Chapter 7: Contract Letting

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Section 1: Overview

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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Develop a DBE Utilization Plan

A DBE UP will help the prime contractor achieve the DBE contract goal, or will help in documenting adequate good faith efforts to meet the contract goal. This plan should address the following:

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  • Review of the project’s Special Provision for DBE contract goal.
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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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