10 Prevailing Wage Pitfalls Prime Contractors Can’t Ignore (And How to Stay Ahead)

B2Gnow

Complying with prevailing wage laws is essential for prime contractors working on public projects. This ensures the smooth execution of projects and protects your company’s reputation and financial stability. Failure to comply can result in hefty fines, payment delays, and even debarment from future projects, which can severely impact business operations. Below are the top challenges prime contractors face, along with how technology solutions can mitigate risks and ensure accurate compliance.
1. Accurate Submission of Certified Payroll Reports (CPRs)

Submitting timely and accurate CPRs is one of the most challenging aspects of prevailing wage compliance. Errors in these reports—whether due to misclassifications, incorrect wage rates, or missing details—can lead to rejected CPRs, delayed payments, and the need to pay restitution. More importantly, inaccurate CPR submissions increase the risk of being debarred from future government contracts.

How Technology Helps:
A comprehensive prevailing wage and workforce compliance software will go beyond basic form generation. It should include built-in validation checks that flag potential errors before certified reports are submitted. This reduces the risk of rejections or penalties and ensures that CPRs are accurate and compliant from the start.
2. Managing Subcontractor Compliance and “Flow-Down” Responsibility

On large public works projects, managing subcontractors’ compliance is a significant concern. What many don’t realize is that prime contractors are responsible for ensuring their subcontractors’ compliance, even if those subcontractors fail to submit their reports on time.

How Technology Helps:
A robust system will provide real-time visibility into subcontractor submissions and offer collaboration tools, such as portals for subcontractors to submit directly and automatic alerts for missing or late reports. This will ensure that prime contractors maintain compliance across the entire project team without constant manual follow-up.
3. Keeping Up with Changing Regulations Across Jurisdictions

Prevailing wage laws are constantly evolving at the federal, state, and local levels. Contractors working in multiple jurisdictions face an even greater challenge in staying current with wage determinations and compliance rules that vary from one project to the next.

How Technology Helps:
A leading prevailing wage and workforce compliance software, such as eComply, includes automated updates that reflect the latest regulatory changes and jurisdiction-specific requirements. Some comprehensive platforms go beyond automation by providing a dedicated wage and rate team that actively tracks and applies updates from federal, state, county, and local sources, including pre-increases and addendums. With this type of support included at no additional cost, contractors can stay current without assigning internal staff to monitor shifting regulations—an area where other systems may charge extra.
4. Meeting Tight Submission Deadlines

Certified payroll reports often have weekly or bi-weekly deadlines. Collecting data from internal systems and subcontractors under time pressure can lead to rushed and error-prone submissions.

How Technology Helps:
 A comprehensive platform will streamline data collection, automate certified payroll report generation, and send deadline reminders to both prime contractors and subcontractors. This will reduce administrative burdens and help teams consistently meet deadlines without last-minute scrambles.
5. The Challenge of Double Data Entry

Contractors often utilize payroll software to track employee wages and work hours. However, when it comes to submitting CPRs, they frequently face the burden of double-entry. This involves manually transferring the same data, such as employee names, dates, and wages, from their existing payroll systems into the CPR format. This repetitive task consumes valuable time and resources each week.

How Technology Helps:
The most efficient prevailing wage and workforce compliance software solutions can integrate with existing payroll software, eliminating the need for manual data transfer. By connecting the two systems, weekly payroll data can automatically populate the CPRs. This seamless interface significantly reduces the time spent on administrative tasks and minimizes the potential for errors during manual data entry.
6. Audit Preparedness and Documentation Management

Government audits of certified payroll reports are common, and contractors must be ready to present complete and accurate documentation at any time. Being unprepared can lead to penalties and long-term consequences.

How Technology Helps:
 The right solution will maintain a secure, centralized, and audit-ready history of all payroll reports, wage determinations, and correspondence. Some platforms even provide audit trail features with timestamps and version history, making it easy to respond quickly and confidently during an audit.

7. Reducing Compliance Risks with Automated Validation


Manual review of Certified Payroll Reports (CPRs) is time-consuming and prone to error, increasing the risk of violations. This is especially true when dealing with complex regulations and numerous subcontractor submissions.

How Technology Helps:
A comprehensive labor compliance solution uses automated validation checks to reduce these risks significantly. The software:
  • Flags potential errors in CPRs, such as mathematical discrepancies, missing data, and incorrect wage rates, before submission.
  • Validates subcontractor CPRs to ensure compliance across the entire project team.
  • Provides real-time alerts for errors, allowing for prompt correction and preventing issues from escalating.
  • Maintains an audit trail of flagged errors and corrections, supporting audit preparedness.

By automating these validation processes, contractors can minimize human error, ensure accuracy, and drastically reduce the risk of compliance violations and penalties.
8. The Risk of Debarment

One of the most serious consequences of non-compliance is debarment. A debarred contractor is banned from participating in future public projects, which can jeopardize future revenue and threaten client relationships.

How Technology Helps:
 A well-rounded labor compliance system helps mitigate this risk by ensuring strict adherence to all applicable rules (ie, Davis-Bacon). Features like automated alerts for underpayments and overpayments, accurate craft and classification tools, and consistent monitoring help contractors stay in compliance and avoid being added to the debarment list.
9. Maintaining a Strong Reputation

In the world of public contracting, a solid reputation is critical. Allegations of wage theft or non-compliance can damage relationships with workers, unions, and government agencies, even if the issue was an honest mistake.

How Technology Helps:
 A transparent and accountable compliance process, supported by modern technology, builds trust with stakeholders. It demonstrates a contractor’s commitment to fair labor practices and helps protect long-term relationships and business opportunities.
10. Lack of Integration Across Compliance Programs

Many contractors rely on multiple systems to manage different aspects of compliance, such as certified payrolls, workforce tracking, and supplier diversity efforts. Without tight integration between these systems, there’s a higher risk of data inconsistencies, reporting delays, and missed compliance opportunities.

How Technology Helps:
For optimal prevailing wage compliance, prioritize platforms that seamlessly integrate across modules and with other compliance programs, such as supplier diversity software, ensuring smooth data flow throughout the project lifecycle. Look for a solution that enables shared user access, contract syncing, and reporting across systems to reduce duplication and improve visibility. For example, a solution like eComply offers integrated reporting with a leading business diversity platform, ensuring contractors can manage both prevailing wage and diversity compliance in one place. With single sign-on functionality, this type of integration is not just convenient—it’s essential for managing compliance as a whole and preventing gaps.
Conclusion

For prime contractors, managing prevailing wage compliance and certified payroll reports is an ongoing challenge. The stakes are high—non-compliance can lead to fines, reputational harm, and even debarment. However, by leveraging a comprehensive, fully integrated labor compliance solution, contractors can simplify reporting, collaborate effectively with subcontractors, stay ahead of changing regulations, and protect their business from the serious risks of non-compliance.

Even more powerful is the ability to integrate labor compliance with supplier diversity programs, allowing teams to track, manage, and report on all aspects of contract compliance from a single, connected system. Not all prevailing wage and workforce compliance software platforms offer this level of coordination—choosing the right one can transform compliance from a burden into a strategic advantage.

Staying Ahead of the Curve: Navigating California’s Prevailing Wage and Certified Payroll Reporting Requirements

B2Gnow

California is well-known for its commitment to worker protection, which, while beneficial for employees, can present challenges for employers striving to maintain compliance. A key example is California’s prevailing wage law, designed to ensure workers on public works projects are paid fairly, in line with the “prevailing” rate for similar work in the region.

