14-015 Code Vt. R. 14-010-015-X

Current through August, 2024
Section 14 010 015 - WOMEN-OWNED AND DISADVANTAGED BUSINESS ENTERPRISE PROGRAM

Preamble

It is the intention of the Vermont Transportation Board and the Vermont Agency of Transportation to assure that all businesses, regardless of ownership, be allowed equal access through competitive bidding, to all work advertised by the Agency of Transportation. Consistent with this policy, the Agency has traditionally maintained and will continue to maintain an atmosphere of freedom and equality in its bidding and award procedures.

The Board and the Agency emphasize their support of and belief in, the system of free enterprise, but also recognize and endorse national policy addressing the special needs of businesses owned by disadvantaged peoples and by women.

The document attached hereto and referred to as the Women-owned and Disadvantaged Business Enterprise Program, for implementation by the Vermont Agency of Transportation, represents Board policy regarding the equal rights of women-owned and disadvantaged business enterprises (W/DBE) to participate in all contracts financed in whole or in part with public monies. The Program also details the affirmative efforts the Agency will undertake to assure that results are achieved.

To this end, the Vermont Transportation Board and the Agency of Transportation issue the following policy statement affirming its commitment to women-owned and disadvantaged business enterprises.

POLICY STATEMENT

The Vermont Agency of Transportation shall require, through contractual provisions, that all of its contractors, subcontractors, consultants, cities, towns and all other recipients and sub-recipients of federal-aid funds administered by this Agency, ensure that women-owned and disadvantaged business enterprises have the maximum opportunity to participate in the performance of contracts and subcontracts. In this regard, the Vermont Transportation Board endorses the following Women-owned and Disadvantaged Business Enterprise Program, as an affirmative means to fulfill the philosophy that all business, regardless of ownership, be allowed equal freedom and opportunity to compete for all contracts. Furthermore, the Board directs the Agency to take the necessary action to ensure that all contractors, subcontractors, recipients and sub-recipients take reasonable steps to comply with all current state and federal laws and regulations pertaining to women-owned and disadvantaged business enterprises.

...

Chairperson, Vermont Transportation Board

...

Secretary, Vermont Agency of Transportation

INTRODUCTION

Purpose

The purpose of this program is to provide guidelines for the continued refinement, upgrading, and management of the Agency's W/DBE program. These guidelines include procedures to insure that W/DBEs have an equitable opportunity to compete for contracts and subcontracts, and to ascertain the eligibility of W/DBEs and joint ventures involving W/DBEs. A W/DBE Registry is also part of this plan.

Included are the percentage goals for the dollar value of work to be awarded to W/DBEs, the development of procedures requiring that subcontract solicitations of W/DBEs are documented by competitors for contracts, and procedures to insure that prime contracts are awarded to competitors that meet W/DBE goals.

Authority

The preparation of this W/DBE Program is done in accordance with 49 C.F.R., Part 23 and Section 106(c) of the Surface Transportation and Uniform Relocation Assistance Act of 1987, and is scheduled for adoption under the State of Vermont's Administrative Procedures Act.

Scope

The requirements of this W/DBE program apply to contracts financed in whole or in part with federal funds. The program is designed to serve all Divisions of the Vermont Agency of Transportation. While the program applies to contracts financed in whole or in part with federal funds, the Vermont Agency of Transportation will actively solicit participation by W/DBEs in all contracts that lend themselves to such participation.

Definitions

Definitions are included in Appendix D.

IMPLEMENTATION RESPONSIBILITIES

1. Transportation Board

The Transportation Board is the policymaking body for transportation issues.

2. Secretary of Transportation

The ultimate responsibility for achieving Women-owned and Disadvantaged Business Enterprise Program objectives rests with the Secretary of Transportation.

3. Agency Chief of Contract Administration

Overall Agency responsibility for assuring external contractor compliance with E.E.O., Civil Rights, and W/DBE regulation is delegated by the Secretary of Transportation to the Chief of Contract Administration as Equal Employment and W/DBE Liaison Officer.

4. Contract Compliance Officer

The Contract Compliance Officer assists the Chief of Contract Administration in implementing external contractor compliance procedures.

5. Transportation Program Specialist

The Specialist assists the Contract Compliance Officer by providing expertise in computerized data management systems, program analysis, policy and procedural advice, and program administration.

GOALS

The methodology for the selection of annual percentage goals for the dollar value of work to be awarded W/DBEs is as follows.

The Agency will establish overall annual percentage goals, and when necessary, specific contract goals which are practical and related to the potential availability and capability of W/DBEs. These goals are intended to direct a justified, proportionate amount of contracting and subcontracting opportunities to disadvantaged and woman-owned small businesses. Projects targeted for goals will be selected in accordance with their capability to accommodate the areas of expertise that W/DBEs certified in Vermont have demonstrated ability to perform and the availability of competing W/DBE firms.

Overall Annual W/DBE Participation Goal

The overall annual goal shall consist of a single goal combining both women-owned and disadvantaged business enterprise participation.

The following factors will be evaluated when determining the Agency's overall goal for value of work to be awarded W/DBEs.

1. Agency projected contract letting schedules.

Schedules will be reviewed annually for number of projects proposed for construction, types of projects (e.g. paving, bridge, rail, roadway, airport, etc.) and geographical location.

2. Past results attained in achieving the annual overall goal.

Previous goal statistics will be analyzed on a yearly basis to determine degree of success in attaining the projected goal. The knowledge will be applied when setting the new projected annual goal.

3. Availability and capability of W/DBEs.

Geographic concentration of project activities in relation to W/DBE availability will be a major consideration when establishing the overall goal. Work categories of demonstrated W/DBE expertise and capability will also be a consideration when determining the overall goal.

4. Census Statistics

The size and composition of the minority population will be a factor of consideration when establishing the annual W/DBE participation goal.

5. Information From the Consultation Process

Information provided by the W/DBE community concerning the availability of W/DBE firms and information received as a result of Public Notices announcing the proposed annual goal will also be considered.

Individual Contract W/DBE Participation Goal

A specific contract goal may be assigned by the Agency as a means to achieve and maintain the overall annual goal. The following factors will be considered, if it is deemed necessary to establish a specific contract goal.

1. Availability of known qualified DBEs and WBEs.
2. Desired areas of contracting expertise.
3. Geographic location of project.
4. Size of project and conduciveness to subletting possibilities.
5. Success in achieving the current year's W/DBE participation goal.

The Supplemental Specifications for W/DBE Utilization is included in Appendix H. The subject of individual contract goals is discussed further in Section V - "W/DBE Utilization".

Procedure for Warning

The Agency will establish an overall W/DBE participation goal in accordance with the methodology contained in this section and submit them to the U.S. Department of Transportation for approval. A public notice will be written detailing the new overall W/DBE annual goal. This public notice will be published in major Vermont newspapers announcing said goal; a sample of this notice is included in Appendix A. A description of the methodology used in selecting the goal will be available for citizen inspection for thirty (30) days following the date of the notice. This material will be made available to the public at:

The Vermont Agency of Transportation

Contract Administration Division

133 State Street

Montpelier, Vermont 05602

Telephone: (802) 828-2641

The public notice will also allow for a public comment period of forty-five (45) days following the date of the notice. Comments will be directed to the above-stated address and be for information purposes only. The overall annual goal will be established on October 1 of each year and remain in effect through September 30 of the following year.

In addition to public notices, contracting organizations representing both minority and non-minority interest, will be solicited by mail concerning the proposed annual W/DBE goal. These responses and other public input will be considered when formulating the goal.

W/DBE PROGRAM PROCEDURES

The Vermont Agency of Transportation will strive to ensure the inclusion, development, and growth of women-owned and disadvantaged business enterprises in all Agency contractual activities with the goal of assimilating women and disadvantaged businesses into the transportation industry through affirmative, logical efforts.

Affirmative Actions

The Agency has or will:

1. Appoint a W/DBE Liaison Officer and such support staff as will be necessary to administer the W/DBE program. The W/DBE Liaison Officer will report directly to the Agency's Secretary and shall be responsible for developing, managing, and implementing the W/DBE program on a day-to-day basis.
2. Search out and identify qualified W/DBEs interested in participating in the Agency's federal-aid construction program.
3. Search out and identify qualified women or disadvantaged-owned and operated vendors, banking institutions and suppliers of goods, services and materials which federal-aid construction contractors may use in their day-to-day operation. Also, it will develop a list of these firms and assist them in contacting prime contractors in an effort to encourage purchases from those listed firms.
4. Work with interested W/DBEs in developing joint ventures and mentor-protege relationships between W/DBEs and/or between a W/DBE and a majority owned firm. The objective is to combine their resources to better compete for federal-aid work and/or to allow small, inexperienced firms to learn transportation-related trades from the more experienced contractors. A copy of the Agency's policy on mentor-protege relationships is contained in Appendix I.
5. Provide needed Supportive Services to interested W/DBEs in the areas of bonding, financing management, and technical assistance. Support Services may be provided by consultants, via mentor-protege, by institutions of higher learning, seminars, and other acceptable means.
6. Coordinate and supervise with the help and involvement of federal agencies and Agency officials, meetings between interested and prequalified firms. The intent of these meetings is to explain federal and state W/DBE utilization regulations, to give the W/DBEs an opportunity to meet and sell their firms capabilities to the prime contractors, and to identify and eliminate specific barriers common to these businesses.
7. Conduct sufficient follow-up actions on interested W/DBEs to formulate a standard for determining the extent of success achieved. Also, data collected from the follow-up will enable federal and state agencies to better formulate future courses of action relative to the Agency's W/DBE Program.
8. Assure that all parties to the Agency's federal-aid construction contracts are made cognizant of their responsibilities concerning the utilization of W/DBEs and other Equal Employment Opportunity obligations by transmitting this information at the project pre-construction conference.
9. Coordinate efforts with other State D.O.T. Liaison Officers and W/DBE Supportive Services consultants in assisting W/DBEs with interstate contracting capabilities. Also, it will share ideas and information with other in-state and out-of-state organizations working toward the common goal of providing equal opportunities for disadvantaged and women-owned firms.
10. The Compliance Officer shall conduct periodic reviews as part of the regularly scheduled Equal Employment Opportunity Comprehensive Compliance reviews on construction contracts to assure that adequate and documented efforts have been exercised by prime contractors to solicit quotes from available and qualified W/DBEs.
11. Maintain an up-to-date listing of certified disadvantaged and women-owned businesses and include this listing in all federal-aid contract proposals released by the Agency. It will ensure that all businesses seeking W/DBE status with this Agency are provided assistance in filling out the W/DBE certification application forms when necessary.
12. Establish an annual overall percentage goal, and when deemed necessary, a specific contract goal for the dollar value of work to be awarded to W/DBEs as permitted by law. Specific contract goals will be implemented only as a short-term method of maintaining the overall goal. Goals, and the methodology for establishing them are addressed in Section III of this program.
13. Maintain certification procedures which ensure that this program benefits only bona fide W/DBE firms. The Agency W/DBE certification process is further explained in Section IV of this program.
14. Design prequalification requirements to encourage small contractors to participate in our construction programs. Every reasonable effort will be made to assist W/DBEs in establishing prequalification status with the Agency.
15. Where feasible, large construction projects may be segmented to allow small W/DBE contractors the opportunity to bid.

