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MDOT Subcontracting Process Evolution

Thursday, August 30, 2007   (0 Comments)
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You will recall back in June 2004, at the recommendation of the Subcontracting Team (MITA, MDOT, FHWA), MDOT implemented a “pilot” subcontracting process that would streamline subcontract approvals while maintaining accountability for documentation and compliance. 

 

Key elements of the then new subcontracting process were, subcontracts would not be approved by MDOT, the prime contractor would maintain all subcontract records submitting only the cover sheet and line item page, random project level reviews would be conducted by MDOT, and the prime contractor would certify subcontracting compliance on MDOT Form 1386, Post Certification of Subcontract Compliance

 

Earlier this spring, after two plus years of learning, some infractions, and many successful experiences, the piloted process was unceremoniously accepted as MDOT’s formal subcontracting process. In formalizing that subcontracting process MDOT, with the concurrence of the Subcontracting Team, also implemented a 4-tier approach to uniformly administer contractor infractions of the process. Click here to view the Contractor Announcement about the new subcontracting process.

 

As we move forward and build projects under the “new” subcontracting process the following are key subcontracting requirements to keep in mind:

 

• Prequalified subcontractors must be used unless there is no prequalification category.

• Although in some cases subcontracts are not required (click here to see Form 1386) prequalification is, unless there is no prequalification category.

• The table Work Not Performed by Prime Contractor on Form 1386 must include all work not performed by the prime contractor regardless if a subcontract was used or not.

• All subcontracts must be properly executed prior to any subcontract work beginning.

• The prime contractor must perform work amounting to not less than 40 percent of the original contract amount unless changed by the contract documents.

• Subcontractors must perform not less than 50 percent of the total value of the subcontract amount with their own organization.

 

MDOT Bureau of Highway Instructional Memorandum 2004-15 (BOHIM 2004-15) provides guidance for the uniform implementation of the subcontracting process. Click here to view the bulletin.

 

 

If you have any questions about the new subcontracting process, or you have constructive suggestions on how to further improve the process contact Glenn Bukoski at glennbukoski@mi-ita.com or Doug Needham at douglasneedham@mi-ita.com or by phone at (517) 347-8336.


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