Governor Phil Murphy • Lt. Governor Tahesha Way

Department of Transportation

Contract Compliance

The Division of Civil Rights/Affirmative Action (CR/AA) Contract Compliance Unit monitors subcontracting, employment and training opportunities on New Jersey Department of Transportation (NJDOT) federally-funded and New Jersey state-funded contracts. It ensures that highway construction funds allocated to those contracts are spent in a manner that encourages and supports employment of individuals regardless of race, color, religion, sex, national origin, age or disability.

Notice

Contract Compliance Unit Responsibilities
The Contract Compliance Unit also monitors prime contractor compliance with federal and state funded construction contract provisions for Disadvantaged Business Enterprise (DBE) contractors, Emerging Small Business (ESBE) contractors, Small Business Enterprise (SBE) contractors, employment and training. The NJDOT believes that an effective Contract Compliance program benefits contractors and employees if it can ensure merit based employment and subcontracting decisions.

By maintaining a Contract Compliance Program, NJDOT ensures the contractors meet these objectives:
  • Subcontracting Goals
    • To Ensure the participation of DBEs, ESBEs, and SBEs as subcontractors in federal and state contracts, according to 49 CFR Part 26 and N.J.A.C. 17:14 (pdf 1m), prime contractors must meet NJDOT’s goals set by the Division of Civil Rights and Affirmative Action or submit adequate documented evidence of good faith efforts in accordance with 49 CFR Part 26.53 & Appendix A to Part 26.

  • Workforce (Equal Employment Opportunity-EEO) Goals
    • To ensure equal employment opportunity, NJDOT monitors the contractor’s compliance with Executive Order 11246 and 41 CFR Part 60 that prohibits discrimination against minorities and women and requires contractors to apply affirmative action.

    The Contract Compliance Unit monitors contractors according to the rules and regulations of the affirmative action aspects of the contractor’s workforce utilization plans. Contractors and subcontractors are required to submit regular reports documenting the number of employees and hours worked, with specific information on new hires, terminations and trainees.

  • Training Goals
    • The training goals are to uphold the goal for trainees to obtain full journey person status through the Federal Highway Administration (FHWA) Initiative. The Training Special Provisions requires contractors to make every effort to enroll minority and female trainees in the contract training program.

    All contractors must comply with the contract requirements as they are outlined in the contract Special Provisions. This section stipulates the contractor’s DBE and EEO training requirements.

  • Documentation Goals
    • To meet the DBE/ESBE/SBE subcontracting and EEO workforce and training requirements for both state and federally-funded project contracts, the Contract Compliance Unit requires the contractors and/or subcontractors to complete and submit specific forms to the project’s Resident Engineer (RE).

  • Prompt Payment Inquiries and/or Complaints
    • NJDOT requires prime contractors to pay subcontractors and suppliers for satisfactory performance of their work. Depending on the particular contract, payment is required either, no later than 30 days or no later than 10 days of the prime receiving payment by the Department/Sponsor/Grantee. This includes payment of retainage. Subcontractors are thus required to pay their sub-subcontractors and suppliers within 30 days or 10 days (depending on the particular contract) of being paid by the prime contractor.

    NJDOT’s Civil Rights Contract Compliance Unit is responsible for investigating and attempting to resolve prompt payment complaints on Federally-assisted and State funded contracts.
    How to File a Prompt Payment Complaint

Contractors/Sub-Recipients:
Civil Rights Procedures
(Effective July 1, 2017)
Full implementation and enforcement of the new specifications and procedures in the posted Baseline Document Changes, BDC16S-06 and DC16S-04, commenced on July 1, 2017 for all NJDOT projects, including projects overseen by sub-recipients/sponsors of Federal and State funds through NJDOT. Contractors bidding on any NJDOT project and sub recipients of Federal or State funds through NJDOT will be subject to the Civil Rights procedures and forms as indicated below.

Regulation(s) Procedures Beginning 7/1/17
Form CR-261 List of All DBE and Non-DBE Firms Providing a Bid or Quote for the Contract

49 CFR Part 26.11(c)		 At the end of the 2017 Federal Fiscal Year (9/30/17), and annually thereafter, NJDOT will require all bidders who bid in that fiscal year, to submit a CR-261. The CR-261 lists all DBE and non-DBE firms who provided a bid or quote to the bidder for work on the project(s) for which bidders submitted a bid. All bidders, regardless of whether or not their bid was successful, must submit a CR-261.

