Disadvantaged Business Enterprises (DBE)
As of January 1, 2001, MDOT has implemented a new OJT Pilot Program designed to provide training in the skilled construction trade classifications. This program is based on federal regulations, appendix B to Subpart A of 23CFR (Code of Federal Regulations) 230, requiring the inclusion of “Training Special Provisions” in MDOT’s federal-aid Construction Contracts.
The primary objective of the OJT Pilot Program is to train and upgrade minority, women, and disadvantaged persons toward full journey-level and provide opportunities for trainees to become part of a Contractor’s permanent workforce. This program requires training standards to ensure the content and quality of training.
This new Contractor-based OJT Pilot Program replaces the previous project-based OJT Program. Details of the program can be found in the Michigan Department of Transportation On-The-Job Pilot Training Program document which is available from the Office of Equal Opportunity (OEO).
DBE’s are defined as those prime and subcontractors, truckers, materials suppliers and other service providers who are certified by the Michigan Department of Transportation as meeting the requirements for certification at 49 Code of Federal Regulations Part 26 (49CFR Part 26).
Compliance with 49 CFR Part 26 will be required of all Contractors having a contract which is funded in whole or in part with federal funds.
The Contractor may, after award, request a waiver or modification of the DBE participation goal. The Contractor must submit evidence of good faith efforts to meet the DBE participation goal and include proof that on the date the Contractor became aware the DBE goal would not be met, the amount of contract work remaining was carefully reviewed to identify other work which could be subcontracted to DBE firms.
The Department should be notified immediately of a DBE’s inability to perform and the Contractor’s intent to obtain a substitute DBE. Contractors are required to make a good faith effort to replace a DBE that is unable to perform with another DBE. The substitute DBE must be approved by the Department prior to starting work.
Post award requests for waiver or modification of the goal for DBE participation will be submitted to the Office of Equal Opportunity (OEO). The Department will evaluate the good faith efforts of the Contractor based on the direction provided by 49 CFR Part 26, Appendix A - Guidance Concerning Good Faith Efforts of the Federal Register.
For Assistance, the OEO has made available guidance for Contractors “The Good Faith Effort Determination Application” for the submission of requests.