Certification Letter
A DBE Certification Letter from the Supplier Diversity Office (SDO) must be submitted with the Schedule of Participation and Letter of Intent.
Schedule of Participation (DBE Form 853)
The DBE and M/W/SDVBE Schedules of Participation forms are very similar. The DBE form 853 must be used for projects that include federal funding. The M/WBE Schedule of Participation forms 842 is used for projects that include only state funding.
The top portion of the form includes general information. The Bidder’s name (Prime Contractor’s), date of bid opening, MASSDOT project number (provided by MassDOT), Federal-aid project number, and city or town of project location (provided by MassDOT).
The Main Section of the Schedule of Participation consists of a grid with five (5) columns - all applicable sections must be completed.
- Column 1: Name, address & phone number of each DBE
- Column 2 - Name of Activity: Define exact Scope of Work. Submitted DBE must be currently SDO-certified in the specific category of work proposed for participation
- Column 3 - Contractor Activity Amount: *Must be at minimum 50% of DBE participation goal. Valued at 100% in column (c)
- Column 4 - Other Resources Amount: Must not exceed 50% of the total activity amount. **Valued at 60% in column (c)
- Column 5 - Total Amount Eligible for Credit: Sum of column (a) valued at 100% & column (b) valued at 60%**
NOTE: Columns (a) and (c) should be individually totaled at the bottom of the grid and should, at minimum, amount to the established goal percentage based on total dollar amount. Attach additional sheets as necessary.
* At least 50% of total dollar amount must be construction work activity in the specific category(ies) of work for which the DBE is certified (by SDO) at the time of bid. The sum of column (a) must be at least 50% of the total in column (c).
** On all contracts there is a “60% Rule” which is used to count the Prime Contractor’s expenditures with DBEs for materials or supplies toward DBE participation goals. If the material suppliers are from a certified DBE material supplier and the products are “off the shelf” (which are normally stocked items that will not be substantially altered), 60% of the dollar amount may be credited toward the goal. For example, materials for $1,000 should be listed as $1,000 in column (b) and counted as $600 towards the overall goal in column (c). If a material supplier will substantially alter the materials or supplies, 100% of the dollar amount may be counted towards the established goal. If the material supplier is also the manufacturer of the product(s) being supplied, 100% of the dollar amount may be counted towards the established goal. If the supplier also installs the materials 100% of the dollar amount may be counted towards the established goal. For materials or supplies purchased from a DBE which is neither a manufacturer nor a regular dealer, MassDOT will count the entire amount of fees or commissions charged for assistance in the procurement of the materials and supplies, or fees or transportation charges for the delivery of materials or supplies required on a job site toward the Contract participation goal, provided that MassDOT determines the fees to be reasonable and not excessive as compared with fees customarily allowed for similar services; the cost of the materials and supplies themselves will not be counted. May not exceed 50% of the total activity.
On the DBE Schedule of Participation B00853, the final section asks whether a Joint Check Approval is being submitted; select yes, no, or unknown at this time.
Indicate whether a third-party (i.e. manufacturer) will be used to deliver materials or perform any portion of the work.
The Schedule of Participation form must be signed and dated. Include the name and title of signatory, and contact information.
The Schedule of Participation and the Letter(s) of Intent must be submitted by the close of business on the third (3rd) business day after bid opening (i.e. if bids are opened on Tuesday the forms must be submitted by Friday).
Letter of Intent Page 1 (DBE Form 854)
The Letter of Intent form is required for all projects. Form B00854 (DBE) is used for federally-funded projects.
The DBE Letters of Intent include Name of Bidder to whom the Letter of Intent is being submitted, Name of DBE, Project No., Federal Aid Project No., Project Location and date of bid opening. (The DBE federal format of the declaration included in the Letter of Intent is substantially longer than the M/W/SDVBE state format.)
The first sections of the form on Page 1 are signed declarations from the DBE. Enter the Prime Bidder, DBE Firm, Date of Bid Opening, and name of DBE authorized signatory at the top of the page.
The Letter of Intent must be signed and dated at the bottom by the DBE submitting the form to the Prime Bidder.
Items 1-5, in the following Declaration section, pertain to the category of work, the certification status and their intent to perform a commercially useful function (to perform the work with their own workforce, management/supervision and equipment independently).
In item 1, the contractor must indicate what type of business they are certified as. See Document 00719 Special Provisions for Participation by Disadvantaged Business Enterprises for details.
- Contractor (General or Prime Contractor, Bidder, and DB Entity): a person, firm, or other entity that has contracted directly with MassDOT to provide contracted work or services.
- Broker: an Entity that has entered into a legally binding relationship to provide goods or services delivered or performed by a third party. A broker may be a DBE that arranges or expedites transactions but performs no work or installation services.
- Regular Dealer: a DBE firm that owns, operates, or maintains a store, warehouse, or other establishment in which materials, supplies, articles or equipment of the general character described by the specifications and required under the contract are bought, kept in stock, and regularly sold or leased to the public in the usual course of business.
- a) To be a regular dealer, the firm must be an established, regular business that engages, as its principal business, and under its own name, in the purchase and sale of the products in question.
- b) A person may be a regular dealer in such bulk items as petroleum products, steel, cement, gravel, stone, or asphalt without owning, operating, or maintaining a place of business as provided above if the person both owns and operates distribution equipment for the products. Any supplementing of regular dealers’ own distribution equipment shall be by long term lease agreement and not on an ad hoc or contract by contract basis.
- c) Packagers, brokers, manufacturers’ representatives, or other persons who arrange or expedite transactions are not regular dealers within the meaning of this definition.
- Manufacturer: a firm that operates or maintains a factory or establishment that produces, on the premises, the materials, supplies, articles or equipment required under the contract and of the general character described by the specifications.
- Professional Services: a firm providing bona fide services, such as professional, technical, consultant, or managerial services, or for providing bonds or insurance specifically required for the performance of a contract, toward DBE participation goals, provided it is determined that the fee is reasonable and not excessive as compared with fees customarily allowed for similar services
- Trucking Operations: see Document 00718: Special Provision for Participation by DBEs for full definition
In item 3, enter the date of the most recent certification review. If the last certificate date is unknown, refer to the Certification Letter issued by the Supplier Diversity Office (SDO).
Sign and date page one of the Letter of Intent form and move to the second page.
Letter of Intent Page 2 (DBE Form 854)
Enter the Date of Bid Opening, Prime Bidder, and DBE at the top of the second page.
The second page of the DBE Letter of Intent form consist of 6 columns of information to be completed:
- Column 1: Includes information on Item Number(s) of work scope to be performed (Additional sheets may be added if the space within the allotted columns is insufficient as noted at the end of the form.)
- Column 2: Includes the specific North Amer. Industry Classification System (NAICS) Code(s)for work items defined in Column 2 (See US Census website for details)
- Column 3: Is a description of Activity to be performed in Columns 1 & 2 with notations such as, Services or brokerage, Installation Only, Materials Only or Complete. (Additional sheets may be added if the space within the allotted columns is insufficient as noted at the end of the form.)
- Column 4: Defines the Quantity of items
- Column 5: Defines Unit Prices (if applicable)
- Column 6: Details Dollar Amount of Items & Activity (Work scope)
The DBE Letters of Intent concludes with another Declaration of sole performance of the work, services and/or material supplies outlined on the forms and are required to be signed and dated for submission.
The Schedule of Participation and the Letter(s) of Intent must be submitted by the close of business on the third (3rd) business day after bid opening (i.e. if bids are opened on Tuesday the forms must be submitted by Friday).
2 images of sample form #854 better as PDF Additional Resources