Form CR-266 Schedule of DBE/ESBE/SBE Participation

49 CFR Part 26.53(b)(2) & 26.55		 Pre-Award: All bidders are required to submit the CR-266 at time of bid, or within 5 days after bid opening, as a matter of responsiveness, for any project that has a DBE/ESBE/SBE goal.

Changes will not be accepted before contract award.
Form(s) CR-273 Confirmation of DBE/ESBE/SBE Firm

49 CFR Part 26.53(b)(2)(v)		 Pre-Award: Bidders, as a matter of responsibility,must submit at time of bid, or within 5 days after Bid Opening the following completed and signed forms from each DBE/ESBE/SBE firm being used to meet the Contract goal, and are listed on the CR-266:
  • CR-273 for each DBE/ESBE/SBE firm
  • CR-274 for each trucking/hauling firm
  • CR-272 for each regular dealer/supplier firm
Information provided on the forms is to confirm/verify the information provided on the CR-266, therefore, it must match the information on the CR-266. Each form must be completed and signed by each respective DBE/ESBE/SBE firm.

Any firm listed on the CR-266 will not be counted toward the DBE/ESBE/SBE goal commitment unless the CR-273, and CR-274/CR-272, if applicable, are submitted at time of bid, or within 5 days after Bid Opening. Adequate documented evidence of good faith efforts must be submitted at time of bid, or within 5 days after Bid Opening if the DBE/ESBE/SBE goal has not been met.

Post Award: Also, during the construction phase of a contract, the completed and signed CR-273, and CR-274/CR-272, if applicable, must be submitted with any revised CR-266.
Form CR-274 DBE/ESBE/SBE Trucking Verification

49 CFR Part 26.55(d)
Form CR-272 DBE/ESBE Regular Dealer/Supplier Verification

49 CFR Part 26.55(e)
Evidence of Good Faith Effort

CFR Part 26.53 & Appendix A to Part 26		 Pre-Award: If the project has a DBE/ESBE/SBE goal, all bidders will have up to 5 days after Bid Opening to submit adequate documented evidence of good faith efforts if they fail to demonstrate verified attainment of the DBE/ESBE/SBE goal. NJDOT will use the standards in the Federal Regulations to determine the adequacy of good faith efforts.

Post Award: If a Contractor fails to demonstrate that their DBE./ESBE/SBE goal commitment during the construction phase does not meet the Contract goal, they must submit good faith effort documentation when they submit any revisions to the CR-266.
Administrative Reconsideration

49 CFR Part 26.53(d)		 If NJDOT deems that the apparent lowest responsive bidder failed to meet the Contract DBE/ESBE ggoal AND failed to demonstrate adequate good faith effort to do so by the end of the 5th day after Bid Opening, and the bid is rejected, the Bidder may request Administrative Reconsideration (AR). (A bidder failing to submit the CR-266 at time of bid does not have the right to request Administrative Reconsideration.)

To receive AR, the Bidder must make a written request within 1 State business day of being notified by NJDOT that the bid was rejected. The request must indicate whether the rejected bidder wants AR in-person or via a written review. Regardless of the type of AR requested, within 2 State business days of filing a request for AR, a rejected bidder must submit written documentation or argument proving that the Bidder met the Contract goal, or submitted adequate good faith effort documentation demonstrating adequate effort to do so. (This is not an opportunity to submit new information on 1) ways to attain the goal commitment or, 2) new good faith effort documentation.)
Notification Requirements Before DBE Subcontracts are Changed/Terminated

