DBE Commitments & Counting
Overview
CDOT sets a contract goal for DBE participation on contracts that include financial assistance from USDOT. The contract goal can be found in the Project Special Provision DBE Worksheet, and is intended to represent the portion of the contract that can reasonably be expected to be subcontracted to disadvantaged businesses absent the effects of discrimination.
DBE Commitment and Good Faith Effort Requirement
In order to be awarded a contract, the bidder must show it has committed to DBE participation sufficient to meet the contract goal or has otherwise made good faith efforts to do so. Bidders must submit a Bidders List (Form 1413) (Excel document) and Anticipated DBE Participation Plan (Form 1414) (Excel document) with their proposal.
If the contract goal is greater than zero, or if the bidder has voluntarily made commitments, the bidder shall submit a Commitment Confirmation (Form 1415) (Excel document) from each DBE, reflecting acknowledgement of the commitment.
If the total eligible participation listed on Form 1414 was insufficient to meet the contract goal, the bidder shall also submit a Good Faith Effort Report (Form 1416) (Excel document). These forms must be submitted to the Civil Rights and Business Resource Center (CRBRC) within five calendar days of the letting.
Monitoring and Enforcement of Commitments
CDOT will also monitor performance during the contract to ensure each DBE is performing a commercially useful function (CUF) as defined in 49 CFR 26.55. If CDOT determines a DBE is not performing a CUF, no work performed by that DBE will count as participation.
Contractors must submit Form 1432: Commercially Useful Function Questionnaire (CUF) monthly for each DBE on the project. This enables CDOT to confirm that we are compliant with Federal DBE Program requirements, which state that DBEs are performing a CUF when they are "responsible for execution of the work of the contract and is carrying out its responsibilities by actually performing, managing, and supervising the work involved." The CUF requirements ensure meaningful, valuable work opportunities for DBEs.
CDOT may conduct reviews or investigations of participants at any time during the contract term.
Plan Modifications
Contractor must submit a DBE Participation Modification Request (Form 1420) (Excel document) for all requests for termination, reduction, substitution, and waivers, which must be approved by the CDOT Regional Civil Rights Office. If terminating or reducing participation from a DBE for good cause, prior to submission of Form 1420, Contractor must provide the DBE with notice of intent to terminate or reduce the commitment and provide a copy to CDOT. Notice must give the DBE five calendar days to respond.
Modifications to commitments must be approved by CDOT. Any unapproved use of a DBE will not be counted toward the goal. Upon completion of the Contract, CDOT may reduce the final payment to the Contractor if the Contractor has failed to fulfill the commitments and/or has failed to make good faith efforts to meet the contract goal.
Eligible DBE Participation
Only eligible DBE participation will count toward the goal. Participation by a DBE qualifies as eligible if:
- The work to be performed by the DBE can be reasonably construed to be included in the work approved in the commitment.
- The DBE is certified to perform the type of work identified in the commitment at the time of commitment approval and of the subcontract.
- The DBE performs the work with its own forces.
- The DBE performs a commercially useful function.
- If a DBE subcontracts to a non-DBE, the value of that work will be deducted from the DBE’s total participation. However, if the DBE subcontracts to another DBE, that work will count towards the goal.
- The DBE has received payment.
- If the DBE is a manufacturer, dealer or broker, the value of participation is as follows:
- Manufacturer: 100%
- Regular dealer/supplier: 60%
- Broker: only reasonable brokerage fee counts
DBE Standard Special Provision
The above material is a summary of the DBE standard special provision, included in all CDOT contracts. Contractor requirements for DBE participation on construction projects are included in the DBE standard special provision.