The Importance of Prevailing Wage Compliance
Complying with prevailing wage laws is essential for maintaining ethical practices and protecting public agencies and contractors from serious legal and financial consequences. For contractors, failure to comply can result in penalties such as back wages, liquidated damages, and, in some cases, even civil or criminal charges. For agencies, it can mean failing an audit and losing critical funding. Ensuring full compliance with these laws is crucial to avoiding costly repercussions.

Protecting Your Agency: Best Practices
To reduce non-compliance risks, agencies and contractors must take proactive steps. Here are some best practices to follow:
  • Thorough Review of Certified Payroll Reports (CPRs): Each CPR should be carefully reviewed for accuracy in base pay rates, overtime, holiday pay, fringe benefits, and apprentice ratios. Minor errors can lead to significant issues.
  • Conducting Field Inspections and Employee Interviews: On-site inspections and interviews with workers provide a direct way to verify that the information on the CPRs aligns with actual job conditions and worker experiences.
  • Maintaining a Comprehensive Audit Trail: Keeping detailed records of all submitted, rejected, and accepted CPRs and supporting documentation is essential. This ensures accountability and helps address any discrepancies quickly.

Leveraging Technology for Streamlined Compliance
While manual processes are time-consuming and prone to errors, technology offers powerful tools to streamline compliance. Comprehensive solutions like eComply automate CPR reviews, flag discrepancies, and facilitate swift communication with contractors for corrective action. Additionally, technology can provide the following benefits:
  • Efficient Field Inspections: Mobile modules enable on-site inspectors to easily record and share data, with reports that compare field findings to submitted CPRs, identifying any inconsistencies in real time.
  • Comprehensive Reporting: Technology provides access to a wide variety of standard and customizable reports, offering valuable insights into workforce utilization, compliance trends, and potential risk areas.
  • Improved Visibility and Control: Configurable dashboards give agencies a snapshot of project activity, highlight key action items, and provide a centralized view of compliance data, making it easier to track progress and manage compliance.

Partnering for Success
Public agencies and contractors can successfully navigate California’s prevailing wage laws by combining best practices with advanced technology solutions. These efforts help protect against legal and financial penalties and contribute to fair wages for workers and the overall success of public projects. Leveraging technology like eComply Labor Compliance Software further streamlines processes by automating CPR reviews, flagging discrepancies, and enhancing communication with contractors for swift corrective action. This reduces the risk of human error, saves valuable time, and allows staff to focus on other critical aspects of their projects. Staying ahead of the curve with proactive compliance strategies ensures that both workers and employers benefit from a smooth, efficient, and fully compliant process. Learn more and schedule a demo to see how eComply can help you stay ahead with streamlined compliance and automation.

By Lynn Hang, Vice President and General Counsel, B2Gnow
Lynn Hang is the Vice President and General Counsel of B2Gnow, a leading provider of supplier diversity and labor compliance management solutions. With over 15 years of legal and business experience, she specializes in prevailing wage regulations, contract compliance, and regulatory developments. A licensed attorney, Ms. Hang is a graduate of the UCLA School of Law.

 






	






	

		
Davis-Bacon Act Compliance: Using Technology to Manage the Complexity of Davis-Bacon and State and Local Counterparts
			

					
		
			
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Maintaining compliance with the Davis-Bacon Act (DBA) and state and local counterparts can be a time-consuming and difficult task for agencies and contractors working on federal or state-funded projects. 





The complexities and administrative burdens arise when organizations are responsible for not only keeping accurate payroll records but also ensuring subcontractors comply with prevailing wage rates. Thankfully, for labor compliance professionals, technology has simplified and streamlined these processes, and the B2Gnow eComply prevailing wage labor compliance solution is a powerful tool designed to help agencies and contractors ensure full compliance with Davis-Bacon and related labor regulations.





Why Use Technology for Davis-Bacon Compliance?





The Davis-Bacon Act mandates that contractors pay workers no less than the prevailing wage for the type of work they perform, and this includes detailed record-keeping and reporting obligations. Managing these Davis-Bacon and state and local counterparts requirements via paper, Excel gymnastics, or other inefficient systems can result in errors, delays, compliance or even worse – debarment risks. Technology solutions have really made a difference in this space, and eComply’s prevailing wage labor compliance system is the industry leader. With over two decades of experience, it offers a comprehensive, cloud-based platform that can help organizations and contractors:





    

  • Easily track and monitor prevailing wage standards in a modern, cloud-based platform
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  • Automatically check all submitted Certified Payroll Reports (CPRs) for areas of non-compliance and immediately flag for review
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  • Maintain all versions of CPRs in the system for a full historical mapping and be audit-ready
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  • Manage everything at your fingertips – with all documentation captured and stored in the Documents Library
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  • Benefit from automated, digital forms that capture diverse workforce participation, employee status, employee hours, work categories, wage rates, and apprentice-to-journeyman ratios
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  • Access to rates from all applicable prevailing wage determinations (including updates and pre-increases) that are monitored and updated by eComply staff at no additional cost
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  • Seamlessly integrated compliance management – integration of B2Gnow supplier diversity and eComply prevailing wage labor compliance provides a more efficient and comprehensive compliance management solution for public infrastructure projects
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  • And more! Learn more about B2Gnow’s eComply Labor Compliance and Prevailing Wage functionality
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A Spotlight on the B2Gnow eComply Prevailing Wage Labor Compliance Solution





The complexity of Davis-Bacon and state and local counterparts doesn’t have to be a burden. Technology solutions have made a big impact in this industry. The eComply prevailing wage labor compliance system is a leader in this space and provides contractors and organizations with a comprehensive, cloud-based platform that can streamline their compliance processes, reduce manual errors, and stay ahead of regulatory requirements. By leveraging technology, contractors and organizations can focus more on project delivery and less on administrative tasks—while ensuring they remain compliant and avoid costly penalties. Plus B2Gnow has more than 25 years of experience and is used by over 500 public and private sector organizations across the United States and Canada. With advanced data security, data integrations, and unparalleled training and customer support, B2Gnow empowers agencies and contractors to maintain audit readiness, enhance operational efficiency, and protect their reputations while ensuring workers receive fair wages as mandated by law. Learn more and request a demo.






	






	

		
Supplier Diversity Programs 101
			

					
		
			
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Supplier diversity programs are essential because they promote economic inclusion and foster lasting economic growth and impact across communities.  Furthermore, when organizations provide opportunities for small and diverse businesses to compete and succeed, organizations benefit from a broad and growing pool of vendors, innovation, adaptability, unique perspectives, and increased competitive advantage. In this article we outline supplier diversity program basics as well as common supplier diversity program challenges, pathways to a successful supplier diversity program, and  more: 





What is a Supplier Diversity Program?





A supplier diversity program is an initiative that encourages organizations to develop proactive, inclusive procurement practices aimed at engaging and doing business with organizations that are at least 51% owned and operated by historically underrepresented or underserved groups. This often includes minority-owned business enterprises (MBEs), small business enterprises (SBEs), women-owned enterprises (WBEs), veteran-owned small businesses (VOSB), and many more. These programs help to give small and disadvantaged businesses equitable access to more project opportunities. 





Why are Supplier Diversity Programs important?





Federal, State, and Local governments, as well as healthcare, corporate, and general and civil contractors, establish Supplier Diversity Programs to help level the playing field for underrepresented individuals and businesses. Supplier diversity progams are important because they increase innovation, promote economic equity, and support economic growth and development. 





How do organizations implement a Supplier Diversity Program?





