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LocalAsslstance Procedures, ,mai EXHIBIT <br /> "DRAFT" bIodel'DBE Program for Local Agencies <br /> <br />(2) A bidder using good business judgment would consider a number of factors in negotiating <br />with subcontractors, including DBE subcontractors, and would take a firm's price and <br />capabilities as well as contract goals into consideration. However, the fact that there may be <br />some additional costs involved in finding and using DBEs is not in itself sufficient reason for a <br />bidder's failure to meet the contract DBE goal, as long as such costs are reasonable. Also, the <br />ability or desire of a prime contractor to perform the xvork of a contract with its own organization <br />does not relieve the bidder of the responsibility to make good faith efforts. Prime contractors are <br />not, however, required to accept higher quotes from DBEs if the price difference is excessive or <br />unreasonable. <br /> <br />E. Not rejecting DBEs as being unqualified without sound reasons based on a thorough <br />investigation of their capabilities. The contractor's standing within its industry, membership in <br />specific groups, organizations, or associations and political or social affiliations (for example <br />union vs. non-union employee stat'as)--are not legitimate causes for the rejection or non- <br />solicitation of bids in the contractor's efforts to meet the project goal. <br /> <br />F. Making efforts to assist interested DBEs in obtaining bonding, lines of credit, or insurance as <br />r~quired by the recipient or contractor. <br /> <br />G. Making efforts to assist interested DBEs in obtaining necessary equipment, supplies, <br />materials, or related assistance or services. <br /> <br />H. Effectively using the services of available minority/~vomen community organizations; <br />minority/women contractors' groups; local, state, and Federal minority/women business <br />assistance offices; and other organizations as allowed on a case-by-case basis to provide <br />assistance in the recruitment and placement of DBEs. <br /> <br />V. In determining whether a bidder has made good faith efforts, you ma3,' take into account the performange of <br />other bidders in meeting the contract. For example, when the apparent successful bidder fails to meet the <br />contract goal, but others meet it, you may reasonably raise the question of whether, with additional reasonable <br />efforts, the apparent successful bidder could haw met the goal. If the apparent successful bidder fails to meet the <br />goal, but meets or exceeds the average DBE participation obtained by other bidders, you may view this, in <br />conjunction with other factors, as evidence of the apparent successful bidder having made good faith efforts. <br /> <br /> Page 9-41 <br />LPP 00-XX Revised July 15, 2000 <br /> <br /> <br />