WPCa ja9b9\ڎsLζJ$[Cu`FCWnKT#=+W^'d2i-L'q/K>C*uJKQ՗TRqmՃak`1kT߶8`t?`D$؍TڟN y/ 2N&'Q6xEmwf)JnP4VE9}2"|-/$&uc29t+ *:"i\>gc{iKU%_RHNGrF=VZɕĴD.kqfv->iςN@P~Wxa:]]J aňݨV$`|.h#ti)sWv}e F#lubyC7L"x >Kt\53/^ lORGfKا#@~U N %W 0:] 0 0(UBU*Uf>%U,c 0U@ 1 uP 72ń^ w4* m,)C 0Vl‡ 0{؇ 0uS 0 ȊBtnfN f a 0D# 1ug 72ܗ]=^ 0L B 1UUNZ%UN͢3UNN.UNʥtUNrڧUNLUN'UN 0Z 0JCUN(lUNUNH^^^^^^^^^^^^^^^^ftavvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvE 0)c 0w 0f 0 0fD 0FFFFF 0 0 1׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸׸a``fvaxxxxxxxxxxxxxxxxxxxx 0 0 0 0Ǽ 0ڽ 0 0 D + 1U> 0N 1u 0 VVVVVVVVVVVVVVVVVVVVVVVV 0 0  B~+YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY 1UV 0r 1eMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM 0F 0 0%$ 0/ 0 0 0 0 0666 1e 1uqqq 1U 1u; 0gvvvvvvvvvvvvvvvvvfafaf a fa!f555a7777777777fKaMMfaaccfwayyyyyfafafafafafafaf'a)f=a??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 0!SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS 0!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!faf3a555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555fIaKHP LaserJet 5,,,,0(9 Z6Times New Roman RegularX($USUS.,Z!:Definition TDefinition Term          Z!:Definition LDefinition List          \  `*Times New RomanTT%2A`Arial\  `&Times New Roman(\ Y`Symbol,0%&H4H4&            '  (9 Z(Times New Roman 3#37=CIQYag1.a.i.(1)(a)(i)1)a) i){=3  \3:i+003|x#U  'USUS.,  _ USUS.,  XXBestPracticesProcurementManualChapter7DisadvantagedBusinessEnterprise   x  Page  1  #XXj#  A1) xdEsxA t f  X   ! f  (.3$ !USUS.,     L 6SubsectionSubsection   &&&    8. 4 <DL!!8    _U4 <DL!_XXX   ^x :Section paraSection paragraph &&& X   8.444 <DL!!8    _U4 <DL!_XXX @XX 0Level 1Level 1   X 5+4 4 <DL!5   5+ 4 <DL!5   8 B0$USUS.,<( X-&SpXX<XXXXXX  6  ڀ  _ @ `. <DL! X-&SpX`ForfurtherinformationcontactMr.Donald_Mayes_,Manager,_DBE_ԀContractComplianceat3126647200,ext.  3519.jtXX j B0$USUS.,<( X-&SpXX<XXXXXX  7  ڀ  _ @ `. <DL! X-&SpX`Wewouldnotethatfivebusinessdaystopaysubcontractorsmaynotberealisticinallcasesandcouldleadto  complaintsfromsubcontractorsthatthegranteeenforcethis_timeframe_.jtXX  B0$USUS.,<( X-&SpXX<XXXXXX  8  ڀ  _ @ `. <DL! X-&SpX`Othertransitagencieshaveimposeda30dayrequirementforpaymentof_retainage_.VXX  B0$USUS.,<( X-&SpXX<XXXXXX  9  ڀ  _ @ `. <DL! X-&SpX`Thefivedayrequirementmaynotberealistic.Someagenciesrequiresubcontractswith_DBEs_Ԁwithin60daysof  contractawardifthecontracttermislessthanoneyear,orwithin30daysofcommencementofworkforacontract t thatisforoneyearormore.Thecommencementofworkratherthaninitialcontractawardismorerealisticinthe 8 caseof_multiyear_Ԁcontractswhereworkmaynotstartforanotheryearorso.LXXTABLE A(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#0p(#(#2#     )3  0p(#p(# yU3MQUY]aeiBullets List#" B0$USUS.,<( X-&SpXX<XXXXXX  15  ڀ  _49CFR26.53(b)(3). S B0$USUS.,<( X-&SpXX<XXXXXX  16  ڀ  _ForfurtherinformationcontactMr.DonaldMayes,Manager,DBEContractComplianceat312-664-7200,ext.  3519. 3 B0$USUS.,<( X-&SpXX<XXXXXX  18  ڀ  _ @ `. <DL! X-&SpX`_ __ __For_ԀfurtherinformationcontactMr.Donald_Mayes_,Manager,_DBE_ԀContractComplianceat3126647200,ext.  _3519._ N. <DL! X!N_XX_  B0$USUS.,<( X-&SpXX<XXXXXX  19  ڀ  _ @ `. <DL! X-&SpX`The_CTA_Ԁrequirementismorerestrictivethanthe_CFR_.VXX>c$"Small Circle"0   `  B0$USUS.,<( X-&SpXX<3XXXX3X3X  1  ڀ  _AsofApril1,1999. d$359=AEIMQ1(9 Z6Times New Roman Regular __ B0USUS.,<( X-&SpXX<5XXXX5X5X  2  ڀ  _http://osdbu.dot.gov/_(9 Z6Times New Roman Regular ) B0$USUS.,<( X-&SpXX<7XXXX7X7X  3  ڀ  __http://_www.fta.dot.gov_/office/civil(9 Z6Times New Roman Regular $ B0$USUS.,<( X-&SpXX<9XXXX9X9X  4  ڀ  ____As_ԀofApril1,1999.(9 Z6Times New Roman Regular j B0$USUS.,<( X-&SpXX<;XXXX;X;X  5  ڀ  __Foranexampleofaclause,seeBARTClauseSC7.1.10 _Ombudsperson_.ContactBARTat(510)4646380.(9 Z6Times New Roman Regular h B0$USUS.,<( X-&SpXX<=XXXX=X=X  10  ڀ  _The_TVM_Ԁmustcertifythatithascompliedwiththe_DBE_Ԁgoalrequirementsof26.49.(9 Z6Times New Roman Regular  B0$USUS.,<( X-&SpXX<?XXXX?X?X  11  ڀ  _Seethe_APTA_ԀGuidelinessections1.1.3.5forthesolicitationprovisionand1.1.5.7forthe_DBE__certification.?XX?#?X?X㤞#_(9 Z6Times New Roman Regular  B0$USUS.,<( X-&SpXX<AXXXXAXAX  12  ڀ  __TheInternetaddressforProNetis:http://pro-net.sba.gov/(9 Z6Times New Roman Regular(20$ !USUS.,  <( X-&SpXX<XLXXX XXL  0  ڀ($  0    B0$USUS.,<( X-&SpXX<EXXXXEXEX  13  ڀ  __ContactKingElliott,MetroDadeTransitAgency,111_N.W._ԀFirstSt.,Suite910,Miami,FL33128at(305)  3753634.(9 Z6Times New Roman Regular  B0$USUS.,<( X-&SpXX<GXXXXGXGX  14  ڀ  __NewYorkCityTransit.ContactStanGrillat(718)6944350.(9 Z6Times New Roman Regular  B0$USUS.,<( X-&SpXX<IXXXXIXIX  17  ڀ  __Paragraph_(d)_(9 Z6Times New Roman Regular      HTABLE B(;3$2#  0  .3  0  (O;$0  2#  a  .3  0` (#(#(b$0  0` (#(#2#   .3  0 ` (#` (#(xir$0  0` (#(#0 ` (#` (#2#(  0  )3  0 (# (#($0  0` (#(#0 ` (#` (#0 (# (#2#(  a  )3  0h(#(#(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#2#(   )3  0h(#h(#($0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#2#  0  )3  0(#(#({$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#2#  a  )3  0p(#(#xlGaeimquy}Bullet ListBullets ListTABLE AEx=TABLE AF2[+[ 0_level2   X 8.` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level3    8.4` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level4    8.` ` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level5    8. ` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level6    8. ` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level7   4 8. ` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level8   ` 8.` hp x (#823  ..   8.` hp x (#8  'dxd# 359=AEIMQ4 o (O$########(35=EMU]em5(1)(1)(1)(1)(1)(1)(1)(1)64 '4heading 2     XXX  6::4Body Text  /%  <DL/  /%  <DL/<+ :Outline001_1   ," <DL,A (\ Y`SymbolA23  ..  2( 4 <DL2XXXS \  `&Times New RomanS  'Single1 diiiiiiii(359=AEIMQ7PPPPPPPP< :Body Text In        ########(35;AGMSY_31.1.1.1.1.1.1.1.6~ 4heading 1    ?%2A`Arial?     XXXS \  `&Times New RomanS  2[+[ 0_level9    8.<` hp x (#823  ..   8.` hp x (#8  6uhaF4Heading 3    g  _. r #X  h    g  _. r #X6M @4Heading 4  5+ ` hp x 5     5+ ` hp x 56P C4Heading 5  5+ ` hp x 5     5+ ` hp x 5 <L+@ :Body Text I2    5+ ` hp x 523  ..  5+ ` hp x 5<XX :Body Text I1    5+` ` hp x 5   5+ ` hp x 5  0> .Header  >4X` hp x >:NN 8Body Text 3    5+ ` hp x 5    5+ ` hp x 5 ########(35;AGMSY_21.1.1.1.1.1.1.1.########(35=EMU]em6(1)(1)(1)(1)(1)(1)(1)(1)dddddddd(359=AEIMQ8 ########(35=EMU]em9(a)(a)(a)(a)(a)(a)(a)(a)i., ii., iii.,Level 1Level 2Level 3Level 4Level 56#d4Quick i) u  )0 uTable_BTable_CTable_DTable_ETable_FTable_I Table_J Table_K Table_L Table_M Table_NTable_OTable_PTable_QTable_RTable_STable_T`7i:footnote reffootnote reference9        92P+M 0_level1  , 8.4 <DL!823  ..  5+ 4 <DL!5  Ө$TABLE AC/TABLE Ol*TABLE AD !USUS.,   XXXX   X X   Chapter7 7   7DisadvantagedBusinessEnterprise    B.` hp x (#XB7.1ComparisonofOldvs.NewDBERules(6/99)   % XX(#%%B.` ` hp x (#XB7.1.1ApplicabilityofDBERulestoGranteePrograms(2/00)   7.1.2DefinitionofTerms(2/00)  t % X` X(#%B.` hp x (#XB7.2AdministrativeRequirements(6/99) L  % XX(#%B.` hp x (#XB% XX(#%B.` ` hp x (#XB7.2.1WhoMustHaveaDBEProgram?(6/99) [$  7.2.2DBELiaisonOfficer(6/99) G  7.2.3RequiredEffortsonBehalfofDBEFinancialInstitutions(6/99) 3  7.2.4PromptPaymentMechanisms(9/05)   7.2.5DBEDirectory(6/99)    7.2.6BiddersList(6/99)  7.2.7MonitoringContractorsPerformance(2/00)  % X` X(#%B.` hp x (#XB7.3GoalsforDBEParticipation(6/99)  % XX(#5%B.` ` hp x (#XB7.3.1DOTNationalGoalof10%(6/99) \ 7.3.2UseofQuotasandSetAsides(6/99) H 7.3.3EstablishingOverallGoals(2/00) k4 7.3.4EstablishingOverallGoalsforTransitVehicleManufacturers(6/99) W  7.3.5MeansofMeetingOverallGoals(6/99) C  % X` X(#%B. ` hp x (#XB7.3.5.1RaceNeutralMeans(6/99)   7.3.5.2UsingContractGoals(6/99) ! 7.3.5.3EvaluationofContractorProposalsforDBEParticipation(2/00) ! 7.3.5.4GoodFaithEffortstoMeetContractGoals(9/05) " 7.3.5.5CountingDBEParticipationtowardtheGoal(9/05) # 0  7.4Certification:StandardsandProcedures(2/00)%l!(#(# 0  7.5ExemptionsandWaivers(6/99){'D #(#(#   g(0!$  7.1COMPARISONOFOLDVS.NEWDBERULES 7 *1ddd Xdd Xdd X(#(#,xdd +     REQUIREMENT  s <  TheFederalDepartmentofTransportationspoliciesconcerningDisadvantagedBusiness   Enterprise(DBE)participationinprogramsoftheFederalTransitAdministrationaresetforth   in49CFRPart26.    l<` 49CFRPart26supercedestheoldDBEregulationfoundat49CFRPart23,subpartsAandC l throughE.0 C  1      ׀ThisPart26alsosupercedesFTACircular4716.1A,datedJuly26,1988.  X   DISCUSSION `  GranteesareencouragedtovisittheWebsitesoftheDepartmentofTransportation,Office o8  ofSmallandDisadvantagedBusinessUtilization(OSDBU)i X X           XX 4t C  2      its:     XXX X XXX X  andtheFTAOfficeofCivil [$  Rights6 C  3      forcurrentinformationandguidanceonDBEregulationsandissues.Followingis K asummaryoftheoldvs.thenewDBErulesasfoundattheWebsiteoftheOfficeofSmall 7 andDisadvantagedBusinessUtilization(OSDBU). #    SettingandMeetingDBEGoals   *] Vddxdd x1(#(#],bZ,bb+  6' 6l 2 7+X X 7+ 7+ 7+ 7+ 7+ 7+gx 7+gxgxgxgxgx    Xl X XX XXl?l  OldRule!Part23 ic3Ԍ ?,!?" ?Ќ XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X 2  l 2 7+X X 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+gx 7+gxgxgxgxgx    Xl X XX XXl?l  NewRule!Part26 icԌ UD,?"    UЌ XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X 2   n#########(83 "#"  ,E.4 <DL! X(#E  , + X4X!+E1` hp x (#XE #2  1  .3   /   Didnotuse,butalsodidnotprohibit,  quotas.Itexplicitlyauthorizedsetasides   undersomecircumstances.DOTnever  penalizedrecipientsforfailingtomeetgoals  undertheoldrule,butthetextoftherule   didnotmakethepointexplicitly.#݌ ! Ќ *  X(#X(#*    S""p S B+ ` hp x  X(#B  "p"      ݌̌!  X(#X! S  "#"  ,E.4 <DL! X(#E  , + X4X!+B.` hp x (#XB#8!2  2  .3      Undertheoldrule,recipientswhohad $  lessthanatenpercentgoalhadtomakea %! specialjustificationtotheDepartment.#8!O"݌ &s" Ќ '  X(#X(#'   % X X(# "%B.` hp x (#XB n)7"% Ї"#"  ,H.4 <DL!X(#H  , + X4X!#+B.