User:Hoskir/Revision Request 4294

REPLACE EPG 108.1.1

108.1.1 Review and Approval of a Subcontract Request

When a contractor desires to sublet a portion of the work, the request will be submitted to the resident engineer on Request to Subcontract Work (Form C-220). The resident engineer, or a designee assigned by the District Construction Engineer, shall perform the following review on all subcontract requests:

1. Check all information on the header for accuracy and determine if the request a) involves a 2^nd tier relationship, b) is for a DBE subcontractor, or c) includes any line item with a unit price or quantity that differs from the contract. If any of those three situations apply, then the request must include the subcontract agreement between the prime and the sub. For 2^nd tier requests, the agreement between the 1^st and 2^nd tier subcontractor should also be submitted.
2. For DBE requests, verify that the unit price and quantity matches what is on the DBE Identification Submittal Form. If there are line items listed on the C-220 for a DBE that go beyond the DBE Identification Submittal found in the contract, verify whether they can be counted for DBE credit and if they do not count, a separate C-220 should be submitted for these line items. For more information on DBE requests, refer to the article on DBE Subcontracting. If additional DBE subcontractors, suppliers, manufacturers or brokers are proposed by the prime contractor after the project commences, the engineer should work with the contractor to complete the "DBE Change" form so that the total utilization of DBEs can be accounted for on the project towards MoDOT’s overall statewide DBE goal attainment. In addition, any added DBEs need to be evaluated for CUF.
3. The Line No. and item Description should be as shown in the contract. However, the Quantity and/or the Subcontracted Unit Price will often differ from the contract; this is acceptable as long as they match the values in the subcontract agreement between the prime and the sub. Additionally, in rare cases, even the unit of measure might differ. For example, let’s say the contract line item is Diamond Grinding – 10,000 SY @ $3/SY = $30,000, yet the C-220 shows “Diamond Grinding (per hour)” with a quantity of 100 @ $250 = $25,000. This is acceptable if those are the terms in the subcontract agreement. Since there is not a field to show a revised Unit of Measure, the form instructions require the contractor to state the revised unit of measure in the Description. Also, even though their subcontract agreement may not include an estimated quantity, insist that your contractor provide an estimated quantity on the C-220. All of the above data is necessary for AWP to accurately track the total percent sublet on 1^st tier subcontracts.
4. Verify that all 1st tier requests include all work they plan to perform, as well as all work they plan to sublet to a 2^nd tier sub. The 2^nd tier request will only list items the 2^nd tier plans to perform. See EPG 108.1.2 Second Tier Subcontracting and EPG 108.1.3 Disadvantaged Business Enterprise Subcontracting for more information.
5. Verify that the requested subcontractor is on the approved Subcontractor List on the Bid Opening Info page under the Documents section and is qualified as a DBE (if the DBE box is checked) on the MRCC directory page. Refer unapproved subcontractors to the Perform Subcontracting Work webpage. If the requested subcontractor is performing a Professional Service, refer to EPG 108.1.4 Professional Service.
6. Confirm the request has been signed by an authorized representative of the prime contractor.
7. For federal aid projects, the prime contractor is required by federal statute to insert the contract Federal provisions and wage rates (including FHWA 1273) in all subcontract agreements. The reviewer should perform a random check on submitted subcontract agreements to help ensure the prime is meeting this requirement.
8. If all information is correct and all requirements are met, promptly enter the subcontract information into AASHTOWARE Project (AWP). Verify that the subcontract limit has not been exceeded (A pop-up notice will occur in AWP). Apply the MoDOT approval signature to the form. Save the approved subcontract request electronically according to current policy, with an electronic copy sent to the contractor as an attachment to an email.
9. If any of the information on the form is incorrect, or if approval cannot be granted for any reason, the contractor should be notified immediately with an explanation so they can correct the form or take other actions to proceed without delay. Once the subcontract request is approved and work begins, work performed by the subcontractor will be recorded in AWP daily on the Daily Work Reports (DWR) work items tab, with the subcontractor designated on the contractor line.

Subletting Limitation

The self-perform requirement for prime contractors is a minimum of 30% by specification which is also the federal requirement. The minimum requirement is tracked by the C-220 request to subcontract forms. No self-perform re-evaluation will be required for contract change order adjustments. The prime contractor is allowed to purchase materials for subcontractor’s work. The material purchased by the prime for the subcontractor should be clearly indicated on the C-220 subcontract form.