloftheinformationviathe2124Areportingsystem(MERS)onabi-weeklybasisduring thecourseof theproject.Uponprojectcompletion,ahardcopyof thePrimeContractorBi-WeeklyStatementofSubcontractor/SupplierPayments(MDOTForm2124A)mustbesubmittedwithin30daysafterproject completion with actual DBE signatures (not using MERS).

Claims of failure to meet prompt payment provisions requires that the prime contractor, subcontractor, lower-tiersubcontractor,orsuppliermustnotifytheallegedoffendingpartyinwritingofanypromptpaymentviolationswithin30calendardaysof thedatethepaymentwastobereceived.Copiesof thenotificationsmustbeprovidedtotheengineerandtheprimecontractor(onlyiftheprimecontractorisnottheoffendingparty).Theallegedoffendingpartymustrespondinwritingtotheclaimantwithin10calendardaysofreceiptofthenotificationoffailuretomeetpromptpaymentprovisions.Theengineerwillreviewthewrittennoticeandresponseandwillverifyinwritingifthereisavalidpromptpayviolation.

Failure to comply with any of the prompt payment requirements by the prime contractor, subcontractor, lower-tier subcontractor, or suppliermay result in sanctions against the offending party.These sanctionsmayinclude,butarenotlimitedto:withholdingofestimatesonprojectswherepromptpaymentviolationsareconfirmed;reductionorremovalofprequalification;and/orsuspensionofbiddingprivileges.

Complete details regarding prompt payment can be found at www.michigan.gov/mdot, “Reports, PublicationsandSpecs”,“SupplementalSpecs/SpecialProvisions”,“SpecialProvisions–FrequentlyUsed(2012)”,clickView/PrintDocuments,“12SP109APromptPayment”(revisedJuly29,2013).

Needpromptpayviolationassistance?ContactChrisRoeatroec@michigan.gov or call 517-202-3716.

FORMS FOR CONSTRUCTION CONTRACTORS

Allformsareavailableonlinebygoingtowww.michigan.gov/mdot,“DoingBusiness”,“Forms”.Additionalformscanbefoundbyclickingon“searchtherepositoryofMDOTonlineforms”.

Counting and CUF of DBE Firms on Construction ProjectsDetailedinformationregardingcountingandCUFofDBEfirmsonconstructionprojectscanbefoundinthesectiontitle“CommerciallyUsefulFunction(CUF)”.AdditionalinformationregardingDBECUFcompliancecan be found in BOHIM 2013-12, titled “Disadvantaged Business Enterprise (DBE) Commercially UsefulFunction(CUF)Compliance”.TheproceduresinthisBOHIMapplytoall federallyfundedMDOTandlocalagencyprojects that includeparticipationofaDBE-certifiedcompany. Itshouldbenoted that thisBOHIM






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appliestoallprojectswithworkcompletedbyDBEfirms,notjustprojectswithaDBEgoal.

BOHIMs are available at www.michigan.gov/mdot.Click“Reports,PublicationsandSpecs,”“Manuals,Guides,AdvisoriesandMemos,”“HighwayInstructionalMemos”.

Counting DBE Construction Contractor Joint VenturesConstructioncontractorjointventuresareonlyallowedwhenthejointventureispreviouslyapprovedbyOBDandindividuallyprequalifiedandapprovedtobidbytheContractServicesDivision.

Joint ventures must follow all requirements for performing construction on MDOT contracts, including compli-ance with 49 CFR Part 26.53 and 49 CFR Part 26.55.




K. CONSULTANT RESOURCES

DBE Participation on Projects with DBE GoalsTheDBEparticipationlevelgoalforaservicecontractwillbespecifiedintheRFPusedduringthe selection process. The prime consultant shall select DBEs to perform, at minimum, work that corresponds in dollar value to the DBE participation goal. DBEs must perform a CUF as required by49CFR§26.55oftheFederalRegisterandbycontractualrequirements.CUFguidelinesapplytoanyworkperformedbyaDBEtomeetacontractgoalandareclearlydefinedinthesectiontitled“CommerciallyUsefulFunction(CUF)”.

OnlyDBEswhoarecurrentlycertifiedandlistedontheWeb-basedMichiganUnifiedCertification Program (MUCP) database and on the Contract Services Division (CSD) prequalification databaseareeligibleforDBEparticipationcredit.Additionally,ifprequalificationisrequired,aDBEfirmmustbebothprequalifiedandDBE-certifiedintherespectiveworkclassification.AnMUCPDBEdirectoryislinkedtotheMDOTwebsiteat:www.michigan.gov/mucp.

Proposalswillbescoredinaccordancewiththevendorguidelines.AnypotentialDBEmodificationor waiver action will not be taken into consideration during the scoring process. After a consultant has been selected, and has negotiated the cost of the contract with MDOT, it must complete the DBEparticipation(service)form(MDOTform0182)andsubmitittothecontactpersonidentifiedintheRFP.Afterscoring,selectionapprovalandfinalnegotiations,ifthemostqualifiedvendor/consultantdoesnotmeettheDBEparticipationgoal,thefirmmustapplyforaGFEmodificationorwaiver.Anapplication for consideration ofmodification orwaiver of theDBEgoalmust besubmitted using the Contractor Good Faith Effort Application (MDOT Form 0188), available online at www.michigan.gov/mdot, “DoingBusiness”, “Forms”.Thefirmwillbedeemed ineligiblefor awardof the contract unless the firmeithermeets thegoal or receives anapprovedGFEmodificationorwaiverfromMDOT.

Prequalified DBE Consultant MDOT’s RFPs will identify both primary and secondary prequalification classification require-ments, as determined for each project. In order to be eligible to submit a proposal on a project, a companymusthaveobtainedanapprovedprequalificationstatusintheapplicableprequalificationclassification(s)listedintheRFPonorpriortotheproposalduedate.DBEsmayprovideprequal-ifiedornon-prequalifiedservices.TheprimecontractormustensureeachDBEisDBE-certified,regardlessofwhetherprequalificationisrequiredornot.Therequirementstoperformthespecificworkclassificationsareasfollows:

1. PrimaryPrequalificationClassification:

Theprimeconsultant/vendormustbeprequalifiedinallprimaryprequalificationclassificationsidentifiedontheRFP.Theymay,however,subcontractoutworkidentifiedundertheprimaryprequalificationclassification(s)toanotherprequalifiedconsultant/vendor.





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2. SecondaryPrequalificationClassification:

Theprimeconsultantisnotrequiredtobeprequalifiedinthesecondaryprequalificationclassification(s)identifiedontheRFP.Thework,however,mustbeperformedbyaprequalifiedconsultant/vendor,whichmaybeeithertheprimeconsultant/vendororasubconsultant/vendor.

Inallcases,theprimeconsultantmustperformatleast40percentoftheservices,bydollarvalue,unlessotherwisespecifiedintheRFP.Inallcases,tieronesubconsultant(s)mustperformatleast50percentoftheservices,bydollarvalueoftheirsubcontract,unlessotherwisespecifiedintheRFP.

Consultantsarenotpermittedtojointventureforthepurposeofprequalificationorforthepurposeofsubmittingprojectproposals.Asstatedabove,sub-consultingispermittedaslongasthesub-consultantisprequalifiedtoperformtheintendedservicesandthesub-consultantworkdoesnotexceedthepreviouslyspecifiedper-centage of the total dollar amount of the contract.

Consultantsmaynotsharekeystaffemployeeswithothercompaniesforthepurposesofobtainingprequali-fication.Thekeystaffincludedinsubmittedapplicationsmustbeemployeesofyourfirmandcannotbeusedbyanotherfirmforprequalificationpurposes.

Software/equipmentmustbeowned/leasedbythecompanyapplyingforprequalificationandkeystaffmustbetrainedinitsuse.Sharedresources/equipmentwillnotbeconsideredforprequalificationpurposes.