Specific Affirmative Actions Employed

1. The Agency encourages the Certification Review Consultant to complete all reviews and submit a recommendation for certification (or denial) within 30 days of the initial contact with the applicant. Final approval by the Prequalification Committee usually occurs within three weeks of the receipt of recommendation from the Certification consultant. No backlog of certification applicants has existed since March, 1985.
2. The Agency's endorsement of certification reciprocity with other state departments of transportation has encouraged W/DBEs from other states in the region to seek work in Vermont. A letter requesting certification and a copy of the W/DBEs current letter of certification from their home state is all that is normally required for the reciprocal certification. This process can be completed in as little as a week's time.
3. The W/DBE Registry, a listing of firms certified as owned and controlled by women and/or disadvantaged persons, is updated on a monthly basis. This action ensures that bidders on federal-aid contracts have the most current listing of W/DBE certified firms.
4. The Agency encourages Vermont W/DBEs to use the Community College of Vermont during the winter shutdown months for courses relative to the highway construction industry and small buisness management. The Community College has the advantage of offering courses at locations throughout the state in an accredited educational system; tuition costs, room, lab, and textbook charges are reimbursed by the Agency through the W/DBE Supportive Services consultant, who administers course registrations.
5. The Agency continues to benefit from the inclusion of the Civil Rights Section as a part of the Contract Administration Division. The same individuals who administer the W/DBE Program also have responsibility for Equal Employment Opportunity and Affirmative Action Programs for the Agency, Labor Compliance review procedures, and Title VI Program. The Contract Administration Division prepares all contract documents for federal-aid projects, advertises bids, prequalifies contractors, distributes proposals to contractors, opens bids, and forwards the results of bids to the Chief Engineer. The proximity of W/DBE program personnel to the other staff and functions of the Contract Administration Division provides a knowledge of, and participation in these other functions. Contractors pick up and deliver proposals in the Contract Administration Office; W/DBE Program personnel meet and speak personally to active contractors, subcontractors, and W/DBEs on a regular basis. This face-to-face approach has resulted in a better understanding and acceptance of the program by the contracting community than might otherwise be possible.

All W/DBE Program personnel have an extensive background in various phases of highway preconstruction and/or as construction Resident Engineers and Inspectors. This knowledge and experience is essential to the understanding of the realities of how W/DBE subcontractor participation works on the project site.

6. Approximately every other construction season the Agency sponsors a conference to provide guidance to the contracting community on the various civil rights regulations that are effective in their federal-aid contracts--including W/DBE requirements.

W/DBE UTILIZATION

Solicitation Requirements

Prime contractors are required to solicit W/DBEs and provide physical evidence that such solicitation was done in good faith before subcontractor approval is granted. Binding provision to that effect are included in every federal-aid contract package. The kind of actions that will be considered by the Vermont Agency of Transportation as a good faith effort to meet the W/DBE goal and solicitation requirements shall include, but not be limited to, those outlined in 49 CRF § 23. 45, Appendix A. In addition, these requirements are reiterated in contract document CA-110 and also at the pre-construction conference prior to the commencement of construction. A copy of CA-110, dated September, 1987, is included in Appendix B.

A specific contract W/DBE participation goal is also set for a number of projects; the prime contractor is required to submit with the bid proposal a list of qualified W/DBEs the firm intends to contract with to perform portions of the work, the agreed price to be paid, and the specific contract items to be performed by each W/DBE. A copy of the supplemental specification, CA-160, is included in Appendix H as an illustration of Agency methods of administering contract goals and judging compliance with applicable W/DBE requirements. The specific goal required in this supplemental specification is revised for each applicable contract.

Subrecipients

As a precondition to receiving federal funds extended through the Agency, a subrecipient of Agency federal funds must comply with the requirements of 49 CRF Part 23. The subrecipient may have a federally approved W/DBE program or officially adopt the Agency program.

The W/DBE Liaison Officer will assist subrecipients in meeting W/DBE goals.

Use of W/DBE Banks

At this time, no disadvantaged or women controlled banks operate in Vermont. If such banks do emerge, the Agency will attempt to certify the business as a Women or Disadvantaged Business Enterprise utilizing the same certification process described in Section VI of this program. Upon certification, the bank will be listed in the W/DBE Registry. The Agency will encourage the solicitation and use of such banks by contractors.

W/DBE Registry

The Office of Contract Administration maintains an up-to-date listing of firms in the state and region certified to participate as W/DBEs in the Agency's contracting program. The firms are listed in work-performed categories with address and phone number and identified as a women or disadvantaged business enterprise. The Registry is included in every contract-proposal package for federally-funded projects. A copy of the current Registry is in Appendix J.

Contract Setasides

The use of contract setasides as a means to achieve W/DBE participation goals may be used when good-faith effort solicitation and specific contract W/DBE goals have failed to attain reasonable W/DBE participation in Agency projects. W/DBE setasides shall be used only in cases where at least three W/DBE firms with capabilities consistent with contract requirements exist so as to permit competition.

The Agency may select entire projects or specific items within individual projects for exclusive bidding privileges for W/DBEs.

CERTIFICATION

In order for the Agency to achieve the goals of the W/DBE program, it must insure that participation is limited to only those business entities for which the program is intended -- the bona fide woman-owned or disadvantaged business enterprise. To accomplish this, the Agency has developed a W/DBE certification process.

Certification of W/DBEs is a function of the Agency Prequalification Committee. This Committee, which is comprised of the Chief Engineer and Agency Division Heads, reviews each women-owned or disadvantaged firm applying for access to the Agency W/DBE Program. Their decisions are based on information presented in the Certification Application and recommendations from the Agency W/DBE Supportive Services Consultant and W/DBE Liaison Officer.

Eligibility Application

In December, 1984 the "Disadvantaged/Women Owned Businesses Certification Application" recommended by the FHWA Region I Certification Task Force was adopted for use by the Agency.

All in-state applicants wishing to participate in the W/DBE program must apply for W/DBE certification by completing this application, a copy of which is included in Appendix F of this program. Applicants must also submit the required documents pertaining to their firms as stipulated in the application. These forms will be made available to prospective W/DBE's through:

Vermont Agency of Transportation

Office of Contract Administration

133 State Street

Montpelier, Vermont 05602

802 -828-2641

or through the office of the W/DBE Consultant.

The Compliance Officer and W/DBE Consultant will actively solicit applications from the women and disadvantaged business community. Applicants are encouraged to submit the certification application as soon as possible and not wait until the Agency advertises a project that they wish to bid or give quotes on.

Review and Analysis

Certification applications are received by the Office of the W/DBE Certification Consultant; the Consultant conducts a comprehensive review of each application relevent to required information and content, and then conducts on-site interviews of in-state firms. When the certification application with required attachments and the on-site review form have been completed, the Consultant submits the application package, along with a recommendation relevant to certification, to the Compliance Officer. The Compliance Officer conducts a review of the application information and submits a recommendation, relevant to certification, via the W/DBE Liaison Officer to the Prequalification Committee. The Prequalification Committee has the ultimate authority to grant or deny certification. Appendix C contains information and guidance for qualitative review and analysis of applicants for W/DBE status.

Business Size

All firms applying for either W/DBE status must first meet the small business requirements defined in Section 3 of the Small Business Act referred to in Appendix B to subpart D of 49 CFR, Part 23.

Social and Economic Disadvantaged

1. Based on Ethnic or Racial Origin

Once a firm is determined to be a small business, social and economic disadvantaged status are reviewed. Guidance for determining social and economic disadvantage status is provided under Appendix C to subpart D of 49 CFR, Part 23.

Where ethnic or racial origin of an applicant is in question, recognition of the applicant by the particular ethnic or racial community he or she claims to be a member of should be the prevailing criteria upon which the ethnic or racial status is determined. In this sense, the degree of origin (1/8, 1/16, 1/32, etc.) is not as important as the ethnic or racial community's regard of the person as one of its members. Thus, a person claiming one minority parent or any degree of minority ancestry may or may not be found to be a minority under the regulations. In these cases, inquiry of the particular minority community should be made. Such an inquiry may include documentary evidence from disinterested persons whose ethnic/racial origin is not in question. Some sources would be individual members of the community the applicant claims to be a member of including community organization leaders, bank officials, and local business development organizations. Documentary evidence may include birth certificates, naturalization papers, Indian tribal role registration, statements from disinterested parties, and proof of membership and interaction in recognized racial or ethnic organizations.

2. Women which includes female persons regardless of race or origin.
3. Based on Factors Other Than Racial or Ethnic Origin.

Individuals who are not presumed to be socially and economically disadvantaged by virtue of gender or membership in a racial or ethnic group may, nevertheless, be found to be socially and economically disadvantaged on a case-by-case basis. If individuals request that their businesses be certified as eligible disadvantaged businesses, the Agency, as part of its certification process, will make a determination of social and economic disadvantage.

In making determinations of social and economic disadvantage, the Agency will be guided by the following standards:

a. The individual's social disadvantage must stem from color, national origin, physical impairment, long-term residence in an environment isolated from the mainstream of American society, or other similar cause beyond the individual's control. The individual cannot establish social disadvantage on the basis of factors which are common to small business persons who are not socially disadvantaged. For example, an individual predicating a social disadvantage claim on denial of bank credit would have to establish that the denial was based on one or more of the listed causes, or similar causes - not simply on the individual's or the firm's marginal financial status.
b. Individuals must demonstrate that they have personally suffered social disadvantage, not merely claim membership in a non-designated groups which could be considered socially disadvantaged. This can be demonstrated, for example, by describing specific instances of discrimination that the individuals have experienced, or by recounting in some detail how their development in the business world has been thwarted by one or more of the listed causes or similar causes. In assessing these facts the Agency will consider prior administrative or judicial findings of discrimination experienced by them.
c. Each individual's social disadvantage must be rooted in treatment which they have experienced in the United States, not in other countries.
d. Each individual's social disadvantage must be chronic, longstanding, and substantial, and demonstrate a series of obstacles which have impeded their progress in the business world.
e. In addition to a personal statement from the individual claiming to be socially disadvantaged such evidence may be: third party statements, copies of administrative or judicial findings of discrimination, and other documentation in support of matters discussed in the personal statement. The Agency will consider the applicant's education, employment, and business history; the individual may present evidence relating to other matters as well. Moreover, the attainment of a quality education or job should not absolutely disqualify the individual from being found socially disadvantaged if sufficient evidence of social disadvantage is presented to the Agency.

Other evidence considered in the determination of social and economic disadvantage are:

- Denial of access to business and/or professional schools.

- Denial of equal access to education curricula.

- Exclusion from social and professional organizations.

- Denial of professional or educational honors.

- Social patterns or pressures which have discouraged the individual from pursuing a professional or business education or career.

- Discrimination in hiring promotion and/or professional advancement, pay/wages and fringe benefits, or disciplinary actions in education or employment.

- Unequal access to credit or capital.

- Inability to acquire credit or the necessity or mandate to acquire credit under unfavorable circumstances.

The Agency will make a determination as to whether the applicant firm and its owner(s) are in a more difficult social and economic situation than most firms and owners who are not disadvantaged. The applicant must also demonstrate that the firm is 51 percent owned by socially and economically disadvantaged individual(s) that this (these) individual(s) control the day-to-day management of the firm, and that the firm meets such other requirements for eligibility as a DBE described in this program.

Ownership and Control

The following standards will be used to determine whether a firm is owned and controlled by one or more socially and economically disadvantaged individuals as defined above, and therefore, eligible to be certified as a W/DBE by this Agency.