` hp x (#XB#G$2  3  .3      Undertheoldrule,overallgoalswereset + toachievetheobjectof maximum   practicableuseofDBEs.Therecipients   goalcouldbebaseddirectlyonthe10   percentnationalgoalorontherecipients   pastachievements.#G$a%݌   Ќ *X(#X(#*   ( XX(#%(B.` hp x (#XB"#"  ,H.4 <DL!X(#H  , + X4X!'+B.` hp x (#XB#'2  4  .3      Theoldruledidnotmandatetheuseof O  raceneutralmeasuresorgivethempriority. ;  Therewasnopromptpaymentrequirement.#')݌ '  Ќ *X(#X(#*   ( XX(#((B.` hp x (#XB( XX(#*(B.` hp x (#XB"#"  ,E.4 <DL!X(#E  , + X4X!"++B.` hp x (#XB#o+2  5  .3      Undertheoldrule,contractgoalswere #  requiredonallcontractswith ! subcontractingpossibilities,regardlessof ! whetherthecontractgoalswereneededto " meetoverallgoals.#o+,݌ #  Ќ ' X(#X(#'   % XX(#D,%B.` hp x (#XB -&+ Ї"#"  ,E.4 <DL!X(#E  , + X4X!.+B.` hp x (#XB#.2  6  .3      Theoldruleemployedthesamegood + faitheffortsmechanism,butdidnot   emphasizeasstronglythemandatethat   recipientsseriouslyconsidergoodfaith   effortsshowings.Therewasno   reconsiderationprovision.#./݌   Ќ ' X(#X(#'   % XX(#/%B.` hp x (#XB7.Theoldruledidnothaveanover ;  concentrationprovision. -'  -! !"#"  ,H.4 <DL!X(#H  , + X4X!-2+E1` hp x (#XE#32  1  .3      Thenewruleexplicitlyprohibitstheuse  ofquotas.Therulealsoexplicitlyprohibits   theuseofsetasides,exceptinextremecases  toremedyegregiousproblems.Therule  explicitlyprovidesthatrecipientswillnotbe   penalizedforfailingtomeettheirDBE ! goals.#344݌ "p Ќ -X(#X(#-    (#38n#########@( XX(#3( #(03 *NeFX1X*2.  Thenewruleviewsthestatutory10 $H percentgoalasanationwideaspirational k%4 goal,whichdoesnotrequirethatrecipients W&  settheirgoalsat10percentoranyother C'  particularlevel.  /(   *" ЇN.` hp x (#NeFX1N h X  X3.  Recipientsmustsetoverallgoalsto + representa levelplayingfieldthe   amountofDBEparticipationtheycould   realisticallyexpectintheabsenceof   discrimination.Thisgoalmustbebasedon   demonstrableevidenceoftheavailabilityof   ready,willingandableDBEstoparticipate  | onyourDOTassistedcontracts.Therule h  givesrecipientssubstantialflexibilityinthe T  methodstheychoosetosetoverallgoals. w@  4NeFX1X(#394N.` hp x (#NeFX1N4NeFX1X(#x<4N.` hp x (#NeFX1N4.  Recipientsmustobtainasmuchas O  possibleoftheDBEparticipationneededto ;  meettheiroverallgoalsthroughrace '  neutralmeasures.Raceneutralmeasures   includesuchactivitiesastraining,technical  assistance,bondingassistance,business  developmentormentorprotgprograms,  breakingcontractsupintopiecesthatsmall  businessescanreadilyperform,andawards x ofprimecontractstoDBEsthroughthe d regularcompetitiveprocess.Onetypeof P raceneutralmeasure,apromptpayment s< provision,willberequiredforall _( subcontractors,DBEsandnonDBEsalike. K 4NeFX1X(#<4N.` hp x (#NeFX1N4NeFX1X(#@4N.` hp x (#NeFX1N5.  Contractgoals,orotherraceconscious #  measures,mustbeusedonlytoobtainDBE ! participationneededtomeetoverallgoals ! thatcannotbeobtainedthroughuseofrace " neutralmeasures.Contractgoalsarenot #  requiredoneverycontract.Ifrecipientsare $! overachievingorunderachievingtheir %t" overallgoals,theyhavetoadjusttheiruseof &`# contractgoals. 'L $ 4NeFX1X(#aA4N.` hp x (#NeFX1N1NeFX1X(#D1N.` hp x (#NeFX1N -&+ Ї6.  Whenthereisacontractgoal,abidder + mustmakegoodfaitheffortstomeetit.The   biddercandosoeitherthroughobtaining   enoughDBEparticipationtomeetthegoal   ordocumentingthegoodfaitheffortsit   madetodoso.Theruleexplicitlyprovides   thatrecipientsmustnotdisregardshowings  | ofgoodfaithefforts,anditgivesbiddersthe h  righttohavetherecipientreconsidera T  decisionthattheirgoodfaitheffortswere w@  insufficient. c,  4NeFX1X(#D4N.` hp x (#NeFX1N4NeFX1X(#G4N.` hp x (#NeFX1N7.  IfarecipientdeterminesthatDBEfirms ;  aresooverconcentratedinacertaintypeof '  workastoundulyburdentheopportunity   ofnonDBEfirmstoparticipateinthistype  ofwork,itmustdeviseappropriate  measurestoaddressthisover  concentration.  3)'x     3 Sl SE+ ` hp x X(#E  l   tJ   tJ#K݌̌$X(#X$ S  P 7+X X 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+     XX 7+  PK  CertificationandEligibilityPKL LԌ  Ќ XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X  *p VdVdbZbb(#(#p,xx,bb+  6' 6S 2 7+X X 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+gx 7+gxgxgxgxgx    Xl X XX XXl&S_O  OldRule!Part23_O|Q QԌ ?,!&" ?Ќ XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X 2  S 2 7+X X 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+gx 7+gxgxgxgxgx    Xl X XX XXl&SS  NewRule!Part26SU eUԌ UD,&"    UЌ XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X 2   (#30#D74NeFX1X(#ZH4N.` hp x (#NeFX1N 1.  Theoldruledidnotstateaspecific   standardofproof.   4NeFX1X(#X4N.` hp x (#NeFX1N4NeFX1X(#Y4N.` hp x (#NeFX1N2.  Theoldruledidnothaveeithera $k! personalnetworthcapforparticipationor %W" arequirementtosubmitinformation z&C# concerningpersonalnetworth. f'/ $ 4NeFX1X(#PZ4N.` hp x (#NeFX1N .', 4NeFX1X(#[4N.` hp x (#NeFX1N3.  Thelessspecificstandardsoftheold   regulationwereinterpretedinmany   varyingwaysbyrecipientsandDOT   offices,leadingtoinconsistentand   confusingresults.   4NeFX1X(#`\4N.` hp x (#NeFX1N4NeFX1X(#]4N.` hp x (#NeFX1N4.  Formerly,afirmthatwantedtowork c,  fortheStatehighwayagency,twoairports, O  andthreetransitagenciesinthesameState ;  hadtofilloutsixapplicationformsand '  enduresixcertificationprocesses.This   createdsignificantburdensonapplicants  andusedrecipientresourcesinefficiently.  4NeFX1X(#^4N.` hp x (#NeFX1N4NeFX1X(#`4N.` hp x (#NeFX1N5.0  Theoldrulesuggested,butdidnot ! require,administrativedueprocess. ! Recipientspracticesvaried,andsome " recipientsprocessesweresolackingin #  dueprocessthatsubstantivelyvalid $! decisionswereoverturnedbythecourts %t" onproceduralgrounds.Many &`# recipientserroneouslybelievedthatthe 'L $ Departmentrequiredannual o(8!% recertifications,whichburdenedDBEs [)$"& andusedrecipientresources G*#' inefficiently.3+#(tt 4NeFX1X(#Qa4N.` hp x (#NeFX1N -&+ Ї6.Theoldrulelackedspecificstandards   andproceduresforcertificationappeals,   resultingininformalandsometimes   inconsistenthandlingofcertificationissues. 6#  64NeFX1X(#|d4N.` hp x (#NeFX1N1.  Applicantsmustshowthattheymeet   size,groupmembership,ownershipand    controlstandardsbyapreponderanceofthe !  evidence. "  4NeFX1X(#1f4N.` hp x (#NeFX1N2. z Eachdisadvantagedindividualseeking $k  certificationforhisorherfirmmustsubmit %W anotarizedcertificationofdisadvantage z&C andastatementofpersonalnetworth.Ifan f'/  individualspersonalnetworth(excluding R(! hisorherprincipalresidenceandhisofher >)" interestintheapplicantfirm)exceeds **" $750,000,thepersonisnotaneligibleDBE +# owner. ,$ 4NeFX1X(#g4N.` hp x (#NeFX1N .' Ї3.Ownershipandcontrolrequirements   providedetailed,specific,clarified   standardsfordeterminingwhetherto   certifyfirms.Thestandardsareintendedto   resolvemanydifficultissuesthathave   arisenintheimplementationofthe  | program. h  4.  ByFebruary2002,allthetransit, c,  airport,andhighwayrecipientsineach O  Statearerequiredtoagreeonaunified ;  certificationprogram(UCP).Thisprogram '  mustbefullyoperationalnolaterthan   August2003.TheUCPmustprovidefor   onestopshoppingforDBEfirms  applyingforcertificationineachState.The  applicantfillsoutoneform,goesthrough  oneapplicationprocessand,ifcertified,can x workasaDBEforanyDOTrecipientinthe d State.TherewillbeasingleDBEdirectory P fortheState.Theruleallowsrecipients s< substantialdiscretionabouttheformthe _( UCPwilltakeineachState. K 5.  Incertifyingordecertifyingfirms, ! recipientsmustprovideadministrativedue ! processtoensurethatproceduresarefair. " Whenafirmiscertified,itnormallystays #  certifiedforthreeyears,butmustinform $! therecipientinwritingofanychangesthat %t" wouldaffectitseligibilityandmustsubmit &`# anannualaffidavitthatsuchchangeshave 'L $ nottakenplace. o(8!%  -&+ Ї6.  Allcertificationactionsbeginwitha   proceedingbyarecipient.Aparty   dissatisfiedwiththeresultcanappealtothe   DOTOfficeofCivilRights.Thisappeal   proceedingisanadministrativereviewof   therecordoftherecipientsaction,anddoes  | notinvolveanewhearingbeforeDOT. h  Recipientsmustpromptlyimplementthe T  Departmentsdecision.3)'w@      3  4NeFX1X(#;j4N.` hp x (#NeFX1NP 7+X X 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+     XX 7+  Pt  ProgramAdministrationPt8v uԌ W  Ќ XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X  *p VdVdxxbb(#(#p,bZ,bb+  6'/ /  6 7  2 7+X X 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+gx 7+gxgxgxgxgx    Xl X XX XXld  x  OldRule!Part23xz PzԌ ?,!d " ?Ќ XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X 2   7  2 7+X X 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+ 7+gx 7+gxgxgxgxgx    Xl X XX XXld  |  NewRule!Part26| ~Ԍ UD,d "    UЌ XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X XXX X 2  1NeFX1X(#t1N.` hp x (#NeFX1N 1.  Therewasnoprogramwaiverprovision {D intheoldrule. g0 4NeFX1X(#4N.` hp x (#NeFX1N! !4NeFX1X(#4N.` hp x (#NeFX1N3.  TheinconsistencyofDOTguidance '&# concerningtheoldruleledtosubstantial '$ confusionandwascriticizedbyaGeneral ' % AccountingOfficereport.Greater (!& coordinationisappropriateinaneraof )"'  OneDOT. *#( 4NeFX1X(#24N.` hp x (#NeFX1N s.<', Їe   B+` ` hp x X(#B   .NeFX1` X.N.` hp x (#NeFX1Neu  eu݌̌  $ X(#X(#$   e   B+` ` hp x X(#B   e#  .NeFX1` XD.N.` hp x (#NeFX1Ne#ć݌̌  $ X(#X(#$   1NeFX1X(#1e   K+` ` hp x NeFX1K   e  e݌̌  *NeFX1` X*   5.Theoldruledidnothavesimilar   provisions. 6#  61X(#NeFX11   ` B+ ` hp x X(#B  `  .NeFX1X.N.c` hp x (#NeFX1N  1.ArecipientcanapplytotheDepartment {D  foraprogramwaiverifitwantsto g0  implementtheprograminawaynot S  providedforintherule.IftheSecretary ?  believesthattherecipientsideawillmeet +  theprogramsobjectives,heorshewill  approvetheapplication.Waiverscanapply  tosuchmattersasoverallandcontract  goals,butprogramwaiversdonotapplyto  DBEeligibilitystandardsandprocedures,  whichmustremainuniformnationwide. ݌ | Ќ  ' X(#cX(#'   1NeFX1X(#1N.c` hp x (#NeFX1N   ` E+ ` hp x cX(#E  `  .NeFX1Xt.Q1c` hp x (#NeFX1QÏ  2.RecipientsmustsubmitrevisedDBE !T programdocumentstoDOT,reflectingthe w"@ newruleschangedrequirements,by c#, September1999.