Additional Priority Scoring Considerations Question 2

HB 2021, Section 30 (10)(d) Projects constructed in part or in whole by disadvantaged business enterprises, emerging small businesses or businesses that are owned by minorities, women or disabled veterans.

Should ODOE establish a minimum ratio of project funds to be awarded to qualifying contractors? As contracts may not be awarded until the grant funding is in place, how would an applicant demonstrate compliance?

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Based on HB 2021, Section 30 (10)(d), it is suggested that projects constructed by disadvantaged business enterprises, emerging small businesses, or businesses owned by minorities, women, or disabled veterans should be prioritized. This raises the question of whether the Oregon Department of Energy (ODOE) should establish a minimum ratio of project funds to be awarded to qualifying contractors.

Should ODOE Establish a Minimum Ratio of Project Funds to be Awarded to Qualifying Contractors?

Establishing a minimum ratio of project funds to be awarded to qualifying contractors could be a positive step towards ensuring equitable participation of disadvantaged and minority-owned businesses. This would encourage inclusivity and promote economic opportunities for these groups, aligning with the objectives stated in HB 2021, Section 30 (10)(d).

Demonstrating Compliance with the Minimum Ratio Requirement

To ensure that contracts are awarded in compliance with this requirement, applicants would need to demonstrate their commitment to including qualifying contractors in their project proposals. Here is how ERP (Enterprise Resource Planning) software can play a crucial role in this process:

1. Vendor Management Module: ERP systems typically have vendor management modules that allow businesses to categorize and track their vendors. Applicants can use this feature to identify and document the involvement of disadvantaged business enterprises, emerging small businesses, and businesses owned by minorities, women, or disabled veterans.

2. Project Management Module: Through the project management module, applicants can allocate specific portions of the project budget to qualifying contractors. This ensures that the minimum ratio of funds is set aside and tracked throughout the project lifecycle.

3. Reporting and Compliance Module: ERP software often includes robust reporting capabilities. Applicants can generate reports that detail the allocation of funds to qualifying contractors, demonstrating compliance with the established minimum ratio. These reports can be submitted to ODOE as part of the grant application or during project audits.

4. Contract Management Module: ERP systems can manage the contract lifecycle, ensuring that contracts with qualifying contractors are properly executed and tracked. This module helps in maintaining transparency and accountability in contract awards.

5. Financial Management Module: With the financial management module, applicants can ensure that payments to qualifying contractors are timely and within the allocated budget. This module also helps in monitoring overall project expenses and maintaining financial compliance.

Practical Steps for Applicants

• Pre-award Planning: Before the grant funding is in place, applicants should identify potential qualifying contractors and include them in their project planning. This involves outreach to disadvantaged business enterprises and minority-owned businesses to secure commitments.

• Documentation and Submission: Applicants should document their efforts to include qualifying contractors and provide detailed plans on how they will meet the minimum ratio requirement. This documentation should be included in the grant application to demonstrate compliance.

• Ongoing Monitoring: Once the project is underway, applicants should use their ERP software to continuously monitor and report on the involvement of qualifying contractors, ensuring adherence to the minimum ratio requirement.

In conclusion, establishing a minimum ratio of project funds for qualifying contractors is feasible and beneficial. ERP software can significantly aid in demonstrating compliance by providing the necessary tools for planning, tracking, and reporting on the inclusion of disadvantaged and minority-owned businesses in project contracts.

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