1. To be eligible the firm must be an independent business. The The ownership and control by the socially and economically disadvantaged must be real, substantial, continuing, and shall go beyond the pro forma ownership of the firm as reflected in its ownership documents. The socially and economically disadvantaged owners shall enjoy the customary incidents of ownership and shall share in the risks and profits commensurate with their ownership interests, as demonstrated by an examination of the substance rather than the form of the ownership arrangements.
2. The socially and economically disadvantaged owners shall also possess the power to direct or cause the direction of the management and policies of the firm and to make the day-to-day as well as major decisions on matters of management, policy and operations. The firm shall not be subject to any formal or informal restrictions which limit the customary discretion of the socially and economically disadvantaged owners. No by-law provisions, partnership agreements, charter requirements for cumulative voting rights or any other factor will prevent the socially and economically disadvantaged owners from making a business decision for the firm.
3. If the owners of the firm who are not socially and economically disadvantaged are disproportionately responsible for the operation of the firm, then the firm is not controlled by the socially and economically disadvantaged persons and shall not be considered a W/DBE. Where the actual management of the firm is contracted out to individuals other than the owner, those persons who have the ultimate power to hire and fire the managers can be considered as controlling the business.
4. All securities which constitute ownership and/or control of a corporation for purposes of establishing it as a W/DBE shall be held directly by the socially and economically disadvantaged persons. No securities held in trust, or by any guardian for a minor shall be considered as held by socially and economically disadvantaged persons in determining the ownership or control of a corporation.
5. The contributions of capital or expertise by the socially and economically disadadvantaged owners to acquire their interests in the firm shall be real and substantial. Examples of insufficient contributions include a promise to contribute capital, a note payable to the firm or its owner who are not socially and economically disadvantaged persons, or the mere participation as an employee, rather than as a manager.

If at any time the Agency has reason to believe that any person or firm has willfully and knowingly provided incorrect information or made false statements on the disclosure affidavit, it shall refer the matter to the General Counsel of the Agency. The Counsel may initiate debarment procedures in accordance with 41 C.F.R. 1 - 1.604 and 12 - 1.602 and/or refer the matter to the Department of Justice under 18 U.S.C. 1001, as may be deemed appropriate. A copy of the Agency's Policy and Procedures on Debarment is included in Appendix I. The office of the Inspector General, U.S. Department of Transportation, may also be notified if fraudulent information or activity is suspected.

Call

Write

Inspector General's Hotline

Inspector General

Toll Free 800-424-9071

P.O. Box 23178

Washington, D.C. Area 755-1855/56

L'Enfant Plaza Station

Washington, D.C. 20024-0178

Information about the Inspector General's Hotline and a request that fraudulent activity be reported to the Hotline has been included in all federal-aid bid proposals for the period January, 1986 through July, 1986. Referrals to the Hotline may be made anonymously.

The field office contact for Vermont is:

Baltimore Regional Office

Special Agent-in-Charge

FTS: 8-922-6175

Comm: 301-962-6175

31 Hopkins Plaza, Room 1022

Baltimore, MD 21201

After approval of the findings by the Prequalification Committee, the applicant will be notified concerning whether or not the firm is eligible for participation in the W/DBE program.

Certification When A Change of Ownership Has Occurred

As a condition of certification a six month waiting period will be required of firms where majority ownership has been transferred to a woman/minority disadvantaged family member of the firms owner or to a company employee. This waiting period will start at the time the woman/minority disadvantaged person assumes ownership and control of the firm and extended to six months from that date. Women/disadvantaged owners may submit W/DBE certification applications to the Agency during the six month waiting period.

This requirement may be waived in special circumstances such as when the death of a male non-minority owner transfers ownership and control of a firm to a woman/disadvantaged family member, a male non-minority owner retires, or legitimate buy-outs by non-relatives or employees.

This policy applies only to Vermont based firms applying for W/DBE certification through this Agency.

Recertification

W/DBE firms appearing in the W/DBE Registry are notified by mail on an annual basis that they must be recertified. The firm must submit an update identifying whether a change in ownership has occurred since the last certification. A copy of this correspondence and update are included in Appendix E.

Certification Reciprocity With Other State And Small Business Administration 8 (a) Program

The W/DBE certification status of a firm's home state department of transportation (DOT), or similar entity that uses the certification requirements of 49 CFR, Part 23 will be honored by this Agency. Comprehensive certification reviews are not normally conducted on firms based outside Vermont. The out-of-state applicant is asked to supply verification that their certification is current with their home state DOT, and then recommended for certification to the Prequalification Committee, based on this policy of reciprocity.

By the same token, W/DBE firms who are decertified, or removed from the list of certified firms by their home state DOT, are also removed from this Agency's list. Status of an out-of-state W/DBE during the pendency of an appeal or third party complaint is explained in the section describing those actions.

Owner/Operator Certification

An abbreviated certification application and review procedure for W/DBE equipment owner-operators was instituted to allow the most expedient access to the W/DBE program by this type of small business.

Removal from W/DBE Registry by Administrative Action

In certain instances a certified firm may be removed from the Agency W/DBE Registry by the Agency W/DBE Liaison Officer. Such cause for this administrative action will include, but not be limited to:

1. Written request by a firm to be removed.
2. When a firm does not respond to a recertification update, a second update form (certified mail/return receipt) will be sent to the firm allowing 14 days following receipt to respond to the update before removal from the list of certified firms.
3. When an out-of-state based W/DBE has been decertified by its home state DOT.

Decertification

W/DBEs may be decertified and excluded from participation in the W/DBE Program for the following reasons:

1. The W/DBEs business entity has changed to the extent that the business is no longer owned and controlled by a disadvantaged person or woman.
2. The facts have been misrepresented on the certification application.

When it has been determined by the Agency that a W/DBE no longer meets the requirements for certification, the Prequalification Committee will notify the W/DBE by certified mail, return receipt, of the contemplated decertification, briefly describe the reasons why decertification is contemplated, and offer the firm or individual an opportunity to respond to reasons for decertification stated therein. The Prequalification Committee shall meet with the W/DBE to hear and discuss the arguments concerning decertification. The Prequalification Committee shall then issue a ruling.

Challenges to Firms Certified as Woman-owned or Disadvantaged Businesses

Any third party may challenge the socially and economically disadvantaged status of any individual (except an individual who has current 8(a) certification) presumed to be socially and economically disadvantaged if that individual is an owner of a firm certified by or seeking certification from the Agency as a W/DBE. The actual ownership and control of a firm certified as a W/DBE or the W/DBE's compliance with the requirements of 49 CFR 23 may also be challenged by any third party.

In making the determination of the challenged individual's status as a socially and economically disadvantaged individual the standards set forth in Appendix C to subpart D of 49 CFR, Part 23 shall be used.

The challenging party shall submit in writing to the Agency's Prequalification Committee all information available justifying his/her determination that whether the challenged party is not in fact socially and economically disadvantaged, or the ownership and control of the firm is questionable. Based on the information provided by the challenging party, the Prequalification Committee shall determine whether there is reason to believe that the challenge has adequate validity to merit further action.

If the Prequalification Committee determines that the challenge does have adequate validity following procedure shall be taken:

1. The Prequalification Committee shall notify the challenged party by certified mail/return receipt of the challenge. This notice shall identify the challenging party and summarize the grounds for the challenge. The notice may also require the challenged party to provide, within a reasonable time, information addressing the items detailed in the challenge.
2. The Prequalification Committee shall evaluate the information available and make a proposed determination in writing, setting forth the reasons for the determination. The Committee shall notify both parties certified by mail/return receipt of the determination.

During the pendency of a challenge, the certification of that challenged party as a socially and economically disadvantaged individual or the ownership and control of the firm previously used as a basis for certifying the firm as a W/DBE shall remain in effect until a final determination has been made.

If the Prequalification Committee determines that there is not reason to believe that the challenge is valid both parties will be so informed by certified mail/return receipt stating a reason for the determination. An appeal process similar to the one described below may be utilized by the challenging party.

If the Prequalification Committee determines that there is reason to believe that the challenge is valid, both parties will be so informed in writing by certified mail/return receipt stating a reason for the determination. The challenged party may also appeal the determination as described below.

All written notifications made during the pendency of a third party challenge procedure will also be by certified mail/return receipt to the U.S. Department of Transportation, Office of Civil Rights via the FHWA - Vermont Division Administrator.

Appeal Procedures

Any firm which believes that it has been wrongly denied certification as a W/DBE, been decertified as a W/DBE, or lost its certification as a W/DBE by challenge may file an appeal with the Prequalification Committee. Any individual who challenges the socially and economically disadvantaged status of an owner or the actual ownership of a firm and has that challenge denied may also appeal. The appeal shall be in writing, signed and dated, and contain reasons for the appeal. The appeal must be filed no later than 15 days after the date of denial, removal, or continuation of certification. After review of presented reasons in the appeal, the Prequalification Committee may reverse its action, or if it determines the appealed action is still in order, the appeal will be forwarded to the Secretary.

The Secretary will appoint a Hearing Officer who will schedule a formal hearing on the appeal. The hearing will be convened not less than 20 days nor more than 30 days after the appeal is filed. All parties involved will be notified by certified mail/return receipt of the hearing time, date and place, and their responsibility to provide information relevant to their position.

Based on the information presented at the hearing, the Hearing Officer will, within 20 days after the hearing, present a written report to the Secretary. The report shall contain findings of fact, conclusions, and recommendations.

The Secretary shall review the hearing evidence and the Hearing Officer's report and issue a decision concerning the matter. Written notification by certified mail/return receipt of the decision shall be sent to all parties involved within 20 days after the Secretary receives the recommendation from the Hearing Officer.

If the applicant is not satisfied with the decision of the Secretary, the decision may, in accordance with 49 CFR Part 23.55 dated March 31, 1980, be appealed directly to the U.S. Department of Transportation.

The Secretary may omit the appeal process within the Agency and advise the applicant to appeal directly to the U.S. Department of Transportation by writing to:

The Secretary of Transportation

Washington, DC 20590

Attention: Office of Civil Rights S-30

The status of a firm remains the same as it was prior to any certification, decertification, appeal or challenge procedures during the pendency of these procedures.

In cases of decertification, certification denial, challenges and appeals provisions have been added to allow the Agency to make a referral for legal action if it appears the matter would have potential for initiation of a debarment action or criminal prosecution. This referral may be either to the Vermont Attorney General's office or the US DOT Office of Civil Rights via the FHWA-Vermont Division Administrator.

Pre-Award Audit

Following bid opening on projects designated for specific goals, the Compliance Officer performs a pre-award audit/review of the low bidder's success in meeting the requirements set forth in the W/DBE Supplemental Specification Appendix H.

The following criteria is evaluated prior to awarding these contracts:

a. Review W/DBE certification file to determine:
1. Certification - the W/DBE is certified by Vermont Agency of Transportation and the certification is current.
2. Scope of Work - The W/DBE is capable of constructing items of work listed in contract proposal. The items of work to be subcontracted to W/DBE are listed in the W/DBEs scope of services.
b. Contact with the W/DBE to determine that the apparent low bidder actually negotiated with the W/DBE for items, quantities, and prices, identified in the bid proposal.
c. Contact W/DBE and apparent low bidder to assure the following criteria will be met by the W/DBE subcontractor:
1. Supervision - The W/DBE will provide adequate supervisory personnel to oversee the subcontracted work.
2. Work Crews - The W/DBE will provide work crews to accomplish subcontracted work.
3. Payrolling - The required payroll procedures will be adhered to by the W/DBE Subcontractor.
4. Materials - The W/DBE will purchase and provide required materials to fulfill subcontract requirements and maintain supporting invoices verifying purchases of these materials.
5. Equipment - The W/DBE will furnish necessary equipment to accomplish subcontracted work and provide rental or ownership documentation of this equipment.
6. Commercially Useful Function - The W/DBE will provide a commercially useful function as specified in Agency Contracting and Subcontracting Policy.
d. Special Arrangements are evaluated including:
1. Will the W/DBE rent or lease equipment from the prime? Are there or will there be written lease agreements?
2. Is the prime contractor providing the W/DBE with working capital on the project?
3. Is the prime contractor or any other contractor loaning the W/DBE supervisory personnel or labor to accomplish the subcontracted work?

