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NCHRP Synthesis 343: Management of Disadvantaged Business Enterprise Issues in Construction Contracting (2005)
National Cooperative Highway Research Program Synthesis Program (NCHRPSYN)

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Smith, G, Transportation Research Board. "Prequalification Practices." NCHRP Synthesis 343: Management of Disadvantaged Business Enterprise Issues in Construction Contracting. Washington, DC: The National Academies Press, 2005.

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16 TABLE 5 DBE REQUIREMENTS ON CONTRACTS OTHER THAN CONSTRUCTION Engineering and Materials Architectural Testing and Construction Construction Maintenance State Planning Services Inspection Inspection Management Services Alaska Arizona California Colorado Connecticut Georgia Hawaii Idaho Illinois Iowa Maine Massachusetts Minnesota Missouri Nevada New Hampshire New Jersey New Mexico New York Ohio Oklahoma Pennsylvania Texas Vermont Washington Wisconsin Notes: Alabama, Arkansas, Kansas, Kentucky, North Carolina, North Dakota, South Dakota, and Wyoming responded that they did not have DBE requirements on nonconstruction contracts. Michigan and West Virginia did not respond to this question. Although design­build contracts were not used by more ified for bidding, the contractor is typically classified than one-half of the respondents; those that are using or according to eligible work types, STA total contract volume, experimenting with design­build provided some insight to and/or a limitation on the maximum size contract on which their administration requirements. they can bid. Theoretically, prequalification enables the STA to limit their post-bid submission evaluation to only · Include appropriate DBE language and provisions into those issues related to bid responsiveness. Prequalification the master contract. effectively establishes the contractor as a responsible · Require a written performance plan for meeting the bidder through the prequalification process. The break- overall project goal and a schedule of participation. down of the prequalification of prime contractors and sub- · Have the master contract holder submit periodic (yearly contractors is as follows: on large projects) goals, including the items to be con- tracted to DBE firms. · Prequalify prime contractors (30)--five states indicated that they did not use prequalification. One state did not respond to this question. PREQUALIFICATION PRACTICES · Prequalify subcontractors (7)--some STAs are required to qualify all contractors regardless of their status as a Prequalification of contractors is one way that an STA can prime contractor or subcontractor. One had a subcon- ensure that the contractors bidding on work are qualified tract value qualifier. Contracts under $250,000 do not to perform specific types of work and to specify what size require a state prequalification. contracts they will be permitted to bid on. Prequalification is a process where the contractor submits experience and Not all STAs use prequalification. Some elect to have no financial qualification information to the STA. Once qual- requirement other than contract bonds and rely on the surety