Goal-Setting Procedure for Consultant ContractsStep 1: The Contract Services Division’s scoping engineer (or designee) will review scope and contact the

projectmanagertoensurethescope,includingtheprequalificationcategories,accuratelydepictthework that is required for the project.

Step 2: Coupled with input from the project manager and the scope of work, the scoping engineer will place apreliminaryDBEpercentageonthescope.

Step3: Oncethepreliminarypercentagehasbeendetermined,thescopingengineer(ordesignee)willfor-ward the scope to an OBD representative to solicit approval from the Contract Selection Team (CST). DuringthecourseofCST’sreview,ifanyquestionsand/orcommentsrequirearesponse,itwillbebroughtforthbytheOBDrepresentativeandsharedwiththescopingengineertorespond.

Step4: Onceconcurrencehasbeenachieved,theOBDrepresentativewillnotifythescopingengineer(ordesignee)oftheapprovalandCSDwillpostthescopeforadvertisementonitsregularpostingday.Giventheprogramdeliverydemands,theDBEcontractgoal-settingprocesswillbecompletedwithinonetothreedays.

ConsultantDBEgoalswillbemaintainedintheconsultantdatabase.CSThastheauthority,withtheadvise-mentoftheaffectedregionengineer/bureaudirector,thechiefoperationsofficer,theBureauofFinanceandAdministrationdirector,andtheDBEliaisonofficertoremoveaprojectfromadvertisingifvalidreasonsexistregarding the DBE goal.



Note: Some service contracts may not have a DBE goal set due to several factors, including but not limited to:

• Contracttype(i.e.,asneededcontracts,railprojects)

• NoDBEsavailableintheworkclassifications

• Limitedsubcontractingopportunity

GFE applications information and timelines are outlined in the GFE section of this document.



L. DBE CONTRACTING OPPORTUNITIESOutside of MDOT, there are additional agencies and departments that offer contracting opportuni-tiesthat,basedonthetypesoffederalfundingreceived,aresubjecttoDBEprogramrequirements.

These different areas offer comprehensive, equitable and accessible transportation services to meet the personal, industrial and economic needs of Michigan citizens. The bulk of funding for thesenon-traditionalareasispassedonto localagencygranteesandtransportationprovidersthroughout the state. This means that most opportunities for DBEs are in direct contracts with these individual providers and grantees, including more than 100 local bus transit agencies and airports. Local transportation providers purchase a variety of goods and services,whichmayincludefuelsandlubricants,insurancecoverage,fringebenefitcoverage,professionalandtech-nical services, data processing services, tires and vehicle parts, custodial services, trash removal, securityservices,officesupplies,andmiscellaneousmaterials.

Visit www.michigan.gov/mucp, “News and Events” to access the resources listed below.Additional opportunities will be added as available.

(MITN) The Michigan bid system TheMichiganbidsystemprovidesawayforlocalgovernmentagenciesinMichigantomoreeffectively notify vendors of RFP and bid opportunities, while using shared resources to increaseefficiencyandreducecosts.Theprocurementsolutiondeliverssupplierscentralizedonline location to view and receive Michigan RFPs and bid opportunities from more than 100 Michigan local government agencies. See www.mitn.info for more information.

(BuyforMichigan)DepartmentofTechnology,ManagementandBudgetThe State of Michigan procurement contracts can be found at www.Buy4Michigan.com. This site also offer additional information and resources for contractors.

MDOT’sPureMichiganBywaysProgramFrom shore to shore, from border to border, across Michigan, communities large and small arejoiningtogethertodrivehometheirheritage.They’represervingMichigan’suniquerec-reational, scenic and historic cultural treasures, knitted together through a common thread: roads.They’reencouragingtravelerstoslowdown,taketheroadslesstraveled,anddiscoverthetruebeauty,wonderandtraditionsthatareuniquelyMichigan.

DNR nonmotorized trails ThepurposeoftheMichiganTrailsAdvisoryCouncil(MTAC)istoadvisethedirectoroftheDNR and the governor on the creation, development, operation, and maintenance of mo-torized and nonmotorized trails in the state, including but not limited to snowmobile, biking, equestrian, hiking, off-road vehicle, and skiing trails. See above link for more information.


http://www.mitn.info

http://www.Buy4Michigan.com



MDOT’s Aeronautics advertisements for projects Federal civil rights regulations require air carrier airport sponsors to develop a DBE program. Airports that have established programs can be found in the above link through www.michigan.gov/mucp.

FTA transit opportunities The above link will provide FTA opportunities though www.michigan.gov/mucp.

Note about transit vehicle manufacturers: Each transit vehicle manufacturer that is bidding on transit vehicle procurementsfundedbyFTAmustcertifywithMDOTitscompliancewiththerequirementsof49CFR§26.49(b) special provision for transit vehicle manufacturers.





M. DBE SUPPORTIVE SERVICESMDOT offers a number of business development and assistance services forMDOT-certifiedDBEs in accordance with the Supportive Services provisions of 49 CFR Part 26. These services include but are not limited to:

• Workshops and conferences

• MDOTandindustry-sponsoredseminarsandtrainingsessions

• Networking and technical assistance sessions

• Educational/Training reimbursements

• Consultant services

• Professional association membership assistance

• Subscription services assistance

MDOTiscommittedtothesuccessofDBEs.Inanefforttofurtherthefederalregulatorygoalof“levelingtheplayingfield”betweenlargeconstructioncompaniesandtheirsmallercounterparts,OBD has developed a training curriculum. Courses are designed to provide participants with an in-depth understanding of MDOT’s contracting processes and requirements. Participants in training courses will be provided with detailed information, including but not limited to:

• Ensuringpayrollsarecompletedcorrectlyandinatimelymanner,

• AdheringtofederallymandatedCUFguidelines,

• Tracking work quantities completed on construction contracts using FieldManager softwaretoreviewInspector’sDailyReports,

• Identifyingcontract-specificrequirementsinproposalsandonMDOT’swebsite,and

• Understanding supportive services provided.

Please contact the MDOT DBE program toll-free at 866-DBE-1264 for a current list of available services.



DBE Basic Training CurriculumTohelpasmanyDBEsaspossibleinsuccessfullynavigatingMDOTprojects,OBDhasdevelopedatrainingcurriculum. Courses described below are designed to provide participants with an in-depth understanding of MDOT’scontractingprocessesand requirements.WhileOBDsponsorsmany trainingsessions, therearethree core courses all DBEs should take:

1. DBE Orientation

2. WageandLaborCompliance/PayrollPreparation

3. Construction Bid Preparation

It isentirelyuptoeachfirmtodeterminewhentoparticipateinaspecificcourse;however,DBEfirmsarerequiredtotakeDBEorientationandarestronglyencouragedtocompletetheentirecorecurriculumpriortobeginningworkontheirfirstMDOTproject.