The award of the contract is based on the apparent low bidder's responsiveness to the requirements of the specification and evidence revealed through this audit that the W/DBE participation scheduled in the proposal will meet relative Agency and Federal requirements.

Following completion of the pre-award audit, the Compliance Officer forwards a report to the Civil Rights/Labor project file for the project and notifies the Specification Engineer of the results of the audit. Award of the contract does not proceed until all pre-award W/DBE participation requirements have been satisfied.

Project Monitoring

In addition to regular monitoring of W/DBE participation on the project site by the Resident Engineer field visits are conducted by Agency Compliance Section personnel and the results of such visit reported to the Compliance Officer.

Twelve (12) Comprehensive Equal Employment Opportunity/Affirmative Action Compliance Reviews are conducted annually by Compliance Section personnel. These reviews include a full report of the contractor's efforts to subcontract portions of the project to available W/DBEs, and an audit of the participaton of W/DBEs on the project.

The W/DBE Supportive Services Consultant is responsible for inspecting the participation of W/DBEs named to fulfill participation requirements on specific goaled projects. The Consultant is responsible for reviewing the Civil Rights Project files and interviewing project Resident Engineers to determine the date(s) the W/DBE will be working on the project. In addition to observing the progress of the W/DBE subcontractor, interviewing W/DBE employees and supervisors, determining the ownership of equipment being used by the W/DBE subcontractor, the Consultant provides a written recommendation to the Compliance Officer relevant to the commercially useful function being served by the W/DBE on that project.

Verification of Payments To W/DBEs

In accordance with the W/DBE Utilization Supplemental Specification the Compliance Officer requires that prime contractors on W/DBE specific goaled projects submit verification of payments made to the W/DBE(s) on their project. This requirement was implemented to further document that prime contractors are actually achieving the level of W/DBE participation originally obligated in their contract. Generally, cancelled checks are the only means of payment verification accepted.

Final Audit Procedure

Upon notification from the Construction Engineer that a final inspection has been scheduled for a project containing specific goals, the Compliance Officer conducts a final review of W/DBE payment verifications submitted by the prime contractor to determine if W/DBE participation met contract requirements.

The Compliance Officer may at his/her option, notify the Resident Engineer by memo if contract W/DBE requirements have not been met and request that the matter be resolved prior to final payment; or he/she may recommend to the Chief of Contract Administration that progress payments be suspended immediately pending resolution of the non-compliance matter. Progress or final payments may be suspended by the Chief of Contract Administration by a memo to the Chief of Financial Mangement via the Chief Engineer, and Director of Administration.

Sanctions & Suspensions, Debarment, Voluntary Exclusions

The Agency will impose sanctions in accordance with contract supplemental specifications W/DBE Utilization (CA-160) and W/DBE Policy - Contract Requirements (CA-110) against contractors failing to comply with the socio-economic obligations required in Agency bidding procedures and contract execution. Copies of these documents are contained in Appendix B and H.

Likewise, when adequate evidence exists, sufficient to support the reasonable belief that commission of fraud or criminal offense was a factor in obtaining or performing on a public contract, appropriate legal action will be pursued through the Vermont Attorney General's office or the U. S. Department of Justice.

In addition, the Agency's Policy and Procedures on Debarment apply to both W/DBE's and non-W/DBE's alike where it is demonstrated that government funds may not be properly utilized or the State's interests properly safeguarded. A copy of this document is included in Appendix I.

PUBLIC NOTICE

VERMONT AGENCY OF TRANSPORTATION

Disadvantaged Business Enterprise Overall Annual Goals

For Fiscal Year October 1, 1987 through September 30, 1988

Pursuant to U.S. Department of Transportation regulations contained in 49 Code of Federal Regulations, Part 23, all State transportation agencies receiving Department of Transportation financial assistance must establish overall percentage goals for the dollar value of work to be awarded disadvantaged and women-owned businesses. This action has been deemed necessary in order to provide these businesses the maximum opportunity to participate in the performance of contracts and subcontracts financed in whole or in part with Federal funds. The Vermont Agency of Transportation is a recipient of U.S. Department of Transportation financial assistance and hereby proposes the following goals in accordance with these regulations:

Fiscal Year 1988 Overall Goal for Disadvantaged Business

Enterprise Participation - FHWA Funded Programs

13%

Fiscal Year 1988 Overall Annual Goal for Disadvantaged

Business Enterprise Participation - UMTA Funded Programs

10%

A description of the methodology used in establishing these goal values will be available for inspection during normal business hours at the following address:

Vermont Agency of Transportation

Contract Administration

133 State Street

Montpelier, Vermont 05602

Telephone: (802) 828-2641

Comments pertaining to these goals will be accepted at the above referenced address for a period of 45 days from the publishing date of this notice.

These goals will take effect at the conclusion of the comment period and after consideration of public opinions.

Susan C. Crampton

Secretary

Agency of Transportation

WOMEN/DISADVANTAGED BUSINESS ENTERPRISE POLICY CONTRACT REQUIREMENTS

1. Policy. It is the policy of the United States Department of Transportation (DOT) that Woman-owned and Disadvantaged Business Enterprises (W/DBE) as defined in 49 CFR Part 23 shall have the maximum opportunity to participate in the performance of contracts financed in whole or in part with Federal Funds. Consequently, the W/DBE requirements of 49 CFR Part 23 and 23 CFR, Chapter 1, Part 230, Subpart b apply to this contract.
2. W/DBE Obligation. The State and its Contractors agree to ensure that W/DBEs as defined in 49 CFR Part 23, have the maximum opportunity to participate in the performance of contracts and subcontracts financed in whole or in part with Federal funds. In this regard, the State and its Contractors shall not discriminate on the basis of race, color, sex, national origin, physical disability or veteran status in the award and performance of DOT assisted contracts.
3. Sanctions for Noncompliance. The Contractor is hereby advised that failure of the Contractor, or any Subcontractor performing work under this contract, to carry out the requirements set forth in paragraphs 1 and 2 above shall constitute a breach of contract and, after the notification of the VT AOT, Secretary of Transportation, may result in termination of this contract by the State or such remedy as the State deems necessary.
4. Inclusion in Subcontracts. The Contractor shall insert in each of its subcontracts this Women/Disadvantaged Business Enterprise Policy dated September, 1987, and also a clause requiring its subcontractors to include this same Policy in any lower tier subcontracts which they may enter into, together with a clause requiring the inclusion of the Policy in any further subcontract that may in turn be made. This Policy shall not be incorporated by reference.
5. The Agency 1988 Overall Annual Goal for W/DBE Participation in our Federal Aid Contracting Program is 13.0%.
6. All Contractors seeking subcontracted services or purchasing materials must make good faith efforts to solicit available and capable W/DBE firms for price quotations on work to be performed or the supplies required for the project. Evidence of good faith effort must be documented and presented to the Construction Engineer when submitting subcontractor approvals.

Factors to Consider in Certification and Verification

The following pages identify situations which may indicate the need for closer scrutiny during a review of the documents and an on-site visit. We recognize that many of the following situations exist in legitimate D/WBE firms.

Women Business Enterprises

A. RELATIONSHIP TO NON-MINORITY MALE
1. Either wife, daughter, or office secretary.
B. EXPERIENCE
1. Either as office secretary for a number of years with no operational or managerial experience;

or

2. Office secretary with secretarial or bookkeeping experience or some administrative experience.
C. STOCK OWNERSHIP
1. Gift from husband or father.
2. Distributed among mother and daughter(s) to meet 51 percent pro forma ownership.
3. Minimal cash outlay.
4. Stock issued but never purchased.
5. Non-minority is 49 percent stockholder.
6. Transfer occurred subsequent to issuance of DOT's NBE regulations.
D. SALARY
1. Minimal or none.
2. Less than father, husband, or former boss.
E. EMPLOYMENT AGREEMENT
1. None.
F. FINANCING
1. By father, husband, or corporate loan.
G. DECISION MAKER
1. Father, husband, or former boss.
H. TECHNICAL ASSISTANCE
1. Bonding company, insurance company, CPA, and Attorney are the same as father, husband, or former boss' company.

Factors to Consider in Joint Venture *

A. RELATIONSHIP TO NON-MINORITY PERSON
1. Former or current employee.
B. EXPERIENCE
1. Usually lower-level field experience, such as gang foreman.
2. No managerial experience. No administrative experience.
C. STOCK OWNERSHIP
1. Minimal cash outlay;

or

Loan from non-minority person;

or

Stock issued but never purchased.

2. Non-minority is former boss and has 49 percent stock ownership.
D. SALARY
1. Less than non-minority person or essentially the same.
E. EMPLOYMENT AGREEMENT
1. Pratecting the non-minority person's investment in time and capital.
2. No protection for minority person.
F. FINANCIAL
1. By non-minority person as corporate loan.
G. DECISION MAKER
1. Non-minority person.

* These situations may be present in a recognized mentor/protege relationship which may be encouraged by the State (see Attachment C) to develop DBEs.

H. TECHNICAL ASSISTANCE
1. Generally represented by a very high-paid Attorney.
2. Has bonding limit well in excess of assets.
3. Knows very little of insurance requirements.

FACTORS TO CONSIDER IN A CORPORATE SPIN-OFF *

A. RELATIONSHIP TO NON-MINORITY PERSON
1. Former women/minority person employee.
B. EXPERIENCE
1. With former non-minority corporation as skilled employee.
2. May have some administrative skills.
C. STOCK OWNERSHIP
1. Minimal personal investment.
2. Loan from former employer.
3. Former employer usually retains 49 percent stock ownership.
D. SALARY
1. Continues working for old employer.
2. Part-time effort for new business.
E. VOTING RESTRICTIONS
1. Greater than 51 percent of stockowners required for quorum.
2. Non-minority person's wife put on the Board of Directors.
F. FINANCING
1. Usually by former employer.
G. DECISION MAKER
1. Minority person lacks managerial experience and relies on former employer.
H. TECHNICAL ASSISTANCE
1. Banding company, insurance company, CPA, and Attorney are the same as corporation owning 49 percent of alleged MBE.

* These situations may be present where a recognized mentor/protege relationship has been encouraged by the State (see Attachment C) to develop DBEs.

DBE CERTIFICATION/VERIFICATION PROCEDURE

Outline of Major Components

1. DBE DEFINITION
A. Must Be:
1. A small business as defined by Section 3 of Small Business Act (average gross annual receipts not to exceed $ 12 million for last three fiscal years).
2. Socially and economically disadvantaged individuals as defined by ( 49 CFR 23 ).

