Section 2: Contract Reporting RequirementsAnchor: #b140005
DBE Commitment Procedures
For federally funded contracts with an assigned DBE goal, prime contractors must submit a completed DBE Commitment Agreement to BOP listing information for each DBE used for contract goal satisfaction or a good faith effort explaining why the goal could not be reached. BOP will approve the initial DBE commitment or good faith effort submitted by the prime contractor. District offices are responsible for approving any revisions to the contract DBE commitment approved by BOP.
For a prime contractor to request a revision to its approved contract DBE commitment, it must submit a TxDOT Substitution Replacement Form to the district for approval. (Contact BOP at  486-5500 for more information on this form.) Upon receipt of this form, implement the following procedure:
- Contact the DBE subcontractor being terminated or replaced to verify information provided by the prime contractor.
- Do not consider a more advantageous subcontract with another subcontractor as a valid reason for DBE subcontractor termination or replacement.
- Ensure the substitution procedure outlined in the contract DBE Special Provision is followed prior to approving the termination or substitution of an approved DBE subcontractor.
- Obtain a completed
Commitment Agreement form from the prime contractor with
original prime contractor and DBE subcontractor signatures, for
any new or replacement DBE subcontractors to be added to the previously
approved contract DBE commitment. Ensure the following information
is included with the DBE Commitment Agreement form:
- items and quantity of work to be performed
- materials being supplied
- unit measure, unit price and total cost for each item
- total amount of DBE commitment
- if the DBE is a material supplier, an explanation of the function performed
- Notify the prime contractor and BOP of the approval or denial of the DBE commitment revision. Forward the TxDOT Substitution Replacement Form, the appropriate letter, and any file documentation to the prime contractor and BOP.
- Notify BOP if the DBE commitment revision request is not approved and the prime contractor is in non-compliance with the contract DBE requirements.
DBE/HUB Subcontractor Approval Requests
“ Request for Approval of Subcontractor” must identify whether the subcontractor is or is not a qualified DBE/SBE. Verify that the contractor is in compliance with the DBE/SBE commitments submitted. In addition, verify that items included in the DBE/SBE commitments are not subcontracted to other subcontractors.
Ensure that DBE/SBE subcontractors listed on a contract commitment, including all tiered subcontractors, perform at least 30% of the subcontracted work. Contact BOP for further information and guidance.
Use of Joint Checks
The use of joint checks between a prime contractor and a DBE is allowed with department approval. To obtain approval, the prime contractor must submit a completed Form 2178, DBE Joint Check Approval, to the district office. For all joint check approval requests received, verify the DBE subcontractor is responsible for ordering, scheduling delivery, and issuing payment for the materials. Expedite approval or denial of the use of DBE joint check agreements to ensure timely delivery of materials. Reasons for denial include, but not limited to:
- the prime contractor’s insistence on the joint check arrangement (only the DBE or the supplier may request use of a joint check) or
- the failure of all parties to agree to the arrangement.
Obtain copies of cancelled checks as necessary to verify joint checks have passed through the DBE. Bank images are an acceptable method of review. Review the joint check agreements as necessary to ensure a three party arrangement exists.
Material cost paid by the prime contractor directly to the material supplier is not allowed for DBE goal credit and may cause the denial of DBE goal credit for all work performed by the DBE subcontractor.
Contact BOP for further information and guidance regarding the review and approval of DBE joint check arrangements.Anchor: #b140007
DBE/SBE Monthly Progress Reports
Verify the DBE/SBE Monthly Reports, and input the reports into the Subcontractor Monitoring System (SMS). Refer to Chapter 10, Subcontracting for more information regarding the SMS input of DBE and SBE Monthly Progress Reports. The DBE reports will pertain to all federally-funded contracts and the SBE reports will pertain to 100% state-funded projects and federally-funded projects that do not have a DBE goal provided.
For all federally-funded highway projects ensure that the contractor’s submittal of race neutral DBE progress reports are covered at the preconstruction and contract closeout meetings. Address the race neutral reporting issue in the preconstruction meetings and discuss the issue again at contract closeout to make sure all race neutral payments are recorded. In addition, there may also be suppliers certified as DBEs that have been utilized on the contract. Advise the contractor that one final progress payment report is sufficient for reporting race neutral DBE contract participation. It is important that all DBE subcontractor participation, regardless of goal, is reported on all federally-funded highway contracts.
Contact BOP for further information and guidance associated with DBE or SBE monthly progress reports.Anchor: #b140008
DBE/SBE Final Reports
Review and approve contractor DBE/SBE Final Reports to ensure the contract DBE/SBE requirements have been satisfied. Contact BOP for further information and guidance associated with these reports.