Policy 9125

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PARTICIPATION BY MINORITY BUSINESSES   Policy Code:   9125

Contents

The board affirms the State’s commitment to encouraging participation of minority businesses in the school system’s construction contracts. A "minority business" is defined as one in which at least fifty-one percent (51%) is owned by minority persons or social and economically disadvantaged individuals or the management and daily business operations are controlled by minority or economically disadvantaged persons. Minority/economically disadvantaged persons include African-Americans, those of Hispanic descent, Asian Americans, American Indians and females.

After notice and public hearing, the board has adopted the following verifiable percentage goals for participation in the school system’s contracts by historically underutilized businesses:

a. Projects in which the cost exceeds $100,000 and the board has received state appropriations or grants for the project:
10 percent participation by minority businesses in the total value of work for each building project involving erection, construction, alteration or repair.
b. Projects in which the cost exceeds $500,000 (i.e., for which formal bidding is required):
10 percent participation by minority businesses in the total value of work for each building project involving erection, construction, alteration or repair.
c. Projects in which the costs are at least $30,000 but do not exceed $500,000 (i.e., for which informal bidding is required):
Except as otherwise required for projects in subsection a above, the board will solicit participation by minority business enterprises and maintain a record of contractors solicited and efforts to recruit minority participation. The board also will comply with any reporting and documentation requirements of the Department of Administration.

School System Good Faith Efforts

The board adopts the following guidelines to ensure that the school system will make good faith efforts to reach diverse contractors and to encourage participation in the school system’s construction contracts by such contractors. The superintendent is directed to:

  1. make information about the school system’s formal and informal bidding process readily available;
  2. develop and implement a minority business participation outreach plan to identify minority businesses that can perform building projects and to implement outreach efforts to encourage minority business participation in such projects;
  3. advertise for bids in media that reach minority businesses and provide notice to minority businesses as provided in G.S. 143-128.2;
  4. ensure that everyone who requests it has access to building documents needed for making bids on projects;
  5. encourage businesses experiencing difficulty in meeting the bonding, licensing and bid deposits required by state law in larger construction projects to utilize resources and assistance offered by local, state and federal agencies; and
  6. encourage contractors to attend the scheduled pre-bid conference.

Good Faith Efforts Required By Contractors

All bidders on major school construction and renovation projects who intend to subcontract any part of the project must provide affidavits indicating that a good faith effort has been made in preparing the bid to meet the board of education’s verifiable goal for participation by minority owned businesses.

The failure to make a good faith effort to meet the board’s goal may result in the bid being considered non-responsive and being rejected.

The superintendent is directed to establish administrative procedures to verify which businesses are qualified and to evaluate good faith efforts by bidders.


Legal References: City of Richmond v. J.A. Croson Co., 488 U.S. 469 (1989); G.S. 143-128, -128.2, -128.3, -128.4

Cross References:

Adopted:

Revised: September 24, 1999; May 7, 2004; December 10, 2007

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