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The Tool
Box: The Certificate of Eligibility - "Prequalification" To
bid for work on The Bridges Project, KYTC certified DBE firms
(with the exception of material suppliers, service providers and
trucking businesses) must secure a Certificate of Eligibility
from the Division of Construction Procurement in addition to DBE
certification. It is important to understand that firms must first
earn certification by showing that they are owned and operated
by a person who meets the criteria of a disadvantaged business
owner (a socio-economic measure).
The Certificate of Eligibility, or prequalification,
certifies that the DBE firm can do the work for which it is applying.
The
information needed to begin the prequalification process is available
through the Division of Construction Procurement, Prequalification
Section. Contact Brent Kropf in The
Certificate of Eligibility application process can be executed
at the same time a firm is going through the DBE certification
process. Again, both designations are necessary for eligibility
to bid on the KYTC Projects, including The Bridges Project. Remember that success happens when preparation meets opportunity.
Be prepared! As
you prepare for prequalification, bear in mind the following points:
ü
Carefully choose
the type of work for which you seek eligibility. You can only
receive eligibility if your firm has the organization, experience
and equipment to do the job.
ü
Know that experience
is also a major factor. If your firm has limited experience doing
the work for which you are applying; go out and bid on smaller
related jobs. Make sure that you are in contact with as many prime
contractors as possible and seek out work that will add to your
accomplishments. You have time to do this before the project’s
major construction phases begin.
ü
Understand that
50 percent of the eligibility criteria are based on performance (30 percent on plant and equipment and 20 percent on the
organization and its experience).
ü
Understand your
contracting capacity. Will you be seeking eligibility for contracts
exceeding $250,000 or $1,000,000?
ü
Bonding capacity
is also a very important issue for all DBEs seeking work on the
Project. Can you obtain bonding for the size of the job on which
you’ll bid? Do
you have positive working capital? Current Assets – Current Liabilities
= Working Capital. Positive working capital means that your firm
is able to pay off any short-term liabilities, and is a key requirement
for prequalification. Many
prequalified DBEs have found the prequalification process difficult
and lengthy but they consistently say - if you get one large contract
because of it, it can make all the difference in the growth of
your business. |
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