Louisiana Administrative Code
Title 70 - TRANSPORTATION AND DEVELOPMENT
Part XIX - Compliance Programs
Chapter 1 - Minority Participation Program
Subchapter D - The Contract
Section XIX-147 - Determination of Successful Bidder and Award

Universal Citation: LA Admin Code XIX-147

Current through Register Vol. 50, No. 9, September 20, 2024

A. Bid openings and award of contracts will be conducted in accordance with the department's established procedures. All current bid procedures and contract forms utilized in the department's federal DBE program will be used in the SDBE program.

B. A pre-award review will be performed by the department's construction section to verify the low bidder's resources to perform on the construction contract. The secretary, or his designated representative, will evaluate this report, and make a final determination on contract award.

C. DOTD Required Contract Provisions

1. All proposals and contracts in which SDBE participation is prescribed as a condition to award of contract will contain special provisions which specify SDBE requirements of the contract and the actual contract percentage goal for SDBE firms.

2. The proposal/contract will contain required contract provisions in state-funded construction projects. By signing the proposal and completing the "Bidder's Goal Statement," bidder gives written commitment to meet, exceed or demonstrate good faith efforts to meet or exceed the goal and to comply with all other requirements of the contract.

3. A SDBE prime contractor is required to perform a commercially useful function by actually managing, supervising, and performing the work of the contract. The SDBE prime contractor must perform at least 50 percent of the total contract with its own forces. If the SDBE only purchases materials and supplies, its will not be considered as performing a commercially useful function.

4. Failure of a SDBE prime contractor to perform a commercially useful function on a set-aside project will result in a loss of certification and any other damages deemed appropriate by DOTD.

D. Subcontracting and Approval to Subcontract

1. In addition to the bidder's commitment in the proposal and/or award of contract, the contractor is required to request, permission of the department to subcontract any portion(s) of the contract, identifying the specific portion(s) or item(s) to be subcontracted, the agreed subcontract price and the name of the proposed subcontractor, before a subcontractor may commence work on the project.

2. The department reviews each subcontract request to insure that the proposed subcontract is in accordance with department's standards and in compliance with contract provisions. Where the particular contract contains specific goals for SDBE participation, the subcontract request will be reviewed for evidence of fulfillment of the contractor's SDBE participation goal on which the contract award was based.

3. In reviewing a subcontract request, the department will determine and verify the following non-exclusive matters:
a. whether the contractor has committed the items to be subcontracted to a SDBE as specified in the contract;

b. if the subcontract request contains items committed to SDBE participation, the contractor must perform its commitment with the SDBE or document that the SDBE designated in the contract for the item(s) is unable to perform. Adequate documentation is a letter from the SDBE designated to perform the work stating the reasons it cannot perform. Where a contractor is unable to obtain such a letter from a SDBE, the contractor shall fully explain in writing, the reason the SDBE is unable to perform, efforts made by the contractor to require the SDBE to perform, and any other relevant factors;

c. if a SDBE is unable to perform a subcontract, the prime contractor will make good faith effort to replace the SDBE with another SDBE, which is capable and available to perform the same designated subcontract percentages. The prime contractor shall not permit the substitute SDBE or any other person to commence work until satisfactory evidence of good faith to replace with another SDBE, if appropriate, is submitted to and approved by the safety programs section. The prime contractor will not perform the work with his own workforce in lieu of subcontracting, without approval of the safety programs section.

E. Good Faith Efforts. Good faith efforts include, but are not limited to the following descriptions:

1. attends any pre-bid meetings at which SDBEs could be informed of contracting and subcontracting opportunities;

2. advertises in general circulation, trade association publications, and minority focus media concerning the subcontracting opportunities;

3. provides written notice in sufficient time to allow SDBE response to all certified SDBEs who have capabilities pertinent to the work of the contract that their interest in the contract is solicited;

4. follows up initial solicitations of interest by contacting SDBEs to determine whether the SDBEs are interested;

5. selects portions of the work to be performed by SDBEs in order to increase the likelihood of achieving SDBE goals. This may include, where appropriate, breaking down subcontracts into economically feasible units to facilitate SDBE participation;

6. provides interested SDBEs with adequate information about the plans, specifications, and requirements of the contract;

7. negotiates in good faith with interested SDBEs. This includes the names, addresses and telephone numbers of the SDBEs considered, a description of the information provided regarding the plans and specifications for the work selected for subcontracting, a statement as to why additional agreements could not be reached with SDBEs to perform the work;

8. does not reject SDBEs as unqualified without sound reasons based on a thorough investigation of SDBE capabilities;

9. makes efforts to assist SDBEs in obtaining bonding, lines of credit, or insurance required by the prime contractor or the department;

10. makes efforts to assist interested SDBEs to obtain necessary equipment, supplies, materials, or other necessary or related assistance or services;

11. effectively uses the services of available minority community organizations, minority contractors groups, local, state and federal minority business assistance offices, and other organizations that provide assistance in the recruitment and placement of SDBEs if the situation allows.

AUTHORITY NOTE: Promulgated in accordance with R.S. 48:234(C).

Disclaimer: These regulations may not be the most recent version. Louisiana 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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