16-528Local Assistance Procedures Manual EXHIBIT 9-A
DBE Implementation Agreement for Local Agencies
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EXHIBIT 9-A DBE IMPLEMENTATION AGREEMENT FOR LOCAL AGENCIES
CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) DISADVANTAGED
BUSINESS ENTERPRISE (DBE) IMPLEMENTATION AGREEMENT
For the City/County of , hereinafter referred to as
“SUB-RECIPIENT.”
I. Definition of Terms
The terms used in this agreement have the meanings defined in 49 CFR 26.5.
II. Objective/Policy Statement (49 CFR 26.1 and 26.23)
SUB-RECIPIENT intends to receive federal financial assistance from the U. S. Department of
Transportation (DOT) through the California Department of Transportation (Caltrans), and as a condition
of receiving this assistance, SUB-RECIPIENT will sign the California Department of Transportation
Disadvantaged Business Enterprise Implementation Agreement (hereinafter referred to as Agreement).
SUB-RECIPIENT agrees to implement the State of California, Department of Transportation
Disadvantaged Business Enterprise (DBE) Program Plan (hereinafter referred to as the DBE Program
Plan) as it pertains to local agencies. The DBE Program Plan is based on U.S. Department of
Transportation (DOT), 49 CFR 26 requirements.
It is the policy of SUB-RECIPIENT to ensure that DBEs, as defined in 49 CFR 26, have an equal
opportunity to receive and participate in DOT-assisted contracts. It is also SUB-RECIPIENT’s policy:
• To ensure nondiscrimination in the award and administration of DOT-assisted contracts.
• To create a level playing field on which DBE’s can compete fairly for DOT-assisted
contracts.
• To ensure that the DBE participation percentage is narrowly tailored, in accordance with
applicable law.
• To ensure that only firms that fully meet 49 CFR 26 eligibility standards are permitted to
participate as DBEs.
• To help remove barriers to the participation of DBEs in Federal-aid contracts.
• To assist the development of firms that can compete successfully in the market place
outside the DBE Program.
III. Nondiscrimination (49 CFR 26.7)
SUB-RECIPIENT will never exclude any person from participation in, deny any person the benefits of, or
otherwise discriminate against anyone in connection with the award and performance of any contract
covered by 49 CFR 26 on the basis of race, color, sex, or national origin. In administering the local
agency components of the DBE Program Plan, SUB-RECIPIENT will not, directly, or through
contractual or other arrangements, use criteria or methods of administration that have the effect of
defeating or substantially impairing accomplishment of the objectives of the DBE Program Plan with
respect to individuals of a particular race, color, sex, or national origin.
IV. Annual DBE Submittal Form (49 CFR 26.21)
SUB-RECIPIENT will provide to the Caltrans District Local Assistance Engineer (DLAE) a completed
“Local Agency DBE Annual Submittal Form” (Exhibit 9-B), by June 30 of each year for the following
Federal Fiscal Year (FFY). This form must include the name, phone number, email address of the
designated Disadvantaged Business Enterprise Liaison Officer (DBELO), and the choice of Prompt Pay
Provision to be used by SUB-RECIPIENT for the following FFY.