There are several factors to consider when you are implementing a supplier diversity program. If you’re a public agency, there are federal, state, and local rules you can refer to that outline program requirements and goals, such as the U.S. Department of Transportation’s USDOT DBE/ACDBE program. For corporate organizations, you can follow similar rules or  develop your own. In general, you’ll want to set clear goals and objectives for your program, such as supporting specific community groups or meeting compliance objectives, that align with your organiation’s overall mission and values.  Additionally, supplier diversity initiatives require key executive leadership and stakeholder buy-in – this helps to ensure your program will get adequate resources, support, and alignment of priorities. Next, you’ll need to answer and define key questions such as: how will you identify, engage and source small and diverse businesses? How will you collaborate across your organization’s key teams, including the procurement team? How will you manage, track and report on the progress of your program? How will you highlight your program’s impact, grow your vendor ecosystem, and more?





What challenges do organizations face when establishing a Supplier Diversity Program?





Not every Supplier Diversity Program is the same. There can be deviations between federal, state, and local programs. Here are some challenges many organizations run into when implementing a supplier diversity program:





    

  1. Confusion surrounding the rules and regulations of specific supplier diversity programs
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  2. Not knowing where to start
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  3. What technology can aid with supplier diversity programs
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  4. Getting buy-in for a supplier diversity program from decision-makers
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  5. Getting the entire organization onboard with the program
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  6. How to measure success
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How can a Supplier Diversity Program benefit an organization?





Studies show that organizations with supplier diversity programs that use diverse suppliers have an increase in profitability between 25 – 35%. Research also shows that small and diverse vendors can provide flexibility that larger organizations can’t. Having come from different and unique experiences, small and diverse vendors bring new ideas and innovation to the table. Additionally, including small and diverse vendors in public projects provides jobs and economic benefits within the community. To learn more about the positive impact that supplier diversity programs can have on organizations and the surrounding communities, read our blog Transforming Your Disadvantaged, Small or Local Business Inclusion Program: Navigating New Challenges and Boosting Efficiency in 2024





What types of organizations qualify as diverse suppliers?





You can qualify as a diverse supplier if you are at least 51% owner of your business and you are a minority, woman, veteran, identify as LGTBQ, disabled, or other disadvantaged business owner. Other factors considered include your personal net worth and your organization’s annual revenue. 





How can an organization find and connect with diverse suppliers?





Using B2Gnow’s Business Diversity Management software to manage your Supplier Diversity Program is one of the best ways to find and engage with small and diverse suppliers. B2Gnow has the largest database of certified suppliers in North America, most of which is real-time data. The B2Gnow platform makes it easy to search based on various criteria so that you find suppliers that match your project and reduce the time spent searching. The B2Gnow platform also has outreach capabilities that allow you to match with vendors, and then send them emails to solicit their business for that project, all within the system.





How can organizations measure the success of their Supplier Diversity Program?





With B2Gnow’s Business Diversity Management software, you can run a successful Supplier Diversity Program and set defensible goals based on the project size, monitor progress, compare goals to actuality, track spend, track subcontractor payments, and run reports to share with overseeing agencies. Other ways to measure success include looking at the amount of revenue the suppliers you hired have generated in their communities and the hiring rate of diverse workers on your projects.





Conclusion





Supplier diversity programs are the fabric of economic growth and pivotal in creating lasting impact across communities. For over 25 years, B2Gnow Supplier Diversity Software brings a wealth of knowledge to help organizations start, pivot, and grow supplier diversity programs and achieve compliance goals. From states to state DOTs, cities, counties, transits, airports, education, general contractors, healthcare, and more – organizations benefit from one solution to manage vendor certifications, track small and diverse vendor utilization, manage prevailing wage labor compliance, and generate reports for program compliance and results. Organizations save up to 60%-80% of time spent on administrative tasks, freeing up time for endeavors that make a bigger difference in the communities they serve. Learn more and request a demo: https://b2gnow.com/request-a-demo/






	






	

		
Supplier Diversity Plan: a Framework for Equitable Procurement Practices
			

					
		
			
				B2Gnow			
		
	
		
		
	
			

			


	
	

		

A supplier diversity plan is a framework for organizations striving to develop and maintain inclusive, equitable procurement practices. By outlining strategies to identify, engage, and integrate small and diverse suppliers—such as historically underrepresented businesses owned by minorities, women, veterans, and LGBTQ individuals or those with disabilities—these plans enable public agencies to better address disparities in their procurement practices. This blog examines the importance and purpose of supplier diversity plans, the steps to create, implement, and monitor them, and the challenges and misconceptions public agencies may encounter along the way.





What is a Supplier Diversity Plan?





A Supplier Diversity Plan for public agencies and organizations is a strategic initiative focused on driving equitable access to contracting opportunities for small and diverse businesses. Public agencies and other organizations often adopt supplier diversity plans in order to maintain compliance with government regulations, drive equity goals, and support economic growth for communities.





Why is Supplier Diversity Important for Organizations?





Supplier diversity is important for organizations for a variety of reasons:





    

  • Promotes equitable contracting – a supplier diversity program plan and strategy means that small and diverse businesses – such as minority-owned, women-owned, veteran-owned, disabled-owned, and LGBTQ+-owned – have a fair opportunity to compete for public contracts, which fosters economic inclusion and wealth-building in local communities.
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  • Maintains compliance with regulatory requirements – many public agencies and other organizations have goals and targets that drive their strategic supplier diversity program plan. Managing, tracking, and reporting on these requirements can be challenging.  Many organizations rely on tools like B2Gnow Supplier Diversity software to manage their supplier diversity program plan and maintain compliance with complex regulatory requirements.
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  • Drives community engagement and organization reputation – by implementing a supplier diversity strategic plan, organizations demonstrate their commitment to transparency and equitable contracting, which supports an increase in public trust and a positive reputation.
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  • Promotes job growth and strengthens local communities – engaging and growing a small, local and diverse vendor pool supports small and diverse businesses within the local community resulting in job creation, generational wealth building, and positive economic impact. Further, it keeps more tax dollars in the local community.  
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What Are the Benefits of Implementing a Supplier Diversity Plan?





The benefits of implementing a supplier diversity plan are numerous.  Here are a few key benefits of implementing a supplier diversity plan for both organizations and small and diverse vendors:





    

  • Access to additional funds: In many instances, public agencies with robust supplier diversity programs may qualify for additional funding benefits due to strong diversity and inclusion initiatives.
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  • Positive economic impact: Engaging and providing an opportunity for small and diverse businesses to compete for government contracts contributes to job creation and positive economic impact.
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  • Wider pool of vendors: Organizations who are outreaching, engaging and growing a pool of small and diverse vendors often see increased competition, greater innovation, improved service, reduced risk, and a positive impact on their supply chain.
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  • Enhanced compliance, reputation and trust: Organizations who commit to a supplier diversity plan often have diverse business utilization goals to meet, and a supplier diversity program plan helps to fulfill these targets. When organizations achieve and meet their compliance goals and targets, the result is often a positive reputation for supporting diversity and inclusion, making organizations more attractive to small and diverse suppliers, stakeholders, and others in the community.
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  • Equitable contracting: Supplier diversity plans provide small and diverse firms with a fair opportunity to compete and win government contracts. Winning government contracts often results in increased growth and revenue for small and diverse firms, supporting their long-term success.
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  • Builds and strengthens partnerships: Supplier diversity plans often include educational workshops, networking events, and opportunities for small and diverse firms to connect and partner with large contractors and public agencies, setting them up for lasting success.
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  • Valuable resources and tools for small and diverse firms: Supplier diversity plans equip small and diverse vendors with resources, tools, and invaluable networking opportunities to compete more effectively, expand into new markets, and grow their role in the public sector supply chain.
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How Do Organizations Identify Diverse Suppliers?





