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The City of Portland, Oregon

Office of Management & Finance

Bureau of Revenue and Financial Services

Phone: 503-823-5288

Fax: 503-823-5384

1120 SW 5th Avenue, Rm 1040, Portland, OR 97204

Subcontractor Equity Program and Disadvantaged, Minority-Owned, Women-Owned and Emerging Small Businesses (D/M/W/ESB)

Questions: D/M/W/ESB Subcontractor Utilization

  1. Can a Contractor add or replace D/M/W/ESB subcontractor after Bid Submission?
  2. What is required by the successful Bidder/Proposer if ANY Subcontractor is added or replaced?
  3. Who do I contact if I have questions about this procedure?
  4. How is the Non-Utilization or Under-Utilization of identified D/M/W/ESB Subcontractors enforced after contract award on construction contracts?
  5. What happens if a contractor does not comply with these requirements?
ANSWERS: D/M/W/ESB Subcontractor Utilization
1. The Bidder/Proposer awarded a Contract shall not delete, substitute or add a D/M/W/ESB subcontractor without the consent of the Chief Procurement Officer at any time
2. The Prime Contractor shall make good faith efforts to solicit bids from D/M/W/ESBs for the work to be performed. Documentation of these efforts is required and shall be submitted to the Chief Procurement Officer prior to any subcontractor changes being made
3. Call the Contract Compliance Specialist assigned to the project. 
4.a The City has an expectation that if a Bidder/Proposer is awarded a contract and identifies that they intend to subcontract a portion of the project work, the Contractor will actually use the identified D/M/W/ESB subcontractor(s). This expectation also includes utilizing the subcontractor(s) within a reasonable range of the subcontract amount identified in the contract
4.b A reasonable range has been determined as within 20% of the original subcontract amount. Exceptions to this requirement are for approved change orders, reductions in scope of work caused solely by the City, failure of subcontractor to complete work or breach of subcontract, and approved substitution requests
5. Construction contract terms state that a failure to comply with these requirements will result in the Contractor paying a sum of $1,000 for each violation in liquidated damages

For more question about Procurement Services, Technical Assistance Programs and Resources visit the Procurement Services website.