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V. Race-Neutral Means of Meeting Caltrans Overall Statewide Annual DBE Goal (49 CFR 26.51(a))
Caltrans expects SUB-RECIPIENT to meet the maximum feasible portion of Caltrans Overall Statewide
Annual DBE Goal through race-neutral means of facilitating DBE participation. Race-neutral DBE
participation includes when a DBE wins a prime contract through customary competitive procurement
procedures, is awarded a subcontract on a prime contract that does not carry a DBE goal, or even if there
is a DBE goal, wins a subcontract from a prime contractor that did not consider its DBE status in making
the award (e.g., a prime contractor that uses a strict low-bid system to award subcontracts). Race-neutral
means include, but are not limited to, the following:
1. Arranging solicitations, times for the presentation of bids, quantities, specifications, and
delivery schedules in ways that facilitate the participation of DBE and other small
businesses (e.g., unbundling large contracts to make them more accessible to small
businesses, requiring or encouraging prime contractors to subcontract portions of work
that they might otherwise perform with their own forces);
2. Providing assistance in overcoming limitations such as inability to obtain bonding or
financing (e.g., by such means as simplifying the bonding process, reducing bonding
requirements, eliminating the impact of surety costs from bids, and providing services to
help DBEs and other small businesses obtain bonding and financing);
3. Providing technical assistance and other services;
4. Carrying out information and communication programs on contracting procedures and
specific contract opportunities (e.g., ensuring the inclusion of DBEs and other small
businesses on SUB-RECIPIENT mailing lists of bidders; ensuring the dissemination to
bidders on prime contracts of lists of potential subcontractors; provision of information in
languages other than English, where appropriate);
5. Implementing a supportive services program to develop and improve immediate and
long-term business management, record keeping, and financial and accounting capability
for DBEs and other small businesses;
6. Providing services to help DBEs and other small businesses improve long-term
development, increase opportunities to participate in a variety of types of work, handle
increasingly significant projects, and achieve eventual self-sufficiency;
7. Establishing a program to assist new, start-up firms, particularly in fields in which DBE
participation has historically been low;
8. Ensuring distribution of your DBE directory through print and electronic means to the
widest feasible universe of potential prime contractors; and
9. Assisting DBEs and other small businesses to develop their capability to utilize emerging
technology and conduct business through electronic media.
VI. Race-conscious Means of Meeting Caltrans Overall Statewide Annual DBE Goal (49 CFR 26.51(d))
SUB-RECIPIENT must establish DBE contract goals to meet any portion of Caltrans Overall Statewide
Annual DBE Goal that cannot be achieved through race-neutral means.
VII. Quotas (49 CFR 26.43)
SUB-RECIPIENT will not use quotas or set-asides in any way in the administration of the local agency
component of the DBE Program Plan.
VIII. DBE Liaison Officer (DBELO) (49 CFR 26.25)
SUB-RECIPIENT has designated a DBE Liaison Officer. The DBELO is responsible for implementing
the DBE Program Plan as it pertains to the SUB-RECIPIENT, and ensures that the SUB-RECIPIENT is
fully and properly advised concerning DBE Program Plan matters. [Specify resources available to the
DBELO; e.g., the DBELO has a staff of two professional employees assigned to the DBE program on a
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full-time basis and two support personnel who devote a portion of their time to the program.] The name,
address, telephone number, email address, and an organization chart displaying the DBELO’s position in
the organization are found in
Attachment to this Agreement. This information will be updated annually and included on
the DBE Annual Submittal Form.
The DBELO is responsible for developing, implementing, and monitoring the SUB-RECIPIENT’s
requirements of the DBE Program Plan in coordination with other appropriate officials. Duties and
responsibilities include the following:
1. Gathers and reports statistical data and other information as required.
2. Reviews third party contracts and purchase requisitions for compliance with this
program.
3. Works with all departments to determine DBE contract goals.
4. Ensures that bid notices and requests for proposals are made available to DBEs in a
timely manner.
5. Analyzes DBE participation and identifies ways to encourage participation through race-
neutral means.
6. Participates in pre-bid meetings.
7. Advises the CEO/governing body on DBE matters and DBE race-neutral issues.
8. Provides DBEs with information and recommends sources to assist in preparing bids,
obtaining bonding and insurance.
9. Plans and participates in DBE training seminars.
10. Provides outreach to DBEs and community organizations to fully advise them of
contracting opportunities.
IX. Federal Financial Assistance Agreement Assurance (49 CFR 26.13)
Each agreement SUB-RECIPIENT signs with Caltrans must include the following assurance:
The SUB-RECIPIENT shall not discriminate on the basis of race, color, national origin, or sex in the
award and performance of any DOT-assisted contract, or in the administration of its DBE Program, or the
requirements of 49 CFR 26. The SUB-RECIPIENT shall take all necessary and reasonable steps under 49
CFR 26 to ensure nondiscrimination in the award and administration of DOT-assisted contracts. The
SUB-RECIPIENT’s DBE Program, as required by 49 CFR 26 and as approved by DOT, is incorporated
by reference in this agreement. Implementation of this program is a legal obligation and failure to carry
out its terms shall be treated as a violation of this agreement. Upon notification to the SUB-RECIPIENT
of its failure to carry out its approved program, Caltrans may impose sanctions as provided for under 49
CFR 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the
Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).
