Chapter 7: Contract Letting

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Section 1: Overview

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Prior to letting a construction project, a DBE project goal will be set by TxDOT. For projects with a specified percentage DBE goal, prime contractors make a commitment to meet the goal by signing the proposal and submitting a bid.

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Pre-Estimate Actions

It is recommended the prime contractor take the following pre-estimate actions prior to beginning an estimate for a specific project:

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  • Review the contract documents for the DBE goal on the project.
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  • Determine items which may be subcontracted and quantify based on estimated dollar amounts.
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  • When practical, divide large (scope or quantity) items into potential smaller subcontracting opportunities and quantify.
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  • Look for second tier subcontracting opportunities and quantify.
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  • Quantify potential material supply contracting opportunities. Determine the allowable DBE participation for material supply.
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    • 100% for materials or supplies purchased from a DBE manufacturer.
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    • 60% for materials or supplies purchased from a DBE regular dealer.
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    • 100% for fees or commissions purchased from a DBE packager, broker or manufacturers' representative.
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  • Determine the likely total DBE participation from all of the above items and compare to TxDOT’s DBE contract goal.
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  • Review the TUCP directory for the list of certified DBEs.
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