49 CFR Part 26.53(f)		 In advance of proposed change(s) to the CR-266, contractors must notify in writing, affected DBE/ESBE/SBE firms, the RE, and NJDOT Civil Rights (and, on Local Aid projects, notify the project sponsor and NJDOT Local Aid and NJDOT Civil Rights), indicating the reason(s) for termination/change. Affected DBE/ESBE/SBE firms will have 5 days to respond to NJDOT Civil Rights, the RE, and the Contractor (on Local Aid projects the response goes to the project sponsor, NJDOT Local Aid and NJDOT Civil Rights), in writing of the reasons why they object to their services being terminated/changed. NJDOT Civil Rights must review the arguments, and approve or deny such changes BEFORE they are made. Changes made without prior approval by NJDOT Civil Rights will not be counted toward DBE/ESBE/SBE goal attainment (and may result in potential payment reduction as described in the last box below).
Modification of the DBE/ESBE/SBE Goal Commitment Official Questions and Answers (Q&A's) DBE Program Regulation (49 CFR 26), Transportation.gov U.S. Department of Transportation (last visited May. 23, 2016) During the project construction phase, if there are significant changes to the project, NJDOT Civil Rights will determine if the changes necessitate a change to the DBE/ESBE/SBE goal commitment percentage. If so, NJDOT Civil Rights will notify the RE and Contractor of the change in the goal commitment percentage and will require the Contractor to submit a revised CR-266, and CR-273s, CR-272s/CR-274s (if applicable), AND any documented evidence of good faith efforts made to meet the revised goal commitment.
Commercially Useful Function Monitoring

49 CFR Part 26.55(c)		 For all DBE/ESBE/SBE firms listed on the CR-266, the RE must conduct an on-site Commercially Useful Function (CUF) review via the CR-275. The Contractor will not receive credit toward attaining the DBE/ESBE/SBE goal for firms that do not pass the CUF review. The CUF review monitors whether the DBE/ESBE/SBE firms are independently managing, supervising, and performing their own work.
Prompt Payment of Subcontractors and Suppliers

49 CFR Part 26.29 & NJSA 52:32-41		 Pay subcontractors and suppliers for satisfactory performance of their work no later than 30 days from receipt of each payment made by the Department.

Pay subcontractors and suppliers the full amount of retainage no later than 30 days from receipt of payments made by the Department for the subcontractor’s or supplier’s work.

If the Contractor fails to pay a subcontractor or supplier within 30 days after the subcontractor or supplier satisfactorily completes the specified work, the Department may withhold progress payments from the Contractor, until the Contractor pays the subcontractor or supplier any and all delinquent amounts due, or the contract is terminated, or the matter is resolved under N.J.S.A. 52:32-40 and N.J.S.A. 52:32-41.

If the Department receives an allegation from a subcontractor or supplier that the Contractor has not paid the subcontractor or supplier the amount due from a previous progress payment, the Contractor must submit to the RE within 10 days of a request made by the RE, evidence that payment has been made, such as copies of cancelled checks or proof of electronic fund transfers.

NJDOT is also required to verify prompt payment by prime contractors to subcontractors and suppliers. At a future date, NJDOT will be evaluating electronic systems for monitoring all payments to subcontractors and suppliers by prime contractors, and may implement such a system. Sub recipients of funds through NJDOT are also required to verify prompt payment by prime contractors to subcontractors and suppliers.
Potential Payment Reduction for Not Attaining Goal or Providing Adequate Good Faith Effort Documentation

49 CFR Part 26.13(b) & 26.53(h)		 If the Contractor fails to meet the contract DBE/ESBE/SBE goal, without demonstrating adequate good faith effort to do so, the Department may make a payment reduction from progress payments, retainage, or the final payment as follows:

DBE/ESBE/SBE Goal Payment Reduction = (CG - AG) x CP

CG = Contract DBE/ESBE/SBE Goal percentage, or approved DBE/ESBE/SBE commitment, or if modified by the Department, the Modified DBE/ESBE/SBE Contract Goal percentage

AG = Attained DBE/ESBE/SBE goal percentage = (total dollar amount paid to DBE/ESBE/SBE suppliers and DBE/ESBE/SBE subcontractors divided by CP) plus the percent value attributed to the Contractor’s Good Faith Effort approved by the Department.

CP = Total Adjusted Contract Price less the payment adjustments for FINAL LAYOUT, PERFORMANCE BOND AND PAYMENT BOND, and DBE Goal Payment Reduction.


Last updated date: August 15, 2024 1:31 PM