Each contract SUB-RECIPIENT signs with a contractor (and each subcontract the prime contractor signs
with a subcontractor) must include the following assurance:
The contractor or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in
the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR 26 in
the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these
requirements is a material breach of this contract, which may result in the termination of this contract or
such other remedy as the SUB-RECIPIENT deems appropriate.
X. DBE Financial Institutions (49 CFR 26.27)
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SUB-RECIPIENT must investigate the full extent of services offered by financial institutions owned and
controlled by socially and economically disadvantaged individuals in the community to make reasonable
efforts to use these institutions, and to encourage prime contractors on DOT-assisted contracts to make
use of these institutions.
Information on the availability of such institutions can be obtained from the DBELO. The Caltrans
Disadvantaged Business Enterprise Program may offer assistance to the DBELO.
XI. Directory (49 CFR 26.31)
SUB-RECIPIENT will refer interested persons to the Unified Certification Program DBE directory
available from the Caltrans Disadvantaged Business Enterprise Program’s website at:
www.dot.ca.gov/hq/bep.
XII. Required Contract Clauses (49 CFR 26.13 and 26.29)
SUB-RECIPIENT ensures that the following clauses or equivalent will be included in each DOT-assisted
prime contract:
A. Contract Assurance
The contractor or subcontractor shall not discriminate on the basis of race, color, national origin, or
sex in the performance of this contract. The contractor shall carry out applicable requirements of 49
CFR 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry
out these requirements is a material breach of this contract, which may result in the termination of this
contract or such other remedy, as SUB-RECIPIENT deems appropriate.
NOTE: This language is to be used verbatim, as is stated in “Required Federal-aid Contract
Language” (Exhibit 12-G). See also 49 CRF 26.13(b).
B. Prompt Payment
Prompt Progress Payment to Subcontractors
The local agency shall require contractors and subcontractors to be timely paid as set forth in Section
7108.5 of the California Business and Professions Code concerning prompt payment to
subcontractors. The 7-day is applicable unless a longer period is agreed to in writing. Any delay or
postponement of payment over thirty (30) days may take place only for good cause and with the
agency’s prior written approval. Any violation of Section 7108.5 shall subject the violating contractor
or subcontractor to the penalties, sanctions, and other remedies of that Section. This requirement shall
not be construed to limit or impair any contractual, administrative, or judicial remedies, otherwise
available to the contractor or subcontractor in the event of a dispute involving late payment or
nonpayment by the contractor, deficient subcontractor performance, and/or noncompliance by a
subcontractor. This clause applies to both DBE and non-DBE subcontractors.
Prompt Payment of Withheld Funds to Subcontractors
The local agency shall ensure prompt and full payment of retainage from the prime contractor to the
subcontractor within thirty (30) days after the subcontractor’s work is satisfactorily completed and
accepted. This shall be accompanied by including; either (1), (2), or (3) of the following provisions
[local agency equivalent will need Caltrans approval] in their federal-aid contracts to ensure prompt
and full payment of retainage [withheld funds] to subcontractors in compliance with 49 CFR 26.29.
1. No retainage will be held by the agency from progress payments due to the prime
contractor. Prime contractors and subcontractors are prohibited from holding
retainage from subcontractors. Any delay or postponement of payment may take
place only for good cause and with the agency’s prior written approval. Any violation
of these provisions shall subject the violating contractor or subcontractor to the
penalties, sanctions, and other remedies specified in Section 7108.5 of the California
Business and Professions Code. This requirement shall not be construed to limit or
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impair any contractual, administrative, or judicial remedies, otherwise available to
the contractor or subcontractor in the event of a dispute involving late payment or
nonpayment by the contractor, deficient subcontractor performance, and/or
noncompliance by a subcontractor. This clause applies to both DBE and non-DBE
subcontractors.