Socially and economically disadvantaged individuals are American citizens or lawfully admitted permanent residents who are:

a. Black Americans
b. Hispanic Americans
c. Native Americans
d. Asian Pacific Americans
e. Asian Indian Americans
f. Members of other groups or individuals economically and socially disadvantaged as determined by the Small Business Administration under Section 8(a) of the Small Business Act (SBA) ( 15 U.S.C. 637(a) ) or the State in accordance with SBA criteria. See Appendix C (case by case).
B. Ownership and Control
1. Fifty-one percent ownership by minority, female, or socially and economically disadvantaged individual.
2. Daily management and business operations controlled by one or more minorities or females. (Stock ownership or transfer to minors or relatives does not constitute ownership and control.)
II. CERTIFICATION
A. DBE Advisory Committee
1. Composition
a. State officials, e.g., Civil Rights, Legal, etc.
b. Community representatives, e.g., business groups, contractors' associations, etc.
c. Other Government agencies, e.g., SBA, HUD, etc.
d. Combination of a, b, c.

Some States have discovered that it is useful to incorporate the resources of a D/WBE Advisory Committee into their verification and certification procedures. The composition of the Committee varies according to the preferences of the individual States.

2. Function
a. Review certification applications and documents.
b. Review investigation reports following on-site visits to DBEs.
c. Hold certification hearings.
d. Recommend approval/disapproval of firms as DBEs/WBEs.
e. Periodically review and revise certification/verification procedures.
f. Notify firms of certification, recertification, decertification, or denial of certification.
B. Verification
1. Document Review
a. Business Size

- Certified Income Statements

- Federal tax returns for most recent 3 years

b. Minority Status

- Birth certificates

- Naturalization papers

- Indian Tribal role registration

- Recognition of applicant in the particular minority community as a minority through sworn and notarized statements from bona fide members of the community who are clearly disinterested parties.

- Proof of membership and interaction in recognized minority organizations.

c. Ownership

- Articles of Incorporation, By-laws, Partnership Agreements.

- Copies of issued stock certificates.

- Copies of all shareholder agreements including voting trusts, employment contracts and other agreements between owners and company.

- Minutes of first and most recent Board of Directors meeting.

- Contributions of capital, titles to equipment or other proof of property ownership.

- Federal Corporate Tax returns for last 3 years. Schedule E Compensation to Officers.

d. Control

- Minutes of all Board of Directors meetings. (Note election of officers and delegations of authority.)

- Copies of all shareholder agreements including voting trusts, employment contracts, and other agreements between owners and company.

- Copies of any third party agreements.

- Examples of documents that would demonstrate management control. For example: copies of contracts, loan agreements, insurance policies, performance bonds, etc., signed by the minority/female owners.

- Resume of work experience of applicant, non-minority owners, and officers.

C. Verification
1. On-site
a. Interview principals.
b. Interview other people with knowledge of firm and its principals (including employees).
2. Reports
a. Report of document review.
b. Report of on-site review.
c. Above reports should conclude:
(1) Ownership
(2) Operational Control
(3) Managerial Control

Please Note: An audit of the firm's books and records would not normally be required to obtain certification. The firms should be required to submit documentation to support each area of eligibility determined necessary by the State.

DEFINITION OF TERMS

ACT

The Surface Transportation and Uniform Relocation Assistance Act of 1987.

AGENCY

The Vermont Agency of Transportation

AFFIRMATIVE ACTION

Means taking specific steps to eliminate discrimination and its effects, to insure nondiscriminatory results and practices in furture [future] contracts and programs funded by U.S. DOT.

COMPLIANCE

The satisfactory condition existing when a recipient or sub-recipient has effectively implemented all of the W/DBE requirements or can demonstrate that every good faith effort has been made toward achieving that end.

CONTRACT

Means a mutually binding legal relationship or any modification thereof obligating the seller to furnish supplies or services, including construction, and the buyer to pay for them. For purposes of the W/DBE Program, a lease is a contract.

HEARING OFFICER

Means an individual who is appointed to hear appeals or denials of certification and to report the findings of fact, conclusions, and recommendations to the Secretary.

JOINT VENTURE

Means an association of two or more businesses to carry out a single business enterprise for profit for which purpose they combine their property, capital, efforts, skills, and knowledge.

NONCOMPLIANCE

Means the condition existing when a recipient or contractor has failed to implement the requirements of the W/DBE program and has failed to demonstrate good faith effort toward achieving that end.

RECIPIENT

Means any entity, public or private, to whom U.S. DOT financial assistance is extended, directly or through another recipient for any program.

SECRETARY

The Secretary of the Vermont Agency of Transportation.

SUBCONTRACT

Means a contract between a party to an original contract and a third party to provide a specified part of the work or materials required in the original contract.

SUBRECIPIENT

Means any entity, public or private, to whom U.S. DOT financial assistance is extended, through the Agency, for any program.

W/DBE CERTIFICATION APPLICATION

Means an application for certification under the Agency's W/DBE Program which includes the applicant's assurance that any changes which may affect eligibility will be reported to the Agency.

VERMONT AGENCY OF TRANSPORTATION

SUPPLEMENTAL SPECIFICATION

Women/Disadvantaged Business Enterprise Utilization

Section 106(c) of the Surface Transportation and Uniform Relocation Assistance Act (STURAA) of 1987 mandates that not less than ten (10) percent of all revenues to be appropriated under the Act's provisions shall be expended with disadvantaged businesses. The Act also provides that women shall be presumed to be socially and economically disadvantaged individuals for the purposes of this subsection. The Vermont Agency of Transpotation (VAOT) has established a combined Women-owned and Disadvantaged Business Enterprise (W/DBE) participation rate of 13% for the Agency's 1988 overall annual goal. The VAOT is a recipient of funds acquired under this Act and is implementing the following bidding procedure to assure that all such firms are offered the maximum opportunity to participate in the performance of subcontracts financed in whole or in part with federal funds.

A. Definitions

As used in this supplemental specification, the following terms shall have the following meanings:

1. Disadvantaged Business Enterprise, (DBE) or Women Business Enterprise, (WBE) means a small business concern:
(a) which is at least 51 percent owned by one or more socially and economically disadvantaged individuals, or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more socially and economically disadvantaged individuals,
(b) whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it, and
(c) is certified by the Vermont Agency of Transportation as being owned and controlled by socially and economically disadvantaged individuals.
2. Socially and Economically Disadvantaged Individuals means those individuals who are citizens of the United States and who are Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, or Asian-Indian Americans and any other minorities or individuals found to be disadvantaged by the Small Business Administration pursuant to Section 8(d) of the Small Business Act. ( 15 U.S.C 637(d) ) and relevant subcontracting regulations promulgated pursuant thereto. In addition, women who are citizens of the United States shall be presumed to be socially and economically disadvantaged individuals for the purposes of section 106(c) of STURAA.
(a) Black Americans, which includes having origins in any of the Black racial groups of Africa;
(b) Hispanic Americans, which includes persons of Mexican, Puerto Rican, Cuban, Central or South America, or other Spanish culture or origin, regardless of race.
(c) Native Americans, which includes persons who are American Indians, Eskimos, Aluets, or Native Hawaiians;
(d) Asian-Pacific Americans, which includes persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Thailand, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Territories of the Pacific and the Northern Marianas, and
(e) Asian-Indian Americans, which includes persons whose origins are from India, Pakistan, and Bangladesh.
(f) Women, which includes female persons regardless of race or origin.
3. Women/Disadvantaged Business Enterprise Participation Schedule, is a schedule completed by the Bidder, on the form included in the proposal for this project, naming the disadvantaged firm(s), the name(s) and item number(s) of the work to be subcontracted to the W/DBE, contract unit price for the item(s), and the actual agreed total price for which the W/DBE will perform said work on this project.
4. Women/Disadvantaged Business Enterprise Unavailability Certification, is a written certification, completed and submitted by the Bidder on the form included in the proposal for this project detailing the unavailability of W/DBEs for certain work.
5. Specific Contract Women/Disadvantaged Business Enterprise Goal, means the percentage of the Bidder's total contract bid amount to be subcontracted to contractors, suppliers, consultants, etc. owned and controlled by socially and economically disadvantaged individuals.
6. Good Faith Solicitation Effort, means the Bidder's degree of effort to meet the specific contract W/DBE goals, including but not limited to the following:
(a) whether the Bidder attended any pre-solicitation or pre-bid meeting that was scheduled by the Agency to inform W/DBE's of the contracting and subcontracting opportunities;
(b) whether the Bidder advertised in general circulation, trade association, and other media readily available to W/DBEs of subcontracting opportunities;
(c) whether the Bidder provided written notice to a reasonable number of specific W/DBEs that their interest in the contract was being solicited in sufficient time (at a minimum one(1) week in advance of the bid opening date) to allow W/DBEs to participate effectively;
(d) whether the Bidder followed up initial solicitations of interest by contacting W/DBEs to determine with certainty whether W/DBEs were interested;
(e) whether the Bidder selected portions of the work to be performed by W/DBEs in order to increase the likelihood of meeting the W/DBE goals (including where appropriate, breaking down contracts into economically feasible units to facilitate W/DBE participation);
(f) whether the Bidder provided interested W/DBEs with adequate information about the plans, specifications and requirements of the contract;
(g) whether the Bidder negotiated in good faith with interested W/DBEs, and did not reject W/DBEs as unqualified without sound reasons based on a thorough investigation of the W/DBE's capabilities;
(h) whether the Bidder made efforts to assist interested W/DBEs in obtaining bonding, lines of credit or insurance required by the Agency or Bidder;
(i) whether the Bidder effectively used the services of available community organizations, contractor's groups, local, state and federal business assistance offices, and other organizations that provide assistance in the recruitment and placement of W/DBEs. Bidders will be expected to solicit outside the State of Vermont for available, and qualified W/DBE subcontractors; and
(j) whether the Bidder provided proof of the unavailability of W/DBEs in accordance with the Women/Disadvantaged Business Enterprise Unavailability Certification.
7. Responsive Bid, means a bid which is responsive to Standard Agency Specifications and Procedures.
B. Specific Contract W/DBE Goal

The specific contract W/DBE goal for this project shall be the percentage specified in the Project Special Provisions. This percentage shall reflect the actual dollar amount to be paid to the W/DBE(s) by the Contractor.

C. Bid Submission

Each bidder, as part of its proposal, must submit the following documents:

1. A completed Women/Disadvantaged Business Enterprise Participation Schedule, (CA-161) listing the qualified W/DBEs with which the Bidder intends to contract for the performance of portions of the work under the Contract, specifying the agreed price to be paid to each W/DBE for said work, identifying in detail the contract items or parts thereof to be performed by each such W/DBE, contract unit prices, total prices and other information required by the Schedule. No work shall be included in the Schedule which the Bidder has reason to believe will be performed by the prime contractor, or the listed W/DBE will subcontract, at any tier, to a non-W/DBE; or
2. In the event the work listed on the Women/Disadvantaged Business Enterprise Participation Schedule is not sufficient to fulfill the Specific Contract W/DBE Goal the Bidder must submit both the Women/Disadvantaged Business Enterprise Participation Schedule (CA-161) and the Women/Disadvantaged Business Enterprise Unavailability Certification (CA-162) listing the W/DBEs contacted by the Bidder, the items for which prices were solicited, and the reason the W/DBE was not used.
3. The purpose of submitting the above documents is to show the Bidder's intent to:
a. Achieve the Specific Contract W/DBE Contract Goal; or
b. Partially achieve the Specific Contract W/DBe Goal, due to insufficient availability of W/DBE's; or
c. Not achieve the Specific Contract W/DBE Goal, due to unavailability of qualified W/DBE's.

