What does the law require a prime contractor to do to encourage M/WBE participation in subcontracting?

A prime contractor must meet the M/WBE participation goal set by the local government for the project, or demonstrate a good faith effort to meet the goal. State law outlines ten actions that prime contractors can take to satisfy the “good faith effort” requirement. The prime contractor is not required to do all of these activities. Each effort is assigned a point value, and a prime contractor must achieve a minimum of 50 points to constitute a good faith effort. Local governments may include other actions in addition to the  ten outlined by the state. The ten actions and assigned point values are as follows:

• Contacting minority businesses that reasonably could have been expected to submit a quote and that were known to the contractor or available on State or local government maintained lists at least 10 days before the bid or proposal date and notifying them of the nature and scope of the work to be performed. (10 points)
• Making the construction plans, specifications and requirements available for review by prospective minority businesses, or providing these documents to them at least 10 days before the bid or proposals are due. (10 points)
• Breaking down or combining elements of work into economically feasible units to facilitate minority participation. (15 points)
• Working with minority trade, community, or contractor organizations identified by the Office for Historically Underutilized Businesses and included in the bid documents that provide assistance in recruitment of minority businesses. (10 points)
• Attending any prebid meetings scheduled by the public owner. (10 points)
• Providing assistance in getting required bonding or insurance or providing alternatives to bonding or insurance for subcontractors. (20 points)
• Negotiating in good faith with interested minority businesses and not rejecting them as unqualified without sound reasons based on their capabilities. Any rejection of a minority business based on lack of qualification should have the reasons documented in writing. (25 points)
• Providing assistance to an otherwise qualified minority business in need of equipment, loan capital, lines of credit, or joint pay agreements to secure loans, supplies, or letters of credit, including waiving credit that is ordinarily required. Assisting minority businesses in obtaining the same unit pricing with the bidder's suppliers in order to help minority businesses in establishing credit. (25 points)
• Negotiating joint venture and partnership arrangements with minority businesses in order to increase opportunities for minority business participation on a public construction or repair project when possible. (20 points)
• Providing quick pay agreements and policies to enable minority contractors and suppliers to meet cash flow demands. (20 points)