During the 2004 General Assembly Legislative Session, legislation
was passed which requires prime contractors to identify MBE participation
at the time of bid on a State contract.

Frequently Asked Questions

1. What is the MBE Goal?
   The MBE goal is 25 set at percent. Of that 25 percent, a split goal of 7 percent must be awarded to certified African American owned businesses and 10 percent awarded to certified Women owned businesses.
   

2. What is the requirements of a MBE prime contractor?
   An MBE prime contractor responding to a solicitation must also comply with the above goals in accordance with Title 14, Subtitle 3 of the State Finance and Procurement Article of the Annotated Code of Maryland and COMAR 21.11.03.
   

3. Who is required to submit MBE documentation?
   MBE documentation must be submitted by all prime contractors who submit a bid on projects with a value of $50,000.00 or greater.
   

4. When should the MBE documentation be submitted?
   The MBE documentation which is found in the General Conditions, Section 10 - Minority Business Enterprise Utilization, and shall submitted as indicated below:
    
   1. (Form DGS-MBE-01A) - Certified MBE Utilization and Fair Solicitation Affidavit. Each bidder must submit this form with its bid or offer, acknowledging the MBE participation goals and requiring that the bidder make a good faith effort to achieve the goals.
       
   2. (Form DGS-MBE-02B) - Outreach Efforts Compliance Statement. The apparent low bidder must submit this form within 10 working days of notification of apparent award or actual award, which ever is earlier. This form must be signed by the prime contractor.
       
   3. (Form DGS-MBE-03C) - MBE Participation Schedule. The bidder or offeror responding to this solicitation will identify the specific commitment of certified MBEs at the time of submission or bid. The bidder or offeror shall specify the price, the MBE Federal ID number, classification status, the estimated commitment and completion date, the scope of work to be performed and the percentage of contract value associated with each MBE subcontractor identified on the form. This form must be signed by the prime contractor. Any changes made to MBE Participation Schedule thereafter, must be must be approved in advance by the MBE Office at 410-767-4270.
      

      If the above forms (A through C) are not submitted at the time the Bid is due, your Bid will be found non-responsive.

   4. (Form DGS-MBE-04D) - Minority Contractor Waiver. The apparent low bidder must submit this form with a waiver request on each MBE that is not available to perform, within 10 working days of notification of apparent award or actual award, which ever is earlier. If the apparent low bidder or offeror is unable to award subcontracts or procure supplies and services with a value that is equal to the minimum goals established in the contract solicitation, the apparent successful bidder or offeror will submit this form with their waiver request, which should be in writing.
       
   5. (Form DGS-MBE-05E) - Subcontractor Project Participation Statement. The apparent low bidder must submit this form within 10 working days of notification of apparent award or actual award, which ever is earlier. The Subcontractor Project Participation Statement must be signed by both the bidder and each certified MBE listed in the MBE Participation Schedule.
      

      Contract Compliance Enforcement

      After thirty days from the project start date, the prime contractor and minority subcontractor will be required to submit the appropriate forms monthly. The prime contractor will be notified when to submit these forms to the MBE office.
      

   6. (Form DGS-MBE-06F) - MBE Monthly Cost Breakdown for Progress Payments, shall be submitted monthly, for each minority subcontractor listed or used. The contractor shall also submit copies of each invoice submitted by the MBEs for work completed. To assure that the MBE participation goal is being met, the general contractor’s retainage (for any projects over $50,000) may be withheld until the completion of the project and until proof is provided that the agreed MBE participation percentage is paid as agreed to MBEs described in the MBE Participation Schedule.
       
   7. (Form DGS-MBE-07G) - Contract Compliance Certification. The required information should be completed, certified and submitted monthly to the MBE Office. The certified documents will be made part of the contract file and will be subject to confirmation audits by the State.

      If, during the confirmation audit the information given is found to be untrue, the signatories to the certification will be subject to termination of the contract for default, referral to the Office of the Attorney General or other authorities for appropriate action, or any and all other actions permitted by law.

   8. (Form DGS-MBE-13K) - Prime Unpaid MBE Invoice Report. The prime contractor is required to complete this form for every MBE subcontractor listed in the MBE Participation Schedule, who have submitted an invoice to the contractor which has not been paid.

   9. (Form DGS-MBE14L) - Subcontractor Unpaid MBE Invoice Report. Each certified MBE subcontractor is required to complete this payment verification form acknowledging all payments received and not received within 30 days after submission of an invoice by the subcontractor.

      Each bidder agrees that upon acceptance of a bid, the bidder will provide DGS with a list of MBEs with whom the contractor negotiated, including price quotes from minority and non-minority firms. The Department will determine whether the contractor complied, in good faith, with determines that the MBE requirements in the contract. If the Department finds the contractor complied, it may not require the contractor to renegotiate any subcontract.

5. What if an MBE is not certified?
   In order to be utilized as a legitimate minority business on State of Maryland contracts, it is required that an MBE be certified by the Maryland Department of Transportation.

6. What if the goals cannot be achieved?
   If the MBE goals cannot be achieved, then the prime contractor/vendor can request a MBE Waiver. If the prime contractor is unable to award a subcontract or supplies with a value that is equal to the minimum goals established in the contract, then the prime contractor may be granted a waiver. The waiver request must be made and explained in writing, detailing the justification for the waiver. The prime contractor should also be able to provide a list of MBE vendors solicited in an effort to achieve the goal. This request should be part of your MBE submission and completed on Form DGS-MBE-04D Minority Contractor Waiver.

7. How will MBE Contract Compliance be monitored?
   The MBE office has the authority to conduct on-site inspection and administrative contract compliance at any time without prior notification. If for any reason a minority subcontractor is not performing in accordance with its contract, the prime contractor may request permission to remove or substitute that particular MBE with another certified minority contractor. The prime contractor must first notify the inspector for that project, their intent to remove an MBE subcontractor during the course of the MBE's contract. Supporting documentation must be furnished by the prime contractor stating reasons why the MBE subcontractor should be removed. The MBE office may schedule a meeting with all involved parties to discuss the potential removal of a minority subcontractor. Once everything has been reviewed, it will be the responsibility of the MBE office, to determine if the MBE subcontractor should be removed from the project.

8. MBE Tier Subcontracting
   The MBE office will not accept any type of second or third subcontracting on projects handled by this department.

9. Contractor's Assistance
   The State of Maryland Minority Business Enterprise Directory is available to contractors on-line. Contractors are encouraged to obtain a certified MBE Directory. The Directory is a free publication and contains information about currently certified Minority Business Enterprises. The Maryland Department of Transportation (MDOT) is the States certification agency. MDOT address is as follows; MDOT/MBE Unit, 7201 Corporate Center Drive, P.O. Box 548 Hanover, MD 21076, or phone In-State (410) 865-1269- Toll Free-1-888-713-1414. You can also review and sort the MBE Directory at MDOT website http://www.mdot.state.md.us.

   Contractors requiring assistance in completing the DGS MBE Forms should contact the Minority Business Enterprise Office, Department of General Services, 301 W. Preston Street, Suite, M-9, Baltimore, Maryland 21201, or phone 410-767-4270 – 1-800-449-4347. You can also access the MBE Forms on our website at http://www.dgs.maryland.gov/MBE.

 

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