In the event that the Bidder shows intent to either not achieve the specified W/DBE goal, or partially achieve the specified W/DBE goal, the Agency's evaluation of the bidder's good faith efforts, as required by Section D. 2. of this specification, will focus only on those efforts made prior to bid opening. No good faith efforts conducted after the bid opening will be considered adequate to fulfill these bid submission requirements. Required bid submission information provided on the Women/Disadvantaged Business Enterprise Participation Schedule and the Women/Disadvantaged Business Enterprise Unavailability Certification will be used in determining the lowest responsive bidder. Failure to provide Contract W/DBE participation information on these forms will result in the bid being declared informal.

D. Award of the Contract

The Vermont Agency of Transportation reserves the right to reject all bids. The award of the contract will be to the lowest bidder responsive to the following criteria:

1. If the low Bidder fulfills Bid Submission requirements and meets or exceeds the specific contract W/DBE goals, the Agency considers the amount of the bid to be reasonable, and all other pre-award criteria are met, such a bidder will be the successful Bidder.
2. If the apparent low bidder does not meet the W/DBE contract goal and the Agency considers the amount of the bid to be reasonable, such a bidder will be the successful bidder if he or she can show good faith efforts to meet the contract goals. Documentation supporting a Bidder's good faith efforts must be presented to the Agency's Director of Engineering and Construction within five (5) working days after the bid opening and include the following information:
a. A written explanation of the efforts made by the low Bidder to meet the requirements of part A. 6 (a) through (j) of the Supplemental Specification for W/DBE Utilization. Each of the items (a) through (j) must be addressed individually and all supporting documentation demonstrating the low Bidder's efforts must be included.
b. A written explanation of other efforts made or methods used to encourage W/DBE participation on the project. Documentation that verifies these efforts must also be included.
3. If the low Bidder cannot satisfy the Agency that good faith efforts have been made, then the bid will be rejected and the second low Bidder will be evaluated in the same manner. This procedure will continue, evaluating bids in ascending order, until either the contract W/DBE goal is attained or good faith efforts can be verified. The first bid meeting these criteria will be accepted, provided the total bid amount is considered reasonable by the Agency.
4. Final determination of the low Bidder will not be made until the Agency is satisfied that all provisions of these Supplemental Specifications have been met.
5. Prior to award of contract to the low Bidder the participation of all listed W/DBEs will be verified and evaluated in accordance with the Agency's pre-award audit criteria.
E. Changing or Substituting W/DBE Firms After Award and Verfication of Payment

Any substitution of named W/DBE firms must be approved by the Vermont Agency of Transportation. If the Contractor alters the list of W/DBE firms scheduled to participate in the contract and/or the specific items that the W/DBE was scheduled to perform the Contractor must be able to demonstrate that the listed W/DBE is unable to perform because of default or over-extension on other jobs, or provide other similar justification. There must be a solid basis for change. It is not intended that a Contractor's ability to negotiate a more advantageous contract with another subcontractor be considered a valid basis for change.

If a listed W/DBE subcontractor is unable, following award to the low Bidder, to perform the items listed in the participation schedule, the Contractor must replace the listed W/DBE with another W/DBE subcontract of equal value or provide the Agency with documentation of good faith solicitation efforts as detailed in Part A 6(a) through (j) of this Supplemental Specification and explain why a substitute W/DBE could not be located. When a Contractor fulfills this requirement a waiver will be issued by the Agency releasing the contractor from the W/DBE participation obligation.

Contractors are required to provide the Agency with copies of Project work invoice payments to W/DBE subcontractors. These invoices shall be submitted to the Agency as payments are made and will be used to determine the final amount of project W/DBE particiation, and whether Contract sanctions for non compliance will be considered.

F. Sanctions for Non-Compliance

Each Contractor or subcontractor who fails to carry out the requirements set forth in these Specifications will be subject to a breach of contract and, after giving notification to the Federal Highway Administration, the Agency may terminate the Contract or subcontract or initiate any other remedy which it considers to be appropriate.

The standard penalty for failing to comply with this supplemental specification for W/DBE utilization will be as follows:

An amount of money equal to the amount in which the Contractor fails to achieve the specific contract goal may be deducted from the final estimate and/or biweekly progress payments as the penalty for non-compliance with this specification.

WOMEN-OWNED AND DISADVANTAGED BUSINESS ENTERPRISE PARTICIPATION SCHEDULE

Any substitution of the named W/DBE firms must be approved by the Vermont Agency of Transportation. This approval is necessary not only to assure that contract goals are met, but to preserve the integrity of the W/DBE program.

...

Name of Prime Bidder

...

Project Name and Number

Name of W/DBE

Address

Item Name (detail if partial Item)

Item No.

Unit Price

Agreed Price

...

...

...

...

...

. ...

Percentage of contract obligated to W/DBE(s) .....%

(must be completed)

WOMEN OWNED AND DISADVANTAGED BUSINESS ENTERPRISE UNAVAILABILITY CERTIFICATION

I, .....(Name), .....(Title) of .... (Name of Prime Bidder), certify that on .....(Date)

I contacted the following Women-owned and Disadvantaged Business Enterprises to obtain a bid for work items to be performed on Vermont Agency of Transportation project:

....(Project Name and Number).

W/DBE Contractor

Work Items Sought

Reason for Unavailability

To the best of my knowledge and belief, said Women/Disadvantaged Business Enterprises were unavailable for work on this project, or unable to prepare a bid.

Signature: ....

Date: ....

(If the low Bidder fails to attain the required W/DBE participation on the project, he or she will be required to submit documentation verifying the Bidder's good faith efforts and the actual documentation illustrating the unavailability of the W/DBE firms listed in this certificate, in accordance with Section D.2.

a. & b. of the Supplemental Specification for Women/Disadvantaged Business Enterprise Utilization.)

VERMONT AGENCY OF TRANSPORTATION

POLICY

Mentor-Protege Relationships

The mentor-protege concept allows prime contractors to enter into formal relationships with a Woman-owned and/or Disadvantaged Business Enterprise for the purpose of providing training and development to these firms. These relationships may be established through innovative variations to standard prime subcontractor agreements and joint ventures. The Agency encourages this concept in that it has significant potential to create an environment which is favorable to the formation and healthy growth of small woman-owned and/or disadvantaged firms. Furthermore, it will help prime contractors to fulfill W/DBE project goals.

The following criteria will be considered when reviewing mentor-protege situations:

1. The W/DBE must be independent and ownership by the woman or disadvantaged person must be real as determined by the Prequalification Committee.
2. The mentor cannot be disproportionately responsible for the various operating and management activities of the W/DBE firm.
3. Time or Demand Notes and Stock are generally accepted legal instruments by which a W/DBE provides assurance of repayment of capital to the mentor. If stock issuance is the method used, it may not exceed 49% or require the woman or disadvantaged owner to relinquish day-to-day control of the firm as a condition of the loan.
4. The protege must have the latitude to submit bids to other prime contractors for subcontract work. De facto exclusivity of the protege's bidding to the mentor in the initial stages of the realtionship because the protege is new and inexperienced and less marketable need not be construed as an agreement by the mentor and protege to an exclusive bidding arrangement.
5. The mentor can provide technical and management assistance as long as the woman or disadvantaged owner retains the major decision making responsibility for the W/DBEs work.
6. Equipment Rental and Use of Mentor's Personnel - It may be to the mutual benefit of the mentor and protege to arrange for the protege to rent or lease needed equipment through the mentor. (See the Policy on "Crediting of DBE Participation Goals to Prime Contractors Subcontracting to DBE Equipment Rental Firms"). In limited instances the mentor may provide personnel with expertise in a specialized area to the protege provided the person is placed on the protege's payroll and is under direct supervision of the protege. Long term, continuous or repetitive use of the mentor's specialized personnel by the protege may be construed as an attempt to artificially inflate W/DBE participation.
7. The mentor-protege relationship is subject to review by the Compliance Officer at any time. Normal graduation period for the protege will be two years, at which time the relationship will not longer be considered valid. The graduation period may be less if the protege proves through work performance that the relationship is no longer necessary.
8. Written request to utilize a mentor-protege relationship must be submitted and approved by the W/DBE Liaison Officer piror to bid opening.

GENERAL AGREEMENT COVERING MENTOR PROTEGE RELATIONS

THIS AGREEMENT entered into this .... day of ....., 198.... by and between .....of .... (hereinafter Mentor) and .... of .... (hereinafter Protege) in accordance with the requirements for increased Disadvantaged Business Enterprises (DBE) participation of the Surface Transportation Assistance Act of (STAA) of 1982.

This agreement is intended to cover the general relationship between the parties in order to insure compliance with the STAA and to establish guidelines for mentor/protege relations and is executed in conjunction with a Contract for Services dated .....

The parties agree that both contracts shall be construed so as to conform to the guidelines set forth in the Technical Advisory: Disadvantaged Business Enterprise Development from the office of the Secretary of Transportation dated September 23, 1983 by Ray Barnhart, a copy of which is attached as Exhibit "A" and made a part hereof.

In order to assure compliance with the Technical Advisory the parties agree as follows:

1. Integrity and Organization of Protege.
a. Both the Mentor and the Protege shall be separate legal entities (either partnership, sole proprietorship or corporation), and each shall maintain its own legal and financial records and its integrity as an independent organization
b. If not previously certified, the DBE/Protege shall apply for DBE certification under the DOT regulations.
c. The parties set forth herein as Exhibit "B" full copies of all other financial or other agreements between them including, but not limited to the following:
i. All stock or other ownership rights of the Mentor in the business of the Protege;
ii. All time or demand notes of Protege to Mentor;
iii. All time or demand notes of Protege to third parties guaranteed or co-signed by Mentor;
iv. All leases for space or equipment between Mentor and Protege;
v. All bonds or other security agreements for payment or performance of any obligation of the Protege;
vi. All agreements for the supplying of material to Protege by Mentor;
vii. All other agreements of the parties not specifically enumerated; and
viii. The parties agree that any subsequent financial or business agreement executed between them during the period the contract for services is in effect shall become a part hereof and be governed by the terms of this agreement.
d. The parties hereby agree that none of the agreements set forth above shall be construed to restrict the Protege's control and management of its own affairs and any attempt to do so shall be invalid.
2. Personnel and Compensation.
a. The attached Exhibit "C" lists all owners, general managers, foreman and other key personnel of the Protege. The parties hereby certify that all are under the direct supervision and control of the Protege and are paid by the Protege.
b. The attached Exhibit "D" lists all employees of the Protege who will be involved in the work called for under the Contract for Services. The parties hereby certify that all such employees and others who are hereafter engaged to perform the Contract for Services shall be under the direct supervision and control of the Protege and shall be paid by the Protege.
c. The parties agree that compensation of the Protege as set forth in the Contract for Services is for a contract price and that the choice of work methods, except as restricted by the specifications, and the furnishing and controlling of labor and equipment are exercised by the Protege/sub-contractor with only general supervision being exercised by the Mentor/prime contractor.
3. General Provisions.
a. Nothing herein shall be construed to prevent the Protege/sub-contractor from submitting bids or entering into contracts for work other than with the Mentor/prime contractor.
b. Nothing herein shall be deemed to prevent the Protege from seeking management or financial assistance from federal or state agencies or other private organizations.
c. The parties hereby specifically consent to the monitoring of this contract by the federal and state departments of transportation or its agents and agree to cooperate with such agencies.
d. This agreement shall be binding upon the heirs, executors, successors and assigns of the parties.
e. Any breach of the terms of this agreement shall be deemed to be a breach of the Contract for Services and the non-breaching party shall be entitled to all remedies provided therein.
f. The parties hereby certify that the only other agreements between them are:
i. The Contract for Services dated .....;
ii. The agreements detailed in Exhibit "B" and that none of these agreements may be modified except in writing signed by both parties.

