Program Expansion
Contractor Commitments To
Veteran Business Enterprises (VBEs); and
Service Disabled Veteran Business Enterprises (SDVBEs)
Previous Program – Anti-Discrimination
Minority Business Enterprises (MBEs); and Women Business Enterprises (WBEs)
Program Application – Construction Projects
$50,000 or Greater
BSBO Establishment of Project MPLs
SDB MPLs No longer Project by Project; Nor Separate MBE vs. WBE
Set Overall
Set Annually 7.5% (Current Fiscal Year)
SDB MPL Achievement/Maintenance
Achieved via Any Combination of Commitments to SDBs
MBEs WBEs
VBEs; and/or SDVBEs
Level Must be Maintained Throughout Project Duration
Program Bid Day Requirements
Previous Anti-Discrimination Program
Required Response By All Bidders At Bid Submittal
SDB Program
No Requirement to Respond to:
MPLs; or GFE
Notice of Award & Receipt of Contract
Options
Opt In
Provided Good Faith Efforts Under $50,000
Form (Article 9 of Contract) Must Initial Option
Contractor’s Opting In
Meet or Exceed MPLs by Project Close Out Inspection Date Submit SDBUR With Each Application for Payment
Submit the First SDBUR Report
Within the 1st Full Month After(Initial Job Conference); OR
Contractor’s Opting In (cont’d)
MPL Progress Within First 3 Months of Contract Award
Unsatisfactory Explanation – Future Payments Held
Failure to Submit SDBUR With Each Application for Payment
Incomplete Payment Application
Application for Payment Returned to Contractor No Payment to Contractor Until Resolved
Contractor’s Selecting Provide Good Faith Efforts
Reasonable Efforts to Identify, Solicit, and Secure SDB Commitments GFE - Subcontracts and Purchase Orders Greater than $10,000
Minimum Documentary Evidence
2 Certification Forms
SDB Database Access
Fair Negotiations with SDBs
Record of All Companies Solicited and Quotations Received
Contractor’s Selecting Provide Good Faith Efforts
Minimum Documentary Evidence – Due 10 Calendar Days from Date of
DGS’s Request
As with Opt-In Option the SDBUR Must Be Submitted With Each Application For Payment
MDE Not Submitted with each SDBUR
Failure to Comply With 10 Day Request - Sanctions
Placement in Contractor Responsibility Program (CRP); to
Small Diverse Business Utilization Report
SDBUR Captures Cumulative and Subcontract/PO Specific Data
Cumulative Data
$ Value of All Subcontracts & POs for Both SDBs & Non-SDBs To Date $ Value of SDB Commitments To Date
% Value of SDB Commitments To Date
Subcontract/PO Specific Data
SDB Name
Designations (MBE, WBE, VBE, SDVBE) Service Category / Classification
Scope of Work
Amount Paid to Date
Small Diverse Business Utilization Report (Cont’d)
Must Be Retained on SDBUR Project Duration Must Be Substantiated
Subcontracts/POs Must be Provided to DGS, BSBO
SDB @ Time of Subcontract/PO Execution
Calculation of Contractor SDB MPLs
Add Appropriate $ Value of SDB Commitments and Divide (Product) By (Total
Contract) Award Amount
Tiering - SDB Commitments Now Count at All Tiers of Design & Construction
Counted @ 1st Occurrence within the Tiering Hierarchy
Cannot Be Double Counted
4 SDB Service Categories/Classifications – Yield Different % of Credit Towards
MPLs
Subcontractors Manufactures
Stocking Suppliers; and Non-Stocking Suppliers
Calculation of Contractor SDB MPLs (Cont’d)
Commitments to Subcontractors & Manufacturers
Credited at 100% of Subcontract/PO $ Value
Commitments to Stocking Suppliers
Credited at 60% of Stocking Supplier Subcontract/PO $ Value
Commitments to Non-Stocking Suppliers
Credited at the $ Value of the Fee or Commission on the Non- Stocking Supplier Subcontract/PO Not To Exceed 10%
SDB Service Category Definitions
SDB Subcontractors
Provide labor and may provide materials associated with that labor on the subcontract
SDB Manufacturers
Operate or maintain a factory or establishment that produces, on the premises, the materials, supplies, articles, or equipment.
SDB Stocking Suppliers
Regular dealer own, operate, or maintain a store, warehouse, or other establishment, in which the materials or supplies of the general character described by the specs and required under the contract are bought, kept in stock, and regularly sold or leased to the public in the usual course of
business.
SDB Non-Stocking Suppliers
Do not carry inventory, but orders materials from a manufacturer,
manufacturers representative or a stocking supplier. Non-Stocking suppliers must perform a useful business function by engaging in meaningful work. Negotiate Price - Determine Quantity/Quality - Pay For Items
CONTRACTOR $12,000,000 1st TIER SDBSubcontract– $1,500,000 COUNT IN SDB % 2nd Tier SDB Subcontract - $500,000 NOT COUNTED IN SDB% 3rd Tier SDB Subcontract - $75,000 NOT COUNTED IN SDB % 2nd Tier Subcontract – 100,000 Majority Owned NOT COUNTED IN SDB% 3rd Tier SDB Subcontract - $25,000 NOT COUNTED IN SDB% 1st Tier Subcontract – $1,000,000 Majority Owned NOT COUNTED IN SDB% 2nd TIER SDB Subcontract - $300,000 COUNT IN SDB % 3rd Tier Subcontract - $80,000 Disadvantaged Business NOT COUNTED IN DB% 1st Tier Subcontract - $2,500,000 Majority Owned NOT COUNTED IN SDB% 2nd Tier Subcontract - $1,000,000 Majority Owned NOT COUNTED IN SDB % 3rd Tier SDB Subcontract - $200,000 COUNT IN SDB % Small Diverse Business Tier
(Only the Green Boxes Count Toward SDB %)
BSBO Contract Compliance Division Kate Orris Contract Compliance Supervisor Paula Murphy Western Region
Contract Compliance Officer
Vince Adigwu Central Region
Contact Compliance Officer
Rose Richardson Eastern Region
Contract Compliance Officer