INDOT EOD Contract Compliance Updates

SOURCE: Kent Borggren, INDOT Economic Opportunity Division Contract Compliance Manager kborggren@indot.in.gov

Prior to the COVID 19 pandemic, the Contract Compliance section already had plans to update some of our processes.  Here are some of the things that we have been working on, and our future plans:

  • FHWA 1391 – This year the FHWA 1391 will be an ITAP application and must be submitted using that portal. We will not accept paper reports or excel reports. The report will also be ONE per company, not one per contract. This year’s reporting period to gather data on employees working on federally funded construction contracts is July 19 thru July 25, 2020. The ITAP application will be available beginning on July 18 and close on August 31, 2020. All prime contractors, subcontractors, and haulers working on Federally funded contracts with a value over $10,000.00 must report their workforce. If your company does not have workers present during that time period there is a “No Activity” box to check and then you submit your report. 
  • Subcontractor Payment Tracking System (SPT) –  A new version of the SPT system will be available very soon. It will resemble all of the other ITAP applications and will have a few added functions such as editing records, and PDF reports for your convenience. One of the biggest changes to the SPT system is the Subcontractor Verification. All contracts let as part of the July 2020 regular letting and beyond, will include Special Provision 108-C-264 SUBCONTRACTOR PAYMENT VERIFICATION. All subcontractors, and DBE, MBE, WBE, and IVOSB firms (haulers and suppliers) will be required to verify their payments received from the Prime Contractor no later than 20 days after the end of month in which payment was received. The Prime Contractor is responsible for timely reporting of all payments into the SPT system. 
  • DBE-3 –  We continue to meet our statewide DBE goal of 10.1%, this past report covering the period of October 1, 2019 thru March 31, 2020 we achieved 12.95% thanks to the Race Neutral participation of our prime contractors. Standard Specification 103.01(g) requires a DBE-3 form be submitted for all DBE subcontractor/lessor/supplier(s) utilized on any federal aid contract, whether or not they were listed on the Affirmative Action Certification. All completed forms should be submitted to: DBE3@indot.IN.gov. Our long range plan is for the DBE closeout process to be mostly automated.
  • MBE/WBE/IVOSB-3 – Beginning on July 1st our department will begin closing out the MBE/WBE/IVOSB-3 process much like we have been doing for the DBE program. We will be sending out the notification on contract close-out when the IC-642 has been sent to the prime contractor by the district final records section. We ask that beginning July 1 all of the completed MBE/WBE/IVOSB-3 forms be sent to MBE_WBE3@indot.IN.gov. Please be aware of the “_” between MBE and WBE in the email address. 
  • OJT Program – In the next few weeks, our department will begin working on turning our On the Job Training (OJT) Program into an ITAP application. We contemplate that this will greatly simplify email requirements and will store information so that it can be queried throughout the year. If you have any ideas on functionality as this application is developed, please let us know as we begin this development process by emailing Katie Daniels kdaniels2@indot.in.gov and/or Kent Borggren kborggren@indot.in.gov.
  • Affirmative Action Certification (AAC) –  Thank you to all of the prime contractors who have submitted their DBE quotes to us within the 24 hour required time period after contract letting. It has allowed our department to audit all of the quotes and compare them to the AACs and resolve many of our past questions in a very timely fashion. As a reminder, if the quote does not match what you entered onto the AAC please provide written documentation on the quote as to what was revised. Handwriting out an explanation is just fine – so long as it is legible and understandable. Also, even if you meet the DBE goal on the contract and you are committed to using additional DBE firms, please include those on the AAC. In the event there is an error on the AAC and you have listed additional DBE participation, we all might avoid a “Good Faith Efforts” hearing on the contract prior to award due to the extra DBE participation.
  • Change in DBE Utilization – Remember to timely submit your Change in DBE Utilizations as soon as you realize there is an issue with what you have committed to on the AACs. Without an approved Change in DBE Utilization, any work that was performed by someone other than the listed DBE firm will not be paid for by INDOT.  Completed Change in DBE Utilizations should be submitted both to DBEChange@indot.IN.gov and the local EEO Officer for tracking purposes.
  • Prompt Payment –  Just as a reminder all contractors are to pay their subcontractors within 10 business days after being paid by INDOT. If a Subcontractor/hauler/supplier feels that they are not being paid timely by the prime contractor, please submit your concerns to Promptpayment@indot.IN.gov. We will investigate any and all of your concerns. 
  • SMGR Reports (in ITAP) – Within ITAP you can look at one of the applications SMGR Reports which gives you several good pieces of information from our SiteManager program. Once you have access to the SMGR Report application you simply enter in your INDOT contract number and you  have access to several reports. In the top section, the IC642CLN report will give you information on the whole contract. In the lower section, the Progressive Record Activity will give you information on a specific line item and what has been recorded on a daily basis. This is an easy and quick way to see what work has been recorded for payment by the INDOT or Consultant field staff on a particular contract.