...

Mentor/prime contractor

...

Protege/sub-contractor

VERMONT AGENCY OF TRANSPORTATION

POLICY

Crediting of W/DBE Participation Goals to Prime Contractors Subcontracting to W/DBE Equipment Rental Firms

1. When a W/DBE rents or leases equipment to a prime, and all equipment is owned or leased by the W/DBE, and when maintenance and overall scheduling of the equipment is performed by the W/DBE, credit for W/DBE participation will be 100%. In such situations, the W/DBE must payroll all drivers/operators and maintenance personnel assigned to the equipment, and the rental units must be owned by the W/DBE or leased from a firm other than the prime contractor or its affiliates.
2. When the W/DBE leases or rents equipment from the prime contractor or its affiliates to be used by the W/DBE in fulfilling contract commitments on the prime contractor's project, all cost incurred to the W/DBE for rental of the prime contractor's equipment will be deducted from the amount used to fulfill W/DBE participation goals.
3. When the W/DBE acts strictly as a broker and rents its own equipment, or equipment leased from firms other than the prime or its affiliates, and has no responsibility for payrolls, scheduling, maintenance, etc., the credit for W/DBE participation will be 20% of the subcontract amount.
4. When the W/DBE firm provides no commercially useful function, no credit for W/DBE participation will be allowed. Such situations will include but not be limited to the following circumstances:
a. When the W/DBE leases equipment owned by the prime or an affiliate and then subleases the same equipment back to the prime without providing payroll, maintenance or scheduling services.

Use of W/DBE Steel Erectors To Meet Specific Contract Goals For W/DBE

Parti cipation

One hundred percent W/DBE participation credit will be allowed on steel erection subcontracts when the W/DBE subcontractor provides total control of all responsibilities associated with the structural steel item. This will include actual purchase of the steel, erection, insurances, labor and payrolls.

In situations where W/DBE subcontracts fail to provide all services, and assume all responsibilities, the invoice purchase price of the structural steel will be deducted and not credited towards meeting the project W/DBE goal. Only the actual cost of erecting the steel will be credited to the prime towards achieving the W/DBE goal.

Any monies paid back to the prime or its affiliates by the W/DBE subcontractor will be deducted from meeting the contract W/DBE participation goal.

Commercially Useful Function Guidelines

The Agency can only credit transactions with W/DBEs which have performed a commercially useful function in relation to the contract.

A W/DBE is considered to perform a commercially useful function when it is responsible for execution of a distinct element of the work of a contract and carrying out its responsibilities by actually performing, managing and supervising the work involved. To determine whether a W/DBE is performing a commercially useful function, the Agency shall evaluate the amount of work subcontracted, normal industry practices and other relevant factors. Set forth below are guidelines for commercially useful function:

1. Suppliers - A supplier is typically considered to be performing a commercially useful function when it:
a. Maintains an inventory.
b. Sells goods to a number of contractors.
c. Carries goods manufactured by a number of different companies.
d. Is a franchise or serves as a factory representative for one or more manufacturers.
e. Arranges for shipping.
f. Stands behind a product in the event the product is defective or unacceptable.
2. Credit will not generally be allowed in cases where:
a. An arrangement is contrived that did not exist prior to W/DBE regulation.
b. A W/DBE supplier acts in an exclusive arrangement as an extension of a non-W/DBE firm.
c. A "pass through" operation occurs when the contractor decides what items shall be bought from what sources and agrees with the manufacturer to schedule delivery to the contractor. Only the payment and purchase order for the materials is routed through the W/DBE supplier.
3. Subcontracting - A subcontracting arrangement is generally considered to exist when a person or firm assumes an obligation to perform a part of the contract work and the following conditions are present:
a. Compensation is related to the amount of work accomplished and not on an hourly basis.
b. Choice of work methods, except as limited by the specifications, and the furnishing and controlling of labor and equipment are exercised by the subcontractor with only general supervision being exercised by the prime contractor.
c. The subcontractor's personnel involved in the operation are under the subcontractor's direct supervision and are included on the subcontractor's payroll.
d. The subcontractor is in conformance with all criteria contained in the Agency Policy on Contracting and Subcontracting.

Commercially Useful Function (CUF), False Statements or Misrepresentation, Decertification and Prosecution

In instances where it is determined that an Agency-certified W/DBE Subcontractor fails to perform a commercially useful function as detailed in the Agency "Policy on CUF Guidelines" the prime contractor will not be credited with the participation of such W/DBEs.

A W/DBE found not to be performing a CUF will have its certification reviewed for reconsideration of the subjective decisions which are normally made in the certification process. This may result in decertification of the W/DBE or a conditional continuance of certification.

In instances where fraud is suspected, decertification procedures will be initiated if the fraud is related to the firm's certification eligibility. Firms can, of course, be prosecuted or debarred when they are found to have engaged in fraudulent activities, either by presenting false or misleading information or documentation during the certification process, or by misrepresenting in any manner the participation of the W/DBE on an Agency project. The Agency may also impose sanctions such as monetary sanctions or disqualification when goals, which have become conditions of the contract, are not met and good faith efforts are not made to meet them.

This policy, the actions detailed above, and the Agency's Policy and Procedures on Debarment apply to W/DBEs and non-W/DBEs alike.

W/DBE PROGRAM

VERMONT AGENCY OF TRANSPORTATION

POLICY

Crediting of W/DBE Participation Goal to Prime Contractors using W/DBE Trucking Firms

1. When a W/DBE trucking firm serves a trucking function for a project either as an on-site hauler or as materialman, the trucking contract is creditable towards W/DBE participation goals. The W/DBE trucking firm must meet the following criteria for 100% of the value of agreement between the prime (sub) and the W/DBE to be allowed:
a) The W/DBE trucking firm must own at least two trucks working on the project as part of the W/DBE fleet. Ownership is defined here as actual ownership with the vehicle registration held in the W/DBEs name, or a written long term lease with with an established truck leasing firm held in the W/DBEs name. For purposes of this policy "long term" shall mean (at minimum) the entire span of time the DBE participates in the project.
b) 30% of the trucks in the W/DBEs project fleet must also meet the criteria a).
c) Drivers in the W/DBEs project fleet must be payrolled by the W/DBE trucking firm for the driver salary cost to be creditable. When W/DBE on-site drivers are payrolled by the prime or an approved sub, no credit towards the W/DEB participation goal will be given for the drivers wages.
d) Leases for vehicles not in the W/DBEs ownership but part of the project fleet must be written and executed by both parties. Copies of fully executed leases must be kept in the vehicle and made available for inspection by the Agency Resident Engineer. Lease agreements must include the agreed unit price of the lease for each vehicle.

( $ /day, $ /hr., $ /wk., etc.)

e) No more than 30% of the trucks in the W/DBEs project fleet leased as detailed in item d) may be owned by a single non-DBE firm.
f) The W/DBE must be responsible for the maintenance of all trucks owned by him/her. The W/DBE must be responsible for the overall scheduling of all trucks on the projects.
g) The W/DBE trucking firm must have available, on the project, a supervisor responsible for the overall scheduling of that fleet (lead trucker, foreman), who has authority to make the necessary decisions and take required actions to resolve normal on-site problems.
2. A W/DBE who has full ownership of all trucks in the fleet used on a particular project, as defined in item la), may rent the trucks to the prime or approved subcontractor with or without operator and is not necessarily required to provide maintenance, overall scheduling or to payroll drivers. In this instance, the rental or lease agreement must be written and fully executed by both parties. The prime's project superintendent must maintain a copy of that executed agreement on file at the project site for inspection by the Resident Engineer. This agreement must include an agreed unit price per vehicle leased. The ultimate value of that lease contract is creditable towards W/DBE goals.
3. When the W/DBE leases or rents trucks from the prime contractor or its affiliates to be used by the W/DBE in fulfilling contract commitments on the prime contractor's project, all cost incurred to the W/DBE for the rental of the prime contractor's trucks will be deducted from amount used to fulfill W/DBE participation goals.
4. All W/DBE participation credit must be substantiated with payment invoices or cancelled checks showing payments from the prime contractor (or sub) to the W/DBE trucking firm.

VERMONT AGENCY OF TRANSPORTATION

POLICY

Crediting of Flagging Towards Fulfilling W/DBE Participation Goals

The value of flagging services will be credited towards fulfilling contract W/DBE participation goals only if it is part of a W/DBE's subcontract for all project traffic control activities including the provision of signs, warning devices, flagging and appropriate day to day supervision.

Flagging will not be credited when the W/DBE subcontractor merely brokers flagpersons to the prime under a hiring/payroll arrangement. Such arrangements do not constitute a commercially useful function and are not considered as industry practice.

VERMONT AGENCY OF TRANSPORTATION

POLICY

Crediting of W/DBE Participation Goals to Prime Contractors Subcontracting Concrete Median Barrier (C.M.B.).

One hundred percent W/DBE participation credit will be allowed on subcontracts for C.M.B. when the W/DBE subcontractor provides total control of all responsibilities for the item. This includes the actual purchase and installation of the barrier.

If C.M.B. is used for the item, Temporary Traffic Barrier 100% participation credit will be allowed when the W/DBE subcontractor provides total control of all responsibilities for the item. This includes the actual purchase and/or rental, the initial installation, any moving and resetting on project, and the final removal of the barrier.

In situations where the prime contractor subcontracts a portion of the total project quantity of Temporary C.M.B. to a W/DBE, participation credit will be limited to no more than the prime contractors unit bid price for the item. If the barrier remains on the project to be moved and reset by the prime's workforce and a reasonable rental fee is paid to the W/DBE subcontractor, 20% W/DBE participation credit will be allowed.

Section 3.1 Purpose

This Policy sets forth rules for the debarment of and other measures against contracting firms or affiliates where it is demonstrated that government funds may not be properly utilized or the State's interest would not be safeguarded. These measures shall be used to protect the public interest and are not intended to be sanctions, penalties, or forms of punishment.