DBE ORIENTATIONThis course is the foundation upon which the entire curriculum is based. Through participation in this class, attendees will gain an understanding of the overall purpose of the DBE program and how it functions. Infor-mation covered includes:

• An overview of MDOT’s contracting process

• Benefitsofcertification

• Requirementsformaintainingcertification

• Understanding GFEs

• Understanding CUF

• Title VI

• DBE Supportive Services

WAGE AND LABOR COMPLIANCE/PAYROLL PREPARATIONThis course is designed to promote understanding of state and federal payroll requirements. Knowledgeofproperwageandfringebenefitsstandardsarecritical toaccuratebidsubmissions, receivingpaymentsfor completed work and overall job performance. Objectives for this course include an understanding of the following:

• Prevailing Wage Components

• Overtime

• Contract Documents

• CertifiedPayrolls

• Wage Decisions



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• Trucking Wage Requirements

• Wage Rate Interviews

CONSTRUCTION BID PREPARATIONMDOT projects have a number of requirements that differ from those associated with commercial construction. Thiscourseprovideshands-ontrainingtoassistcontractorsinidentifyinginformationcrucialtosuccessfulbidpreparation. Course content includes:

• Reading Plans and Proposals

• StandardSpecificationBookOverview

• Researching Items of Work

• Finding Contracts

• Material Source Guide

• Eligible Bid Listings

• Contract Inquiries

• Searching MDOT Forum

Business Development Program (BDP)The purpose of aBDP is to evaluate and provide a structured process forDBEs to receive firm-specifictrainingandguidancetobecompetitivewithin theheavyhighwayorotherconstructionmarketplace.DBEprogramregulationsfoundin49CFR§26.35giveFHWAtheauthoritytodirectstateDOTstoestablishaDBEBDPtoassistfirmsingainingtheabilitytocompetesuccessfully inthemarketplace.TheparametersofaBDP are set out in detail in 49 CFR Part 26, Appendix C. Highlights of the information in this appendix include:

• Each DBE participating in the program is subject to a program term that should consist of a develop-mental stage and a transitional stage. The developmental stage is designed to provide assistance for theDBEtoaccessrelevantmarketsandstrengthenitsfinancialandmanagerialskills.Thetransitionalstage is designed to assist participants to prepare for leaving the program.

• EachDBEparticipatingintheprogramwillbeassignedtoacontractedconsultanttoidentifyandassistwith areas for process improvement such as estimating, proposal submissions, project management, cashflowmanagement,andotherareasasneeded.



DBE Construction Engineers and TechniciansMDOThasassignedconstructionengineersandtechniciansbyregiontoassistDBEcompaniesbiddingorworking on construction contracts. Technical assistance is provided to DBEs in several different areas. The following are examples:

1. Interpretationofplans,proposals,specialprovisions,andspecifications.

2. Networking and technical assistance sessions.

3. Workshops on plan reading, concrete pavement, bituminous pavement, bridge construction, project docu-mentation,claimprocedures,forceaccounts,payrollrequirements,drainageandwatermain,maintainingtraffic,mockletting,andotherconstruction-relatedareas.

4. Project site investigation prior to bidding the project.

5. Preconstruction meetings.

6. Paymentissues.

7. Information source of materials and equipment.

8. Sub-letting,biddocuments,bonds,affidavits,andinsurancerequirements.

9. Solving construction-related problems from start to the completion of the project.

10. Disputed claims.

11. Liaison between DBEs, local agencies and the department.

A current list of DBE technicians is available at www.michigan.gov/mdotdbe under the heading “Construction TechContacts.”



N. DEFINITIONS AND ACRONYMSForthepurposeofMDOT’sDBEprogram,thefollowingdefinitionsandacronymswillapply.

AASHTO - American Association of State Highway and Transportation Officials AASHTO is a nonprofit, nonpartisan association representing highway and transportation

departmentsinthe50states,theDistrictofColumbia,andPuertoRico.Itrepresentsallfivetransportationmodes:air,highways,publictransportation,rail,andwater.Itsprimarygoalistofoster the development, operation, and maintenance of an integrated national transportation system.

Affiliation MDOTusesthesamedefinitionas is included in theSmallBusinessAdministration(SBA)

regulations, 13 CFR part 121. (1)Exceptasotherwiseprovidedin13CFRPart121,concernsareaffiliatesofeachother

when,eitherdirectlyorindirectly: (i) One concern controls or has the power to control the other; or (ii) Athirdpartyorpartiescontrolsorhasthepowertocontrolboth;or (iii)An identityof interestbetweenoramongpartiesexistssuch thataffiliationmaybe

found. (2)Indeterminingwhetheraffiliationexists,itisnecessarytoconsiderallappropriatefactors,

including common ownership, common management, and contractual relationships. Affiliatesmustbeconsideredtogetherindeterminingwhetheraconcernmeetssmallbusiness sizecriteriaandthestatutorycapontheparticipationoffirmsintheDBEprogram.

Alaska Native A citizen of the United States who is a person of one-fourth degree or more Alaskan Indian

(includingTsimshianIndiansnotenrolledintheMetlaktlaIndianCommunity),Eskimo,orAleutblood, or a combination of those bloodlines. The term includes, in the absence of proof of a minimumbloodquantum,anycitizenwhomanativevillageornativegroup regardsasanAlaska Native if their father or mother is regarded as an Alaska Native.

Alaska Native Corporation (ANC) Anyregionalcorporation,villagecorporation,urbancorporation,orgroupcorporationorga-

nized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act, as amended (43 U.S.C. 1601, et seq.).

Appeals Arequestbyacorporation,partnershipor jointventuredeniedDBEcertificationbyMDOT,

for future review,byacertificationassistance representative (CAR) teammember(s),orarequestforareviewbytheUSDOTpursuanttotheprovisionsof49CFR§26.89.



Applicant Any corporation, partnership, sole proprietorship, or joint venture applying for certification or

recertification.

Assets Allthepropertyofapersonavailableforpayingdebtsorfordistribution,includingone’srespectiveshare

ofjointlyheldassets.Thisincludesbutisnotlimitedtocashonhandandinbanks,savingsaccounts,IRA or other retirement accounts, accounts receivable, life insurance, stocks and bonds, real estate, and personalproperty.

Business, business concern or business enterprise AnentityorganizedforprofitwithaplaceofbusinesslocatedintheUnitedStatesandoperatesprimarily

withintheUnitedStatesormakesasignificantcontributiontotheUnitedStateseconomythroughpay-ment of taxes or use of American products, materials or labor.

Bid Letting MDOT advertises and accepts bids to perform as a prime contractor on individual construction projects

onamonthlybasis.Thedatebidsmustbesubmittedisthebidletting,orsimply“letting”date.Aftereachletting,MDOTusesseveraltermstodescribebidssubmittedbyeachvendor:• “AsSubmitted”–thedollarvalueofeachbidassubmittedbyeachvendor,beforethebidischecked

for errors.• “AsChecked”–thedollarvalueofeachbidsubmittedafterthebidhasbeencheckedforerrors.• “BidTabulations”–disclosewhateachbidderbidoneachlineitem.

BOHIM - Bureau of Highways Instructional Memorandum An instructionalmemos (IM) isamechanismusedby theBureauofHighways toprovide information

on and/or changeMDOT procedures and processes. IMs are used by the bureau, consultants, localgovernmentagencies,andcontractors.ItemsareplacedinthisdirectoryonlyaftertheyareapprovedbyMDOT.Signedcopiesareavailableuponrequest.PleasecontactMaryNurenbergatnurenbergm@michigan.govor517-322-5667ifyouhaveanyquestions.

Broker Seedefinitionof“SupplierDBECreditTypes”

CFR Code of Federal Regulations

Contingent Liability Aliabilitythatdependsontheoccurrenceofafutureanduncertainevent.Thisincludesbutisnotlimitedto

guarantyfordebtsowedbytheapplicantconcern,legalclaimsandjudgments,andprovisionsforfederalincome tax.





70

Contract Selection Team (CST) The MDOT team that recommends DBE participation goals assigned to individual projects.

Contract Alegallybindingrelationshipobligatingasellertofurnishsuppliesorservices(including,butnotlimited

to,constructionandprofessionalservices)andthebuyertopayforthem.Forpurposesof49CFRPart26, a lease is considered to be a contract.

Contractor Onewhoparticipates,throughacontractorsubcontract(atanytier),inaDOT-assistedhighway,transit,

or airport program.

Contract Services Division (CSD) The CSD administers MDOT’s contracting processes, including bid lettings, contract awards, contractor

payments,prequalificationofcontractorstobidonMDOTprojects,contractmonitoring,andpurchasing.

Days Daysmeancalendardays.Incomputinganyperiodoftimedescribedinthispart,thedayfromwhichthe

periodbeginstorunisnotcounted,andwhenthelastdayoftheperiodisaSaturday,Sunday,orfederalholiday,theperiodextendstothenextdaythatisnotaSaturday,Sunday,orfederalholiday.Similarly,incircumstanceswheretherecipient’sofficesareclosedforallorpartofthelastday,theperiodextendstothenextdayonwhichtheagencyisopen.

