03A4194_Addendum_1_-_DBE_GenAI_and_SOQ.pdf

“Improving lives and communities through transportation.

STATE OF CALIFORNIA------- CALIFORNIA STATE TRANSPORTATION AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF TRANSPORTATION

DIVISION OF PROCUREMENT AND CONTRACTS

1727 30TH STREET – MS 65

SACRAMENTO, CA 95816

PHONE (916) 227-6000

TTY 711

www.dot.ca.gov

Making Conservation a California Way of Life.

May 20, 2026

REQUEST FOR QUALIFICATIONS (RFQ) NOTICE NUMBER 03A4194

ADDENDUM NO. 1

On-Call A&E Roadway Construction Claims Support and Construction Scheduling (CPM) Services for District 3

The purpose of this Addendum is for the Department to provide responses and/or clarification of the following concerns:

1. Disadvantaged Business Enterprise Program changes

2. Vendor clarification for SOQ Instructions (dated 10/07/2020), Section II. Definitions, Item O

3. Executive Order (EO) N-12-23 as it relates to the use of Generative Artificial Intelligence (GenAI) replaces Executive Order N-12-12 and retires GenAI Reporting and Factsheet Form STD1000.

1. On September 30, 2025, the U.S. Department of Transportation (U.S. DOT) issued an interim final rule (IFR) which, among other things, implemented changes to the Disadvantaged Business Enterprise (DBE) Program via modifications to 49 Code of Federal Regulations Part

26. (Docket Number DOT-OST-2025-0897.) The IFR was published in the Federal Register on October 3, 2025, and took immediate effect. (90 FR 47969 (Oct. 3, 2025).)

• Interim Final Rule in Federal Register: Federal Register: Disadvantaged Business Enterprise

Program and Disadvantaged Business Enterprise in Airport Concessions Program Implementation Modifications

• U.S. DOT DBE Interim Final Rule Guidance: DBE IFR Guidance.9-30-2025.pdf

• Consistent with the IFR, as an interim action, below are DBE program changes applicable to this RFQ. In the event of any ambiguity or discrepancy between the existing law, including the IFR, and the contract, existing law controls.

A. In the Statement of Qualifications Submittal Instructions and General Contract Process Information

1) Under section III – Requirements for Statements of Qualifications (SOQS), Section 1 – Transmittal Letters/Goal Documentation, subsection F, item 1 – Disadvantaged Business Enterprise Goals has been removed in its entirety.

2) Under section IV - Participation Goals, section A – Disadvantaged Business Enterprise Participation Goal has been removed in its entirety.

2. Vendor clarification for SOQ Instructions (dated 10/07/2020), Section II. Definitions, Item O http://www.dot.ca.gov/ https://www.federalregister.gov/documents/2025/10/03/2025-19460/disadvantaged-business-enterprise-program-and-disadvantaged-business-enterprise-in-airport#addresses https://www.federalregister.gov/documents/2025/10/03/2025-19460/disadvantaged-business-enterprise-program-and-disadvantaged-business-enterprise-in-airport#addresses https://www.federalregister.gov/documents/2025/10/03/2025-19460/disadvantaged-business-enterprise-program-and-disadvantaged-business-enterprise-in-airport#addresses https://www.transportation.gov/sites/dot.gov/files/2025-09/DBE%20IFR%20Guidance.9-30-2025.pdf

RFQ 03A4194 - Addendum No. 1

Question:

Page 3, item O of the SOQ Submittal Instructions states that “Vendor services will require a minimum of three bids to be submitted to the Caltrans Contract Manager at the time these services are required at the Task Order level.” This is in conflict with information shared at multiple outreaches throughout the past year and via addenda to similar contracts. Can you please confirm if three bids will indeed be required?

Department Response:

SOQ Instructions (dated 10/07/2020), Section II. Definitions, Item O, first and second paragraph is amended to read as follows: “O. Vendor Services are Trade services incidental to the core A&E services. Firms providing Trade services will be required to submit their rate sheets (in lieu of bids) listing each item with its corresponding unit cost, inclusive of all direct and indirect costs used for all clients. Vendor rate sheets shall not include individual personnel labor rates. The Department will scrutinize the vendor Rate Sheets and Prime’s supporting documentations for fair and reasonableness of vendor rate sheets during cost negotiation phase.

Vendor name and description of services shall be clearly identified in the Prime’s transmittal letter and other sections of the SOQ as noted.

Note: All Vendors and the associated service descriptions shall be listed in the SOQ and include their respective Transmittal Letter accompanied with the A&E Conflict of Interest forms.

3. Executive Order N-12-23 GenAI Technology Use and Reporting

A. The State of California seeks to realize the potential benefits of GenAI, through the development and deployment of GenAI tools, while balancing the risks of these new technologies.

B. Consultants must notify the State in writing if it: (1) intends to provide GenAI as a deliverable to the State; or (2), intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any deliverable that materially impacts: (i) functionality of a State system, (ii) risk to the State, or (iii) Contract performance. For avoidance of doubt, the term “materially impacts” shall have the meaning set forth in State Administrative Manual (SAM) § 4986.2 Definitions for GenAI.

C. Failure to report the consultant GenAI to the State may result in disqualification. The State reserves the right to seek any and all relief to which it may be entitled to as a result of such non-disclosure.

D. Upon notification by the consultant of GenAI as required, the State reserves the right to incorporate GenAI Special Provisions into the final contract or reject SOQ’s that present an unacceptable level of risk to the State.

RFQ 03A4194 - Addendum No. 1

E. Government Code 11549.64 defines “Generative Artificial Intelligence (GenAI)” as an artificial intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system’s training data.

Effective February 20, 2025:

Transmittal letters in all Statement of Qualifications (SOQ) from the prime consultant and all its subconsultants, must disclose the use or non-use of GenAI regardless of technology being used or offered as part of the services provided. Failure to disclose detailed description of the development and deployment to the State may result in disqualification of the procuring of a contract.

All other terms and conditions of the original RFQ Notice dated May 20, 2026, are unchanged.

Please contact Lisa Pallesen at Lisa.Pallesen@dot.ca.gov for questions concerning this addendum.

mailto:%20Lisa.Pallesen@dot.ca.gov

DEPARTMENT OF TRANSPORTATION