Section 3.2 Definitions
(a) Adequate evidence means information sufficient to support the reasonable belief that a particular act or omission has occurred.
(b) Agency means the Vermont Agency of Transportation.
(c) Affiliates. Persons are affiliates if, directly or indirectly,
(i) either one controls or can control the other, or
(ii) a third controls or can control both.
(d) Board means the Vermont Transportation Board.
(e) Participant means a person or an officer or employee of a person who directly or indirectly participates, may participate or has participated in Agency programs through an agreement of that person with a recipient or contractor of any tier. The term includes, but is not limited to, subcontractors, suppliers, fee appraisers, inspectors, real estate agents and brokers, consultants, architects, engineers, and attorneys.
(f) Person means an individual, corporation, partnership or an unincorporated association, or other public or private entity.
(g) Secretary means the Secretary of the Vermont Agency of Transportation or his/her designee.
(h) FEWA means the Federal Highway Administration or any successor agency.
(i) Suspension is the action taken under Section 3.3 of this Policy to disqualify a person temporarily from participation in Agency contracts.
(j) Debarment is the action taken under Section 3.9 of this Policy to disqualify a person from participation in Agency contracts for a period not to exceed three (3) years.
(k) Voluntary Exclusion is the disqualification of a bidder from Agency contracts as a result of an agreement voluntarily entered into under section 3.16 of this Policy, between the Agency and the person to be excluded. contracts for a period not to exceed three (3) years.
Section 3.3 Suspension
(a) The Secretary may suspend any participant or affiliate upon adequate evidence for any of the following causes--
(1) Commission of fraud or any criminal offense as an incident to obtaining, seeking to obtain, or performing government business or a public contract;
(2) Commission of any criminal offense indicating a lack of business integrity or business honesty that seriously and directly affects the question of present responsibility including, but not limited to, embezzlement, theft, forgery, bribery, falsification or destruction of records, false statements, fraud, receiving stolen property, violation of the Organized Crime Control Act of 1970, or violation of Federal or state antitrust statutes arising out of submission of bids or proposals;
(3) Violation of any agreement for voluntary exclusion or any settlement made under this Policy; or
(4) Commission or omission of an act of such serious or compelling nature that the act indicates a serious lack of business integrity or honesty. Such commissions or omissions include, but are not limited to--
(i) the violation of any applicable law, regulation, or obligation relating to the performance of obligations incurred pursuant to a contract with the State of Vermont or an Agency or Department thereof; or
(ii) making, or procuring to be made, any false statement or using deceit for the purpose of influencing in any way any action of the State.
(b) An outstanding indictment or information is adequate evidence of suspected criminal conduct and may be the basis for the imposition of a suspension.
Section 3.4 Suspension of Affiliates

Suspension may include any affiliate of a participant. A determination to include an affiliate in a particular suspension must be made on a case-by-case basis. Among the factors to be considered in making this determination are the affiliate's knowledge of or participation in the conduct which is the basis for the suspension.

Section 3.5 Notice of Suspension

Immediately after the suspension decision, a suspended person shall be furnished notice of the suspension by the Secretary. The notice shall include the specific acts or omissions on which the suspension is based, the provisions of Section 3.7 relative to period of suspension, and a statement that the participant does have a right to a hearing and may be represented by counsel, if desired.

Section 3.6 Hearing
(a) Upon written request to the Board a suspended person is entitled to a hearing on a suspension before a hearing officer appointed by the Board; or by the Board or a committee thereof, as determined by the Board. The suspended person is entitled to a hearing within thirty (30) days of receipt of the written request by the Board. The request may be made anytime during the period of suspension.
(b) All witnesses shall testify under oath or affirmation. Agency witnesses, if any, shall be called first and may be cross-examined by the suspended person. The person's witnesses may be cross-examined by any party.
(c) A record shall be made of the proceedings. A transcription of the record shall be made available to a party at the expense of the requesting party.
(d) Where appropriate, and if the parties agree, a suspension hearing may be consolidated with a debarment hearing involving the same issues.
(e) The hearing officer or committee shall issue a proposed order and findings to the Board and the parties. If the hearing officer or committee recommends a continuation of the suspension, the proposed order shall indicate:
(i) that there is adequate evidence of a cause listed in Section 3. 3, and
(ii) that the length of suspension complies with Section 3.7.
(f) If the Board conducts the hearing and decides upon a continuation of the suspension, the Board's order shall indicate:
(i) that there is adequate evidence of a cause listed in Section 3. 3, and
(ii) that the length of suspension complies with Section 3.7.
Section 3.7 Period of Suspension
(a) Temporary period. A suspension shall be for a temporary period pending the completion of any investigation or any administrative or judicial proceedings relating to a determination of any cause for suspension that may ensue.
(b) Time limitation on decision to suspend. In any case involving a suspected violation of Federal or state law where prosecutive action has not been initiated within twelve (12) months from the date of the notice of suspension, suspension shall be terminated unless the prosecuting official requests an extension of the suspension. Notice of the proposed termination of the suspension shall be given to the prosecuting official not less than thirty (30) days prior to the expiration of the twelve (12) month period. In no event shall a suspension exceed eighteen (18) months unless prosecutive action has been initiated within that period.
(c) Waiver of time limitation. The time limitation for suspension contained in this section may be waived by the affected party.
Section 3.8 Review by the Board

Within forty-five (45) days after receipt of the proposed order and findings from the hearing officer or committee under Section 3. 6, the Board shall issue an order relative to the suspension. At the Board's option, it may adopt the proposed findings and order of the hearing officer or committee if the findings are supported by the evidence and the conclusions are consistent with these regulations; it may remand the matter to the same or a different hearing officer for rehearing on specific points, which shall be specified, it may modify the decision, or it may order a de novo hearing. Notice of the Board's determination shall be sent to all parties.

Section 3.9 Debarment

Grounds for a Debarment. The Secretary may debar any participant or affiliate upon adequate evidence for any of the following causes:

(a) Conviction for any cause which is a ground for a suspension as set forth in Section 3.3(a)(1) or Section 3. 3(a)(2);
(b) For any cause which is a ground for suspension as set forth in Section 3.3(a)(3) or Section 3. 3(a)(4);
(c) Violation of a law or regulation relating to personal or organizational conflicts of interest as an incident to obtaining, attempting to obtain, or in the performance of, a contract with the Agency.
(d) A willful or serious failure to perform or a record of unsatisfactory performance in accordance with the terms of one or more contracts with the Agency, provided that such failure or unsatisfactory performance has occurred within a reasonable period of time preceding the determination to debar.
(e) Disqualification from participation in direct or indirect contracting by any federal agency or any other state.
Section 3.10 Debarment of Affiliates

Debarment may include any affiliate of a participant. A determination to include an affiliate in any particular debarment shall be made on a case-by-case basis. Among the factors to be considered in making this determination are the affiliate's knowledge of or participation in the conduct which is the basis for the debarment. Where debarment of an affiliate is proposed, the affiliate shall be afforded the rights of notice and hearing provided in this Policy.

Section 3.11 Notice of Debarment
(a) Notice of debarment. When a debarment is ordered the Secretary shall give notice to the Board and to the participant prior to any public announcement. The notice shall state the specific acts or omissions which form the basis of the action.
(b) The Secretary shall set a term of debarment of not less than six (6) months nor more than thirty-six (36) months and give his/her reasons for the length of the debarment. In determining the length of the debarment, the Secretary shall consider among other reasons the following:
(1) the integrity of the person subject to debarment, including, but not limited to whether restitution, if appropriate, has been made;
(2) whether the person's conduct since suspension, if any, has been meritorious;
(3) whether there has been circumvention of the suspension, if any;
(4) whether the individuals who engaged in the behavior giving rise to debarment are in a position to dominate, manage, or meaningfully influence the business and operations of the person;
(5) the seriousness and nature of the cause of the debarment, including the amount of any suspected collusion and its effect on the cost of Agency projects;
(6) the promotion of increased competition in bidding on Agency projects;
(7) actions taken by other governmental entities or agencies regarding debarment or disqualification with respect to the person in question or in similar situations.
Section 3.12 Review by the Board

At any time after an order of debarment by the Secretary, the participant may petition the Board for review of the Secretary's order. The Board may, in its discretion: appoint a hearing officer to conduct a hearing and issue proposed findings and conclusions to the Board; or conduct a hearing before the full Board, or a committee thereof. In the case of a debarment based upon conviction under Section 3. 9(a), the Board shall only consider the length of the debarment.

Section 3.13 Hearing
(a) If a hearing is ordered by the Board, the hearing officer, the Board, or the committee shall--
(1) Provide notice of the time and place of the hearing to all parties and include therein a statement indicating the nature of the proceedings and their purpose. Any party may be represented by counsel.
(2) Require all witnesses to testify under oath or affirmation. Agency witnesses, if any, shall be called first and may be cross-examined by the person against whom debarment is proposed. The person's witnesses may also be cross-examined by any other party.
(3) Make a record of the proceedings and make a transcription of the record available to any requesting party at that party's expense.
b) The Board's determination shall be made within sixty (60) days after the close of evidence at a hearing before it or the issuance of proposed findings and conclusions by a hearing officer. The Board's determination shall be a final order.
Section 3.14 Debarment by the Board

The Board, on its own motion, may order a debarment hearing if the Secretary has not acted. Such a hearing will be in accordance with Section 3.13. In setting the length of debarment, the Board shall consider, among other reasons, the criteria set out at Section 3.11(b) (1-7).

Section 3.15 Reinstatement
(a) A person debarred under this Policy may file a request for reinstatement at any time. The request shall be in writing and addressed to the Secretary.
(b) Procedure. The Secretary may limit the debarred person to a opportunity to submit documentary evidence and written briefs or, at his/her discretion, may grant a request for a oral hearing.
(c) The Secretary shall give notice of his/her recommendation on reinstatement to the debarred person and to the Board. The Board may review the determination on its motion, on petition of the debarred person, or it may decline review. If the Board declines review, the Secretary's recommendation will have the effect of a determination by the Board.
Section 3.16 Voluntary Exclusion

Agreement for voluntary exclusion. When in the best interest of the State, and provided that allegations of fraud or criminal activities are not involved, the Secretary, instead of taking administrative action, may enter into an agreement with the participant providing for voluntary exclusion from Agency programs for a specified period of time. Agreements for voluntary exclusion are entered into for the benefit of both parties and do not constitute administrative suspension or debarment measures. However, violations of an agreement for voluntary exclusion may result in administrative action under this Policy.

Section 3.17 Exclusion from Participation
(a) Suspended contractors, debarred contractors and individuals and participants who have entered into an agreement forvoluntary exclusion shall be excluded from all forms of participation on Agency projects including, but not limited to, the following:
(1) Contracting
(2) Subcontracting
(3) Consulting
(4) Material manufacture and supply
(5) Equipment rental
(6) Preparation of bids of others
(b) When circumstances dictate as provided in subsection (c), the Secretary, with the prior approval of the Federal Highway Administration on any projects involving Federal Highway Administration funds, as applicable, may allow debarred contractors and individuals to participate in Agency projects to the following limited extent:
(1) Material manufacture and supply
(2) Equipment rental
(c) Contractors wishing to utilize debarred contractors for these limited activities must petition the Secretary for authorization to do so as directed by the Secretary. Petitions must name the debarred contractor and/or individuals requesting permission to participate in projects, the nature of participation, and the total dollar value of material, leases and supply to be provided by the debarred person. Unless waived in whole or in part by the Secretary, the petition must also detail and document the contractor's unsuccessful good faith solicitation, according to the policies and guidelines of the Agency, to secure a person who is not debarred to provide the materials and/or lease the equipment that the contractor intends to secure from the debarred person. The evaluation of the petition will be in consideration of the best interest of the State and will be based upon the following factors, among others:
(1) The unique value of the debarred person's services, material, or equipment;
(2) The overriding need for the debarred person's services, material, or equipment.
(d) Debarred persons who are authorized limited access to Agency projects by the Secretary shall exercise no direction or control over work on the project or the contractor. Authorizations from the Secretary will be in writing and will state the specific conditions of project involvement allowed the debarred person. Failure of the person to comply with the specific conditions of project involvement allowed by the Secretary will result in immediate withdrawal of approval for participation by the debarred person by the Agency.
(e) Debarred Subcontractors. No subcontractor approval request for use of a debarred person or contractor will be granted by the Agency during the time frame of a contractor's debarment period, or if specifically set out on the debarment notice, during the period of debarment as a subcontractor.

14-015 Code Vt. R. 14-010-015-X

Effective Date: May 5, 1988 (SOS Rule Log #88-26)