2. No retainage will be held by the agency from progress payments due to the prime
contractor. Any retainage kept by the prime contractor or by a subcontractor must be
paid in full to the earning subcontractor in thirty (30) days after the subcontractor’s
work is satisfactorily completed. Any delay or postponement of payment may take
place only for good cause and with the agency’s prior written approval. Any violation
of these provisions shall subject the violating contractor or subcontractor to the
penalties, sanctions, and remedies specified in Section 7108.5 of the California
Business and Professions Code. This requirement shall not be construed to limit or
impair any contractual, administrative, or judicial remedies, otherwise available to
the contractor or subcontractor in the event of a dispute involving late payment or
nonpayment by the contractor, deficient subcontractor performance, and/or
noncompliance by a subcontractor. This clause applies to both DBE and non-DBE
subcontractors.
3. The agency shall hold retainage from the prime contractor and shall make prompt and
regular incremental acceptances of portions, as determined by the agency of the
contract work and pay retainage to the prime contractor based on these acceptances.
The prime contractor or subcontractor shall return all monies withheld in retention
from all subcontractors within thirty (30) days after receiving payment for work
satisfactorily completed and accepted including incremental acceptances of portions
of the contract work by the agency. Any delay or postponement of payment may take
place only for good cause and with the agency’s prior written approval. Any violation
of these provisions shall subject the violating prime contractor to the penalties,
sanctions, and other remedies specified in Section 7108.5 of the California Business
and Professions Code. This requirement shall not be construed to limit or impair any
contractual, administrative, or judicial remedies, otherwise available to the contractor
or subcontractor in the event of: a dispute involving late payment or nonpayment by
the contractor; deficient subcontractor performance; and/or noncompliance by a
subcontractor. This clause applies to both DBE and non-DBE subcontractors.
XIII. Local Assistance Procedures Manual
The SUB-RECIPIENT will advertise, award and administer Federal-aid contracts in accordance with the
current Local Assistance Procedures Manual (LAPM) including forms and Exhibits.
XIV. Vehicle Manufacturers/Specialized Equipment (§26.49)
If Federal-aid contracts will include vehicle/specialized equipment procurements, SUB-RECIPIENT will
require each vendor, as a condition of being authorized to bid or propose on vehicle/specialized
equipment procurements, to certify that it has complied with the requirements of 49 CFR 26.69.
XV. Reporting to the DLAE
SUB-RECIPIENT will promptly submit a copy of the Consultant Proposal DBE Commitment (Exhibit
10-O1) at the time of award of the consultant contract.
SUB-RECIPIENT will promptly submit a copy of Consultant Contract DBE Information (Exhibit
10-O2) or the Local Agency Bidder DBE Commitment (Construction Contracts) (Exhibit 15-G) to
the DLAE within 30 days after execution of consultant or construction contract.
SUB-RECIPIENT will promptly submit a copy of the Final Report-Utilization of DBE, First-Tier
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Subcontractors (Exhibit 17-F) of the LAPM, immediately upon completion of each consultant or
construction contract.
XVI. Certification (§26.83(a))
SUB-RECIPIENT ensures that only DBE firms currently certified by the California Unified
Certification Program (CUCP) will participate as DBEs on Federal-aid contracts.
XVII. Confidentiality
SUB-RECIPIENT will safeguard from disclosure to third parties, information that may reasonably
be regarded as confidential business information consistent with federal, state, and local laws.
By: Date:
(Signature)
Phone #:
(Print Name and Title)
ADMINISTERING AGENCY
(Authorized Governing Body Representative)
This California Department of Transportation’s Disadvantaged Business Enterprise Program Implementation
Agreement is accepted by:
Date:
(Signature of DLAE)
(Print Name of DLAE)
Distribution: (1) Original – DLAE
(2) Signed copy by the DLAE – Local Agency
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Local Assistance Procedures Manual EXHIBIT 9-B
Local Agency DBE Annual Submittal Form
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EXHIBIT 9-B LOCAL AGENCY DBE ANNUAL SUBMITTAL FORM
TO: CALTRANS DISTRICT
District Local Assistance Engineer
The information for Exhibit 9-B presented herein is in accordance with Title 49 of the Code of Federal Regulations (CFR),
Part 26, and the State of California Department of Transportation (Caltrans) Disadvantaged Business Enterprise (DBE)
Program Plan.
