SP107-001510-06.docx

GUIDELINES — Federal projects only.

SP107-001510-06

VIRGINIA DEPARTMENT OF TRANSPORTATION

SPECIAL PROVISION FOR

INTERIM DBE REQUIREMENTS

January 26, 2026

SECTION 107 – LEGAL RESPONSIBILITIES of the Specifications is revised as follows:

Section 107.15 – Use of Small, Women-Owned, and Minority-Owned Businesses (SWaMs) is replaced in its entirety with the following:

Section 107.15 – Use of Disadvantaged Business Enterprises (DBEs)

NOTE: Effective October 3, 2025, the United States Department of Transportation (USDOT) adopted an Interim Final Rule (IFR) revising the DBE requirements in the Code of Federal Regulations, Title 49, Part 26, Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs. In accordance with the IFR and USDOT’s Official Frequently Asked Questions providing guidance regarding the IFR, the DBE goal for this Contract is 0%; and the Department will not count DBE participation toward a program goal, nor will it perform commercially useful function (CUF) reviews. Otherwise, the requirements of the USDOT DBE Program set out in this Special Provision remain effective.

DBE Program - Interim Requirements

Bidders, the Contractor, and all subcontractors, suppliers, and contract sureties involved in the performance of work on this federal-aid contract shall comply with the terms and conditions of this Special Provision and in Code of Federal Regulations Title 49, Part 26, Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs, as amended, (USDOT DBE Program), incorporated by reference into this Special Provision. The Contractor shall physically include this same Special Provision in every subcontract made or executed with a subcontractor or supplier.

Disadvantaged Business Enterprise (DBE) means a small business concern as certified by SBSD, including the Contractor, subcontractors, suppliers, or manufacturers performing work, or furnishing materials, supplies, equipment, or services necessary for the Contract.

The Contractor, for itself and for its subcontractors and suppliers, whether certified DBE firms or not, shall commit to complying fully with the auditing, record keeping, confidentiality, cooperation, and anti-intimidation or retaliation provisions contained in USDOT DBE Program and the Contract. By bidding on this Contract, and by accepting and executing this Contract, the Contractor agrees to assume these contractual obligations and to bind the Contractor’s subcontractors contractually to the same at the Contractor’s expense.

The Contractor and its subcontractors and suppliers shall not discriminate based on race, color, sex, or national origin in the performance of this Contract. The Contractor shall carry out applicable requirements of USDOT DBE Program and the Contract in the award, administration, and performance of this Contract. Failure by the Contractor to carry out these requirements is a material breach of this Contract, which will result in the termination of this Contract or other such remedy, as VDOT deems appropriate, which may include, but is not limited to: (1) withholding monthly progress payments; (2) assessing sanctions; (3) assessing liquidated damages; and/or (4) disqualifying the contractor from future bidding.

Financial Services

The Contractor and each subcontractor are encouraged to use the services of financial institutions owned and controlled by socially and economically disadvantaged individuals in the community. The use of such services is not required and the fees charged will not be counted for credit toward a DBE contract goal when the contract has a goal.

Certifications Made By Bidder and Contractor

By submitting a bid, by signing this Contract, and by signing each subcontract with a subcontractor incorporating this Special Provision, the Contractor and subcontractors certify to each of the following conditions and assurances:

They will comply with and carry out the applicable requirements of the USDOT DBE Program and the Contract in the bidding, award, execution, performance, and administration of the Contract and subcontracts.

That all reasonable steps were and will be taken to ensure that DBEs had and will have a full and fair opportunity to compete for and perform work on the Contract. Any agreements between a bidder and a DBE whereby the DBE promises not to provide quotations for performance of work to other bidders are prohibited.

That they shall not discriminate based on race, color, age, sex, or national origin in the performance of the Contract or in the award and performance of any subcontract.

That in the event a bond surety assumes responsibility for completion of work for any reason, including without limitation when the Department terminates the prime Contractor, the surety shall be obligated to meet the same DBE contract terms and requirements as were required of the original prime Contractor in accordance with the requirements of the USDOT DBE Program and this Special Provision.