Organizations use a number of methods to identify diverse suppliers – many of these methods are manual and time-consuming. By leveraging a solution like B2Gnow Supplier Diversity Software, organizations can access one central platform enabling them to source more small and diverse vendors, facilitate vendor registration, engage and outreach to vendors, easily manage vendor data, and tap into the most comprehensive certified vendor database – with most directories available in real-time for a level of accuracy found nowhere else.





What Steps Are Involved in Developing a Supplier Diversity Plan?





There are several steps involved in developing a supplier diversity plan to ensure it’s sustainable, impactful and aligns with organizational goals and values.  Public agencies, contractors and other organizations follow essential steps when developing a supplier diversity plan.  Here are a few key elements that organizations should consider: 





    

  • Create supplier diversity plan goals and objectives: Ensure that your supply diversity plan has goals that are clearly defined and align with top-level organizational goals and objectives.
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  • Understand complex regulatory requirements: Research and understand any federal, state, local, etc. compliance requirements and regulatory mandates that may impact your supply diversity plan.
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  • Achieve stakeholder buy-in: Inform, educate, and secure critical stakeholder buy-in for your supplier diversity plan. This step is critical to ensure support and sustainability of your supplier diversity plan.
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  • Draft a supplier diversity plan policy document: Draft a plan complete with guidelines and processes that clearly outline your supplier diversity plan and initiatives.
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  • Set qualification criteria and certification: Define and create standards for vendor qualification and outline a certification process
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  • Develop a plan to start and grow your small and diverse vendor pool: Create a plan for how you will engage, outreach to, and grow your supplier diversity vendor pool.  Consider leveraging a solution like B2Gnow supplier diversity software. B2Gnow allows organizations to tap into the most extensive, real-time certification directory and leverage powerful tools to create automated, targeted outreach campaigns to vendors for email blasts.
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  • Track, measure and report on the progress and success of your supplier diversity program plan: Rely on an all-in-one platform like B2Gnow to effectively manage, track, and report on your supplier diversity program. With a focus on compliance and equity, B2Gnow’s innovative software streamlines vendor certification, project data collection, compliance, and reporting processes, ensuring transparency and fairness in contracting practices. B2Gnow maintains North America’s largest database of over 500,000 certified, disadvantaged business entities, helping the federal government, more than half of state governments, hundreds of counties, cities, airports, general contractors, and Fortune 500 companies manage their supplier diversity and compliance programs through technology solutions for 25 years.
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  • Promote the success of your supplier diversity plan and program: Regularly promote the progress and achievements of your supplier diversity plan and program – both internally and externally, from articles to newsletters, to press releases, and more. This will help to raise awareness of the program and promote support and sustainability of the supplier diversity initiatives. 
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  • Review and iterate the supplier diversity plan and program: Ensure that you are regularly evaluating your supplier diversity plan and program. Review challenges, needs, and opportunities, and iterate as needed.
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How Can a Supplier Diversity Plan Improve Organization Performance?





A supplier diversity plan can dramatically improve public agency and organization performance.  Here are just a few of the reasons why a supplier diversity plan can improve organization performance:





    

  • Propels economic impact: Supporting and engaging small and diverse vendors by providing them with an opportunity to compete for government contracts drives job creation and strengthens communities. 
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  • Grows the vendor pool: Organizations that leverage small and diverse vendors often benefit from increased competition, innovation,  enhanced service, reduced risk, and a positive impact on their supply chain.
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  • Drives compliance and transparency: Numerous organizations and public agencies have inclusion goals and targets they are mandated to meet, and a supplier diversity plan ensures these targets are prioritized, leading to increased transparency as well as increased funding.
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  • Enhanced compliance, reputation and trust: Organizations that commit to a supplier diversity plan often have diverse business utilization goals to meet, and a supplier diversity program plan helps to fulfill these targets. When organizations achieve and meet their compliance goals and targets, the result is often a positive reputation for supporting diversity and inclusion, making organizations more attractive to small and diverse suppliers, stakeholders, and others in the community.
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What Challenges Do Organizations Face When Implementing a Supplier Diversity Plan?





Public agencies and organizations may face challenges when implementing a supplier diversity plan.  Common obstacles to implementing a supplier diversity plan include: finding and growing a diverse supplier pool, dealing with limited resources and a small staff, and complex tracking and reporting requirements. Due to these common challenges to implementing a supplier diversity plan, many public agencies, contractors, and organizations rely on tools like B2Gnow supplier diversity software to eliminate challenges and build an impactful, lasting supplier diversity program:





B2Gnow business diversity software provides customers with powerful vendor outreach and engagement capabilities – allowing customers to search, sort, and group vendors by a variety of parameters such as certification type, certification agency, race, gender, NAICs, and much more.  Most importantly, finding certified vendors is a breeze with access to the largest database of certified suppliers – this certification data is native and real-time in the B2Gnow system. 





From a tracking, reporting and compliance perspective, B2Gnow is second to none. Agencies and organizations rely on the power of B2Gnow to ensure supplier diversity compliance with federal and state regulations, ordinances, laws, executive mandates, and corporate resolutions. From 49 CFR Part 23 & 26 to public utility commissions, prevailing wage labor compliance, state, county, and city compliance regulations, tracking, and reporting, the system can even apply multiple programs against a single project. 





B2Gnow supplier diversity software provides customers with unmatched time savings and efficiency. On average, customers who leverage B2Gnow to run their supplier diversity program save up to 60%-80% of time spent on administrative tasks, freeing them to focus on endeavors that make a bigger difference in the communities served.





How Do Organizations Track and Measure the Success of Their Supplier Diversity Plan?





An organization can track and measure the success of its supplier diversity plan by leveraging tools like B2Gnow Supplier Diversity Software.  B2Gnow supplier diversity software is used by over 400 organizations across the country, including states, state DOTs, cities, counties, transits, airports, colleges, universities, utility companies, K-12 schools, general contractors, engineering firms, housing authorities, healthcare, and more. Organizations benefit from one solution to manage vendor certifications, handle prevailing wage labor compliance, expand their vendor pool, track and measure small and diverse vendor utilization, and access over 400 system reports, PowerBI access and data libraries, export options and API/web services. The robust tracking and reporting capabilities of B2Gnow allow organizations to easily visualize business diversity and report on the impact of their supply diversity plan and program. From supplier utilization to compliance metrics, organizations that leverage B2Gnow glean valuable insights that drive strategic decision-making and provide complete visibility into activities and the success of the supplier diversity program.





What Are Common Misconceptions About Supplier Diversity?





There can be misconceptions about supplier diversity. Some of these common supplier diversity misconceptions include lower standards, higher costs, decreased benefits, etc.  The fact of the matter is that supplier diversity has a tremendous a number of benefits, including equitable contracting and increased opportunities for historically underrepresented groups, resulting in job creation and a positive economic impact on local communities. Additionally, supplier diversity drives benefits such as lowered costs, innovation, risk mitigation, and supply chain sustainability. 