The City/County/Region of _____________________________________________________________________________
submits our annual 9-B information for the Federal Fiscal Year _____________ beginning on __________________ and
ending on September 30.
Disadvantaged Business Enterprise Liaison Officer (DBELO)
Planned Race-neutral Measures
Prompt Pay
Federal regulation 49 CFR 26.29 requires one of three methods be used in federal-aid contracts to ensure prompt and full
payment of any retainage kept by the prime contractor or subcontractor to a subcontractor.
Prompt Pay Enforcement Mechanism
49 CFR 26.29(d) requires providing appropriate means to enforce prompt payment. These means may include appropriate
penalties for failure to comply with the terms and conditions of the contract. The means may also provide that any delay or
postponement of payment among the parties may take place only for good cause with the local agency’s prior written
approval.
(Signature) (Date)
(Print Name and Title) (Phone Number)
ADMINISTERING AGENCY
(Authorized Governing Body Representative)
(Signature of Caltrans District Local Assistance Engineer) (Date)
Distribution: (1) Original – DLAE
(2) Signed copy by the DLAE – Local Agency
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Local Agency DBE Annual Submittal Form
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(Attachment)
Prompt Payment of Withheld Funds to
Subcontractors
Federal regulation (49 CFR 26.29) requires one of the following three methods be used in federal-aid contracts
to ensure prompt and full payment of any retainage kept by the prime contractor or subcontractor to a
subcontractor.
Please check the box of the method chosen by the local agency to ensure prompt and full payment of
any retainage.
Method 1: No retainage will be held by the agency from progress payments due to the prime
contractor. Prime contractors and subcontractors are prohibited from holding retainage from
subcontractors. Any delay or postponement of payment may take place only for good cause and with
the agency’s prior written approval. Any violation of these provisions shall subject the violating
contractor or subcontractor to the penalties, sanctions, and other remedies specified in Section 7108.5
of the California Business and Professions Code. This requirement shall not be construed to limit or
impair any contractual, administrative or judicial remedies, otherwise available to the contractor or
subcontractor in the event of a dispute involving late payment or nonpayment by the contractor,
deficient subcontractor performance and/or noncompliance by a subcontractor. This clause applies to
both DBE and non-DBE subcontractors.
Method 2: No retainage will be held by the agency from progress payments due to the prime
contractor. Any retainage kept by the prime contractor or by a subcontractor must be paid in full to the
earning subcontractor in 30 days after the subcontractor’s work is satisfactorily completed. Any delay
or postponement of payment may take place only for good cause and with the agency’s prior written
approval. Any violation of these provisions shall subject the violating contractor or subcontractor to
the penalties, sanctions, and remedies specified in Section 7108.5 of the California Business and
Professions Code. This requirement shall not be construed to limit or impair any contractual,
administrative or judicial remedies, otherwise available to the contractor or subcontractor in the event
of a dispute involving late payment or nonpayment by the contractor, deficient subcontractor
performance and/or noncompliance by a subcontractor. This clause applies to both DBE and non-DBE
subcontractors.
Method 3: The agency shall hold retainage from the prime contractor and shall make prompt and
regular incremental acceptances of portions, as determined by the agency of the contract work and pay
retainage to the prime contractor based on these acceptances. The prime contractor or subcontractor
shall return all monies withheld in retention from all subcontractors within 30 days after receiving
payment for work satisfactorily completed and accepted including incremental acceptances of portions
of the contract work by the agency. Any delay or postponement of payment may take place only for
good cause and with the agency’s prior written approval. Any violation of these provisions shall
subject the violating prime contractor to the penalties, sanctions, and other remedies specified in
Section 7108.5 of the California Business and Professions Code. This requirement shall not be
construed to limit or impair any contractual, administrative or judicial remedies otherwise available to
the contractor or subcontractor in the event of a dispute involving late payment or nonpayment by the
contractor; deficient subcontractor performance and/or noncompliance by a subcontractor. This clause
applies to both DBE and non-DBE subcontractors.
