MINORITY BUSINESS ENTERPRISES

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MINORITY BUSINESS ENTERPRISES

• Speros J. Fleggas, P.E.
• Director, State Construction Office

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Disclaimer

• The forms and documents presented apply to
  projects that fall under the jurisdiction of the
  State Construction Office. Each public entity
  should evaluate its programs and objectives and
  make modifications as necessary to any forms and
  documents based upon legal advice and counsel

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Reporting Requirements

• Public Entities
• Contractors

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Contractors

• Construction Manager at Risk
• (G.S. 143-128.1)
• Plan for compliance with G.S. 143-128.2 (good
  faith efforts) prior to soliciting bids
• Both construction manager and first-tier
  subcontractors shall make a good faith effort.

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Contractors/Bidders

• Contractors, including first-tier subcontractors
  for CM at risk must identify on their bids
  minority businesses they will use on the project
• Affidavit listing the good faith effort
  pursuant to subsection (f), and
• Total dollar value of the bid that will be
  performed by the minority business.
• If self perform all of the work, an affidavit to
  that effect in lieu of the otherwise required
  affidavit.
• G. S. 143-128.2(c)(l)

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Contractors/Bidders

• Within time specified in the bid documents either
• Affidavit that includes portion of work to be
  executed by MBEs expressed as a percentage of the
  total contract price or
• Documentation of good faith efforts.
• Must include all good faith efforts undertaken.

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Contractors/Bidders

• Within 30 days after award of the contract, a
  list of all identified subcontractors that the
  contractor will use on the project.
• Failure to file a required affidavit or
  documentation of good faith effort is grounds for
  rejection of the bid.

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Form

• Identification of Minority Business Participation

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Form

• Affidavit A
• Listing of the good faith effort

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Form

• Affidavit B
• Intent to perform contract work with own workforce

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Contractors/Bidders

• Identification of Minority Business Participation
  and either Affidavit A or Affidavit B shall be
  submitted on the bid

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After determination of apparent low bidder

• Contractor provides Affidavit C
• Identifies portion of work to be performed by
  MBEs.
• Work expressed as percentage of total contract
  price, which is equal to or more than the
  applicable goal.
• With this affidavit presumption that bidder made
  the required good faith effort .
• No other documentation required.

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Contractors/Bidders

• If the applicable goal is not met
• Affidavit D documentation of good faith effort.

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Reporting Requirements

• Public Entities (Building projects 300,000 or
  more)
• Report to Department of Administration, Office of
  Historically Underutilized Businesses.
• Format and data prescribed by the Secretary of
  the Department of Administration.

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Reporting Requirements

• University of North Carolina and State Board of
  Community Colleges report quarterly.
• All other public entities report semiannually.
• Section 3.6, G.S. 143-128.3(a)

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Information to Report

• For each building project
• Verifiable percentage goal.
• Type and total dollar value of the project.
• Minority business utilization by minority
  business category, trade, total dollar value of
  contracts awarded.

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Information to report

• Applicable good faith effort guidelines or rules
  used to recruit minority business participation.
• Good faith effort documentation accepted by the
  public entity from the successful bidder.
• Utilization of minority businesses under the
  various construction methods under G. S.
  143-128(a1).

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Reporting Requirements

• Public Entities - informal contracts
• Projects costing between 5,000 and the formal
  bid limit (300,000).
• All public entities must solicit minority
  participation in these contracts.

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Informal Contract Records

• Maintain record of minority contractors
  solicited.
• Document efforts to recruit minority
  participation in these contracts.

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Information to Report to HUB Office for Informal
Contracts

• All data, including the following
• Type of project.
• Total dollar value of the project.
• Dollar value of minority business participation
  on each project.
• Documentation of efforts to recruit minority
  participation.
• Report upon completion of project.