Failure by the Contractor, subcontractor, or supplier retained by the Contractor, or surety to comply with all requirements of the USDOT DBE Program or this Special Provision is a material breach of this Contract. The Department has the authority and discretion to determine the extent to which these requirements have not been met, and will assess against the Contractor any remedies available at law or provided in the Contract in the event of such a contract breach, which may result in termination of the Contract or such other remedy as the Department deems appropriate, which may include, but is not limited to: (1) withholding monthly progress payments; (2) assessing sanctions; (3) assessing liquidated damages; and/or (4) disqualifying the Contractor from future bidding as non-responsible.

Contractor Compliance Requirements

NOTE: Due to the USDOT’s revisions of the DBE requirements in 49 CFR Part 26 for the USDOT DBE program, the DBE goal for this Contract is 0%; the Department will not count participation toward the DBE goal, nor will it conduct commercially useful function (CUF) reviews. Otherwise, the requirements of the USDOT DBE Program in this Special Provision remain effective.

1. Documentation Required During Bidding: A bidder shall submit a completed Form C-48, Subcontractor/Supplier Solicitation and Utilization, as a part of the bid documents. Form C-48 must be received no later than 10:00 a.m. the next business day after the date and time stated in the Invitation for Bids for receipt of bids, or the bid will be rejected as non-responsive. This form may be submitted electronically by email to: vdotcontracts@vdot.virginia.gov.

The required form and instructions for submitting it can be obtained from the List of Construction Forms on VDOT’s website at: https://www.vdot.virginia.gov/doing-business/technical-guidance-and-support/construction/.

Bid Rejection: The failure of a bidder to submit the required documentation within the timeframes in accordance with this Special Provision will be sufficient cause for rejection of that bidder’s bid as non-responsive or non-responsible, as applicable. In such event, the Department may award the contract to the next lowest bidder, cancel the award and re-advertise the proposed contract at a later date, or proceed otherwise as determined by Department.

2. Documentation Required During Contract Performance

The District Civil Rights Office (DCRO) will monitor progress of payments to subcontractors based on Forms C-63 the Contractor submits during the designated quarterly reporting periods.

Form C-63: The Contractor shall furnish, and shall require each subcontractor to furnish, information relative to their involvement on the project for each quarter or at another time interval determined by VDOT and communicated to the Contractor during the life of the Contract in which participation occurs and verification is available. The information shall be indicated on Form C-63. The Department reserves the right to request proof of payment via copies of cancelled checks with appropriate identifying notations. Failure to provide Form C-63 to the DCRO within five (5) business days after the reporting period may result in delay of approval of the Contractor’s monthly progress estimate for payment. Signatures on all forms indicated herein shall be those of authorized representatives of the Contractor as shown on the Prequalification Application, Form C-32 or the Prequalification/Certification Renewal Application, Form C-32A, or authorized by letter from the Contractor. Form C-63 can be obtained from the List of Construction Forms on the VDOT website at: https://www.vdot.virginia.gov/doing-business/technical-guidance-and-support/construction/.

If the Contractor fails to correctly complete and submit any of the required documentation required by this Special Provision within the specified time frames, the Department will withhold payment of the monthly progress estimate until such time as the required submissions are received. Where such failures to provide required submittals or documentation are repeated the Department may disqualify the Contractor, the Contractor’s members in the case of a joint venture, and any of the Contractor’s affiliates, from bidding as a prime Contractor, or participating as a subcontractor on VDOT projects until such submissions are received in accordance with the section on Disqualification of Contractor of this Special Provision.

3. Documentation Required for Semi-Final Payment

On those projects nearing completion, the Contractor must submit Form C-63 marked “Semi- Final” within twenty (20) days after the submission of the last regular monthly progress estimate to the DCRO. The form must include each subcontractor used on the Contract work and the work performed. The form shall include the actual dollar amount paid to each subcontractor for the accepted creditable work on the Contract. The form shall be certified under penalty of perjury, or other applicable law, to be accurate and complete.

4. Documentation Required for Final Payment

On those projects that are complete, the Contractor shall submit a final Form C-63 marked “Final” to the DCRO, within thirty (30) days after the final estimate. The form must include each subcontractor used on the Contract, the work performed, and the actual dollar amount paid to each subcontractor for the work on the Contract.

Disqualification of Contractor

Contractors may be disqualified from bidding for failure to comply with the requirements of this Special Provision in accordance with the provisions of Section 102.08 of the Specifications. Disqualification means the suspension or revocation of the Contractor’s prequalification privileges. The disqualification of the Contractor will also result in the disqualification of each member of the joint venture when the Contractor is a joint venture, and disqualification of any affiliate of the Contractor.