Design-Build Project (DB) DBisadeliverymethodwhereboththefinaldesignandconstructionofaprojectarecontractedwitha

singleentityunderonecontract.

Disadvantaged Business Enterprise (DBE) ADBEisafor-profitsmallbusinessconcern— (1)Thatisatleast51percentownedbyoneormoreindividualswhoarebothsociallyandeconomically

disadvantagedor,inthecaseofacorporation,inwhich51percentofthestockisownedbyoneor more such individuals; and

(2)Whosemanagementanddailybusinessoperationsarecontrolledbyoneormoreofthesociallyand economicallydisadvantagedindividualswhoownit.



DBE Administrator The designated person responsible for administering MDOT’s DBE program. MDOT has designated

Lisa S. Thompson as the DBE administrator: Lisa S. Thompson, Administrator OfficeofBusinessDevelopment(OBD) 425 West Ottawa St. P.O. Box 30050 Lansing, MI 48909 E-mail: [email protected] or [email protected] Toll-free: 866-323-1264 Fax: 517-335-6859

DBE Liaison Officer (DBELO) The DBELO is responsible for implementing all aspects of the DBE program and ensuring that MDOT

complieswithallprovisionsof49CFRPart26.MDOT’sdesignatedDBELOisChiefOperationsOfficerMark A. Van Port Fleet, P.E.:

MarkA.VanPortFleet,P.E.,ChiefOperationsOfficer Michigan Department of Transportation 425 West Ottawa St. P.O. Box 30050 Lansing, MI 48909 E-mailaddress:[email protected] Phone: 517-373-4656 Toll-free: 866-323-1264 Fax: 517-335-6859

DOT The U.S. Department of Transportation, including the Office of the Secretary, the Federal Highway

Administration (FHWA), the Federal Transit Administration (FTA), and the Federal Aviation Administration (FAA).

DOT-assisted Contract Anycontractbetweenarecipientandacontractor(atanytier)fundedinwholeorinpartwithDOTfinancial

assistance,includinglettersofcreditorloanguarantees,exceptacontractsolelyforthepurchaseofland.

FAA The Federal Aviation Administration

FHWA TheFederalHighwayAdministration



72

Field Monitoring A jobsite reviewofDBEfirmsundercontract toparticipateonaproject funded insomemeasureby

federal funds.

FOIA Freedom of Information Act

FTA The Federal Transit Administration

Good Faith Efforts (GFE) Documented efforts to achieve a DBE goal or other contractual requirement related to the DBE program.

Home State ThestateinwhichaDBEfirmorapplicantforDBEcertificationmaintainsitsprincipalplaceofbusiness.

Immediate Family Member The father, mother, husband, wife, son, daughter, brother, sister, grandfather, grandmother, father-in-law,

mother-in-law, sister-in-law, brother-in-law, and domestic partner and civil unions recognized under state law.

Indian Tribe Any Indian tribe,band,nation,orotherorganizedgrouporcommunityof Indians, includinganyANC,

whichisrecognizedaseligibleforthespecialprogramsandservicesprovidedbytheUnitedStatestoIndiansbecauseoftheirstatusasIndians,orisrecognizedassuchbythestateinwhichthetribe,band,nation,group,orcommunityresides.Seedefinitionof“triballyownedconcern”inthissection.

Joint Venture AnassociationofaDBEfirmandoneormoreotherfirmstocarryoutasingle,for-profitbusinessenter-

prise,forwhichthepartiescombinetheirproperty,capital,efforts,skillsandknowledge,andinwhichtheDBEisresponsibleforadistinct,clearlydefinedportionoftheworkofthecontractandwhoseshareinthecapitalcontribution,control,management,risks,andprofitsofthejointventurearecommensuratewithitsownership interest.

Liabilities Financialorpecuniaryobligations.Thisincludesbutisnotlimitedtoaccountspayable,notespayableto

bank or others, installment accounts, mortgages on real estate, and unpaid taxes.

Manufacturer SeedefinitionofSupplierDBECreditTypes.

MAP-21 MovingAheadforProgressinthe21stCenturyAct



Mentor/Protégé Anarrangementestablishedbetweentwoormorebusinesseswherespecifiedtrainingisprovidedtothe

lessexperiencedbusinessowner(s)/protégébyanother,moreexperiencedbusinessowner(s)/mentor.

MDOT The Michigan Department of Transportation

MUCP MichiganUnifiedCertificationProgram

MUCP’s Memorandum of Understanding (MOU) TheMUCP’sMOUbetweenMUCPpartnersstreamliningcertificationproceduresforparticipationinthe

SBA and DBE programs for small and disadvantaged businesses.

NAICS NorthAmericanIndustryClassificationSystem–seePrimaryIndustryClassificationdefinition.

Native Hawaiian Anyindividualwhoseancestorswerenatives,priorto1778,oftheareathatnowcomprisesthestateof

Hawaii.

Native Hawaiian Organization AnycommunityserviceorganizationservingNativeHawaiiansinthestateofHawaiithatisanot-for-profit

organizationcharteredbytheStateofHawaii, iscontrolledbyNativeHawaiians,andwhosebusinessactivitieswillprincipallybenefitsuchNativeHawaiians.

OBD TheMDOTOfficeofBusinessDevelopment

OJT The On-the-Job Training Program

Operating Administration (OA) Anyof thefollowingpartsof theUSDOT:theFederalAviationAdministration(FAA),FederalHighway

Administration (FHWA) and Federal TransitAdministration (FTA). The “administrator” of an operatingadministration includes his or her designees.

On-site Review Aninvestigationisconductedattheapplicant’sprincipalplaceofbusinesstodeterminetheeligibilityofa

corporation, sole partnership or joint venture that has applied for DBE status.

Orientation AsessionsponsoredbyMDOTthatisdesignedtofamiliarizenewlycertifiedDBEfirmswithDBEprogram

objectives, procedures, regulations, and supportive services.



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Personal Net Worth (PNW) The net value of the assets of an individual remaining after total liabilities are deducted. An individual’s

personal net worth does not include: the individual’s ownership interest in an applicant or participating DBEfirmortheindividual’sequityinhisorherprimaryplaceofresidence.Anindividual’spersonalnetworthincludesonlyhisorherownshareofassetsheldjointlyorascommunitypropertywiththeindivid-ual’s spouse.

Prequalification Prequalificationisanapplicationprocessusedtodetermineworkclassificationsavendormayperform

inprequalification-requiredconstructionorconsultingworkandthemaximumcontractamountavendormayperformforMDOT.PrequalificationandDBEcertificationarenotthesame.ConstructionandserviceprequalificationapplicationsandrelatedinformationarelinkedtotheMDOT“DoingBusiness”websiteatwww.michigan.gov/mdot,underthe“HowTo”section.

Primary Industry Classification MDOTusesthemostcurrentNorthAmerican IndustryClassificationSystem(NAICS)designation that

bestdescribestheprimarybusinessofafirm.TheNAICSisdescribedintheNorthAmericanIndustryClassificationManual—UnitedStates,availableonlineattheU.S.CensusBureauwebsite:http://www.census.gov/eos/www/naics/.

Primary Recipient ArecipientwhoreceivesDOTfinancialassistanceandpassessomeorallofitontoanotherrecipient.

Principal Place of Business Thebusinesslocationwheretheindividualswhomanagethefirm’sday-to-dayoperationsspendmost

workinghours.Iftheofficesfromwhichmanagementisdirectedandwherethebusinessrecordsarekeptare in different locations, the recipient will determine the principal place of business.

Race-conscious (RC) Measure/Program OnethatisfocusedspecificallyonassistingonlyDBEs.