Conclusion





A well-executed supplier diversity plan can transform an organization’s procurement processes, creating economic opportunities, strengthening community impact, and driving innovation. By setting measurable goals, public agencies can ensure their efforts are impactful, driving meaningful and lasting change. For over 25 years, B2Gnow Supplier Diversity Software has brought a wealth of knowledge to help organizations start, pivot, and grow supplier diversity programs and achieve compliance goals. From states to state DOTs, cities, counties, transits, airports, education, general contractors, healthcare, and more – organizations benefit from one solution to manage vendor certifications, track small and diverse vendor utilization, manage prevailing wage labor compliance, and generate reports for program compliance and results. Organizations save up to 60%-80% of time spent on administrative tasks, freeing up time for endeavors that make a bigger difference in the communities they serve. Learn more and request a demo: www.b2gnow.com/demo

	






	

		
Navigating the Intricacies of the DBE and ACDBE Final Rule: How B2Gnow Software Champions Compliance and Empowers Agencies
			

					
		
			
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In the ever-evolving landscape of supplier diversity, recent updates to the Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) program have significant implications for organizations aiming to maintain compliance and promote equitable business practices. One such update includes an increased personal net worth (PNW) cap for owners to be eligible for the programs. This article will explore this particular update, its impacts, and how B2Gnow, the leader in supplier diversity software, prevailing wage labor compliance, and grant management solutions, helps organizations navigate these changes effectively.

Understanding the Revised Personal Net Worth Limitations





A key part of the Disadvantaged Business Enterprise (DBE) program and Airport Concessions Disadvantaged Business Enterprise (ACDBE) program, administered by the U.S. Department of Transportation (USDOT), is the Personal Net Worth (PNW) Cap. This requires that the personal net worth of the majority owner(s) of the firm not exceed the new PNW cap to remain eligible to participate in DBE/ACDBE programs. The PNW component recently gained attention with the USDOT’s 2024 DBE/ACDBE Rule Change, which increased the PNW cap for the first time since 2011 and updated the net worth calculation. The department also committed to revising the PNW cap every 3 years on the anniversary of the initial adjustment.





Key features and benefits:





    

  1. Revised Personal Net Worth Cap: Previously set at $1.32 million, the personal net worth cap for DBE certification has been adjusted to $2.047 million. This revision is critical, as it directly impacts the eligibility of many businesses seeking DBE status. The change aims to better represent the economic realities faced by disadvantaged groups.
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  2. Transparency in Calculations: The new rules demand greater transparency in the personal net worth calculations, ensuring that businesses cannot artificially deflate their financial status to gain eligibility. This move enhances the integrity of the DBE program and ensures that support reaches those who genuinely require it.
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  3. Updated Form: The PNW form itself has been updated. It’s important for applicants to use the latest form to avoid their application being returned to them. B2Gnow’s PNW module includes the new form in digital format. The module generates a PDF and prints copies in USDOT format for signature and notarization.

    These updates are pivotal in promoting a more equitable landscape, but they also introduce complexities for organizations striving to stay compliant.
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Meet B2Gnow’s Refreshed Personal Net Worth Module

The B2Gnow PNW module is an add-on to the B2Gnow Online Application Module that digitizes the application process to provide a simple way for vendors to fill out and submit their PNW information. B2Gnow has collaborated with the USDOT to understand and improve the PNW module in line with recent rule changes, ensuring ongoing compliance. The data is collected electronically, and calculations are performed automatically, making it a smooth and painless process that saves vendors and certifying agencies time and money. Key features and benefits:





    

  • An integrated location for online applications, certifications and PNW statements
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  • Represents the most current version of the PNW form and includes digital representation of the most current rules and regulations
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  • Eliminates paper handling and illegible handwriting on paper forms
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  • Speeds processes – Automates calculations of assets and liabilities to reduce the likelihood of calculation errors and speed the application process
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  • Saves time and effort – guided process for vendors leading up to their application submission ensuring a complete application
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  • Utilizes PIN security to keep data separate and out of view of other owners in the case of a multi-owner company
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  • Enables documents for signature routing in the system
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How B2Gnow Supplier Diversity Software Spearheads Compliance and Assists Organizations





The recent DBE and ACDBE rule updates bring both challenges and opportunities for organizations dedicated to supplier diversity. Understanding the new personal net worth calculations and compliance requirements is essential, and B2Gnow stands out as a critical partner in this journey. With its robust features, including the new Personal Net Worth module, B2Gnow empowers organizations to stay compliant and promote a more equitable business environment.

As the leading provider of business diversity, prevailing wage labor compliance and grant management solutions, trusted by over 400 public agencies, including transits, state departments of transportation, airports, and other entities, B2Gnow provides powerful cloud-based software to more DOT’s, transit authorities and airports than any other software provider and guarantees compliance with both 49 CFR Part 23 (ACDBE) and Part 26 (DBE) regulations.

Offering twenty-five modules, B2Gnow provides a cost-effective and flexible solution that emphasizes vendor self-responsibility in managing and reporting their data, substantially reducing administrative effort. The B2Gnow system offers connections to 200+ certified directories, with most providing real-time status and details. Users can easily search for certified vendors by certification types, work codes, location, and more, ensuring efficient vendor management, sourcing, and compliance. With a wealth of experience spanning over 25 years, B2Gnow continues to evolve to meet the diverse needs of its clients, empowering them to navigate complex supplier diversity and compliance landscapes effectively. Learn more and request a demo.






	






	

		
Transforming Your Disadvantaged, Small or Local Business Inclusion Program: Navigating New Challenges and Boosting Efficiency in 2024
			

					
		
			
				B2Gnow			
		
	
		
		
	
			

			


	
	

		
From spurring local job growth to creating sustainable supply chains, today’s business diversity and business inclusion program managers are well-versed in the magnitude and impact of equitable contracting on DBE (Disadvantaged Business Enterprise), M/W/V/SBE and local businesses within communities across the US.


However, following the recent U.S. Supreme Court’s Students for Fair Admissions (SFFA) Affirmative Action ruling, business diversity and business inclusion programs are under increased scrutiny. Moreover, with the upcoming USDOT changes to the DBE and ACDBE programs, many program managers wonder how their programs will internally support these proposed requirements. Do they have the right supplier diversity and procurement management software in place? Can their staff manage the proposed required process changes?


In 2024, efficiency, adaptability, and impact are the name of the game. Developing and managing a D/M/W/V/SBE or local business inclusion program comes with challenges like limited supplier options, regulatory complexities, formulation and implementation of small, diverse, or local business objectives, obtaining organizational buy-in, and effective expenditure tracking. Achieving success requires actively supporting D/M/W/V/SBE and local suppliers, enhancing outreach strategies, utilizing comprehensive procurement management software, and instilling a firm commitment to diversity and inclusion among stakeholders within your organization. These measures are essential for promoting diversity, backing underrepresented businesses, fostering fair economic growth, and guaranteeing clear and transparent reporting.


As business diversity and inclusion teams across the US look to the new year to address these challenges head-on, they’re more often than not troubled with multiple systems and manual processes to fulfill their objectives and monitor these significant goals; they’re often finding their limited staff resources stuck in repetitive tasks and buried under paperwork. Moreover, they’ve become increasingly aware of the potential projects they could undertake, if not for spending hours manually tracking information – whether it involves vendor outreach, contract bidding, subcontractor payments, certification applications, or renewals. The never-ending effort to create and submit required reports, respond to staff inquiries, find the right certified firms, direct vendors to proper resources, and allay stakeholder concerns about data accuracy can feel like quicksand to your program’s objectives.


Leading state, local, education, transportation, healthcare, general contractors, and more are finding a better way to tackle efficiency, adaptability, and impact into 2024 and beyond. These organizations rely on B2Gnow Business Diversity Software to seamlessly manage, track, and report on their business diversity and inclusion programs. The B2Gnow system is not only a comprehensive procurement management software system that helps business diversity programs easily manage the bidding process from end to end, but it also facilitates the creation of utilization plans, outreach efforts, contract compliance, and more. Here are just a few of the reasons organizations choose B2Gnow:


The single largest searchable system of business diversity certifications in the U.S. – Over 120 certification agencies use the B2Gnow system to certify and track supplier diversity certifications (DBE, ACDBE, MBE, WBE, SDVBE, VBE, SBE, etc.) – this certification data is native and real-time in the B2Gnow system. Plus, B2Gnow imports over 100 other third-party directories into our system.