630
Projects
Map 21 (STP) - PMP 16-01: Newport Road Resurfacing 973,625.35$
Local Funds Federal Funds % Federal Funds
Construction 592,895.35 323,230.00 35.28%
Professional Services 57,500.00 0.00 0.00%
650,395.35 323,230.00 33.20%
HSIP #1 (Cycle 7) - Wireless Interconnect System 606,700.00$
Local Funds Federal Funds % Federal Funds
Construction 15,000.00 496,700.00 97.07%
Professional Services 95,000.00 0.00 0.00%
110,000.00 496,700.00 81.87%
HSIP #2 (Cycle 7) - Wireless Interconnect System 604,900.00$
Local Funds Federal Funds % Federal Funds
Construction 15,000.00 494,900.00 97.06%
Professional Services 95,000.00 0.00 0.00%
110,000.00 494,900.00 81.82%
Local Funds Federal Funds % Federal Funds
Total Construction $1,937,725.35 $622,895.35 $1,314,830.00 67.85%
Total Professional Services 247,500.00 247,500.00 0.00 0.00%
$2,185,225.35 $870,395.35 $1,314,830.00 60.17%
Denominator Calculation: Number of All Available Firms in Counties
2012
NAICS
Code
2012 NAICS
Code Description
CalTrans Work
Code
Los Angeles
County
Orange
County
Riverside
County
San Bernardino
County TOTAL
237310
Highway, street,
and bridge
construction
C1531, C3901,
C8405, C8406,
C8501, C9826 79 68 50 51 248
238210
Electrical
contractors and
other wiring
installation
contractors
C8602, C8603,
C8604, C9857
1,679 796 439 357 3,271
238910 Site preparation
contractors
C1601, C1901,
C2501, C2602,
C4010 324 194 189 137 844
(1) Per ACS Data 2,082 1,058 678 545 4,363
For Fiscal Year 2016/2017
DBE Overall Goal Determination/Calculation
City of Menifee
CONSTRUCTION SERVICES
Total Project Costs:
Total Project Costs:
Total Project Costs:
631
2012
NAICS
Code
2012 NAICS
Code Description
CalTrans Work
Code
Los Angeles
County
Orange
County
Riverside
County
San Bernardino
County TOTAL
541330 Engineering
services
C8780, C8710,
C8715, C8720,
C8740, C8850 1,484 1,097 242 214 3,037
541611
Administrative
management
and general
management
consulting
services
C8700, C8801
2,187 1,109 231 146 3,673
541990
All other
professional,
scientific, and
technical
services
C8760
520 246 57 41 864
(1) Per ACS Data 4,191 2,452 530 401 7,574
Numerator Calculation: Number of Ready, Willing and Able DBE Firms in Counties
2012
NAICS
Code
2012 NAICS
Code Description
CalTrans Work
Code
Los Angeles
County
Orange
County
Riverside
County
San Bernardino
County TOTAL
237310
Highway, street,
and bridge
construction
C1531, C3901,
C8405, C8406,
C8501, C9826
59
238210
Electrical
contractors and
other wiring
installation
contractors
C8602, C8603,
C8604, C9857 26
238910 Site preparation
contractors
C1601, C1901,
C2501, C2602,
C4010
81
166
CONSTRUCTION SERVICES
59
26
81
166
PROFESSIONAL SERVICES
632
2012
NAICS
Code
2012 NAICS
Code Description
CalTrans Work
Code
Los Angeles
County
Orange
County
Riverside
County
San Bernardino
County TOTAL
541330 Engineering
services
C8780, C8710,
C8715, C8720,
C8740, C8850 355
541611
Administrative
management
and general
management
consulting
services
C8700, C8801
858
541990
All other
professional,
scientific, and
technical
services
C8760
38
1,251
2016/2017 BASE FIGURE CALCULATION
Construction:
67.85%x 166 =2.58%
4363
Professional Services: 0.00%x 1251 =0.00%
7574
Fiscal Year 2016/17 DBE PARTICIPATION LEVEL (AADPL):2.58%
PROFESSIONAL SERVICES
355
858
38
1251
633
634
635