Ï݌ O$ Ќ  -cX(#cX(#-      ` E+ ` hp x cX(#E  `  V  V݌̌  $cX(#X$   4NeFX1cX(#4Q1c` hp x (#NeFX1Q3.  Toavoidconfusionandpromote '& consistencyandcertainty,writtenguidance ' aboutthenewruleisvalidandbinding! '  andrepresentstheofficialpositionofthe (! Department!onlyifithasbeenapproved )" bytheDOTGeneralCounsel.Guidance *# issuedundertheoldruleisnolonger +x$  binding. ,d%! 7NeFX1cX(#7N.c` hp x (#NeFX1N4NeFX1cX(#4Q1c` hp x (#NeFX1Q s.<'# Ї4.0  Recipientsmustbegintocollectdata ? aboutthebiddersontheircontractsand + subcontracts,forlateruseincalculating   overallgoals.  # # 7NeFX1cX(#7N.c` hp x (#NeFX1N4NeFX1cX(#,4Q1c` hp x (#NeFX1Q5.0  Inthenearfuture,DOTwilldevelop   new,uniformprogramdatareporting   andcertificationapplicationforms.=31 | # #     =  7.1.1ApplicabilityofDBERulestoGranteePrograms \  *p VdVdbZbb(#(#p,,bb+  4111!k4 k4  x4REQUIREMENT N;#  x  111 Nd W K(X K49CFR26.3,ToWhomDoesThisPartApply,definestheapplicabilityofthenewDBE   regulationsintermsofthetypesoffundsbeingexpendedbytherecipient.ThetypesofFederal p  transitfundstowhichtheDBEregulationsapplyaredefinedasthoseauthorizedby: \ H+ ` hp x cX(#H  dH.NeFX1X.H(` ` hp x (#NeFX1H)  )݌̌*cX(#` ` X(#*  7NeFX1cX(#ϝ7 #########(83 ! !3KX"NeFX13  a)0 K TitlesI,III,VandVIofISTEA,Pub.L.102240,orK #K # ' h h YKX"'+KX"h h Y+04j YKX"0  b)0 4 FederaltransitlawsinTitle49,U.S.Code,orp4 #4 #   c)0 4 FederaltransitlawsinTitlesI,III,andVoftheTransportationEquityActforthe21st H Century(TEA21),Pub.L.105178.k44 #4 # E(` ` hp x (#4j YE.4j Y` ` X(#.K.` hp x (#4j YKStatedsimply,anythirdpartycontractwhichisawardedbyaFTAgranteeandwhichisfunded C  inwholeorinpartwithFederalDOTfunds,issubjecttotheDBEregulationsin49CFRPart / 26.ItdoesnotmatterwhethertheFederalfundsareforplanning,capitaloroperating   assistance,theDBErulesapply.Acontractthatisfundedentirelywithlocalfunds!without ! anyFederalfunds!isnotsubjecttotheDBErequirementsunderthisrule. 3)'!     3DISCUSSION #  S%$ SB+ ` hp x X(#B   &            $% |    '%Ԍ̌  STheDBErulessetforthin49CFRPart26applytoallthirdpartycontractsfundedin % wholeorinpartwithFederalDOTfunds.Thisdoesnotmean,however,thatevery &  procurementorcontractmustbereviewedforDBEparticipation.Therulesgivegrantees ' ! flexibilityinwhenandhowtheyestablishindividualcontractgoals.Certaintypesof (!" procurements(e.g.,offtheshelfcommodities)maynothavesubcontractingopportunities )w"# orbeappropriateforDBEgoalsetting.Inotherwords,theDBErulesthatapplytoall *c#$ contractsalsoincludeguidanceandflexibilitythroughoutPart26astohowgranteescan +O$% complywiththispartwithoutsubjectingeveryprocurementtoanindividualreviewfor r,;%& DBEparticipation.If,forexample,thegranteecanmeetitsoverallgoalthroughrace ^-'&' neutralmeans,thencontractgoalsettingwillnotbenecessary.Andwheregoalsettingis J.'( necessary,therulesdonotrequiregoalsforeverycontractnorthateveryprocurementbe 7 reviewedforgoalsettingpurposes.  h          # +4j YX/+H+ ` hp x (#4j YH 7.1.2DefinitionofTerms   *] VdVd,bb,(#(#],,bb+  :'   x:`aF   g  _.! r #X(#!    g d?  +4j Yr #+K.` hp x (#4j YK`aF  REQUIREMENT`aF, ubmԌ WD,?  x   WЌ      ._$ X(#X(#$  d t.4j YX(#.* ` X(#4j Y*49CFR26.5,WhatDoTheTermsUsedInThisPartMean,containsdefinitionsoftheterms  usedinthenewDBEregulation.Thedefinitionsofthedesignatedgroupsincludedinthe  definitionof sociallyandeconomicallydisadvantagedindividualarederivedfromtheSmall   BusinessAdministrations(SBA)newsmalldisadvantagedbusinessprogramregulation(13   CFR124.3).0 h =31 h #h #     =.4j Y` X(#.`aF    g  _.' r #4j Y'    g `aF  DEFINITIONS `Բ  Ԍ h  Ќ     ._'4j Yr #'  H+S S` hp x (#4j YH14j YSS` X(#16 Xx4j Y6  a)0  DisadvantagedbusinessenterpriseorDBEmeansaforprofitsmallbusiness w@ concern:(1)Thatisatleast51percentownedbyoneormoreindividualswhoare c, bothsociallyandeconomicallydisadvantaged,or,inthecaseofacorporation,51 O percentofthestockofwhichisownedbyoneormoresuchindividuals;and(2) ; Whosemanagementanddailybusinessoperationsarecontrolledbyoneormoreof ' thesociallyandeconomicallydisadvantagedindividualswhoownit.(#(#   b)0  Smallbusinessconcernmeans,withrespecttofirmsseekingtoparticipateasDBEs  inDOTassistedcontracts,asmallbusinessconcernasdefinedpursuanttosection3  oftheSmallBusinessActandSmallBusinessAdministrationregulations  implementingit(13CFRpart121)thatalsodoesnotexceedthecaponaverage x annualgrossreceiptsspecifiedin49CFR26.65(b).Thecapiscurrentlysetat d $16.6millioninaverageannualgrossreceiptsoverthefirmspreviousthreefiscal  P years.i X X            iytPa     XX  XXX X XXX X XXX X  8 C  4      ׀ThisamountisadjustedforinflationbytheSecretaryofDOTfromtimeto s!< time.ItshouldbenotedthatanotforprofitfirmmaynotbecertifiedasaDBE. _"( However,afirmownedbyanIndiantribeorAlaskaNativeCorporationasanentity K# maybecertifiedasaDBE.7$(#(# Ѐ  c)0  Raceconsciousmeasureorprogramisonethatisfocusedspecificallyonassisting &  onlyDBEs,includingwomenownedDBEs.Theuseofcontractgoalsisthe &! primaryexampleofaraceconsciousmeasureintheDBEprogram,butsetasides ' " andpricecreditsforDBEswouldalsobeconsideredraceconsciousmeasures.(!#(#(# 0  d)0(#(#Raceneutralmeasureorprogramisonethatis,orcanbe,usedtoassistallsmall *t#% businesses.WhilebenefitingDBEs,suchprogramsarenotsolelyfocusedonDBE +`$&(#(# /e0  0(#(#firms.Examplesofraceneutralmeasureswouldincludeoutreachprograms, 7 technicalassistanceprograms,andpromptpaymentclauses,allofwhichcanassista # widevarietyofsmallbusinesses,notjustDBEs.Asusedinthisregulation,race   neutralincludesgenderneutrality. (#(# 0  e)0(#(#Setasidemeansacontractingpracticerestrictingeligibilityforthecompetitive   awardofacontractsolelytoDBEfirms. (#(#   f)0  Personalnetworthmeansthenetvalueoftheassetsofanindividualremaining ` aftertotalliabilitiesarededucted.Anindividualspersonalnetworthdoesnot L  include:TheindividualsownershipinterestinanapplicantorparticipatingDBE o8  firmortheindividualsequityinhisorherprimaryplaceofresidence.An [$  individualspersonalnetworthincludesonlyhisorherownshareofassetsheld G  jointlyorascommunitypropertywiththeindividualsspouse.3 (#(# 0  g)0(#(#Sociallyandeconomicallydisadvantagedindividualsmeansanyindividualwhoisa    citizen(orlawfullyadmittedpermanentresident)oftheUnitedStatesandwhois!(#(# 0  0(#(#(1)0 (#(#Anyindividualwhoarecipientfindstobeasociallyandeconomically  disadvantagedindividualonacasebycasebasis. (# (#     (2)0 Anyindividualinthefollowinggroups,membersofwhicharerebuttably \ presumedtobesociallyandeconomicallydisadvantaged:H (# (#  (#38######### #########(83      (i)0  BlackAmericans,whichincludespersonshavingoriginsinany W  oftheBlackracialgroupsofAfrica;C (#(#      (ii)0  HispanicAmericans,whichincludespersonsofMexican,Puerto   Rican,Cuban,Dominican,CentralorSouthAmerican,orother ! SpanishorPortuguesecultureororigin,regardlessofrace;!(#(#      (iii)0  NativeAmericans,whichincludespersonswhoareAmerican # Indians,Eskimos,Aleuts,orNativeHawaiians;$ (#(#      (iv)0  AsianPacificAmericans,whichincludespersonswhoseorigins &X" arefromJapan,China,Taiwan,Korea,Burma(Myanmar), {'D # Vietnam,Laos,Cambodia(Kampuchea),Thailand,Malaysia, g(0!$ Indonesia,thePhilippines,Brunei,Samoa,Guam,theU.S.Trust S)"% TerritoriesofthePacificIslands,Macao,Fiji,Tonga,Kirbati, ?*#& Juvalu,Nauru,FederatedStatesofMicronesia,orHongKong;++#'(#(#      (v)0  SubcontinentAsianAmericans,whichincludespersonswhose -%) originsarefromIndia,Pakistan,Bangladesh,Bhutan,theMaldives -&* Islands,NepalorSriLanka;.'+(#(# /e          (vi)0  Women;7(#(#      (vii)0  Anyindividualgroupswhosemembersaredesignatedassocially   andeconomicallydisadvantagedbytheSBA,atsuchtimeasthe   SBAdesignationbecomeseffective. (#(#  (#38######### #########(83 0  h)0(#(#Contractmeansalegallybindingrelationshipobligatingasellertofurnishsupplies   orservices(including,butnotlimitedto,constructionandprofessionalservices)  t andthebuyertopayforthem.Forpurposesofthispart,aleaseisconsideredtobea ` contract.L (#(# vd  0  vdui  )0(#(#  BiddersList!Forthemeaningofthisterm,seeSection7.2.6!BiddersList.vd uی[$ (#(# Ќ  :4j Y Xx5:1` X` X(#4j Y114j Y` X` X(#N1K.rr` hp x (#4j YK 7.2ADMINISTRATIVEREQUIREMENTS 3  14j YrrX(#1K.` hp x (#4j YK7.2.1WhoMustHaveaDBEProgram?    *l1dVd,bb,(#(#l,xdd +   REQUIREMENT  G  49CFR26.21WhoMustHaveaDBEProgram?requiresallFTArecipientswhoreceive  $250,000ormoreinFTAplanning,capital,and/oroperatingassistanceinaFederalfiscal | year,exclusiveoftransitvehiclepurchases,andtransitvehiclemanufacturerswhomust h submitanoverallgoalunderSec.26.49,tohaveaDBEprogrammeetingtherequirementsof T 49CFRpart26.  w@  7.2.2DBELiaisonOfficer H *l1ddxdd x1(#(#l,xdd +  W W  REQUIREMENT     49CFR26.25WhatIstheRequirementforaLiaisonOfficer?requiresgranteestohavea ;" DBELiaisonOfficerwhohasdirect,independentaccesstotheChiefExecutiveOfficer '# concerningDBEprogrammatters.TheLiaisonOfficermustberesponsibleforimplementing $ allaspectsofthegranteesDBEprogram.Granteesmustalsohaveadequatestaffto $ administertheDBEprogram.  %    DISCUSSION  ' !  TheDBELiaisonOfficerwillberesponsibleforoverseeingallaspectsofthegranteesDBE )"# program.OneareaoftheLiaisonOfficersresponsibilitywouldincludeactingasan *#$ advocateforDBEcontractors,subcontractorsandsuppliersofanytieronthegrantees +l$% contracts.TheDBELiaisonOfficerwouldbeavailabletoanyDBEwhoisexperiencing ,X%& difficultiesinthepaymentprocessorinanyotheraspectofthecontractwork.TheLiaison {-D&' Officerwouldbeavailabletoinvestigatecomplaints,mediatedisputesandrecommend g.0'( remediestotheappropriategranteemanagementofficials. S/() ЇSomegranteesrequiretheircontractorstopostnoticesonthejobsite,(thesenoticesare 7 providedbythegrantee),identifyingtheDBELiaisonOfficer,andthecontractorsmust # requireallsubcontractorsofanytiertoincludeanappropriatenotificationintheir   subcontractswithDBEfirms.i X X            imat     XX  XXX X XXX X XXX X  : C  5            `     h     7.2.3RequiredEffortsOnBehalfofDBEFinancialInstitutions    *] Vddxdd x1(#(#],,bb+  :' t t x:`aF    g  _.! r #X(#!    