Unparalleled spend and utilization tracking – Through different types of spend and utilization tracking modules in the B2Gnow system, organizations can choose to track spend from tier 1 vendors (spend analysis) to tier 10 (tracking through all levels of subcontractors on a project).


End-to-end bid management – Facilitating cost-effective online bid submission, tabulation, and optional public portal publication, this integrated bid solicitation and end-to-end procurement management software solution streamlines the process. It features dynamic document requirements with amendment acknowledgment, tracks Good Faith Effort (GFE), and seamlessly connects to Utilization Planning and Contract Management modules for comprehensive diversity management. Derived from detailed input and feedback from various organizations nationwide and across industries, the module’s capabilities are designed to efficiently handle the substantial communication challenges in every solicitation. This includes tasks such as identifying and sourcing suitable firms, responding to bidder questions, and managing other administrative actions.


Powerful vendor outreach capabilities – Search, sort, group, and export vendors by various parameters such as certification type, certifying agency, race, gender, and work codes (i.e., NAICS, NOGP, etc.). Better yet, many organizations simply utilize the B2Gnow outreach engine to set up and manage communication campaigns and events to encourage wider participation.


Multiple options for output of results, reports, data, and data visualization– Choose from over 400 standard system reports, PowerBI access, and data libraries (license included), export options, and API/web services. B2Gnow allows organizations to report and visualize their business diversity and utilization data in the formats that best suit stakeholder needs.


Guaranteed compliance now and in the future – Manage complex small/diverse spend tracking compliance and regulatory requirements, including compliance with USDOT, 49 CFR Part 23, and CFR Part 26.


Some of B2Gnow’s most popular modules include:


Baseline Vendor Management – The core B2Gnow system module required for all systems: users/vendors, vendor search, reports, settings, support, connectivity, etc.


Contract Compliance – Manage the financial aspects of your program, including monitoring actual participation versus contract goals and capturing down to tier 10 awards and utilization. Manage and track prompt payment requirements, performance against goals, and CUF reviews.


Online Vendor Registration – Streamline vendor registration while empowering vendors to easily submit required information and documentation electronically. From bidder registration to EEO plans and affirmative action plans, questionnaires are configured specifically to meet each organization’s needs and can accommodate various formats and question types. The module features an automated renewal process for registered firms and allows vendors to submit profile changes anytime for ongoing accuracy.


Outreach & Events – Create “campaigns” to email blast crafted messages to a customized list of any type of vendors (certified, primes, sub, local, etc.). The module also facilitates event management and tracking.


Online Application – Allows vendors to submit certification applications online. The forms eliminate paper/email submissions and give organizations an option to eliminate hardcopy documentation completely. This efficiency reduces review time and ensures that only complete applications are received.


Certification Management – Supports your organization’s review of certification applications, including workflow and review checklists that are configured to support your process. The module helps programs increase standardization and improve the quality of certification application review. Manages expiries and renewals.


Streamline your business inclusion program and procurement processes with B2Gnow, trusted by 400+ customers strong and growing, including 30+ state DOTs, 90+ airports and transits, 100+ cities and counties, and 100+ education, healthcare, general contractors, utilities, and more. We’re standing by, ready to get you onboarded procurement management software that will also help keep you in compliance, empowering your organization to seamlessly automate, manage, track, and report on the requirements of your DBE/ACDBE, small, diverse, or local program. Contact us to speak with an expert and learn more about B2Gnow Business Diversity Software.

	






	

		
How Does Your Agency’s Certification Process Stack Up? 5 Things Your Agency Can Do to Provide a Seamless Certification Experience and Increase Opportunities for Small and Diverse Businesses
			

					
		
			
				B2Gnow			
		
	
		
		
	
			

			


	
	

		
From spurring local job growth to building environmentally-friendly supply chains, as a certifying agency, you’re well-versed in the magnitude and impact of inclusive procurement on small, diverse, and women-owned businesses and communities across the US. 


However, your program might be plagued with common challenges often seen across many certifying agencies. These include too many manual processes resulting in piles of paper, never-ending directory updates, and hours spent collecting and verifying information or explaining next steps with vendors. Add a tedious reporting process and concerns about data security to the list, and you’ve got your work cut out! 


This latest article outlines five things today’s leading certifiers do to reclaim their time, optimize resources, and provide a seamless certification experience, increasing opportunities for small and diverse firms to win business.


#1 – Go Digital – Ditch paper processes for good!


Between the collection of applications and all supporting documents, your office is busting at the seams with paper:


    

  • • Paper takes up excessive space, is costly to store, and locating and keeping track of essential documents sometimes seems impossible.
    

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  • • Paper documents are easily misfiled, leading to a tedious, all-day game of hide-and-seek for your staff while your vendor patiently waits for approval. (The same vendor who may have mailed or even hand-delivered these documents some time ago. This could be a long process!) 
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  • • Additionally, paper records are easily compromised. Much of the information you collect from your vendors is confidential. Unauthorized individuals can access these documents if left on tables, filing cabinets, or unlocked storage areas. Issues can also arise during printing. Sensitive information should only be available to those authorized to view it.
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The most efficient certifying organizations have realized that shuffling paper is time-consuming and could put them on the wrong side of a security breach. As a result, they are moving their application and approval processes online, reducing staff review time and ensuring only complete applications are received. 


The digital process also reduces the vendor’s time, effort, and expense (and possibly, frustration!) required to apply for certification and maintain active status by allowing easy application completion and online document upload. Completing this streamlined process means more opportunities for these newly certified vendors to win business! Furthermore, a digital approval process could allow authorized staff to create and edit certification records, evaluate approval checklists/audits and documentation, manage certification application dispositions, and publish directory entries, all in a secure environment free from mountains of paperwork! 


#2 – Offer an Online Portal – Delight vendors with one-stop convenience


When it comes to small and diverse businesses, time is money. Your goal as a certifying organization is to help them advance and grow in the community, but you may be asking yourself:


    

  • • Is our agency’s certification process reflective of this effort? 
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  • • Can vendors and prime contractors easily access certification applications, renewal forms, information about upcoming opportunities, and a searchable vendor directory?
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  • • Do we have a simple process to ensure that vendor data in our directory is accurate and kept up to date? 
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If the answer is no, your vendor experience could be lacking. Additionally, certification processes can be arduous and detailed. An antiquated process could be equally difficult for your staff. There aren’t enough hours in the day for follow-up or repeatedly answering the same questions. Additionally, outdated vendor data (email addresses, phone numbers, LinkedIn pages) can stifle opportunities for certified firms in your directory. For these reasons, you want to ensure your vendors’ experience and interactions with your agency are simple, streamlined, and consistent.


More and more certifying agencies recognize their vendors need a streamlined process and are choosing certification management software that includes vendor portal access. Designed to look like the agency’s website, a vendor portal offers vendors a one-stop shop for all their needs. B2Gnow Supplier Diversity Management software, for example, enables certifying organizations to direct vendors to their portal to not only apply for certification, monitor their application status, and apply for renewals but also to manage current directory information and all communications throughout the process. Imagine the staff hours saved with an online system that streamlines the certification application process and reduces the number of phone calls and emails with vendors, with documentation built in! 


