Construction Program Management and Inspection Guide

Subcontracting
Report Item
Names of six subcontractors have been submitted for approval
to date with an additional three pending. Of these, four are
Disadvantaged Business Enterprises (DBEs). The DBE
contract goal was $40,000. The subcontractor approvals
submitted far exceed these contract goals.
Appendix F: Examples of Reporting Practices
CONSTRUCTION PROGRAM MANAGEMENT AND INSPECTION GUIDE (5/01/04)
Comments
It is important to keep track of subcontracting and compliance
with DBE subcontracting goals.
Labor Compliance and Disadvantaged Business
Enterprises Performance
Report Items
A check on labor compliance (payroll data) showed compliance
with contract provisions.
It was found that in some cases the “Project Site Labor and
EEO Standards Interview Forms” were not completely filled
out or contained information that did not correlate with the
payrolls. In some cases the dates, the contractor’s name, or the
interviewer’s name was not included on the form. In other
cases the employee’s job title or pay rate did not match that
listed on the payrolls. It is recommended that training or
guidance on conducting the job site interviews be issued to the
field personnel responsible for the interviews.
It was reported that DBE participation on this project has
been satisfactory.
Contract DBE goal was 8 percent of the total contract
amount. This goal has been met as follows: (A list followed of
firm name, bid item, amount, and percentage of total
contract.)
This inspection included reviewing various DBE project
records. During this review it was found that some of the
DBE’s employees were on the prime contractor’s payroll. A
meeting has been set up at State headquarters to discuss this
matter with civil rights personnel.
Comments
While most labor compliance responsibilities have been turned
over to the State, occasional checks are appropriate.
It is important to keep track of labor interviews as they are a
critical portion of labor compliance verification.
We need to know if there is appropriate DBE participation on
projects. Where direct observation is not possible, we need to
rely on feedback from project personnel.
Specifics on how goals are being met should be reported.
Desirably, the inspecting engineer should report DBEs
actually on the job, performing a commercially useful function,
and supervising the work being done.
The inspecting engineer should not only report on goals and
attainment but also from time to time review office records
regarding DBE operations. In this case, when determining
whether a DBE is an independent business, records
documenting personnel actions, ownership of equipment, etc.,
should be scrutinized. A finding such as this one is significant
and may affect a firm’s eligibility. A followup meeting with
appropriate STA staff is a “good call.”
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