Contract Compliance Learn about Compliance with Minority Business Programs

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  • DBE, MBE/WBE Contract Compliance

    By a prime signing the bid, the bidder certifies that on work proposed to be sublet, the bidder has taken or will take affirmative steps to seek out and consider Disadvantaged Women and Minority Business Enterprises as potential subcontractors on transportation construction projects where DBE or MBE/WBE goals are established. The Contractor shall contact DBEs, or MBEs and WBEs to solicit their interest, capability, and prices in sufficient time to allow them to respond effectively, and shall retain, on file, proper documentation to substantiate its good faith efforts. As part of DBE, MBE, WBE Contract Compliance Program, NCDOT will monitor the Contractor's DBE, MBE, WBE involvement during performance of the contract.

    DBE, MBE and WBE prime bidders shall make the same outreach efforts as non-DBE, MBE and WBE bidders and to document good faith efforts in situations where they do not fully meet contract goals. When a DBE, MBE or WBE participates in a contract, only the value of the work actually performed by the DBE, MBE or WBE is counted toward goals.
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  • Bidder's Good Faith Effort to meet DBE, MBE, WBE Goals

    For all construction project bids that do not meet or exceed the DBE/MBE/WBE goals set for that project, a Good Faith Effort report will be required to determine if the bidder made a good faith effort in trying to meet the advertised goal(s). As part of that report, the NCDOT requests that you submit a Subcontractor Quote Comparison based on the example given below. Please consider all information on the 'Example' to be fictitious.  The submittal information is outlined in the project’s Special Provision.

    Forms and Information available for download:

  • "Commercially Useful Function" Requirement

    Expenditures to a DBE, MBE or WBE contractor are counted toward the goals only if the DBE, MBE or WBE performs a commercially useful function on the contract.

     

    A DBE, MBE, WBE performs a commercially useful function when:

    • The DBE, MBE, WBE is 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 DBE, MBE, WBE shall also be responsible, with respect to materials and supplies used on the contract, for negotiating prices, determining quality and quantity, ordering the material, and installing where applicable and paying for the material itself. 
    A DBE, MBE or WBE does not perform a CUF if its role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of DBE, MBE, WBE participation. If it is determined that the DBE, MBE, WBE is an extra participant, particularly those areas in which DBEs do not participate, there will be a reveiw. The DBE, MBE, WBE may be requested to present evidence to support its position of performing a commercially useful function.
     

    A DBE, MBE, WBE Trucking Company will be determined to be performing a CUF by using the following factors:

    • The DBE, MBE, WBE will be responsible for the management and supervision of the entire trucking operation for which it is responsible on a particular contract, and there cannot be a contrived arrangement for the purpose of meeting DBE goals.
    • The DBE, MBE, WBE will itself own and operate at least one fully licensed, insured, and operational truck used on the contract.
    • The DBE, MBE, WBE may lease trucks from another DBE firm, including on owner-operator who is certified as a DBE, MBE, WBE. The DBE who leases trucks from another DBE receives DBE credit for the total value of the transportation services the lessee DBE provides on the contract.
    • The DBE, MBE, WBE who leases trucks from a non-DBE is entitled to credit for the total value of the transportation services provided by non-DBE lessees not to exceed the value of the transportation services provided by the DBE owned trucks on the contract.
     
    Materials and suppliers must perform the following to be counted toward DBE goals:
    • If the materials or supplies are obtained from a DBE, MBE, WBE manufacturer, count 100 percent of the cost of materials and supplies toward the goals.
    • If the materials or supplies are purchased from a DBE, MBE, WBE regular dealer, 60 percent of the cost of the materials or supplies is counted toward the goals.

     

  • Labor Compliance

    • Davis Bacon Act of 1931 requires the payment of local prevailing wages and fringe benefits to laborers and mechanics on federal-aid projects.
    • Certified Payrolls must be submitted weekly to NCDOT by contractors and subcontractors on all federal-aid projects.
    • Payroll statements are reviewed for completeness and certification. Work classifications, hourly rates, overtime hours and rates, authorized deductions, fringe benefits and net wages paid are reviewed.
    • NCDOT has the authority to withhold funds from the contractor, as may be deemed necessary to pay employees of the contractor.​

  • Equal Opportunity Contract Compliance

    The program objectives of the equal employment opportunity contract compliance are:

    • To ensure that contractors do not discriminate in employment and contracting on the basis of race, color, religion, national origin, age, disability or sex. 
    • NCDOT is responsible for enforcing the required EEO contract provisions on a contract by contract basis in accordance with Title 23 USC 140, FHWA 1273 and Executive Order 11246.
    • To ensure nondiscrimination in the hiring, employment practices and subcontracting of primes and subcontractors involved in the highway program.
    • Vendors and suppliers are subject to the federal contract provisions whenever they hold contracts where Federal aid funds are involved in excess of $10,000.

    Contract Compliance Process:

    The equal opportunity contract compliance process is the means for determining whether a firm performing on Federal or Federal aid highway contracts is in compliance with its Equal Opportunity program requirements. The contract compliance program involves objectively applying analytical approaches to all pertinent evidence and information in making this determination of compliance. In the event non-compliance is found, a systematic process to obtain and ensure compliance must be applied. ​

  • EEO Good Faith Efforts

    EEO Good faith efforts must be demonstrated in the following areas:

    • Contractor's EEO Policy
    • Dissemination of the EEO Policy
    • Authority and Responsibility of EEO Officer
    • Periodic EEO meetings (EEO indoctrination)
    • Notices/posters on bulletin board
    • Advertising as an "EEO Employer"
    • Systematic and direct recruitment likely to yield minority and women employees
    • Educate all new supervisors on EEO responsibilities
    • Encourage employees to refer minorities and women
    • Evaluates wages to eliminate discrimination
    • Investigate all complaints
    • Increasing skills of minorities and women
    • Advises employees and applicants of training opportunities
    • Ensure non-segregated facilities
    • Minorities and women employed in all occupations, crafts, and job classifications on an equal basis
    • Contractor solicits bids from and utilize DBE subcontractors and or suppliers or subcontractors with meaningful minority and female representation
    • Monitor subcontractors’ compliance with nondiscrimination, EO, EEO obligations 
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