Current through Register Vol. 51, No. 19, September 20, 2024
A. To ensure
compliance with certified MBE participation goals, the procurement agency
shall:
(1) Verify that the certified MBEs
listed in the MBE participation schedule are actually performing work and
receiving compensation as set forth in the participation schedule;
and
(2) Monitor and collect data on
contractor compliance with contract MBE participation goals.
B. The contractor shall:
(1) Permit the procurement agency to inspect
any relevant matter, including records and the jobsite and to interview
subcontractors and workers;
(2) If
performing a State construction contract, ensure that all subcontractors are
paid any undisputed amount to which the subcontractor is entitled within 10
calendar days of receiving a progress or final payment from the State and
otherwise comply with COMAR 21.10.08 which sets forth the obligations of the
prime contractor, contractors, and subcontractors and the remedies for
delinquency or nonpayment of undisputed amounts, in State construction
contracts.
(3) Submit monthly to
the procurement agency a report listing payments made to each MBE subcontractor
in the preceding 30 days and any unpaid invoices over 30 days old received from
a certified MBE subcontractor, and the reason payment has not been made;
and
(4) Include in its agreements
with its certified MBE subcontractors a requirement that the certified MBE
subcontractors submit monthly to the procurement agency a report identifying
the prime contract, and listing:
(a) Payments
received from the contractor in the preceding 30 days, and
(b) Invoices for which the subcontractor has
not been paid.
C. Upon determining that a contractor did not
make good faith efforts to comply with contract MBE participation goals, the
procurement agency shall notify the contractor in writing of its findings and
shall specify what corrective actions are required. The contractor is required
to initiate the corrective actions within 10 days and complete them within the
time specified by the procurement agency.
D. If a procurement agency determines that
material noncompliance with MBE contract provisions exists and that the prime
contractor refuses or fails to take the corrective action required by the
procurement agency, then the following sanctions may be invoked:
(1) Termination of the contract;
(2) Referral to the Office of the Attorney
General for appropriate action; or
(3) Initiation of any other specific remedy
identified by contract.
E. Upon completion of the project, the
procurement agency shall:
(1) Prepare a report
that compares the dollar value of the payments actually received by MBEs with
the dollar value of the amount that MBEs were intended to have received under
the contract's MBE participation goal; and
(2) Include in the report an explanation of
any discrepancy.
F. A
procurement agency may use any other compliance mechanism authorized by
contract or this title.
G. A
procurement agency may, upon completion of a contract, and before final payment
or release of retainage or both, require that a prime contractor on any
contract having an MBE subcontract goal, submit a final report, in affidavit
form and under penalty of perjury, of all payments made to, or withheld from,
MBE subcontractors. The solicitation shall contain notice of this
provision.