In addition to certification management, the vendor portal enables firms to keep their profiles updated (automated reminder emails can encourage this). It also allows primes, subs, or anyone to access the organization’s certification directory and other approved certified directories to search for vendors by name, zip code, work code, and more. This level of access saves time and frustration for vendors, and offers greater visibility for certified firms. 


#3 Automate, Automate, Automate – Easy approvals and auto-renewals are key


All too often, certification agency staff find themselves struggling with common but severe process pitfalls: 


    

  • • There are not enough hours in the day to keep up with reviewing applications and approving certifications for new vendors. 
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  • • Antiquated processes involving too many steps and using multiple systems have them running in circles. 
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  • • Besides the efforts necessary to take good care of these new vendors is the additional ever-looming stress of managing the active firms, including notifying firms of the need to renew, as well as, reviewing expansion and change requests and certification renewals. 
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The country’s most successful certifying organizations empower their teams with automation! They’ve found that by implementing a certification management system like B2Gnow, their staff significantly reduced the time spent doing tedious administrative tasks. Besides the conveniences of a public portal and online communication with vendors, dashboards make monitoring the application and certification processes simple. And approval is as easy as the click of a button. In addition, an automated renewal process means less worry about currently certified vendors falling through the cracks. 


#4 – Proactively Grow Your Directory – Find more vendors and encourage program participation


Managing a certification program is no small undertaking, and after all the effort and time spent maintaining your directory, you still seem to fall short on potential suppliers to meet your goals. Questions that keep you up at night include:


    

  • • Do you have enough certified vendors for every necessary work code? 
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  • • How can we reach more potential vendors to grow our directory? 
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The answer is, with the most extensive vendor database, such as B2Gnow’s database of over 1.5 million vendors (approximately 600,000 of them certified), offers an easy way to extend your reach and inform businesses in your community about your program! Search multiple parameters, including zip code, work codes, and more, and easily craft a message using the Outreach and Events module. It allows users to create “campaigns” to send email messages to a customized list of vendors and monitor the interaction. With nearly 200 certifying organizations already using B2Gnow, it’s a simple process to target firms operating in your market that are certified by others but not certified within your program. Besides certification program outreach, many organizations use the system to notify vendors about upcoming opportunities. The module also facilitates event management for online attendee registration, RSVP, and attendance tracking.


#5 – Produce More Accurate Reports With Less Effort – Generate detailed, automated reports in seconds


Your agency’s certification program is only as good as the reports you can provide. Unfortunately, for busy program directors, finding time to assemble these reports for stakeholders can mean long hours of cutting and pasting data from multiple spreadsheets, plenty of calculating and recalculating, and perhaps a bit of nail-biting over lost hours and accuracy concerns. 


Top certification agency professionals rely on certification management systems for greater accuracy, efficiency, and overall program visibility for aggregate reporting. An all-in-one-certification management system, like B2Gnow, offers a robust reporting library and enables certifying agencies to easily report on everything from applications received and certification status to certification officer assignments and processing time statistics. Additionally, a best-in-class certification management system allows for the analysis and reporting of certified vendor data with a click of a button to track firms by ethnicity, gender, location, work code, and more. Furthermore, it easily creates visually appealing reports and dashboards to better demonstrate their program’s success. 


No matter the size of your team, the availability of resources, or other challenges with automating, streamlining, or reporting on our program,  today’s leading certifiers are finding a better, more efficient way to manage their certification process and provide a seamless certification experience that increases opportunities for small and diverse firms to win business. More than 150 certifying organizations rely on B2Gnow Supplier Diversity and Certification Management Software to manage their programs’ complex needs. From certification management and diverse vendor search access to the largest certified supplier database in the world, to data enhancement tools that qualify and quantify current supplier data, to spend analysis capabilities that go deeper to understand diverse supplier data, to construction contract compliance that easily track and report supplier diversity on capital construction contracts, B2Gnow allows supplier diversity professionals to focus on meeting diversity goals, not chasing paper. Learn more and take a tour of B2Gnow Supplier Diversity Software.



	






	

		
7 Signs Your DBE Program Is “Leaking” Efficiency
			

					
		
			
				B2Gnow			
		
	
		
		
	
			

			


	
	

		
Perhaps you’ve noticed that some of your DBE Program’s current processes just aren’t as efficient as you’d like. You’ve periodically considered that improvements could be made to positively impact your DBE program (and likely make your typical workday a lot easier).  After all, you have important community and diversity goals to meet and are simply tired of chasing paper.  Moreover, you’re becoming keenly aware of the projects you could accomplish if you weren’t spending hours manually tracking information which, depending on your organization and responsibilities, could range from subcontractor payments to certification applications and renewals. Working until the eleventh hour to create and submit critical reports, doing multiple follow up with suppliers, and spending far too much time running in circles with multi-system chaos, questioning the accuracy of your data has become the norm.


Still trying to figure out if the time is right for a change? We’ve compiled the 7 Signs your DBE program is “leaking” efficiency:


You’re struggling with multitier tracking and reporting.


Without the proper tools in place, your visibility could be shallow. For example, your program might be successfully tracking and reporting on Tier 1 or prime DBE suppliers; however, you know you’re missing out on the opportunity to accurately report on your entire DBE utilization, as your subs may also be subcontracting with DBE businesses. The problem is effectively tracking and reporting on those deeper tiers, whether manually or through a multitude of different systems, seems impossible.


You have critical, timely reports you need to produce.


The ever-looming Uniform Report is your bi-annual nemesis! There doesn’t seem to be any simple way to get through it, and with NPRM proposed rule changes on the horizon, an accurate, timely submission will not get any easier. Besides the Uniform Report, depending on your industry and program goals, there are likely specific compliance goals, internal requirements, or mandated reports that you need to produce.  To generate these reports, you need a consistent and efficient way to collect and accurately report on this data.  As your program grows, and if your processes are manual, the “old way”  won’t cut it in the long term – especially considering those inevitable NPRM changes.


 If your organization is a certifying agency, you spend countless hours collecting and verifying vendor information while also needing more time to encourage others to apply.


Managing a certification process is a big undertaking because of the detailed information and verification required and because it involves collecting confidential documents. Many certification agencies struggle with antiquated processes involving too many steps and a questionable document collection process, often leaving vendors confused and frustrated as they initially apply for certification and, again, at the time of renewal. Additionally, after all that effort and time spent managing your directory, you still fall short on potential suppliers to fit your needs. As a result, you often think to yourself how nice it would be to have a “one-stop-shop” where vendors could easily apply for certification and renewal online and where your team could manage the entire certification process seamlessly, including outreach efforts to grow your directory!


 You want your weekends back.


If you’re sacrificing your weekends to manually sift through the data, sending late-night emails, living in Excel sheets, and bouncing through a myriad of different tools to keep your DBE program flourishing, chances are you might benefit from process automation.


 You’re not confident in your data.


Suppose you’re leveraging manual processes toggling between several different systems or spreadsheets, or you’re relying on a directory that isn’t exactly reliable. In that case, there is a high probability of more data errors than you’d like to admit. The problem is you know you will have difficulty meeting your DBE goals if you’re questioning data integrity. Furthermore, you fundamentally understand that accurate data on diverse suppliers and spend can be the cornerstone of your program’s success, achieving compliance, improving the economy, and supporting the community.


 You’re tired of the multi-system chaos.


You have the process of toggling between software systems and spending time fixing the data field nuances down pat.  But, generating a simple report, cross-referencing data, or importing or formatting specific figures from one system to the next takes a lot of work. So, you’ve often thought about how nice it would be and how much time and effort you would save to have all the features, functionality, and data you need in one system.


You want a better way to track payments.