g d |+4j Yr #e+K.` hp x (#4j YK`aFb  REQUIREMENT`b asԌ WD, x   xWЌ     ._$ X(#X(#$  dLK(XK.4j YX(#T.K.` hp x (#4j YK49CFR26.27WhatEffortsMustRecipientsMakeConcerningDBEFinancialInstitutions?   requiresgranteestothoroughlyinvestigatethefullextentofservicesofferedbyDBEfinancial   institutionsinthecommunity,andtomakereasonableeffortstousetheseinstitutions.Grantees   mustalsoencourageprimecontractorstousesuchinstitutions. 3)'t  x    37.2.4PromptPaymentMechanisms   *] VdVd,bb,(#(#],,bb+  :' :`aF   g  _.! r #X(#!    g d?+4j Yr #P+K.` hp x (#4j YK`aFj  REQUIREMENT`j asԌ WD,?    WЌ     ._$ X(#X(#$  d|K(XK.4j YX(#\.K.` hp x (#4j YK49CFR26.29WhatPromptPaymentMechanismsMustRecipientsHave?requiresgranteesto  establishacontractclausewhichrequiresprimecontractorstopaysubcontractorsforsatisfactory  performanceoftheircontractsnolaterthan30daysfromreceiptofeachpaymentthatthe  granteemakestotheprimecontractor.Thisclausemustalsorequirethepromptreturnof  retainagepaymentsfromtheprimecontractortothesubcontractorwithin30daysafterthe  subcontractorsworkissatisfactorilycompleted. | Thispartalsodiscussesotheraspectsofapromptpaymentprogramthatgranteesmaywishto T consider,including: w @ .4j YX(#[.E(` ` hp x (#4j YE (#38######### o#########(83 .4j Y` ` X(#.' Y4j Y'0  (1)0j  # #Appropriatepenaltiesforfailuretocomply,O"j #j # 0  (2)0j  # #Priorwrittenconsentofgranteefordelaysinpaymentofsubcontractors,'$j #j # 0  (3)0j  # #Requirementforprimesandsubcontractorstousealternativedisputeresolution % mechanismstoresolvepaymentdisputes,and& j #j # +4j YYn+%~4j Y%%4j Y%H+` ` hp x (#4j YH0  (4)0h  # #Requirementthatprimeswillnotbepaidforworkperformedbyasubcontractor (!" untiltheprimeensuresthatthesubcontractorispaid. )x"#h #h # 3)'*d#$     314j Y` ` X(#1K.` hp x (#4j YK  {,D%% DISCUSSION 7 # #XXX X;# XXXX       Promptpaymentprovisionsareanimportantraceneutralmechanismthatcanbenefit  DBEsandallothersmallbusinesses.Underpart26,allgranteesmustincludeaprovision  q intheirDOTassistedcontractsrequiringprimecontractorstomakepromptpaymentsto  ] theirsubcontractors,DBEandnonDBEalike.DBEcontractorsaresignificantlyaffected  I bylatepaymentsfromprimecontractors,andlackofpromptpaymentconstitutesavery l 5 realbarriertotheabilityofDBEstocompeteinthemarketplace.NonDBEcontractors X ! arealsoaffectedbylatepaymentproblems.Apromptpaymentrequirementapplyingto D  allsubcontractorsisanexcellentexampleofaraceneutralmeasurethatwillassistall 0  subcontractors.   Therequiredcontractclausewouldobligatetheprimecontractortopaysubcontractorsno   laterthan30daysfromthereceiptofeachpaymentthegranteemakestotheprime   contractor.Paymentisrequiredonlyforsatisfactorycompletionofthesubcontractors   work.Retainagewouldhavetobereturnedwithin30daysfromthetimethe   subcontractorsworkhadbeensatisfactorilycompleted,eveniftheprimecontractors m workhadnotyetbeencompleted.Thenumberofdaysspecifiedinthepromptpayment Y clauseforthepaymentofsubcontractorsmaybelessthan30days,atthegrantees |E discretion.Granteeswhoalreadyoperateunderpromptpaymentstatutesmayusetheir h1 existingauthorityinimplementingthisrequirement.Itmaybenecessary,however,toadd T toexistingcontractclausesinsomecases(e.g.,ifexistingpromptpaymentrequirementsdo @  notcoverretainage). , Paragraph(e)of26.29listsaseriesofadditionalmeasuresthattheregulationauthorizes,  butdoesnotrequire,granteestouse.Inadditiontothemechanismssuggestedby26.29,  anotherpossiblemechanismthatgranteesshouldconsiderwouldbedeclaringaprime  contractortobenotresponsibleforfutureawardswherethecontractorhasexhibiteda  patternofwithholdingormakinglatepaymentstosubcontractors .  } c    &  ch  BestPracticesch  {Ԍ "Y Ќ  1 <` h?(  <DL!X(#?  h6  Followingareexamplesofpromptpaymentandreportingrequirements(ofpaymentsto h$1  subcontractors)contractclausesusedbytheChicagoTransitAuthority(CTA).i X X      iwrs.     XX    C  6      i h X      irs.     XX,   Wewouldnote T%! thatthetimeperiodsspecifiedintheCTAclauseforpaymentofsubcontractorsmaybetoo @& " aggressiveandmaynotbefeasibleforallgrantees.Inanyevent,FTAgivesgranteesdiscretion ,'# instipulatingthepaymenttimelinesintheirpromptpaymentcontractclauses.' "h6݌ ( $ Ќ' X(# X!'  B+ 4 <DL!X(#B  )!% c    &  -Jc^  PROMPTPAYMENTTOSUBCONTRACTORSc^  qԌ 7 Ќ      &%X X   E. 4 <DL!!X!E   X  H+4 44 <DL!! 4 X!HP   XX% & A.  TheContractorisrequiredtopayallSubcontractorsforallworkthattheSubcontractor   hassatisfactorilycompleted,nolaterthanfive(5)businessdaysaftertheContractorhas   receivedpaymentfromtheAuthority.i X X      i rs.     XX    C  7      i h X      i rs.     XX,   '7P}݌   Ќ X  * X!444 X!* XXX X XXX X    B+4 44 <DL!!X!B    &%X X &%% &   K. 4 <DL!!444 X!K   X  H+4 44 <DL!! 4 X!H   # &%% &# XX% & B.  Inaddition,allRetainageamountsmustbepaidbytheContractortotheSubcontractorno  S laterthanfourteen(14)businessdaysaftertheSubcontractorhas,intheopinionofthe v ? VPConstruction,satisfactorilycompleteditsportionoftheWork.i X X      irs.     XX     C  8      i h X      irs.     XX,    ݌ b+ Ќ X  0444 X!444 X!0 XXX X XXX X    H+4 44 <DL!!444 X!H    &%X X &%% &   K. 4 <DL!!444 X!K   X  H+4 44 <DL!! 4 X!H  # &%% &V# XX% & C.  AdelayinorpostponementofpaymenttotheSubcontractorrequiresgoodcauseand  priorwrittenapprovaloftheGeneralManager,Purchasing.݌   Ќ X  0444 X!444 X!0 XXX X XXX X       &%X X &%% &   K. 4 <DL!!444 X!K   X  K.444 <DL!! 4 X!K  # &%% &&# XX% & D.  TheContractorisrequiredtoinclude,ineachsubcontract,aclauserequiringtheuseof ]  appropriatearbitrationmechanismstoresolveallpaymentdisputes.4݌ I  Ќ X  -444 X!444X!- XXX X XXX X       &%X X &%% &   K. 4 <DL!!444 X!K   X  H+4 44 <DL!! 4 X!H<  # &%% &v# XX% & E.  TheAuthoritywillnotpaytheContractorforworkperformedunlessanduntilthe #  ContractorensuresthattheSubcontractorshavebeenpromptlypaidfortheworkthey   haveperformedunderallpreviouspaymentrequests,asevidencedbythefilingwiththe  Authorityoflienwaivers,canceledchecks(ifrequested),andtheContractorssworn  statementthatithascompliedwiththepromptpaymentrequirements.PrimeContractors  mustsubmitapromptpaymentaffidavit,(formtobeprovidedbytheAuthority)which  identifieseachsubcontractor(bothDBEandnonDBE)andthedateandamountofthe t lastpaymenttosuchsubcontractor,witheverypaymentrequestfiledwiththeAuthority, ` exceptforthefirstpaymentrequest,oneverycontractwiththeAuthority.(Seebelowfor L PromptPaymentAffidavitdevelopedbyCTA).<݌ o8 Ќ X  0444 X!444 X!0 XXX X XXX X      &%X X &%% & X  K.444 <DL!!444 X!K      # &%% &# XX% & F.  FailuretocomplywiththesepromptpaymentrequirementsisabreachoftheContract,  whichmayleadtoanyremediespermittedunderlaw,including,butnotlimitedto,  Contractordebarment.Inaddition,Contractorsfailuretopromptlypayits   Subcontractorsissubjecttotheprovisionsof50ILCS505/9. ݌ ! Ќ X  -444 X!444X!- XXX X XXX X   P   7+X X 7+ 7+    P#  # &% 7+ !# XX% &REPORTINGREQUIREMENTSDURINGTHETERMOFTHECONTRACTP#$  #Ԍ y#B Ќ   XXX X XXX X   XH+4 44 <DL!444 X!HA.  Thebiddershall,withinfive(5)businessdaysofcontractaward,orpriortoanywork Q% beingperformed,executeformalsubcontractsorpurchaseorderswiththeDBEfirms =& includedinthebid.i X X      i&      XX    C  9      i h X      i'      XX,   ThesewrittenagreementsshallbemadeavailabletotheGeneral )' Manager,DBEProgram,uponrequest.Allcontractsbetweenthebidderandits 7 subcontractorsmustcontainapromptpaymentclauseassetforthinSectionVIIIherein. #  XE+ 4 <DL!444X!E    XB+4 44 <DL!X!BB.  Duringthetermofannualcontracts,thebiddershallsubmitregular"StatusReportsof   DBESubcontractPayments"inaformacceptabletotheAuthority.Thefrequencywith   whichthesereportsaretobesubmittedwillbedeterminedbytheGeneralManager,DBE   Program,butinnoeventwillreportsberequiredlessfrequentlythanquarterly. Inthe   absenceofwrittennoticefromtheGeneralManager,DBEProgram,thebidders  x first StatusReportofDBESubcontractPaymentswillbedueninety(90)days d afterthedateofcontractaward,withadditionalreportsduequarterlythereafter.  P   XE+ 4 <DL!444X!E s<     XB+4 4 <DL!X!B  E+4 44 <DL!44X!E-  C.  Inthecaseofaonetimeprocurementwitheitherasingleormultipledeliveries,a Status _(  ReportofDBESubcontractPayments,inaformacceptabletotheAuthority,indicating K  finalDBEpaymentsshallbesubmitteddirectlytotheGeneralManager,DBEProgram. 7  Theinformationmustbesubmittedpriortooratthesametimeasthebiddersfinal #  invoicetotheAuthorityuserdepartmentidentifiedinthesolicitation.(NOTICE:The   originalinvoicesmustbesubmitteddirectlytotheAuthoritysdepartmentidentifiedin  thecontractdocumentsandtheStatusReportofDBESubcontractPaymentsmustbe  submitteddirectlytotheGeneralManager,DBEProgram.) Failuretofollowthese  directionsmaydelayfinalpayment. -i.݌  Ќ  X' X!444X!'     XD.  TheaddressfortheGeneralManager,DBEProgram,is:CTAGeneralManager,Chicago h TransitAuthority,DBE/EEOPrograms/ContractComplianceDepartment,567West T LakeStreet,Chicago,IL606611498). w@   XB+ 4 <DL!X!B_   PROMPTPAYMENTAFFIDAVIT O U4 Contractorwillplaceacheckintheappropriateboxbelowthatappliestothispaymentrequest. '      Re:PaymentRequestNo._______ ! '50  I,________________________________,the_________________________________#(#(#    `  Name   h   Title(e.g.,President,VicePresident,etc.) $  0  of__________________________________("Company"),dostatethefollowingwith &d" regardtopaymentsmadeunderContractNo.______________________("Contract"):'P #(#(# 0  1.____Subcontractors,atthefirsttier,bothDBEandnon-DBE,whocompletedwork _)("% andwerelistedforpaymentonthepriorPaymentRequestNo._______,werepaidno K*#& laterthanfive(5)businessdaysafterCompanyreceivedpaymentfromCTA.7+$'(#(# 0   (#(# 0  2.____Copiesofinvoicesandcancelledchecksforsubcontractorsatthefirsttierwho -%) werepaidunderthepriorpaymentrequesthavebeendeliveredormailedtotheDBE -&* Department.Inaddition,CompanyhasattachedtothecurrentPaymentRequestalllien .'+ waiversforpriorsubcontractorpaymentsandanyotherdocumentationrequiredbyCTA. /(, (FailuretoattachallrequireddocumentationtothePaymentRequestorforwardcancelled 7 checksandinvoicestotheCTADBEDepartmentmaycausethePaymentRequesttobe # rejectedbyCTA.) (#(# 0  3.