CONSTRUCTION DIVISION MEMORANDUM
GENERAL SUBJECT: SECTION 110.04 USE OF MINORITY BUSINESSENTERPRISE	NUMBER: CD-95-18
SPECIFIC SUBJECT: NEW STATE FUNDED PROGRAM	DATE: DECEMBER 15,1995
	Original w/Signature on file in Construction Division
M. J. WALKER, JR.	C. F. GEE
EQUAL OPPORTUNITY MANAGER	CONSTRUCTION ENGINEER

DIRECTED TO - DISTRICT ADMINISTRATORS
Attached is a copy of the above captioned provision which willbecome effective on all State funded contracts beginning with theJanuary, 1996 advertisement. There will be no change in theadministration of federal-aid contracts or for State fundedcontracts advertised prior to that date. A brief discussion ofthe major changes is as follows:
The Department will no longer establish goals forparticipation by MBEs. Instead, we will determine when specificopportunities for participation by MBEs are available on aparticular contract.
This participation, even if it is zero, will be shown as apercentage of the Contract amount, and will be indicated in theproposal on Form C-61, Potential MBE Participation.
Forms C-61 and C-61A have been combined into one form, i.e.Form C-61. The new form will be included in each bid proposal.
A fully executed Form C-61 must be submitted to the Departmentshowing the name(s) and certification number(s) of any currentlycertified MBEs eligible for participation credit. If noparticipation achievement is to be reported the apparent lowbidder shall indicate zero in the appropriate space on the form.The requirement that this information be submitted within 10 daysafter the opening of bids has been changed to 14 days.
Form C-61 is the only MBE documentation required during theaward process.
The Department reserves the right not to award the Contract toany apparent low bidder who fails to submit the requiredinformation within the specified 14 days.
The Department has eliminated the checklist for participationrequirements and incorporated from the Federal Program a list ofsuggested efforts that Contractors are encouraged to make insoliciting MBE participation. The Department will not consider orverify good faith efforts as part of the award process.
The Department will no longer check participation percentages;only the monetary amounts will be monitored.
If any MBE subcontractor cannot or will not perform thedesignated subcontract work and is relieved of the responsibilityto perform under his/her contract, the Contractor must advise theMBE firm and the Department, in writing, of the action and thereasons for such action. The Department's concurrence is nolonger required.
The time frame for submission of Forms C-63 D/MBE ActivityReport and C-63A DBE/WBE Payment Certification has been changedso the Contractor and each subcontractor are responsible forfurnishing, prior to final acceptance of the project (semi-finalestimate), information relative to all MBE involvement on theproject if such work is to be reported as participation andverification is available.
If there is to be participation achievement with a MBE whosename has not been previously furnished, a revised Form C-61should be submitted to the DEOM through normal contractadministration channels prior to such MBE beginning the work.After review, two copies of the revised form are to be submittedto the Construction Division DBE Section.
The emphasis under this new program will be placed on: projectreviews for the purposes of problem avoidance and, wherenecessary, problem solving; company development; initiatingrecommendations for supportive services; and, preparing firms toperform appropriately on federal-aid projects. Credit allowanceor disallowance on State funded projects will no longer be afactor. One purpose of this program is to provide for andencourage the use of newly created firms or firms expanding intonew areas of activity. The District Equal Opportunity Manager (DEOM) will be involved with assuring the MBE receives allnecessary and available assistance, information on businessdevelopment, and in providing both the MBE and prime withinformation concerning successful contracting relationships andassociated arrangements which will ensure credit allowance onfederal-aid contracts. The focus of the MBE Program on statefunded contracts will be directed towards ensuring, inasmuch aspossible, a positive learning experience as well as a successfulproject for all concerned.
DEOMs may need to coordinate with each other in obtainingnecessary information and in making determinations as to the needfor, and appropriateness of, the different categories ofassistance available. This is essential to efficiently targetassistance efforts, eliminate unnecessary duplication, and use ascarce resource in the most effective manner.
The Department is required to report all participation credit,of which it has knowledge, that occurs on its contracts. Ininstances where MBE firms are working but the prime is notreporting participation achievement, there are two methods whichshould be employed to capture this participation.
If the nature of the work being performed requires that it besublet, the DEOM is to enter the item(s) and dollar amount(s), asshown on page 2 of Form C-31 under "Actual Amount ofSubcontract", on a separate Form C-63. The DEOM may ifdesired, modify the form by lining through the word"Allowable" in "Allowable Credit" and thecertification prior to signing the form. This form needs to besubmitted only once for each MBE involved unless the DEOM becomesaware of any substantial changes. If this occurs, a revised form,so marked, may be submitted.
If the work or service being performed/provided does notrequire a sublet, then the DEOM is to use the item and dollarvalue information as shown on the revised Schedule B (State),copy of which is attached. This form is to be submitted by theproject inspector on all State funded contracts as required in CD-95-4.
This change will also require a different method ofdocumenting project review activities involving State fundedcontracts. The basic information which must be kept by the DEOMand available for review or submission is: date; time; projectnumber; prime contractor; MBE; and, service provided. Some basiccategories of service would be: information; technical;administrative (including paperwork); and, supportive servicerecommendations. The Lynchburg District anticipates developing aprogram in MS Access which should greatly simplify storage andretrieval of this information, and provide multiple sort options.You may contact them directly if you are interested.
The Department anticipates that by sharing ideas and concerns,the skillful utilization of all available resources and theprovision of new ones where appropriate, and by moving ahead witha shared purpose, we can develop a new program which will be evenmore beneficial to the business community, eligible firms, andthe industry as a whole, and will continue to provide the maximumin opportunities for a segment of Virginians who might have beendenied them in the past.
Your continued cooperation in the administration of thisprogram is appreciated.

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