Race-neutral (RN) Measure/Program One that is, or can be, used to assist all small businesses.

Recipient Anyentity,publicorprivate,towhichUSDOTfinancialassistanceisextended,whetherdirectlyorthrough

another recipient, through the programs of the FAA, FHWA, or FTA, or who has applied for such assistance.

Regular Dealer SeedefinitionofSupplierDBECreditTypes.

Request for Proposal (RFP) Asolicitation,oftenmadethroughabiddingprocess,byanagencyorcompanyinterestedinprocurement

ofacommodity,serviceorvaluableasset,topotentialsupplierstosubmitbusinessproposals.



SAFETEA-LU Safe, Accountable, Flexible, Efficient, Transportation Equity Act: A Legacy for Users. SAFETEA-LU

authorizes implementation of the DBE program.

Small Business Administration (SBA) The United States Small Business Administration.

SBA Certified Firm Afirmthathasacurrent,validcertification fromor recognizedby theSBAunder the8(a)BDorSDB

programs.

Small Business Concern Pursuant to Section 3 of the Small Business Act and Small Business Administration regulations (13 CFR

part121):Afirmthatdoesnotexceedthecaponaverageannualgrossreceiptsspecifiedin§26.65(b)of13 CFR part 121.

Socially and Economically Disadvantaged Individual Anyindividualwhoisacitizen(or lawfullyadmittedpermanentresident)oftheUnitedStatesandwho

hasbeensubjectedtoracialorethnicprejudiceorculturalbiaswithinAmericansocietybecauseofhisorheridentityasamembersofgroupsandwithoutregardtohisorherindividualqualities.Thesocialdisadvantagemuststemfromcircumstancesbeyondtheindividual’scontrol.

(1)Anyindividualwhoarecipientfindstobeasociallyandeconomicallydisadvantagedindividualona case-by-casebasis.Anindividualmustdemonstratethatheorshehasheldhimselforherselfout,as amemberofadesignatedgroupifyourequireit.

(2)Anyindividualinthefollowinggroups,membersofwhicharereputablypresumedtobesociallyand economicallydisadvantaged:

(i) “BlackAmericans,”which includespersonshavingorigins in anyof theBlack racial groupsof Africa;

(ii) “Hispanic Americans,” which includes persons of Mexican, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race;

(iii)“NativeAmericans,”who are enrolledmembers of a federally or state-recognized Indian tribe, Alaska Natives, or Native Hawaiians;

(iv)“Asian-PacificAmericans,”whichincludespersonswhoseoriginsarefromJapan,China,Taiwan, Korea,Burma(Myanmar),Vietnam,Laos,Cambodia(Kampuchea),Thailand,Malaysia,Indonesia, thePhilippines,Brunei,Samoa,Guam,theU.S.TrustTerritoriesofthePacificIslands(Republic of Palau), Republic of the Northern Marianas Islands, Samoa, Macao, Fiji, Tonga, Kirbati, Tuvalu, Nauru, Federated States of Micronesia, or Hong Kong;

(v) “SubcontinentAsianAmericans,”whichincludespersonswhoseoriginsarefromIndia,Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal or Sri Lanka;

(vi) Women;



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(vii)Anyadditionalgroupswhosemembersaredesignatedassociallyandeconomicallydisadvantaged bytheSBA,atsuchtimeastheSBAdesignationbecomeseffective.

(3)Being born in a particular country does not, standing alone,mean that a person is necessarily a memberofoneofthegroupslistedinthisdefinition.

Spouse A married person, including a person in a domestic partnership or a civil union recognized under state law.

STC Michigan State Transportation Commission

Supplier DBE Credit Types DBEsupplycreditcanbecountedtowardDBEgoalsasamanufacturer,regulardealerorbrokerona

contract-by-contractbasis,asprovidedinthefollowing: Amanufactureroperatesormaintainsa factoryorestablishment thatproduces,on thepremises, the

materials, supplies,articlesorequipment requiredasspecifiedunder thecontractandof thegeneralcharacterdescribedbythespecifications.• If the materials or supplies are obtained from a DBE acting as a manufacturer, 100 percent of the cost

of the materials or supplies count toward DBE goals.

A regular dealer owns, operates, or maintains a store, warehouse, or other establishment where the materials,supplies,articles,orequipmentofthegeneralcharacterdescribedbythespecificationsandrequiredunderthecontractarebought,keptinstock,andregularlysoldorleasedtothepublicintheusualcourse of business. • Tobearegulardealer,thefirmmustbeanestablished,regularbusinessthatengages,asitsprincipal

business and under its own name, in the purchase and sale or lease of the products in question.

• Apersonmaybearegulardealerinsuchbulkitemsaspetroleumproducts,steel,cement,gravel,stone, or asphalt without owning, operating, or maintaining a place of business as described above ifthepersonbothownsandoperatesdistributionequipmentfortheproducts.Anysupplementingofregulardealers’owndistributionequipmentshallbebyalong-termleaseagreementandnotonanadhocorcontract-by-contractbasis.

• Packagers, brokers, manufacturers’ representatives, or other persons who arrange or expedite trans-actions are not regular dealers.

• If the materials or supplies are purchased from a DBE acting as a regular dealer, 60 percent of the cost of the materials or supplies count toward DBE goals.

A broker, with respect to materials or supplies purchased from a DBE that is neither a manufacturer nor a regular dealer can count toward DBE goals the entire amount of fees or commissions charged for assis-tanceintheprocurementofthematerialsandsupplies,orfeesortransportationchargesforthedeliveryof materials or supplies required on a job site, provided MDOT determines the fees to be reasonable and notexcessiveascomparedwithfeescustomarilyallowedforsimilarservices.However,anyportionofthecost of the materials and supplies themselves do not count toward DBE goals.



TEA-21 TransportationEquityActforthe21stCentury

Transit vehicle manufacturer Anymanufacturerwhoseprimarybusinesspurposeistomanufacturevehiclesspecificallybuiltforpublic

mass transportation.Suchvehicles includebutarenot limited tobuses, railcars, trolleys, ferries,andvehiclesmanufacturedspecificallyforparatransitpurposes.Producersofvehiclesthatreceivepost-pro-ductionalterationsorretrofittingtobeusedforpublic transportationpurposes(e.g.,so-calledcutawayvehicles, vans customized for service for people with disabilities) are also considered transit vehicle manufacturers.Businesses thatmanufacture,mass-produce,ordistribute vehicles solely forpersonaluseandforsale“offthelot”arenotconsideredtransitvehiclemanufacturers.

Tribally owned concern Anyconcernthatisatleast51percentownedbyanAmericanIndiantribe.

Trns●port™ MDOT’s construction management software, licensed through AASHTO. MDOT uses the following

Trns●portmodules:• CAS:ConstructionAdministrationSystem

• LAS:LettingandAwardSystem

• PES:PreliminaryEngineeringSystem

U.S.C. United States Code

US DOT The United States Department of Transportation

Vendor A business that works under contract or through the use of a purchase order as a prime contractor or con-

sultant, subcontractor or subconsultant; supplier, trucker, or other service supplier; or a dealer, distributor, merchant,orothersellerwhopromotesorexchangesgoodsorservicesformoney.



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ATTACHMENT AAssurances that Recipients and Contractors Must Make

(ExcerptsfromUSDOTRegulation49CFR§26.13)

A. EachfinancialassistanceagreementsignedwithaDOT-operatingadministration(oraprimaryrecipient)must include the following assurance:

The recipient shall not discriminate on the basis of race, color, national origin, or sex in the award and performanceofanyDOT-assistedcontractorintheadministrationofitsDBEprogramortherequirementsof49CFRPart26.Therecipientshalltakeallnecessaryandreasonablestepsunder49CFRPart26to ensure nondiscrimination in the award and administration of DOT-assisted contracts. The recipient’s DBEprogram,asrequiredby49CFRPart26andasapprovedbyDOT,isincorporatedbyreferenceinthisagreement.Implementationofthisprogramisalegalobligationandfailuretocarryoutitstermsshallbetreatedasaviolationofthisagreement.Uponnotificationtotherecipientofitsfailuretocarryoutitsapprovedprogram, theDepartmentmay imposesanctionsasprovided forunderPart26andmay, inappropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).