____Allretainageamountswithheldfromanysubcontractorwhosatisfactorily   completeditsportionofthecontractwork,includingpunchlistitems,werepaidtothe   subcontractor(s)nolaterthanfourteen(14)businessdaysafteritsatisfactorilycompleted   itswork,whetherornotCTAhaspaidsaidretainageamountstoCompany.Attacha  t copyofthecancelledcheckevidencingpaymentofeachretainageamount.`(#(# 0  4.____Therewasnodelayinorpostponementofanypaymentowedtoasubcontractor, o8  whetherperiodicpaymentorretainageamount,exceptforgoodcauseandafterreceiptof [$  priorwrittenapprovalfromtheCTAPurchasingAgent.G (#(# 0  AttachacopyofthewrittenapprovalfromtheCTAPurchasingAgent. (#(# *l 1!dVd,bb,(#(#l, dd ,<dd +   Subscribedandswornto [$ beforemethis________ G dayof________20___ 3 # &%X XL$# XX% &#XXX X.# XXXX_______________________________  NotaryPublic#XXX XA# XXXX# &%X X@# XX% &    _____________________________________ [$ CompanyName G _____________________________________ 3 Signature  _____________________________________   PrintName  Date:_______________________# &%X XA# XX% &    7.2.5DBEDirectory !  *p Vdd dd <dd < 1!(#(#p,,bb+  :' x# x x:b  B+ ` hp x X!B    d! bD  REQUIREMENT bD%E  DԌ N;#!$ x   NЌ  ! X!X!  d""P49CFR26.31WhatRequirementsPertaintotheDBEDirectory?requiresgranteesto "% compileandupdateatleastannuallyadirectoryorsourcelistofallfirmseligibletoparticipate #& asDBEsinthegranteesprograms.Thelistingforeachfirmmustincludeitsaddress,phone $' number,andthetypesofworkthefirmhasbeencertifiedtoperformasaDBE.Thisdirectoryis %x( tobemadeavailabletointerestedpersons,includingcontractorsandthepubliconrequest. 3)'&d)     3DISCUSSION {(D!* GranteesmustmaintaindirectoriesofDBEfirmsthathavebeencertifiedtodoworkas S*#, DBEs.TheinformationrequiredfortheDirectoryincludesthename,address,phone ?+$- number,andthetypesofworkthefirmhasbeencertifiedtoperformasDBE.The +,$. primarypurposeoftheDirectoryistoshowtheresultsofthecertificationprocess.Since -%/ certificationundertheDBErulepertainstothevariouskindsofworkafirms .&0 disadvantagedownerscancontrol,itisimportanttolistthosekindsofworkinthe .'1 Directory.Forexample,ifafirmseekstoworkinfieldsA,B,andC,butthegranteehas 7 determinedthatitsdisadvantagedownerscancontrolitsoperationsonlywithrespecttoA # andB,thentheDirectorywouldrecitethatthefirmiscertifiedtoperformworkasaDBE   infieldsAandB.   ThefocusoftheDirectoryisintendedtobeeligibility.ADirectoryisintendedtopermit   interestedfirmstocontacttheDBEs.TheDirectoryisnotintendedtobeacomprehensive   businessresourcemanual.Forexample,informationaboutfirmsqualifications,  t geographicalpreferencesforwork,performancetrackrecord,capitalization,etc.arenot ` requiredtobepartoftheDirectory. L  7.2.6BiddersList [$  *] VdVd,bb,(#(#],,bb+  :'3 3  x:`aF   g  _.! r #X!!     g dh ; +4j Yr #c+K.` hp x (#4j YK`aFjO  REQUIREMENT `jOP OԌ WD,h  x   WЌ     ._$ X!X(#$  K(X  K.4j YX!\P.K.` hp x (#4j YK49CFR26.11WhatRecordsDoRecipientsKeepandReport?requiresgranteestocreateand    maintainabidderslist,consistingofallfirmsbiddingonprimecontractsandbiddingorquoting  subcontractsonDOTassistedprojects.Foreveryfirm,thefollowinginformationmustbe  included:  .4j YX(#FR.34 X0#4j Y3  (1)0 4 Firmname,p4 #4 # 74j Y4 X0#@T7H+4 4` hp x (#4j YH0  (2)0< # #Firmaddress,\< #< # 14j Y44` X(#T1H+4 4` hp x (#4j YH0  (3)0< # #FirmsstatusasaDBEornonDBE,H< #< # 14j Y44` X(#U1H+4 4` hp x (#4j YH0  (4)0< # #Theageofthefirm,k4< #< # 0  (5)0< # #14j Y44` X(#V1H+4 4` hp x (#4j YHTheannualgrossreceiptsofthefirm.W < #< # 3)'C      3 ,E+ ` hp x 44` X(#E  ,HX  HXX݌̌ $44` X(#X$  DISCUSSION  #  14j Y44` X(#W1K.` hp x (#4j YK Thebidderslistisintendedtobeacountofallfirmsthatareparticipating,orattemptingto ! participate,onDOTassistedcontracts.Thelistmustincludeallfirmsthatbidonprime " contractsorbidorquotesubcontractsonDOTassistedprojects,includingbothDBEsand # nonDBEs.DOTbelievesthatbidderslistsareapromisingmethodforaccurately $ determiningtheavailabilityofDBEandnonDBEfirms,andDOTbelievesthatdeveloping %t  biddersdatawillbeusefulforgrantees.Creatingandmaintainingabidderslistwillgive &`! granteesanothervaluablewaytomeasuretherelativeavailabilityofready,willingand 'L " ableDBEswhensettingtheiroverallgoals.(Seesection7.3.3EstablishingOverallGoals.) o(8!# TheDOTregulationsdonotimposeanyproceduralrequirementastohowthedatais [)$"$ collected.Granteesarefreetochoosehowtheycollecttherequireddata.DOTsuggests G*#% thatgranteesconsiderusingawidelypublicizedpublicnoticeorawidelydisseminated 3+#& surveytoencourageallfirmsthathavebidonthegranteescontractstomakethemselves ,$' knowntothegrantee.Oncethelistofbiddershasbeencreated,granteeswillneedto  -%( supplementthisinformationwiththeageofeachfirm(sinceestablishment)andtheannual -&) grossreceiptsofthefirm(oranaverageofitsannualgrossreceipts).Granteescangather .'* thisadditionalinformationbysendingaquestionnairetothefirmsonthelist,orbyany /(+ othermeansthatthegranteebelieveswillproducereliableinformation.Thegranteesplan 7 forhowtocreateandmaintainthelistandgathertherequiredinformationmustbe # includedinitsDBEprogram.    ,B+ ` hp x X(#B  ,a  aVb݌̌ ! X(#X!   (#38o######### 2#(03 / /7.2.70  MonitoringContractorsPerformance (#(# *] VdVd,bb,(#(#],,bb+  :'   x:`aF   g  _.! r #X(#!    g d+  +4j Yr #Y+K.` hp x (#4j YK`aF e  REQUIREMENT ` e]f eԌ WD,+  x   WЌ     ._$ X(#X(#$  d`K(XK.4j YX(#f.K.` hp x (#4j YK49CFR26.37WhatAreaRecipientsResponsibilitiesforMonitoringthePerformanceof  OtherProgramParticipants?requiresgranteestoestablishamonitoringandenforcement   mechanismtoverifythattheworkcommittedtoDBEsatcontractawardisactuallyperformedby   theDBEs.3)'      3 DISCUSSION h  DOThasavoidedprescribingmonitoringandenforcementmechanismsforgrantees.The w@ Departmentislookingforgranteesthemselvestodefineastrongandeffectivesetof c, monitoringandcomplianceprovisionsintheirDBEprograms.Thesemechanismscouldbe O almostanythingavailabletothegranteeunderFederal,Stateorlocallaw(e.g.,liquidated ; damagesprovisions,responsibilitydeterminations,suspensionanddebarmentrules,etc.). ' TheresultsthatgranteesmustmeasureconsistofpaymentsactuallymadetoDBEs,not  justpromisesattheawardstage.Credittowardgoalscanbeawardedonlywhenpayments  (including,forexample,thereturnofretainagepayments)areactuallymadetoDBEs.  Granteesmustkeeparunningtallyoftheextenttowhich,oneachcontract,performance  hadmatchedpromises.Primecontractorswhoseperformancefellshortoforiginal  commitmentswouldbesubjecttothecompliancemechanismsthegranteehadmade x available. d BestPractices s!< k    B+ ` hp x X(#B  kn  Suggestionsformonitoringcontractorsperformancewouldinclude: knho݌ K# Ќ    ! X(#X!  .4j YX(#h.K.'` hp x (#4j YK (#302#Wc #########(83 .4j Y'X(#xp.' Y4j Y'0  a)0b (# (#Requiringadequatejustificationwhenaprimecontractorproposestosubstitutea #% nonDBEsubcontractor.& b (#b (# 0  b)0b (# (#Conductingstatusreviewsofcontractorscomplianceatregularlyscheduled ' " projectmeetings.(!#b (#b (# 0  c)0b (# (#Requiringwrittenmonthlyorquarterlyreviewsofthecontractorsperformancein *t#% meetinggoals.+`$&b (#b (# 0  d)0b (# (#Requiringthecontractortoproposeplanstocureandthenimplementthoseplans o-8&( whenthecontractorisfailingtomeetthecontractgoals.[.$')b (#b (# +4j YYq+K.` hp x (#4j YK G/(* .4j YX(#Xu.K.e` hp x (#4j YK 7.3GOALSFORDBEPARTICIPATION 7 .4j YeX(#u.K.` hp x (#4j YK 7.3.1DOTNationalGoalof10%   `aF   g  _.! r #X(#!    g `aF"w  `"ww hiwԌ   Ќ     ._! X(#r #!  `aF    g  _.! r #X(#!    g `aFx  DISCUSSION`x[y hi$yԌ   Ќ     ._! X(#r #!  b  B+ ` hp x X(#B    b9z  Thereisastatutorygoalthatnotlessthan10percentofthetransitfundsauthorizedareto   beexpendedwithDBEs.Undertheformerpart23,the10percentgoalderivedfromthe  t statuteplayedaroleinthesettingofoverallgoalsbygrantees.Forexample,ifgrantees ` hadagoaloflessthan10percent,therulerequiredthemtomakeaspecialjustificationto L  FTA.Thenewrulemakesclearthatthe10percentgoalisanaspirationalgoalthatappliesto o8  theDepartmentofTransportationonanationallevel,nottoindividualgranteesortheir [$  contractors.Thenationalgoalof10percentisnottiedtogranteesgoalsettingdecisions. C  GranteessetgoalsbasedonwhatwillachievealevelplayingfieldforDBEsintheirown /  programs,withoutregardtothenationalDOTgoal.Granteesarenotrequiredtosettheir   overallorcontractgoalsat10percentoranyotherparticularlevel.Noraregrantees   requiredtomakeaspecialjustificationiftheiroverallgoalsarelessthen10percent.b9zz ЗzԌ  Ќ  ! X(#X!  7.3.2UseofQuotasandSetAsides   *] VdVd,bb,(#(#],,bb+  :'ll x:`aF    g  _.! r #X(#!    g dt+4j Yr #v+K.` hp x (#4j YK`aF  REQUIREMENT`P hiԌ WD, x   WЌ     ._$ X(#X(#$  d{DK(XK.4j YX(#.K.` hp x (#4j YK49CFR26.43CanRecipientsUseQuotasorSetAsidesasPartofThisProgram?prohibits  theuseofquotasforDBEsonDOTassistedcontractsunderanycircumstances.Setasidesare  notpermittedexceptinlimitedandextremecircumstancestoredressegregiousinstancesof  discrimination. 3)'l     3DISCUSSION  H TheDBEprogramdoesnotsetasideacertainpercentageofcontractsordollarsfora W"  specificsetofcontractors.TheDBEprogramisagoalsprogram,whichencourages C#  participationwithoutimposingrigidrequirementsofanytype. /$ Quotasarenotpermittedunderanycircumstances.Aquotaisasimplenumerical &  requirementthatacontractormustmeet,withoutconsiderationofotherfactors.For &! example,ifagranteesetsa12percentgoalonaparticularcontractandrefusestoaward ' " thecontracttoanybidderwhodoesnothavea12percentDBEparticipation,either (!# refusingtolookatshowingsofgoodfaitheffortsorarbitrarilydisregardingthem,thenthe )"$ granteehasusedaquota.Biddersmustmakegoodfaitheffortstomeetcontractgoals *l#% wheresuchgoalsarestated,butgranteesmaynotdenyacontracttoabiddersimply +X$& becauseitdidnotobtainenoughDBEparticipationtomeetthegoal.Granteesmust {,D%' seriouslyconsiderbiddersdocumentationofgoodfaithefforts.Ifbiddersmakegoodfaith g-0&( effortstomeetcontractgoals,theyhavecompliedwiththeintentoftheDBEregulations, S.') eveniftheirgoodfaitheffortsfailtomeettheactualcontractgoal. ?