Accurately tracking payments and reporting on diverse spend is crucial for meeting DBE program objectives. However, manually tracking and painstakingly managing the reporting framework and guidelines breeds errors and inconsistencies and must be more scalable. Leading agencies, organizations, and businesses understand that efficiently tracking payments in a streamlined and automated manner is pivotal to achieving diversity goals and growing supplier diversity programs.


If these 7 signs that your DBE program is “leaking” efficiency sound familiar, know that you’re not alone. 


Budget constraints, small teams, challenging change management situations, and more are just a few of the reasons DBE program managers find themselves stuck with a potentially inefficient program. On the contrary, a growing number of DBE program managers and organizations are facing these obstacles square in the eye and actively seeking better, more effective ways to manage and grow their DBE programs. Whether the desire to seek a better way is driven by mandated compliance requirements by federal, state, municipalities, school districts and more, or supplier diversity program initiatives with goals focused on supporting the community, committing to high ethical standard, or encouraging innovation, these organizations are turning to automation and the powerful capabilities of supplier diversity and DBE compliance software programs like B2Gnow. For more information on how your organization can take advantage of automated data gathering, tracking reporting, vendor management, and administrative processes, we encourage you to reach out and schedule a time to speak with a B2Gnow expert. 





	






	

		
How to Ensure Your Organization is Prepared for the DBE/ACDBE Changes Outlined in the USDOT’s Notice of Proposed Rulemaking
			

					
		
			
				B2Gnow			
		
	
		
		
	
			

			


	
	

		
While the U.S. Department of Transportation’s Notice of Proposed Rulemaking (NPRM) will help modernize and improve the Airport Concession Disadvantaged Business Enterprise (ACDBE) and Disadvantaged Business Enterprise (DBE) programs, the steps involved for affected organizations will be complex. Many wonder how their programs will internally support these proposed requirements. Do they have resources and tools in place? Can their staff manage the proposed required process changes? 


As your organization begins to strategize about future compliance, we’ve identified six of what could be the most challenging requirements facing your organization, along with some ideas about how to solve them.


Prompt payment and Retainage – Do you have the staff or software to monitor the proposed prompt payment and retainage compliance revisions? You’ll need it.


 As stated in the NPRM, your DBE program must take affirmative steps to monitor and enforce prompt payment and retainage requirements. To stress the importance, they propose including an additional paragraph stating that the requirements within this rule are intended to flow down to all lower-tier subcontractors. Reliance on complaints or notifications from subcontractors about a prime’s failure to comply with prompt payment and retainage requirements will no longer cut it. Does your organization have a plan to take affirmative steps to monitor prompt payment, as stated in § 26.29? Organizations using B2Gnow’s Contract Compliance Module have no worries! The system is already tracking compliance with goals, based not only on payment amounts to primes and subs but also payment dates. Payments are reported and electronically confirmed for amount, date received, and promptness. It also enables contractors to easily report retainage as outstanding or paid. B2gnow’s tracking and reporting power puts all this information at your fingertips to ensure your subcontractor community is paid in full and on time.


Uniform Report – Already known as time-consuming and complex, will your organization be prepared to collect and track this new required data?


The Uniform report, consisting of DBE utilization data, is submitted annually to the OA(s) that provide funding to them.  The NPRM seeks to revise the Uniform Report to include additional data that would assist the OAs and the Department with evaluating whether the DBE Program is progressing toward meeting its stated objectives. This expanded data collection could include additional fields for contract numbers, NAICS codes, and DBEs decertified during the reporting period, just to name a few. While there is no standard software to handle the Uniform Report’s requirements, more than 400 organizations, including more than half of all DOTs, and hundreds of transportation and aviation authorities/organizations use B2Gnow to automate, manage and report on all required information. The proposed changes will have little effect on their current data collection and reporting processes. The proposed data is native to the B2Gnow database, which means these fields are already available for reporting, allowing them to easily produce all required information with little to no impact on staff. 


Bidders List – Does your organization have the personnel or software to efficiently obtain and enter bidders list data into a centralized database? 


In the NPRM, The Department proposes revising § 26.11(c) to require recipients to obtain and enter bidders list data into a centralized database the Department would specify. B2Gnow helps organizations to maintain, track and report on procurement information that may be required through this proposed change.  The B2Gnow system offers a variety of tools that help DBE programs to easily build and maintain bidders lists, including modules that manage proposals, utilization plans, outreach, contract compliance, and bid management. The more robust the system, the more data can be collected and reported on to be prepared for any change!  


ACDBE Small Business Program – Will your organization be ready for the additional work required to manage and report on this new program? 


This proposed revision to the rule, as stated in the NPRM, will replicate the DBE program’s small business element requirements for the ACDBE program. Notably, this means it would require airports to take steps to eliminate obstacles for participation by smaller ACDBEs, and submit annual reports on their small business elements. While this may seem burdensome, B2Gnow already supports hundreds of organizations to seamlessly manage and automate diversity certification processes and electronically compile complex reports with the click of a button. Additionally, the B2Gnow staff have years of combined experience with the B2Gnow system and working in the industry. Many have helped implement such programs and deeply understand the complexities involved.


Timely Processing of Certification Applications – If your organization processes certifications, you understand that deadlines are crucial. Is your program ready to manage this complex process with stricter deadlines?


The NPRM proposes limiting a certifier’s ability to extend the 90-day timeframe during which a certifier must issue a final eligibility decision for instate certification applications. Current § 26.83(k) states that a certifier may extend the 90-day period by an additional 60 days. Their proposal would reduce the extension period from 60 days to 30 days. B2Gnow can help eliminate the need for extensions by reducing the time it takes to process an application. The Online Application Module allows vendors to submit certification applications electronically online. It eliminates paper submissions and creates efficiency, reducing the review time and ensuring that only complete applications are received. It also reduces the time, effort, and expense required by firms to apply for certification and allows for the secure submission of sensitive information and documents. In addition, the B2Gnow Certification Management module provides immediate visibility into the status of all pending applications, enables the tracking of processing times, including granular “review-step” levels, and provides a complete detailed audit trail of all actions completed by staff during the review process.


Unified Certification Program – UCP Partners, does your state have the necessary resources to build directory enhancements that will likely be required to display additional information about DBE/ACDBE firms? This could get complicated!

 

The NPRM’s proposed changes relating to the Unified Certification Program Directories could mean technological challenges for many UCPs.  The proposed rule would require UCPs to expand their DBE/ACDBE directories, allowing for the display of additional essential information about the firms beyond merely contact information and NAICS code(s). This includes amending UCP directories so that firms would have a standard set of options for information they can choose to make public, such as a capability statement, state licenses held, personnel and firm qualifications, bonding coverage, recently completed project(s), equipment capability, a link to the firm’s website, etc. Under the proposed rule, UCPs would be required to incorporate these information fields as additional criteria by which the public can search and filter the UCP directory. UCPs planning to make these necessary enhancements to existing systems will need to consider process changes and secure development resources, as well as funding to meet the 2024 deadline. Alternatively, those UCPs already using the B2Gnow system to manage their directories can rest easy, knowing that B2Gnow has the development expertise and the code and architecture in place to implement these changes within the proposed time frame. 


The good news? B2Gnow Supplier Diversity Software has your organization covered for all current, proposed, and future DBE and ACDBE regulation updates.


Trusted by over 400 state, local and educational organizations, we’re standing by, ready to get you onboarded and in compliance, so you can seamlessly automate, manage, track and report on the requirements of your DBE and ACDBE programs. Contact us to speak with an expert and learn more about B2Gnow Supplier Diversity Software.