B. Each contract MDOT signs with a contractor (and each subcontract the prime contractor signs with a subcontractor) must include the following assurance:

The contractor, sub recipient or subcontractor shall not discriminate on the basis of race, color, national origin,orsexintheperformanceofthiscontract.Thecontractorshallcarryoutapplicablerequirementsof49CFRPart26intheawardandadministrationofUSDOT-assistedcontracts.Failurebythecontractortocarryouttheserequirementsisamaterialbreachofthiscontract,whichmayresultintheterminationofthiscontractorsuchotherremedyastherecipientdeemsappropriate,whichmayinclude,butisnotlimited to:

(1)Withholdingmonthlyprogresspayments;

(2) Assessing sanctions;

(3) Liquidated damages; and/or

(4)Disqualifyingthecontractorfromfuturebiddingasnon-responsible.

.



ATTACHMENT BMentor/Protégé Disadvantaged Business Enterprise (DBE) Development Program

IntroductionManyofthenow-recognizedleadingfirmsinthetransportationindustrystartedtheirbusinessexperiencebydeveloping special relationships with engineers, successful contractors, suppliers and others. As a result, a mentor/protégérelationshipdevelopedwhenthearrangementsweremutuallybeneficial.Thementor/protégéconcept isnotanewcomertothebusinessworld; it issimplyarelationshiprespondingtoaspecialneed.SuchaneedexistsinthetransportationindustryofMichiganandMDOTwillmeettheneedthroughaprogramwith that expressed purpose.

PurposeThepurposeofthementor/protégéprogramistoprovideDBEfirmswithadvice,assistance,and/ortraining.ThisconceptisanoptionalapproachavailabletoassistMDOTandthetransportationcontractorsincomply-ingwiththerequirementsof49CFRPart26.ItoffersanopportunitytogaininformationandexperienceinaproductiveworksituationforestablishedDBEsneedingtrainingandassistance.Italsooffersanopportunityto expand DBE contracting.

Scope of Program MDOT will establish and implement a Mentor/Protégé Development Program within the approval guidelines setforthbyFHWA.Suchanimplementedprogramcancreaterelationshipsthatcomplywiththerequirementsof49CFRPart26.TheserelationshipswillbeofbenefittoDBEsbyenhancingtheircapabilitiesacrossmanyareasofthetransportationindustry.ItmustbenotedthattheMentor/ProtégéDevelopmentProgramisnotintended to diminish or circumvent existing DBE rules or regulations, but rather to increase legitimate DBE activities.Abuseoftheseprogramguidelinesmaybeusedasthebasisforactionsagainstthementorand/orthe protégé, including suspension or debarment from the transportation program.

Eligibility1. TheDBEfirmmusthavebeencertifiedwithMDOTforaminimumofoneyearduringtheprecedinglast

fiveyears.ThefirmmusthaveengagedinMDOTcontractsduringthisperiod.

2. DBEswhomeetthecertificationrequirementsof49CFRPart26areeligibleforparticipationinamentor/protégéarrangement.MDOTmaygrantapprovalofamentor/protégéagreementduringthetimeofitsapprovaloftheDBEapplicationforrecertification.

3. Inallcases,theDBEfirmmustbeanindependentcompanyandtheownershipbythedisadvantagedindividual(s)mustbeincompliancewith49CFRPart26.Thisdoesnotprecludeotheremploymentand/orbusiness interestby theDBEfirmowners,providedsuchemploymentorbusiness interestsdonotconflictwiththepowerofthedisadvantagedownertodirectorcausethedirectionofthemanagementand



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policiesoftheDBEfirmtomaketheday-to-day,aswellasmajor,decisionsonmattersormanagement,policyandoperations(see49CFR§26.61EligibilityStandards.)

4. TheDBE firmmustmeetMDOT prequalification requirements, aswell as all other state and federalrequirements for bidding on an MDOT project.

Arrangements/Agreements 1. MDOT recognizes that some mentors have the resources to train more than one protégé at time. MDOT

willcarefullyreviewthosementorsseekingtocarrymorethanoneprotégéand/orthoseDBEfirmsseek-ingtoworkwithmorethanonementoratatimeandwilllimitthemtoamaximumoftwoprotégésatanygiven time.

2.Amentor/protégéarrangementwill beevidencedbyawell-formatteddevelopmentplandevelopedbybothpartiesandapprovedbyMDOT(seeGuidelinesforDevelopmentPlans).

3. MDOTwilllimitmentor/protégéagreementstotwoyearsorforthedurationofaspecifiedprojectorseriesofprojectswithinaperiodthatmayexceedtwoyears.

4. Attheendofeachmonth,thementorandprotégémustsubmittoMDOT,within20calendardays,acom-bineddetailedsummaryofthetypesoftrainingprovided.Thesummaryshouldincludeabriefnarrativeonthehoursandareasofinvolvementsuchasmanagerial,technical,financial,bondingandinsurance.

5. Theprotégé,fromitsnetprofitoneachcontract,shouldcompensatethementorfortrainingcosts.

6. Thereareseveraltypesofarrangementswhichamentormightprovidetoaprotégéfirm.Theseinclude:

A. Technical and Management Assistance

Asuccessfulmentorcanprovidevaluable training in the technicalaspectsofoperatingahighwayconstruction,material supply, engineering, or other transportation-related business to aDBE firm,whichmaybe relatively inexperienced. Inaddition, thementoralsocanprovideadviceonprojectmanagementand,inparticular,maketheDBEawareoftechniqueswhichmayimproveproductivityandcompetitiveness.Otherareaswheretrainingmaybeofbenefitareinplaninterpretation,estimat-ing and cost-accounting methods. In each of these areas; however, the DBE contractor must retain thefinaldecision-makingresponsibility.

B. Equipment Rental and Use of Personnel

ADBEcontractormayneed to leaseequipmentoraugment thework forcewithadditional skilledpersonnelinordertoperformcertainwork.ItmayworktothemutualbenefitofthementorandtheDBE protégé to arrange for the needed equipment through leasing agreements. Likewise, in limited instances,thementormayprovidepersonnel(withspecializedexperience)totheDBEprotégé,pro-videdtheworkerisunderthedirectsupervisionoftheDBEfirmfortheperformanceoftheparticularcontract work.

Under such a relationship, the mentor should provide not more than a small portion of the person-nelneededbytheDBE.ContinualorrepetitiveusebyaDBEsubcontractorofpersonnelprimarilyemployedbythementorwillbeconstruedasanattempttoartificiallyinflateDBEparticipation.The



extent of the condition under which the DBE utilized personnel or equipment of the mentor should be specificallyoutlinedinthedevelopmentplan.

C. Bonding

In the long-term, it is desirable for the DBEs to bond jobs on their own in order to establish a rela-tionshipandtrackrecordwithasuretycompany.TheDBEwilleventuallyneedtoobtainbondingonitsownif itanticipatesworkinginhighwaycontactingasaprimecontractorafteramentor/protégérelationshipisdissolved.Thisnotwithstanding,thereareatleasttwowaysinwhichaprimecontractorcommonlyassistssubcontractorswithbonding.Inmanyinstances,theprimecontractorwillbondtheentire job and will, in turn, charge his subcontractors their prorated share of the bond cost. In other instances,theprimecontractormaybondtheentirejoband“carry”itssubcontractors,absorbingthecostofthebonditself.EitheroftheseinstancesmaybeapplicabletoaprimecontractorandaDBEsubcontractor relationship.