/(* Setasidesarenotpermittedexceptinextremecircumstancestoredressextremeinstances  ofdiscrimination.AcontractingagencysetsacontractasideforDBEsifitpermitsnoone   butDBEstocompeteforthecontract.FirmsotherthanDBEsarenoteligibletobid.A   granteemayuseasetasideunderpart26ifothermethodsofmeetingoverallgoalsare   demonstratedtobeunavailingandthegranteehaslegalauthorityindependentofpart26.   DOTbelievesthatsetasidesshouldnotbeusedintheDBEprogramunlesstheyare   absolutelynecessarytoaddressaspecificproblemwhennoothermeanswouldsuffice.Set  p asidesarealastresort. \ 7.3.3EstablishingOverallGoals g0  *] VdVd,bb,(#(#],,bb+  :'? ?  x:c  B+ ` hp x X(#B    dt G c   REQUIREMENTc  mԌ N;#t  x   NЌ  ! X(#X!  d{D  49CFR26.45HowDoRecipientsSetOverallGoals?requiresgranteestosetanoverallgoal {D  forDBEparticipationintheirDOTassistedcontracts.Theoverallgoalmustbebasedupon g0 demonstrableevidenceoftherelativeavailabilityofDBEsinthegranteesownmarket.Section ? 26.45alsofurnishesexamplesofmethodsthatgranteesmayusetodevelopabasefigureforthe + relativeavailabilityofDBEsintheirparticularmarket.Themethodssuggestedincludetheuse  ofDBEDirectories,CensusBureauData,BiddersLists,etc.GoalsmustbesubmittedtoFTAby  August1ofeachyear.Publicparticipationisalsorequiredinestablishinganoverallgoal;i.e.,  consultationwithminority,womensandgeneralcontractorgroups,andotherorganizationsthat  couldhaveinformationconcerningtheavailabilityofDBEs,aswellaspublicnotices  announcingtheproposedoverallgoalanditsrationale. 3)'|     3DISCUSSION \  EstablishingOverallGoalsisnotnormallyaprocurementofficefunction.DBE k!4 programadministratorsshouldseekguidancefromtheU.S.DOTOfficeofSmalland W"  DisadvantagedBusinessUtilization(http://osdbu.dot.gov/). C#  B+ ` hp x X(#B  c  c݌̌! X(#X!  7.3.4EstablishingOverallGoalsforTransitVehicleManufacturers % *] VdVd,bb,(#(#],,bb+  :'&!& x:`aF   g  _.! r #X(#!    g d_'( &+4j Yr #+K.` hp x (#4j YK`aFG  REQUIREMENT`G s™Ԍ WD,_'( " x   WЌ     ._$ X(#X(#$  d/)!(!K(X/)!K.4j YX(#9.K.` hp x (#4j YK49CFR26.49HowAreOverallGoalsEstablishedforTransitVehicleManufacturers? /)!# requiresgranteestoobtainacertificationfromeachtransitvehiclemanufacturethatdesiresto *"$ bidorproposeuponaDOTassistedtransitvehicleprocurementthatithascompliedwiththe +#% requirementsof49CFR26.49.Granteesmay,however,withFTAapproval,establishproject +$& specificgoalsforDBEparticipationintheprocurementoftransitvehiclesinlieuofcomplying ,%' throughtheoverallgoalsettingprocedures.  -&( 3)'.')     3 /t() J J J  DISCUSSION 7 h  <% ` hp x X(#<  h  49CFR26.49requirestransitvehiclemanufacturers(TVMs)toestablishandsubmitfor   FTAapprovalanannualoverallpercentagegoalforDBEs.Part26continuestheolder   rulethatwasinpart23forTVMs.TVMsmustsettheirgoalsbasedontheprinciplesin   26.45.GranteesarerequiredtoobtainacertificationfromTVMsthatwishtobidor   proposeonDOTassistedtransitvehicleprocurements,oralternately,granteesmay,with   FTAapproval,establishaprojectspecificgoalforDBEparticipation.< C  10      ׀TheAPTA  t StandardBusProcurementGuidelinesprovideasamplesolicitationprovisionanda ` certificationtobesignedbytheTVMsauthorizedofficial.> C  11      h݌ L  Ќ  ! X(#` X!   (#38#########Iq/ /7.3.50  MeansofMeetingOverallGoals[$ (#(# h  <% ` hp x X(#<  h  h݌̌  ! X(#` X!  .4j YX(#8.H+ ` hp x (#4j YH7.3.5.1RaceNeutralMeans 3   h  <% ` hp x X(#<  h$  h$݌̌  ! X(#` X!  *] VdVd,bb,(#(#],,bb+  :'     x:h  <% ` hp x X(#<  dw@ h  REQUIREMENT h,݌ N;#w@ x   NЌ  ! X(#` X!  h  <% ` hp x X(#<  dGh  49CFR26.51WhatMeansDoRecipientsUsetoMeetOverallGoals?requiresgranteesto G meetthemaximumfeasibleportionoftheiroverallgoalbyusingraceneutralmeansof 3 facilitatingDBEparticipation.ThisSectionincludesexamplesofraceneutralstepsthat  granteescantaketofacilitateDBEparticipation.Inanyyearinwhichthegranteeexpectsto   meetpartofitsgoalthroughraceneutralmeansandtheremainderthroughcontractgoals,the  granteemustmaintaindataseparatelyonDBEachievementsinthosecontractswithandwithout  contractgoals,respectively.ThisdatamustbereportedtoFTA.hs݌  Ќ  ! X(#` X!  3)'     3.4j YX(#.K.` hp x (#4j YK DISCUSSION d OneofthekeypointsofthenewDBEruleisthat,inmeetingoverallgoals,granteeshaveto s!< giveprioritytoraceneutralmeans.Byraceneutralmeans(atermthatincludesgender _"( neutralityforpurposesofthisrule),DOTmeansoutreach,technicalassistance, K# procurementprocessmodification,etc."measuresthatcanbeusedtoincrease 7$ opportunitiesforallsmallbusinesses,notjustDBEs,anddonotinvolvesettingspecific #% goalsfortheuseofDBEsonindividualcontracts.WheneveraDBEreceivesaprime &  contractbecauseitisthelowestresponsiblebidder,theresultingDBEparticipationwas &! achievedthroughraceneutralmeasures.Similarly,whenaDBEreceivesasubcontracton ' " aprojectthatdoesnothaveacontractgoal,itsparticipationwasalsoachievedthrough (!# raceneutralmeasures. )"$   +`$& - -` -  Raceneutralmeansinclude,butarenotlimitedto,thefollowing: 7 .4j YX(#P.E(` ` hp x (#4j YE o#########(83 ! !.4j Y` ` X(#.H+` 4` hp x (#4j YH0  (1)0` (#(#Arrangingsolicitations,timesforthesubmissionofbidsorproposals,   quantities,specifications,anddeliveryschedulesinwaysthatfacilitate   participationbyDBEs,andothersmallbusinesses.Examplesmightinclude   theunbundlingoflargecontractstomakethemmoreaccessibletosmall   businesses,requiringorencouragingprimecontractorstosubcontract   portionsofworkthattheymightotherwiseperformwiththeirownforces,  t etc.;`` (#` (# 14j Y` 4` X(#´1E( ` hp x (#4j YE.4j Y` X(#.H+` 4` hp x (#4j YH0  (2)0` (#(#Providingassistanceinovercominglimitationssuchasinabilitytoobtain o8  bondingorfinancing(e.g.,bysuchmeansassimplifyingthebondingprocess, [$  reducingthebondingrequirements,eliminatingtheimpactofsuretycosts G  frombids,andprovidingservicestohelpDBEs,andothersmallbusinesses, 3  obtainbondingandfinancing; ` (#` (# 14j Y` 4` X(#$1E( ` hp x (#4j YE.4j Y` X(#{.H+` 4` hp x (#4j YH0  (3)0` (#(#Providingtechnicalassistanceandotherservices;` (#` (# 14j Y` 4` X(#1E( ` hp x (#4j YE.4j Y` X(#ܻ.H+` 4` hp x (#4j YH0  (4)0` (#(#Carryingoutinformationandcommunicationsprogramsoncontracting  proceduresandspecificcontractopportunities(e.g.,ensuringtheinclusionof  DBEsandothersmallbusinessesongranteemailinglistsforbidders; p ensuringthatprimecontractorsreceivelistsofpotentialsubcontractors; \ provisionofinformationinlanguagesotherthanEnglish,where H appropriate);k4` (#` (# 14j Y` 4` X(#P1E( ` hp x (#4j YE.4j Y` X(#.H+` 4` hp x (#4j YH0  (5)0` (#(#Implementingasupportiveservicesprogramtodevelopandimprove C  immediateandlongtermbusinessmanagement,recordkeeping,and / financialandaccountingcapabilityforDBEsandothersmallbusinesses; ` (#` (# 14j Y` 4` X(#U1E( ` hp x (#4j YE.4j Y` X(#.H+` 4` hp x (#4j YH0  (6)0` (#(#ProvidingservicestohelpDBEs,andothersmallbusinesses,improvelong ! termdevelopment,increaseopportunitiestoparticipateinavarietyofkinds " ofwork,handleincreasinglysignificantprojects,andachieveeventualself # sufficiency;$ ` (#` (# 14j Y` 4` X(#w1E( ` hp x (#4j YE.4j Y` X(#a.H+` 4` hp x (#4j YH0  (7)0` (#(#Establishingaprogramtoassistnew,startupfirms,particularlyinfieldsin &X" whichDBEparticipationhashistoricallybeenlow;{'D #` (#` (# 14j Y` 4` X(#1E( ` hp x (#4j YE.4j Y` X(#&.H+` 4` hp x (#4j YH0  (8)0` (#(#EnsuringdistributionoftheDBEDirectory,throughprintandelectronic S)"% means,tothewidestfeasibleuniverseofpotentialprimecontractors;and?*#&` (#` (# 14j Y` 4` X(#1E( ` hp x (#4j YE.4j Y` X(#.H+` 4` hp x (#4j YH0  (9)0` (#(#AssistingDBEsandothersmallbusinessestodeveloptheircapabilityto ,$( utilizeemergingtechnologyandconductbusinessthroughelectronicmedia.-%)` (#` (#  14j Y` 4` X(#p1K.` hp x (#4j YK (#38o#########/ /.4j YX(#.H+ ` hp x (#4j YH  .'+ K7.3.5.2UsingContractGoals 7 *] VdVd,bb,(#(#],,bb+  :'   x:`aF   g  _.! r #X(#!    g d{ D +4j Yr #+K.` hp x (#4j YK`aFi  REQUIREMENT`aFi heԌ WD,{ D x   WЌ      ._$ X(#X(#$  dK  K(XK K.4j YX(#[.K.` hp x (#4j YK49CFR26.51(d)WhatMeansDoRecipientsUsetoMeetOverallGoals?requiresgranteesto K  establishcontractgoalstomeetanyportionoftheiroverallgoalthattheydonotprojectbeing 7  abletomeetusingraceneutralmeans.GranteesmayusecontractgoalsonlyonthoseDOT #  assistedcontractsthathavesubcontractingpossibilities.Further,granteesarenotrequiredtoset  goalsoneveryDOTassistedcontract,normusttheysetaparticularcontractgoalatthelevelof  theoverallgoal.Theparticularcontractgoalwilldependonthetypeofworkinvolved,the   locationofthework,andtheavailabilityofDBEsfortheworkoftheparticularcontract.   However,overtheperiodcoveredbytheoverallgoal,granteesmustsetcontractgoalssothat   theywillcumulativelyresultinmeetinganyportionoftheoverallgoalthattheydonotproject t  beingabletomeetthroughtheuseofraceneutralmeans.Ifthegranteesapprovedprojection `  indicatesthatitcanmeetitsentireoverallgoalthroughraceneutralmeasures,thegranteemust L  implementitsprogramwithoutsettingcontractgoalsduringthatyear. 3)'o8     3 DISCUSSION O Theexpressedpriorityforraceneutralmeansdoesnotprecludetheuseofraceconscious ' measures,suchascontractgoals,bygrantees.Therulesimplyrequiresgranteestogetthe  maximumfeasibleDBEparticipationthroughraceneutralmeasures.Thefirststepisto  establishanoverallgoalandestimate,inadvance,whatpartofthegoalcanbemetthrough  theuseofraceneutralmeasures.ThisprojectionisfurnishedtoFTAatthetimethe  overallgoalissubmitted,andissubjecttoFTAapproval.Thegranteeusesraceconscious  measures(e.g.,setscontractgoals)togettheremainderoftheDBEparticipationitneedsto x meettheoverallgoal.Ifthegranteeexpectstomeetitsentireoverallgoalthroughrace d neutralmeans,itcould,withFTAapproval,implementitsprogramwithoutanyuseof  P contractgoals. s!< Granteeswillmostlikelyuseacombinationofraceneutralandraceconsciousmeasures. K# ItisimportantthatgranteeskeepaccuraterecordsofcontractawardstoDBEsthrough 7$ raceneutralvs.raceconsciousmethods.Thegranteesactualexperiencewiththemethods #% willenablethegranteetoadjustthemethodologyitusestoachieveitsfutureoverallgoal. &  Forexample,agranteethatwasconsistentlyabletomeetitsoverallgoalusingonlyrace &! neutralmeasureswouldneverneedtousecontractgoals. ' " ThenewDBErulemakesclearthatcontractgoalsarenotrequiredonallcontracts.The )"$ rulealsostatesthatthecontractgoalneednotbesetatthesamelevelastheoverallgoal. *t#% Forexample,ifagranteehasanoverallgoalof11percent,itdoesnothavetosetacontract +`$& goaloneachcontract.Nordoesithavetoestablishan11percentgoaloneachcontract ,L%' whereitdoessetacontractgoal.Theideaisforthegranteetosetcontractgoalsthat, o-8&( cumulativelyfortheyear,bringinenoughDBEparticipation,whichwhenaddedtothe [.