If you have any questions or concerns please let me know at: KBorggren@indot.IN.gov.

Recruiting Opportunity for INDOT Contractors

Source: INDOT

The Indiana Department of Transportation has awarded Vincennes University Logistics Training and Education Center (VU LTEC) in Plainfield a Supportive Services grant through the Federal Highway Administration, aimed at providing CDL Class A training to women, minorities and economically disadvantaged individuals. The purpose of this grant is to increase the number of individuals who receive training and ultimately obtain their CDL license, to enter jobs within the transportation/heavy highway industry. VU LTEC begins a new CDL training class the first Monday of every month. The training program is six-weeks in length, focusing heavily on hands-on driving application. VU LTEC invites employers who are seeking CDL drivers, an opportunity to come to VU LTEC and speak with students about employment opportunities available within your company.

Recruiting times are available Monday-Friday from 8:00-8:30AM or 11:30AM-12:00PM.  To schedule a time, please contact Maria Srnka at VU LTEC at 317-381-6029 or MSrnka@vinu.edu.

If you have additional questions about the VU LTEC CDL training program, you can contact Kyle Walker, CDL Coordinator at 317-381-6084 or LWalker@vinu.edu.

2016 Legislative Session Wrap-Up

Road Funding

The Indiana General Assembly didn’t pass long-term transportation funding during the 2016 short session, but it approved several bills allowing for diversion of existing and future collected tax funds from the local option income taxes reserves, general fund and gas use tax. These will provide:

  • $330 million for local units of government in fiscal year 2016;
  • $228 million for INDOT in fiscal year 2017
  • $414 million for local units of government in fiscal year 2017;
  • $68 million for local units of government in fiscal year 2018; and
  • $105 million for local units of government in fiscal year 2019.

Counties can now double their wheel tax (raising an additional $286 million), and municipalities with a population of more than 10,000 may impose a wheel tax at their existing rate (raising an additional $90 million).

Lawmakers created a 16-member task force of legislators and gubernatorial appointees (including one recommended by Build Indiana Council) to analyze state and local road and bridge needs and long-term funding methods. The task force must present its recommendations to the State Budget Committee by January 1, 2017.

Lake, LaPorte, and Porter counties will see additional funding from revisions to local income tax laws, and Henry County plans to use a food and beverage tax for roads. Lagging farmland assessment values will decrease local tax revenues across the state.

Time & Material

Contractors selling non-tax exempt construction under a time and material (T & M) agreement or simply providing invoices including detailed labor, material, and equipment costs should consult with an accountant familiar with contract law and the new Indiana Code 6-2.5-4-18, Retail Transactions of Merchants. The new law is retroactive to January 1, 2007. Indiana Department of Revenue supported the bill to provide a legal basis for existing administrative code 45 IAC 22-3-9. The law states that contractor selling construction under a T & M contract must collect and remit the state gross retail tax.

Insurance

Legislators adopted language that provides a specific legal basis for “named driver exclusions” that limit liability to the insured.

VBE

Lawmakers added a definition of “veteran” to Indiana’s small business code. For the purposes of qualifying as a veteran-owned business for set-aside government purchases, a veteran is any individual who is serving, or has served, in any branch of the armed forces of the United States or their reserves, the national guard, or the Indiana National Guard. The bill also removed the requirement that a veteran be a resident of Indiana for at least one year before making an offer to bid on a state contract.

Public Works Contracts

The public works contractor qualification requirement, adopted in 2015 and scheduled to go into effect on July 1 will now go into effect on December 31 of this year. Lawmakers added two new sections under State Public Works – Qualifications for State Public Works Projects and INDOT – Qualifications of Bidders for Contracts. Contractor prequalification is not required for public works contracts awarded by a local unit of government if

  1. The total estimated contract amount does not exceed $300,000;
  2. The public agency complies with Indiana Code 36-1-12 including bidding procedures, bonding and drug testing.

Local government units may not establish wage rates in a contract in a public works contract unless mandated by federal or state law.