Thementor/protégéexamplesdiscussedherearenotmeanttobedefinitive.Othermethodsofencouragingandsupportingtheprogrammaybeallowableundertheregulations.Contractorsorassociationswithpro-posed innovative ideas and programs should bring them to the attention of MDOT.

Special Concerns 1. Exclusive Arrangements

Whilestatestatutesmayvarysomewhat, federalantitrust statutesareconcernedwithcontractingar-rangementswhichmaylimitcompetition.Anareaofspecialconcernisexclusivearrangements.Arela-tionshipinwhichamentorrequiresaprotégétohaveanexclusivebiddingagreementmayviolatefederallaws with respect to limiting competition. During the course of the relationship, the protégé must have the latitudetoquotebidstootherfirmsoutsidethementor/protégéagreement.Anydefactoexclusivitythatmayoccurintheinitialstagesoftherelationship,becausetheprotégéisnewandinexperiencedandlessmarketable,isnotconstruedasanagreementbythepartiestoanexclusivebiddingarrangement

2. Brokering

TheutilizationofaDBEfirmasapassiveconduitservingnoCUFwillbefoundtotallyunacceptable.Thiswould prohibit the protégé from maintaining the required control and participation in the agreement and would be considered brokering.

AfirmisconsideredtoperformaCUFwhenitisresponsibleforexecutionofadistinctelementoftheworkofthecontractandcarryingoutitsresponsibilitybyactuallyperforming,managing,andsupervisingtheworkinvolved.Thiswillbemonitoredbythementor.

Guidelines for Development Plans All mentor/protégé arrangements will be evidenced by a written development plan, approved by MDOT. The following should be considered in the preparation of the development plan:

1. Thedevelopmentplanshouldclearlysetforththeobjectivesofthepartiesandtheirrespectiveroles.



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2. The development plan should be for two years or for the duration of a specified project or series of projects within the period.

3. Thedevelopmentplanshoulddescribemeasurablebenchmarkstobereachedbytheprotégé(DBE)atsuccessive stages of the plan.

4. Thedevelopmentplanshouldincludetrainingtobeprovidedbythementortotheprotégé(DBE).Suchtrainingmayincludebutnotbelimitedto:

A. Business Planning

B. Recordkeeping

C. Technical

D. Loan Packaging

E. Financial Planning and Forecasting

F. Bonding and Insurance

G. Equipment Utilization

5. Thedevelopmentplanshouldcontainaprovisionthatthementor/protégéagreementmaybeterminatedbymutualconsentand/orbyMDOTupondeterminationthat:

A. TheprotégéfirmnolongermeetstheeligibilitystandardsforcertificationasaDBE.

B.Eitherpartyhasfailedorisunabletomeetitsobligationsunderthedevelopmentplan.

C.TheDBEisnotprogressingorisnotlikelytoprogressinaccordancewiththedevelopmentplan.

D.TheDBEhasreachedasatisfactorylevelofself-sufficiencytocompetewithoutresortingtospecialtreatment provided in the development plan.

E.Theplanorprovisionsthereofarecontrarytotherequirementsoffederal,stateand/orlocallaworregulation,orotherwiseharmfultopublicpolicy.

i. Whenthementor/protégéagreementisterminatedbyeitherparty,MDOTmustbenotifiedwithin 15daysoftheterminationdate.

ii. WhenMDOTterminatestheagreement,eitherpartymayappealthedecisiontothedepartment within10daysofthereceiptofnotification.

6. Thedevelopmentplanmayincludeaprovisionthatthearrangementmaybedissolvedbyeitherpartyforreasons other than those stated in item 5 above.

7. Copies of the development plan should be retained by all parties to the mentor/protégé agreement and MDOT.



ATTACHMENT CEXHIBIT 1-D –

Disadvantaged Business Enterprise (DBE) Special Provisions For Design-Build Projects

In addition to the requirements of the Michigan Department of Transportation Disadvantaged Business Enterpriseprogram,theDesign-BuildershallcomplywiththerequirementsofthisExhibit1-D.

TABLE OF CONTENTS A. DBE Goal and General Information ....................................................................................................................................1

B. Submittal of Documentation ...............................................................................................................................................2

C. Continuing Good Faith Efforts ............................................................................................................................................3

D. Good Faith Effort Plan ........................................................................................................................................................4

E. DBE Contracts ....................................................................................................................................................................5

DISADVANTAGED BUSINESS ENTERPRISE (DBE)Special Provisions For Design-Build Projects

A. DBE Goal and General Information The DBE goal established for this contract is of the Contract Price.

• The Design-Builder must understand and follow the requirements in this Contract and applicable regulations including, but not limited to, 49 CFR Part 26.

TheDesign-Buildermayestablishindividualcontractgoalsforeachcontract,subcontract,andeachconsultant,subconsultantandsupplyandserviceprovideragreementinamountstoensuretheover-all contract goal is met.

TheDBEgoalmaybeattainedbymeansofanapprovedDBEParticipationform0178or0182withaMichiganUnifiedCertificationProgram(MUCP)certifiedDBE.Theamountofgoalattainment isdependentontheamountactuallypaidtoDBEsforworkperformed,pertheagreement.

The Proposer shall make good faith efforts to include DBE contractors, subcontractors, consultants, subconsultants, suppliers and service providers in the Design-Build team. Furthermore, the Proposer shallalsomakeeveryreasonableefforttosubcontractworktoDBEsthroughgoodfaithnegotiationsand/orsolicitationsinadvanceofthedatespecifiedfortheopeningofbids.

InordertofulfillaDBEgoal,thefirmsutilizedasDBEsubcontractors,consultants,sub-consultants,suppliers,orserviceprovidersmustbecertifiedasDBEsbytheMUCPpriortotheawardoftheCon-tract,or theselectionofanynewsubcontractors,consultants,subconsultants,suppliersorserviceprovidersduringtheproject.RequestsforapprovalbytheMDOTOBDarerequiredbeforecontractswithDBEsareexecuted.TheMUCPDisadvantagedBusinessEnterprise(DBE)DirectorycontainsthenamesandaddressesofallfirmsthatarecertifiedtoperformthetypeofworktheProposer isintendingtosubcontract.TheMUCPDBEDirectorycanbeaccessedatthefollowingwebsite:



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www.michigan.gov/mucp FirmscertifiedbyotherlocaljurisdictionsdonotcounttowardtheDBEgoal.Iftherearequestions

concerning theMUCP certification status of a firm, theMUCP certification process or to obtain acopy of the MUCP DBE Directory, please call the MUCP Office of Business Development at (517)373-3277orvisittheOfficeon-lineatthefollowingwebsite:

http://www.michigan.gov/mdotdbe To meet federal requirements, all contractors/vendors/quoters should submit MDOT form 0168A

annuallytoMDOT.

The Design-Builder, sub recipient or subcontractor shall not discriminate on the basis of race, color, nationalorigin,orsexintheperformanceofthiscontract.TheDesign-Buildershallcarryoutapplicablerequirements of 49 CFR part 26 in the award and administration of DOT-assisted contracts. Failure bytheDesign-Buildertocarryouttheserequirementsisamaterialbreachofthiscontract,whichmayresult intheterminationofthiscontractorsuchotherremedyasMDOTdeemsappropriate,whichmayinclude,butisnotlimitedto:

(a)Withholdingmonthlyprogresspayments;

(b) Assessing sanctions;

(c) Liquidated damages; and/or

(d)Disqualifyingthecontractorfromfuturebiddingasnon-responsible.

B. Submittal of Documentation AllProposersmustprovidetheoverallDBEpercentagetheyhaveattainedatthetimeofbidwithinthe

DBEGoalfolderoftheExpeditebidfileonallprojectswithaDBEgoaldesignation.