$') participationexpectedfromraceneutralmeasures,willresultinachievingtheoverallgoal. G/(* Ї`aF   g  _.! r #X(#!    g `aF  BestPractices` jpԌ 7 Ќ     ._! X(#r #!  Whengranteesmustusecontractgoalstomeettheiroverallgoal,granteesneedtoreview   candidateprocurementstodetermineiftheyaffordsubcontractingopportunitiesforDBE   participation.DBEsubcontractinggoalsaretobeestablishedbasedontheknownavailabilityof   qualifiedDBEs . GranteescanobtaininformationaboutcertifiedDBEfirmsfromtheirStateor   localgovernmentofficesaswellastheFederalSmallBusinessAdministration,whichpublishesa   listingofcertifiedsmallbusinessesandsmalldisadvantagedbusinessesontheirProNetInternet  x site.ProNetisanInternetbaseddatabaseofinformationonmorethan171,000small, d disadvantaged,8(a)andwomenownedbusinesses.Thisdataisfreetothegeneralpublicasa P  resourceforthoseseekingcontractorsandsubcontractorsand/orpartnershipopportunities. s<  BusinessesprofiledontheProNetcanbesearchedbySICcodes;keywords;location;quality K  certifications;businesstype,ownershipraceandgender;E.I.capability,etc.@ C  12      Ofcourse, 7  granteesarerequiredtomaintainacurrentDirectoryofDBEsourcesinordertofacilitatethe #  establishmentofspecificcontractgoalsandtoassistprimecontractorsinidentifyingpotential   DBEsubcontractors.SeeSection7.2.5,DBEDirectory,above.  GranteeinitiativestopromoteDBEparticipationintheirthirdpartycontractswouldincludesuch  stepsas:  .4j YX(#`.! ! #"(Uy3 "3"  6,XX X 4j Y69, X ,XX X 9  32U3  0 4   Reviewingallpurchaserequisitionsaboveacertaindollarthresholdorforcertain ` typesofwork(e.g.constructionandprofessionalservices),todetermineifDBEgoals L shouldberequired.3C݌o84(#4(# Ќ  "3"    32U3  0 4   Encouragingbidderstodividetheirtotalrequisitions,whereappropriate,into G economicallyfeasibleunits,tasksorquantitiessoastopermitmaximumDBE 3 participation.3݌ 4(#4(# Ќ  "3"    3K2U3  0 4   StressingtheimportanceofDBEparticipationatprebid/proposalconferences,with ! guidancetobiddersandproposersastotheresourcesavailabletotheminlocating " potentialDBEsubcontractorsandsuppliers(suchastheSmallBusiness # AdministrationsProNetdatabase).3K݌$ 4(#4(# Ќ  "3"    3e2U3  0 4   Targetingadvertisementnoticesinminorityownednewspapersinadditiontoother &\" newspapersofgeneralcirculation.3e݌'H #4(#4(# Ќ  "3"    32U3  0 4   ExtendingthebiddingtimetoallowcontractorstoidentifyDBEfirmsandpermit W) "% theircertificationwherenecessary.ThistechniquewasusedbytheMetroDade C* #& TransitAgencyonaprocurementfortechnical,computerrelatedenditemswhere /+#'  DBEfirmswiththetechnicalexpertisetoperformtheworkwerenotcertified. ,$( K K` K  AllowinganextendedproposalperiodpermittedtheprimecontractorstolocateDBE 7 subcontractorsandhavethemcertified.D C  13      3݌#4(#4(#   "3"    3M2U3  0 4   Includingaprominentnotificationinall NoticeofAwardLetterssimilartothat   usedbyNYCTransit:3M݌ 4(#4(# Ќ  0  04(#(#YourcontractcontainsaDisadvantagedBusinessGoalof______%.TheContract   requiresthatyousubmitworkschedulesandcopiesofexecutedsubcontract  t agreementsforyourproposedDBEsubcontractorswithin30daysofthedateofthis ` awardletter.Youarefurtherrequiredtosubmitmonthlyreportsofyourprogress L  towardmeetingthesegoals,ontheformsprovidedinthecontractdocuments.Fz C  14      o8 4(#4(# K+ ` hp x , X K  *, X X*  ݌̌6, X , X 6  "3"    32U3  0 4   InvitingyourDBEprogramofficetoparticipateonallselectioncommitteesfor G  procurementsthatrequireDBEsubcontractinggoals.3Q݌3 4(#4(# Ќ  =,XX X , X =N+ ` hp x (#,XX X N 7.3.5.3EvaluationofContractorProposalsForDBEParticipation     B+ ` hp x X(#B  `  DISCUSSION`݌  Ќ! X(#X!  B+ ` hp x X(#B  C  C݌̌! X(#X!  B+ ` hp x X(#B    TherearetwopracticesforsubmissionofDBEinformationbyofferors      ` b݌̌! X(#X!  4,XX X X(#4! ! #"(Uyy#""3"  Q.` ` hp x (#,XX X Q   32U3  0 `   OfferorsmayberequiredtocompletetheirDBEsubmissions,including \ eitherthelistofproposedDBEsubcontractorsandamounts,ortheproofof H goodfaithefforts,withtheiroffers.Thisapproachistypicalofprofessional k4 servicecontracts;or3݌W ` (#` (# Ќ  7,XX X ` X(#@7Q.` ` hp x (#,XX X Q"3"    32U3  0 `   4,XX X ` X(#4Q.` ` hp x (#,XX X QOfferorsmayberequiredonlytopromisecompliancewiththeprogramin / theiroffers,postponingsubmissionofthelistofsubcontractors(orproofof   goodfaithefforts)untildeterminationoftheapparentlowbidder.3݌!` (#` (# Ќ  7,XX X ` X(#7Q.` hp x (#,XX X QWhendeterminingcompliancewithDBErequirements,twoscenariosarepossible: " 4,XX X X(#h4"3"  Q.` ` hp x (#,XX X Q  3R2U3  0 `   Theproposer/biddersubmitsinformationindicatingthattheDBEgoalswill $  bemet;or3R݌%l!` (#` (# Ќ  <&&X7,XX X ` X(#7Q.` ` hp x (#,XX X Q4,XX X ` X(#4"3"  Q.` ` hp x (#,XX X Q   32U3  0 `   Theproposer/biddersubmitsinformationindicatingthattheDBEgoalswill ('# notbemet.30݌( $` (#` (# Ќ  7,XX X ` X(#7Q.` hp x (#,XX X Q S?*#)" SB+ ` hp x X(#B  )"?*#   Thefollowingarebestpracticestofollowforthetwoscenarios: L݌ )"& Ќ! X(#X! S   ++#'  Scenario1:Proposer/biddersubmitsinformationthattheDBEgoalswillbemet  7 Ѐ4,XX X X(#Z4K( ` hp x (#,XX X K RequiredInformation-Theinformationsubmittedbytheofferormustinclude    4,XX X ` X(# 4K(` ` hp x (#,XX X K  ,c  4,XX X ` ` X(# 4N+` ` hp x (#,XX X N ,c" "0 `   NamesofDBEsubcontractors/suppliersparticipatinginthecontract.DBEs   mustbeeligible(thosethatarecurrentlycertifiedorthatcanbecertified   priortoaward);,c"  ݌ ` (#` (# Ќ  7,XX X ` ` X(#q 7K(` ` hp x (#,XX X K0  ,c  4,XX X ` ` X(#; 4N+` ` hp x (#,XX X N,c "0` (#(#  AdescriptionoftheworkeachDBEistoperformortheproductstobe ` providedbytheDBE,withanindicationofthepercentageoftheworktobe L  donebytheDBEsownworkforces,ascomparedwiththatwhichwillbe o8  subcontractedbytheDBEtootherDBEsornonDBEs;and,c 0݌[$ ` (#` (# Ќ  7,XX X ` ` X(# 7K(` ` hp x (#,XX X K,c  0  ,c|"0` (#(#  4,XX X ` ` X(#04N+` ` hp x (#,XX X NThedollarvalueofeachproposedDBEsubcontract,includingthedollar 3  valuesofsubcontractstobeawardedbytheDBEsubcontractor.,c|݌ ` (#` (# Ќ  7,XX X ` ` X(# 7Q.` hp x (#,XX X QCountingDBEParticipation-Havingreceivedtheaboveinformation,verifythecounting  ofDBEparticipationtowardsthegoalusingthecriteriasetforthaboveinsection7.3.5.5,  CountingDBEParticipationTowardtheGoal.  4,XX X X(#o4K(` ` hp x (#,XX X K4,XX X ` ` X(#4Q.` hp x (#,XX X QIfthegoalhasbeenmetsatisfactorily,theawardprocesscancontinue.Ifthegoalhasnot p beenmeteventhoughtheofferorstatedthatitwill,youshouldassessthecausefor \ differingconclusions;notifytheofferorandseekadditionalinformation,orconsider H documentationofgoodfaitheffortsasprovidedbyyourDBEprogramandprocedures. k4 4,XX X X(#4Q.` ` hp x (#,XX X Q,c  4,XX X ` X(#4Q.` ` hp x (#,XX X Q,c&"0    Ifyouhaverequiredevidenceofcompliancefromallofferorswiththeiroffers, C  givingtheofferoranadditionalopportunitymay,dependingonyourprogramand / procedures,appeartogivetheofferoranunfairchancetore-evaluateitsofferafter   submission.Youapparentlyhaveeitheramistakeoranofferthatdoesnotcomply ! withthetermsofyoursolicitation.Intheformercase,youshouldfollowthe ! guidanceonmistakesinSection4.4.5,"BidMistakes."Inthelattercase,youmay " workwiththeofferortoreconcilethedifferenceifyourDBEprogramprovidesfor # thatopportunity;ifyourprogramprovidesit,allofferorscouldhaveexpectedthe ,c&݌$ (#(# Ќ  0  opportunityanditwouldnotgivetheofferoragratuitousorunfairsecondchance %l! toevaluateitsoffer.&X"(#(# 7,XX X ` X(#u7Q.` ` hp x (#,XX X Q,c  ,c"0    4,XX X ` X(#=4Q.` ` hp x (#,XX X QHowever,ifyourequestedevidencebesubmittedonlyafterselectingtheapparent g(0!$ awardee,youmayworkfreelywiththeofferortoreconcilethediscrepancy,asall S)"% offerorsshouldexpecttheopportunitytoprovideinformationregarding ?*#& responsibilityandsimilardeterminationsmadepriortoaward.,c݌++#'(#(# Ќ  7,XX X ` X(# 7Q.` ` hp x (#,XX X Qh  <% ` hp x ` X(#<  1,XX X ` XA1Q.` hp x (#,XX X Qh  Ifthesestepsconcludewiththeofferormeetingthegoalordemonstratinggoodfaithefforts -%) tomeetthegoal,youcanproceedwiththeaward.Ifthesestepsconcludewithoutthe -&* offerormeetingthegoalordemonstratinggoodfaitheffortstomeetthegoal,youcan .'+ eliminatetheofferandproceedtothenextrankedoffer.hx ݌ /(, Ќ  $ ` X(#X(#$  Scenario2:OfferorsubmitsinformationthattheDBEgoalswillnotbemet 7 RequiredInformation-Documentationofgoodfaitheffortsbytheproposer/bidderis   requiredinallcaseswheretheproposer/bidderfailstomeetthestatedgoalforDBEs.As   discussedabove,thesolicitationmayrequirethatgoodfaitheffortsbeaccomplishedprior   tobidopeningorthatgoodfaitheffortsbeaccomplishedpriortothereceiptofbestand   finaloffers.Wheretheshoppingperiodispermittedafterfinalsubmissionofoffers,good   faitheffortrequirementsareestablishedaccordingly.  t Youragency'sDBEprogram shouldincludeguidelinesfordeterminingandevaluating L  goodfaitheffortsbyproposers/bidders.Criteriafordeterminingwhetheragoodfaith s<  effortwasmadecanincludethosefactorsdiscussedinsection7.3.5.4GoodFaithEffortsto _(  MeetContractGoals. K  4,XX X ` X(#' 4Q.` ` hp x (#,XX X Q   Sv? #  S B+ ` hp x ` X(#B  S# v?  s'  Iftheproposer/bidderhassatisfactorilydemonstratedgoodfaithefforts,theawardprocess #  mustcontinue.Ifnot,theoffershouldnotbeaccepted,andyoumayproceedtothenext   bestoffer(nextlowestbid,ornexthighestscoreproposal,dependingonyouragency'sDBE  programcomponents).Ineithercase,theproposer/bidder'sgoodfaitheffort  documentation,aswellasyourwrittenevaluationofthatmaterial,areimportantentriesin  thecontractfile.Thisisapotentialprotestareaandshouldbewelldocumented.  s')(     Ԍ  Ќ    # &%X X]C# XX% &7.3.5.4GoodFaithEffortstoMeetContractGoals ` *] VdVd,bb,(#(#],,bb+  :'o8o8 x:REQUIREMENT N;#w@ x   NK(XK1,XX X X'1Q.