1 N.C. Admin. Code 5E.0101

Current through Register Vol. 39, No. 11, December 2, 2024

Section 05E .0101 - GOOD FAITH EFFORTS

Agencies shall require vendors subcontracting all or part of a contract for the purchase of goods or services to undertake good faith efforts to recruit HUB participation when contracting with the State. A vendor makes good faith efforts if they perform at least five of the following actions:

(1) Notifying at least two HUBs about the opportunity to participate as a subcontractor at least 10 calendar days before the opportunity to respond to the solicitation ends. The notification shall be made by electronic means and shall include:

(a) a description of the goods or services being solicited;

(b) the date, time and location where offers are to be submitted;

(c) the name of the individual within the company who shall be available to answer questions about the opportunity to participate in the response to the solicitation;

(d) where solicitation documents may be reviewed; and

(e) any special requirements that exists, such as insurance, licenses, bonds, and financial arrangements.

(2) Making plans, specifications, and requirements accessible to prospective HUB subcontractors by publishing them on the vendor's website at least 10 calendar days before the opportunity to respond to the solicitation ends.

(3) Dividing or combining elements of work into subcontracts as determined by the vendor.

(4) Working with minority trade, community, or similar organizations identified by the HUB Office that assist in recruiting HUBs. This element is satisfied if the vendor makes contact with any of the organizations listed at https://bit.ly/hub-business-resources to identify HUBs that provide goods or services needed to complete the project.

(5) Attending pre-bid conferences or site visits provided for in the solicitation.

(6) Assisting in obtaining required bonding or insurance or providing alternatives for HUB subcontractors. This element is satisfied if the vendor:

(a) Contacts a bonding or insurance company to assist a potential HUB subcontractor in obtaining coverage from the bonding company or insurance company;

(b) Offers to cover a potential HUB subcontractor with the vendor's bonding or insurance policy; or

(c) Offers a potential HUB subcontractor an alternative to bonding or insurance that meets the requirements of the solicitation.

(7) Negotiating with interested HUB subcontractors. The reasons for rejecting an interested HUB shall be documented in writing.

(8) Assisting a potential HUB subcontractor in obtaining equipment, loan capital, lines of credit, or joint pay agreements to secure loans, supplies, or letters of credit. This element shall be satisfied by:

(a) offering to loan equipment to a HUB subcontractor;

(b) offering a letter of reference to a HUB subcontractor to obtain equipment, supplies, a loan, or a line of credit; or

(c) offering to establish a joint payment agreement with a HUB subcontractor.

(9) Assisting a HUB subcontractor in obtaining the same unit pricing from the vendor's suppliers by requesting their suppliers provide the same unit pricing to a HUB subcontractor as the vendor would pay.

(10) Negotiating joint venture or partnership agreements with HUBs.

(11) Providing quick pay agreements and policies that pay HUB subcontractors as work is performed, whether in time units or job units, as agreed by the vendor and HUB subcontractor.

01 N.C. Admin. Code 05E .0101

Authority G.S. 143-48(a); 143-48.4; 143-49(1), (2), (3), (11); 143-53(a)(1), (4), (8); 143-60(5).
Adopted by North Carolina Register Volume 37, Issue 15, February 1, 2023 Eff. Pending Legislative Review.