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SDDOT / Compliance Office / Disadvantaged Business Enterprise / DBE Solicitation
The DBE Special Provision specifies the steps bidders should be taking in their efforts to
meet project goals. These guidelines are an attempt to provide further information
concerning some of those steps.
The DBE Review Committee, when assessing a bidder's Good Faith Efforts (GFE), will utilize
the Special Provision and these guidelines in attempting to ascertain whether or not the bidder
has made an honest and sincere attempt to meet the goals.
- Pre-Letting Activities
- The bidder should select those project work items for which there is subcontracting
potential and make solicitations to DBE firms accordingly. Those work items should
have the potential for reaching project goals. Although the Department prefers that
solicitations be specific, this does not preclude bidders from making a general request
for DBE interest on any phase of project work.
- Solicitations should be directed to those DBE firms with a prior history of participation
and those DBE contractors that are on the current list of certified firms that have a
potential for quoting in a particular area. You may contact the DBE Office for assistance
at phone: (605) 773-4906.
- Initial solicitations should take place far enough in advance of the letting (generally
2 weeks) to provide DBE firms with sufficient time to review the proposal and plans and
make a response. The solicitations should advise where such proposals can be reviewed,
and methods, including time deadlines, for making quotations.
- Follow-up contacts should be made to those DBE firms who do not respond to the initial
solicitations. These phone contacts should attempt to elicit reasons for not responding to
earlier solicitations, i.e., not interested, bidding other projects, already have sufficient
work, etc. It is not sufficient to make a single phone call when there is no answer; if
unsuccessful during normal business hours, try again during off-business hours in attempting
to make contact. Document all calls and responses.
- Registration at and use of the DBE room at the local motel in Pierre, which is provided prior
to the letting by the AGC and Minority Contractor's Association is another positive step,
which should be taken by bidders in the contractor effort to solicit DBE quotations.
- Post Letting Activity for Projects Where the DBE Goal was Not met
- For those DBE quotations received but not utilized, bidders should provide specific detailed
reasons for rejection. Bidders shall utilize reasonably competitive quotes form DBE contractors
unless the bidder can document that the DBE cannot perform in line with the project schedule.
If price is a consideration, bidders should provide comparative price information.This can
be shown as a numeric matrix of individual line items and total quotes by subcontractors. Several
contractors have provided a computer generated spreadsheet that presents these comparisons very
well.When the prime elects not to subcontract some of the line items to a DBE firm, then these
comparisons must also include documentation of costs for the prime contractor that are compared
to DBE quotes. This can be shown in a number of ways, including portions of the prime contractor's
work sheets used to prepare their bids.
- It is very important that bidders not meeting project goals provide a written narrative explanation
of their efforts to secure DBE participation. Such explanation should include a chronology of the
efforts with all supportive documentation, i.e., copies of written solicitations and responses,
efforts at follow-up contacts, price comparison data, etc.Part III, contains a good example of a
spreadsheet that is essential on complex projects to allow a thorough evaluation of the DBE quotes
and associated non-DBE quotes and prime bids.
- Any additional steps taken by the bidder to facilitate DBE participation should be documented
and made a part of the Good Faith submittal. This would include such steps as assisting a DBE firm
in securing bonding or insurance, or providing contacts (names, addresses, etc.) for equipment
lease, materials purchase, etc.
Although a bidder's Good Faith Efforts are assessed on its own merits for each project,
the DBE Review Committee gives some consideration to a bidder's DBE accomplishments on
other projects and over time. In addition, the DBE Review Committee may also
consider overall DBE goal accomplishments for the letting and the year.
The contract provisions allow a 48 hour time frame after the letting to allow the
contractor to compile the package for review.This 48 hour provision was
incorporated into the contract for the contractor's benefit. We have found on some
packages that the contractor did little preliminary work and thus struggled in putting
together an adequate package. Review of incomplete or poorly organized packages take
an increased amount of time, plus create delays in execution of the contract as the DBE
Review Committee will not recommend award on the basis of incomplete GFE packages.
- Bid Comparison For Good Faith Effort
| |
Sub. A
Unit Price Amount |
Sub. B (DBE)
Unit Price Amount |
| Line No. |
Description |
Quantity |
Unit |
| 001 |
Mobilization |
1.000 |
LS |
|
|
| 029 |
Perm Seeding |
152.000 |
LB |
|
|
| 030 |
Fertilizing |
0.422 |
TON |
|
|
| 031 |
Mulching |
10.900 |
TON |
|
|
| |
3362.10 |
5337.00 |
| |
+58.7% |
| |
Sub. C |
Sub. D (DBE) |
| Line No. |
Description |
Quantity |
Unit |
| 026 |
Traffic Cont |
824.000 |
UNIT |
|
|
| 027 |
Traf Cont Misc |
1.000 |
LS |
|
|
| 028 |
Type C Panel |
2.000 |
EACH |
|
|
| |
10600.00 |
11972.00 |
| |
+12.9% |
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