` hp x (#,XX X Q# &%X XQ+# XX% &49CFR26.53WhatAretheGoodFaithEffortsProceduresRecipientsFollow?requires  granteestoawardacontractthatrequiresaDBEgoaltoabidder/offerorwhohasmadegood  faitheffortstomeetthegoal.Agoodfaitheffortisdefinedasonewherethebidder:   o#########(8y#"4,XX X X(#R-4- Y,XX X -0  (1)0j  # #DocumentsthatithasobtainedenoughDBEparticipationtomeetthegoal;or!\j #j # 0  (2)0j  # #Documentsthatitmadeadequategoodfaitheffortstomeetthegoal,eventhough k#4 itdidnotsucceedinobtainingenoughDBEparticipationtodoso.W$  j #j # 1,XX X Y/1Q.` hp x (#,XX X QAppendixAtoPart26!GuidanceConcerningGoodFaithEfforts,providesgranteeswith /&" suggestedtypesofactionsthattheyshouldconsiderwhenmakingjudgmentsastowhether '# bidders/offerorshaveusedgoodfaithefforts.Granteesarespecificallyprohibitedfromignoring ( $ bonafidegoodfaithefforts. (!% Itfollowsfromtheabovethatgrantees,inanegotiatedprocurement,maynotgiveextracredit *#' (higherevaluationscores)toanofferor'sproposalifitexceedsthegrantee'ssubcontractinggoal, +$( norlesscredit(lowerscores)toaproposalthatcannotachievethefullDBEgoal.TheDOT ,l%) requirementisthattheofferormakegoodfaitherffortstomeetthegoal,andifthisis -X&* demonstratedbytheofferorthegranteecannotpenalizetheofferorintheproposalevaluation {.D'+ andcontractawardprocess.3)'g/0(,     3Ї *l[1\dVd,bb,(#(#l,xdd +  77  Ifagranteedeterminesthatanotherwisesuccessfulbidder/proposerhasfailedtomeetthe d goodfaitheffortsrequirementofthisPart,thegranteemustprovidethebidder/proposeran P opportunityforadministrativereconsideration.Therequirementsthatgranteesmustfollowin s < theadministativereconsiderationprocessareoutlinedin49CFR# &%X X-# XX% &#XXX X㤎A# XXXXԀ26.53(d).  _ ( DISCUSSION g 0 h  <% ` hp x X(#<  h[9  Thetypesofactionsthatgranteesshouldconsideraspartofthebiddersgoodfaithefforts ? wouldinclude,butnotbelimitedto,thefollowing:h[99݌ + Ќ  ! X(#` X!  4,XX X X(#14- Y,XX X -1,XX X Y ;16  Y,XX X 60  (1)0 (# (#AdequatesolicitationofDBEs(throughallreasonableandavailablemeans),   withsufficienttimeforDBEstorespondtothesolicitation; (#(# 0  (2)0 (# (#SelectingportionsoftheworktobeperformedbyDBEsinordertoincrease   thelikelihoodthattheDBEgoalswillbeachieved;| (#(# 0  (3)0 (# (#ProvidinginterestedDBEswithadequateinformationabouttheplans, T specificationsandrequirementsofthecontractinatimelymanner;w@(#(# 0  (4)0 (# (#NegotiatingingoodfaithwithinterestedDBEs.Thefactthattheremaybe O someadditionalcostsinvolvedinfindingandusingDBEsisnotinitself ; sufficientreasonforabiddersfailuretomeetthecontractgoal,aslongasthe ' costsarereasonable.Primecontractorsarenot,however,requiredtoaccept  higherquotesfromDBEsifthepricedifferenceisexcessiveorunreasonable.(#(# 0  (5)0 (# (#NotrejectingDBEsasbeingunqualifiedwithoutsoundreasonsbasedona  thoroughinvestigationoftheircapabilities.(#(# 0  (6)0 (# (#MakingeffortstoassistinterestedDBEsinobtainingbonding,linesofcredit, !d orinsuranceasrequiredbythegranteeorcontractor."P(#(# 0  (7)0 (# (#MakingeffortstoassistinterestedDBEsinobtainingnecessaryequipment, _$( supplies,materials,orrelatedassistanceorservices.K% (#(# 0  (8)0 (# (#Effectivelyusingtheservicesofavailableminority/womencommunity #'" organizationsandotherorganizationstoprovideassistanceintherecruitment ( # andplacementofDBEs.(!$(#(# :,XX X   Y;:Q.` hp x (#,XX X QIndeterminingwhetherabidderhasmadegoodfaithefforts,granteesmaytakeinto *#& accounttheperformanceofotherbiddersinmeetingthecontractgoal.Forexample,ifthe +$' apparentsuccessfulbidderfailedtomeetthegoal,butmeetsorexceedstheaverageDBE ,t%( participationobtainedbyotherbidders,granteesmayviewthisasevidenceofthebidder -`&) havingmadegoodfaithefforts. .L'*  o/8(+  #"(Uy8o#########C/_TheCFRallowsdiscretiontogranteesinwhentheyrequirebidders/proposerstosubmit 7 theirgoodfaitheffortsdocumentation.Thismayberequired:(a)asamatterof # responsivenesswithinitialbidsundersealedbidprocedures;(b)asamatterof   responsivenesswithinitialproposalsundercontractnegotiationprocedures;or(c)asa   matterofresponsibilityatanytimebeforethegranteecommitsitselftotheperformanceof   thecontractbythebidder/proposer.% C  15         Inthoseprocurementswherebidders/proposersarerequiredtosubmittheirDBE  t participationinformationandgoodfaitheffortswiththeinitialbid/proposalasamatterof ` responsiveness,theyaretobeevaluatedonthebasisofthatinformation,andmaybe L  rejectediftheinformationpresentedisnotsatisfactory.(Seehowever,therequirementfor o8  administrativereconsiderationnotedaboveintheRequirementsblock.)Duringthecourse [$  ofthenegotiationprocess,changesmaybemadetothecontractscopethataffecteitherthe G  needforsomeDBEsubcontractorsortheleveloftheirparticipation.Inthatevent,the 3  agencyshouldrequestthattheproposeradjustitssubcontractplantomaintainorenhance   theDBEparticipation,andshouldrequireeachproposertosubmitafinalDBE    participationplanaspartofitsFinalProposalRevision(BestandFinalOffer).  BestPractices   FollowingisasolicitationprovisionusedbytheChicagoTransitAuthority(CTA)describingthe p typesofactionsthatCTAwouldconsiderasdemonstratinggoodfaitheffortsonthepartofa \ bidder.& C  16       H    GOODFAITHEFFORTS W  0  Inordertoberesponsive,abiddermustmakegoodfaitheffortstomeettheDBE / participationgoalsetforthinthecontract.Thebiddermustdocumentthegoodfaith   effortsitmadeinthatregard.Thus,theBidsubmittedtotheAuthoritymustbe ! accompaniedbywrittendocumentationpreparedbythebidderevidencingallofits ! sufficientandreasonablegoodfaitheffortstowardfulfillingthegoal.Theseeffortsmust " beactivesteps,andones,whichcouldreasonablybeexpectedtoleadtosufficientDBE # participationtomeetthecontractDBEparticipationgoal.Mereproformaeffortsarenot $  acceptableandwillberejectedbytheGeneralManager,DBEProgram.%l!(#(# 0  GoodFaithEffortsrequirethatthebidderconsiderallqualifiedDBEs,whoexpressan {'D # interestinperformingworkunderthecontract.Thismeansthatthebiddercannotrejecta g(0!$ DBEasunqualifiedunlessthebidderhassoundreasonsbasedonathorough S)"% investigationoftheDBE'scapabilities.Further,theDBE'sstandingwithinitsindustry, ?*#& membershipinspecificgroups,organizationsorassociationsandpoliticalorsocial ++#' affiliation(forexample,unionvs.non-unionemployeestatus)arenotlegitimatecauses 7 fortherejectionornon-solicitationofbidsintheContractor'seffortstomeetthecontract # DBEparticipationgoal. (#(# 0  Thefollowinglist,whichisnotexclusiveorexhaustive,setsforththetypesofactions,   whichindicategoodfaitheffortsonthepartofabiddertomeettheDBEgoal.Theextent   andtypeofactionsrequiredwillvarydependingonsuchthingsasindustrypractice;the   timeavailableforsubmittingabidandthetypeofcontractinvolved. t(#(# 4,XX X X(#5D4<wX(#,XX X <    A.0 A Attendanceatapre-bidmeeting,ifany,scheduledbytheAuthoritytoinform L  DBEsofsubcontractingopportunitiesunderagivensolicitation.o8 A (#A (#     B.0 A Advertisementingeneralcirculationmedia,tradeassociationpublications,and G  minority-focusmediaforatleasttwenty(20)daysbeforebidsaredue.If20 3  daysarenotavailable,publicationforashorterreasonabletimeisacceptable. A (#A (#     C.0 A WrittennotificationtocapableDBEsthattheirinterestinthecontractis  solicited.A (#A (#     D.0 A DocumentationofeffortstonegotiatewithDBEsforspecificsub-contracts  includingataminimum:pA (#A (#      A 1.0 Thenames,addresses,andtelephonenumbersofDBEsthatwere H contactedandthedate(s)ofcontact.k4 (# (#      A 2.0 AdescriptionoftheinformationprovidedtoDBEsregardingtheplansand C  specificationsforportionsoftheworktobeperformed./ (# (#      A 3.0 AstatementexplainingwhyadditionalagreementswithDBEswerenot ! reached.! (# (#     E.0 A ForeachDBEthebiddercontactedbutrejectedasunqualified,thereasonfor # thebidder'sconclusion.$ A (#A (#     F.0 A DocumentationofeffortsmadetoassisttheDBEscontactedthatneeded &X" assistanceinobtainingbondingorinsurancerequiredbythebidderorthe {'D # Authority.g(0!$A (#A (#     G.0 A Documentationofeffortstoutilizetheservicesofsmallbusinessorganizations, ?*#& communityandcontractorgroupstolocatequalifiedDBEs.++#'A (#A (#     H.0 A Documentationthatthebidderhasbrokenoutcontractworkitemsinto -%) economicallyfeasibleunitsinfieldswherethereareavailableDBEfirmsto -&* performthework..'+A (#A (#  /(, Ї    I.0 A EvidencethatadequateinformationwasprovidedtointerestedDBEsaboutthe 7 plans,specificationsandrequirementsofthecontract,andthatsuch # informationwascommunicatedinatimelymanner. A (#A (#     J.0 A DocumentationofanyeffortsmadetoassistinterestedDBEsinobtaining   necessaryequipment,supplies,materialsorrelatedassistanceorservices. A (#A (# 4X(#dwX(#4   GOODFAITHEFFORTSRECONSIDERATION  t  0  Ifitisdeterminedthattheapparentsuccessfullowbiddershavefailedtomeetthe L  requirementsofthecontractgoal/goodfaithefforts,theAuthoritywillprovidethemwith o8  ONEopportunityforadministrativereconsideration,beforetheAuthorityawardsthe [$  contract.Thisreconsiderationwillincludethefollowing:G (#(# 4wX(#X(#{d4< X(#wX(#<0    A.0 (#(#Thebidderwillbepermittedtoeitherprovidewrittenevidenceortopresentoral   argumentatapre-scheduledtimethatthedocumentationitsubmittedwithitsbid    mettheDBEgoaland/orshowedgoodfaitheffortstodoso.Nonewevidenceof  goodfaitheffortsmaybepresentedafterthebidsubmissiondeadline. (# (#     B.0 TheAuthority'sReconsiderationOfficerwillreviewtheevidencepresentedby  thebidderandissueawrittendeterminationthatthebidderhas:1)mettheDBE p goal;2)notmettheDBEgoalbuthasmadeadequategoodfaitheffortstodoso; \ or3)hasnotmettheDBEgoalandthegoodfaitheffortsmadewerenot H adequate.k4 (# (#     C.0 ThedecisionoftheAuthority'sReconsiderationOfficerisfinalandmaynotbe C  appealedtotheAuthority,itsfundingagenciesortheUSDOT./ (# (#     D.0 TheAuthoritywillnotawardacontracttoanybidderwhodoesnotmeetthe ! contractDBEparticipationgoalorshowgoodfaitheffortstomeetthatgoal. ! Thus,itisessentialthatallbidderssubmitALLrelevantdocumentation " concerningtheDBEgoaland/orgoodfaitheffortsintheenvelopeorpackage # containingtheirsealedbid.$  (# (#  7.3.5.5CountingDBEParticipationtowardGoals &X" *] ddxdd x[1\(#(#],xZZ+  :111'g(0!$g(0!  x:;)"s(