This is a Caltrans Oversight Information Notice, or “COIN” for short. These short, single-topic bulletins are intended to provide outreach information and guidance to local agencies on issues pertaining to federal-aid projects. They cover a wide variety of subjects, including discussions of findings resulting from process reviews by Caltrans and/or Federal Highway Administration, changes in procedures or regulations, reminders of existing procedures or best practices, and other timely information. The goal is to ensure proper and timely delivery of federal-aid projects.
COIN # 23-01 is posted in an effort to remind California Local Public Agencies (LPAs) to ensure subcontracting requests are submitted by contractors and approved by Residents Engineers (RE) prior to the start of work by subcontractors.
One area of contract administration that repeatedly scored the lowest compliance is the Subcontracting Request. Per the review, the LPAs were asked if the Subcontracting Request form was submitted by the contractor and approved by the RE prior to the start of a subcontracted work. For 2022, the compliance rate was 65%, well below the target compliance of 85%. The compliance rate for prior years was similar, with no improvement from year to year. LPAs must review the guidance in Local Assistance Procedures Manual (LAPM) Chapter 16, Section 16.7: Subcontractors, and ensure their own processes and procedures meet the requirements.
The RE has the responsibility of approving subcontractors. In general, approval is necessary for only first-tier subcontractors. Before subcontracted work starts, the contractor must submit LAPM Exhibit 16-B: Subcontracting Request for approval. The Subcontracting Request Form must be approved prior to the start of work by subcontractors. The approved request must be kept in the project files.
Please click on the downloadable pdf to access full details: https://dot.ca.gov/-/media/dot-media/programs/local-assistance/documents/coin/coin23-01-a11y.pdf
Questions on this COIN #23-01 may be emailed to Girmay Beyene.