The two lowest bidders, regardless of bid status (as checked if available, or as submitted if TBA), mustprovideDBEParticipationSheetswithinfivecalendardaysofthebidletting.Thisinformationmust be submitted using Form 0178 and/or Form 0182 via e-mail to [email protected]. Submission of the DBE Participation Sheets constitute the Proposers written commitment to use the firmslistedthereiniftheyareAwardedtheContract.

AGoodFaithEffortPlanmustbeprovidedbytheProposerthatisthedeterminedlowbidderiftheyindi-cate a DBE commitment below the DBE goal. The Good Faith Effort Plan must be provided to the MDOT ProjectManagerand theMDOTOfficeofBusinessDevelopment ([email protected]) within5calendardaysofthedeterminedlowbidderbeingpublishedbyMDOT.

A Proposer who fails to meet the DBE participation goal, or fails to provide a Good Faith Effort Plan thatisacceptableandapprovedbyMDOT,willbedeemedineligibleforAwardoftheContract.

The determined low bidder’s failure to submit the overall DBE percentage with the bid or the determined low bidder’s failure to submit the DBE Participation Sheets or a Good Faith Effort Plan (if required)within5businessdaysmayresult in thepaymentof thebidguaranty to theawardingauthorityiftheBidAppealCommitteedeniestheappealasoutlinedinsubsections102.11and102.12oftheStandardSpecifications.


http://www.michigan.gov/mdotdbe





TheDepartmentwillconsiderabid irregularandmayreject it if thedetermined lowbidderdidnotsubmittheoverallDBEpercentagewiththebidasspecifiedabove,orifthedeterminedlowbidderdidnot submit the Disadvantaged Business Enterprise (DBE) Participation Sheets or a Good Faith Effort Planwithinfivecalendardaysofthebidletting.

C. Continuing Good Faith Efforts The Proposer must continue to make good faith efforts to meet the goal throughout the life of the

project.

During the term of the contract, the Design-Builder shall continue to make good faith efforts to ensurethatDBEshavemaximumopportunitytosuccessfullyperformonthecontract,andthattheDesign-Builder meets its DBE goal. These efforts shall include but not be limited to the following:

(a) Negotiating in good faith to obtain DBE participation both prior to and during the life of the project;

(b) Continuing to provide assistance to DBE subcontractors, consultant, subconsultant, suppliers, andserviceprovidersinobtainingbonding,insurance,etc.,ifrequiredbytheContract;

(c) NotifyingMDOT and aDBE inwriting of any potential problem and attempting to resolve the problempriortoformallyrequestingapprovalfromtheMDOTOfficeofBusinessDevelopmentto obtainasubstituteDBEoraDBEparticipationmodification;

(d) Ensuringallvendors,includingDBEs,arepaidpromptlyforthesatisfactorycompletionofitems orpartialitemsofworkassociatedwiththesubcontractonamonthlybasis,forworksatisfactorily completedwithinthepreviousthirty(30)calendardays.

(e) Timely quarterly submission of either the “Prime Contractor Statement of DBE Subcontractor Payments (MDOT Form 0164) or the “Prime Consultant Statement of DBE Subconsultant Payments(MDOTForm0165),asapplicable.CreditshallnotbecountedtowardtheDBEgoal until each DBE is paid for their work.

(f) SubmissionbythePrimeContractorofa“GoodFaithEffortPlan”toshowongoingeffortsmade to achieve the DBE participation goal. Updates to the Good Faith Effort Plan shall be submitted onaquarterlybasistotheMDOTProjectManagerandMDOT’sOfficeofBusinessDevelopment ([email protected]) for reviewandapproval. Additionally, theOfficeofBusiness Developmentshallbenotifiedinatimelymannerofanyproblemswhichmayadversely impact DBE goal attainment.

(g) If the Design-Builder or a subcontractor responsible for obtaining DBE participation requests asubstitutionofaDBEfirm,theDesign-Builderorsubcontractormustexertgoodfaitheffortsto replace the DBE firm with another DBE. If the Design-Builder seeks to terminate a DBE or substitutetheworkfromaDBEfirmtoadifferentDBEornon-DBEfirm,theDesign-Buildermust providewrittennotice(byusingMDOTForm0196)totheDBEfirm,theMDOTProjectManager, and theMDOTOfficeofBusinessDevelopmentof theDesign-Builder’s intent and include the reason for the request. The DBE firm shall be provided 5 calendar days to respond to the Design-BuilderandMDOT,andindicateiftheyobjecttotheirtermination/substitution.MDOTwill eitherapproveor reject the terminationand/or substitutionof theDBEfirmwithin5daysafter receivingtheDBEfirm’sresponse.




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D. Good Faith Effort PlanAt a minimum, the Good Faith Effort Plan must include the following information:

(a) Acover letterdescribing theefforts todate to identifyDBEfirms. Includeanysteps takenby theProposertoengagefirms, identifyworkareasforDBEfirms,thereasonwhytheDBEgoal hasyet tobeobtained,and theanticipated levelofDBEparticipation that isanticipated tobe obtained through continuous good faith efforts.

(b) DBE Plan: The DBE Plan must include the Proposers plan to obtain DBE participation after the projectisAwarded.TheplanmustincludetheareasofworkanticipatedtoutilizeDBEfirmsand theanticipatedtimeframesforengagingtheDBEfirms.

(c) MDOT Form 0188: Provide a completed form 0188. If areas of the form are not able to be completed,providedadetaileddescriptionofwhyitcannotbecompleted.

(d) Provide justification if a DBE subcontractor, consultant, subconsultant, supplier, and service provider’s quote is not used not used.

When reviewingan initialGood faithEffortPlan,MDOTmay,at issolediscretion, takeanyof thefollowing actions:

(a) Approvetheplanasoriginallysubmitted.

(b) Require additional information to be provided prior to approving or rejecting the plan.

(c) RequireadditionalcommitmentsoractivitiestobemadebytheDesign-Builderpriortoapproving or rejecting the plan.

(d) ApproveamodificationtotheDBEGoalpriortoAwardoftheContract.

(e)MakenomodificationstotheoriginalDBEGoaluntilafterallgoodfaitheffortshavebeenmade bytheDesign-Builder.

(f) Rejecttheplanasoriginallysubmittedorassubmittedwithmodifications.

TheGoodFaithEffortPlanmustbeupdatedandsubmittedtotheMDOTProjectManagerandtheOfficeof Business Development ([email protected])every3monthsafterContractAward.Ataminimum, updated plans must

(a) document the efforts taken during the previous 3 months to obtain DBE participation,

(b) document the DBE firms brought under contract during the period and the dollar value of their work,

(c) documentthetotalamountofDBEfirmsundercontracttodate,

(d) describe future good faith efforts that will be used to meet the DBE goals of the project,

(e) documentandany item thatshouldbeconsideredbyMDOT regarding theefforts tomeet the DBE goals of the project.




If a determined low Bidder is unable to meet the DBE participation goal, additional information will be re-quiredrelatingtotheirinitialRequestforModification/Waiversubmittalasspecifiedinsubsection102.18in accordance with current Department DBE Program Procedures.

TheContractwillnotbeAwardeduntilaGoodFaithEffortPlanisapprovedbytheDepartment.

E. DBE Contracts Whenever a DBE is selected as a subcontractor, consultant, subconsultant, supplier, or service provider

andtheDBEparticipationhasnotbeenpreviouslyapproved,theDesign-Builderorhis/herdesignatedDBELiaisonOfficershallprovidetheMDOTOfficeofBusinessDevelopmentwithexecutedMDOTDBEParticipation Forms 0178 (construction version) or 0182 (consultant version) and all related forms for approvalbeforetheDBEbeginswork.FailuretoensurethataDBEcommitmenthasbeenapprovedbyMDOTbeforetheDBEbeginsworkontheprojectmayresultintheworkbeingdeemedineligibleforcredittoward the DBE participation goal.

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Disadvantaged Business Enterprise PROGRAM 2015 …€¦ · DBE PROGRAM PROCEDURES Michigan...

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