Minority Business Selections

Subject:

Minority Business Selections Under G.S. 143-128

Requested By:

James K. Polk Special Assistant to the Governor for Minority Affairs

Questions:

(1)

Under G.S. 143-128, are contracts awarded by the State, city, county, or other public body pursuant to the separate prime contractor system exempt from the "verifiable percentage goal for participation by minority businesses" requirement as set forth in G.S. 143-128(c)?

(2)

Under G.S. 143-128(c)(4), who is required to make the good faith effort to recruit and select minority businesses for participation in contracts awarded under this section, the single prime contractor or the awarding authority?

(3)

Under G.S. 143-128(c)(3), who is required to make the good faith effort to recruit and select minority businesses for participation in contracts awarded under this section, the separate prime contractor or the awarding authority?

Conclusions:

(1)

No.

(2)

Single prime contractor.

(3)

The separate prime contractor is required to make the "good faith" effort, but the awarding authority is required to adopt guidelines.

(1)

Contracts awarded by the State, city, county or other public body are specifically included for verifiable percentage purposes as clearly stated in G.S. 143-128(c) as follows:

(c)

The State shall have a verifiable ten percent (10%) goal for participation by minority businesses in the total value of work for each project for which a contract or contracts are awarded pursuant to this section. Each city, county or other public body shall adopt, after a notice and public hearing, an appropriate verifiable percentage goal for participation by minority businesses in the total value of work for which a contract or contracts are awarded pursuant to this section.

(2)

G.S. 143-128(c)(4) provides that "’verifiable goal’ means for purposes of the single-prime contract system, that the awarding authority has adopted written guidelines specifying the actions that the prime contractor must take to ensure a good faith effort in the recruitment and selection of minority businesses for participation in contracts awarded under this section; the required actions must be documented in writing by the contractor to the appropriate awarding authority." This section clearly states that the single-prime contractor is the one who is required to make a

good faith effort to recruit and select minority businesses for participation in contracts under this particular section. The awarding authority must adopt written guidelines which specify the actions that the prime contractor must take.

(3) G.S. 143-128(c)(3) provides that "’verifiable goal’ means for purposes of the separate prime contract system, that the awarding authority has adopted written guidelines specifying the actions that will be taken to ensure a good faith effort in the recruitment and selection of minority businesses for participation in contracts awarded under this section." These written guidelines should specify actions which must be taken by the separate prime contractors to seek minority participation.

Lacy H. Thornburg Attorney General

D. David Steinbock Assistant Attorney General