Code of Colorado Regulations
600 - Department of Transportation
605 - Transportation Commission
2 CCR 604-1 - EMERGING SMALL BUSINESS PROGRAM
Chapter 4 - Program Benefits

Universal Citation: 600 CO Code Regs 4

Current through Register Vol. 47, No. 17, September 10, 2024

4.1. Objectives and Priorities

The programs and incentives set forth in this Rule aim to assist ESBs in competing for CDOT's prime and subcontracting opportunities. CDOT may design and limit certain ESB Program Benefits for the benefit of only ESBs in Level 1, Level 2, or SBE or any combinations of the levels to ensure the following objectives and priorities are achieved:

A. Increase ESB prime contracting opportunities;

B. Promote and assist smaller ESBs;

C. Promote and assist ESBs that have no or little previous CDOT experience;

D. Increase diversity in the work areas performed by DBEs and ESBs; and

E. Incentivize ESBs to grow in subcontracting areas needing participation.

4.2. Limitations

The ESB Program Benefits will only be enacted to the extent allowed by all applicable federal and state laws, rules, and regulations.

4.3. Development Assistance Tools

A. Technical Assistance. Based upon CDOT's evaluation of an ESB and its business needs, CDOT may, alone or in collaboration with other organizations, provide individualized technical assistance to an ESB including, but not limited to, the following areas: Construction management; time management and project work scheduling; project financing requirements, including insurance; personnel management; bidding, estimating, job costing, and contract administration procedures; evaluation and use of project plans; CDOT contracting procedures and specifications; marketing; and Construction, Professional Services, and Practice of Research techniques and industry standards. CDOT may also authorize technical assistance in other areas if it is determined that such assistance reasonably relates to the development of a Business in accordance with the purpose of these Rules.

B. Additional Training and Resources. CDOT, alone or in collaboration with other organizations, may also provide additional training and business development resources for ESBs. Such training and resources may include, but not be limited to, CDOT administered courses, mentor-protégé programs, online bidding access, and financial assistance to participate in industry activities and business development courses.

C. Discretionary Distribution of Assistance. CDOT will have discretion to determine which ESBs will receive the development assistance tools. Among other criteria, CDOT may consider the availability of funds, potential and need of the ESB, areas of need by CDOT, applicability of assistance to CDOT Contracts, past performance and assistance, and availability of resources from CDOT or other organizations to meet the needs of the ESB.

D. Cooperation. At any time, CDOT may modify or terminate technical assistance to an ESB.

4.4. Means to Increase Contracting Opportunities

CDOT will utilize a variety of incentives as set forth in this Rule to increase prime and subcontracting opportunities for ESBs. However, CDOT may, at its sole discretion, design, and limit certain incentives for the benefit of only ESBs in Level I, Level 2, or SBE or any combinations of the levels as set forth in paragraph (E) of Rule 3.2.

A. Incentives. CDOT may provide the following incentives to prime Contractors that are ESBs, commit to or demonstrate use of other ESBs as subcontractors, or agree to assist in the professional development of other ESBs:
1. Evaluation points in point-based selection;

2. Bid preference in competitive price selection;

3. Financial incentives in cost-based selection;

4. Mentor-protégé programs;

5. Bond Assistance Program; and

6. Other innovative incentives provided such incentives further the purpose of the ESB Program.

B. Participation as a Condition of Contract. CDOT may make attainment of a certain level of ESB participation, or good faith effort to achieve such participation, a condition of Contract award. The procedures for evaluating such participation and good faith efforts will be set forth in the advertisement for the Contract.

C. Restricted Contracts. CDOT may restrict the award of Contracts to ESB Contractors, joint ventures of which ESBs are a participant, and participants in CDOT's mentor-protégé program. CDOT may evaluate the need for restricted Contracts upon review and calculation of the DBE Overall Goal. At such time, CDOT will establish objectives for restricted projects for the corresponding period.

D. Restricted Contract Items. CDOT may identify items within a Contract that will be completed only by ESBs.

E. Increase Smaller Projects. CDOT may increase the number of smaller-sized transportation Contracts in order to increase the opportunities for ESBs to participate on such projects as prime Contractors. At a minimum, CDOT will not unnecessarily or unjustifiably bundle CDOT work and will take all reasonable steps to facilitate competition by small Businesses on Contracts. CDOT will evaluate its ability to unbundle projects upon review and calculation of the DBE Overall Goal. At such time, CDOT will establish objectives for unbundling projects for the corresponding period.

F. Advertisement. For each Contract, the applicable incentives will be detailed in the request for proposals, bidding advertisement, or other applicable advertising documents published by CDOT.

4.5. Prompt Payment

A. State Law. Pursuant to § 24-91-103, C.R.S., every prime Contractor must pay the subcontractor within seven (7) calendar days of receipt of the payment from CDOT, or within any shorter time provided in the Contract between the prime Contractor and CDOT.

B. ESB Program Requirements. In addition, CDOT may develop additional prompt payment requirements for projects involving ESB prime Contractors and ESB subcontractors on CDOT projects.

Disclaimer: These regulations may not be the most recent version. Colorado may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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