MBE is Minority business Enterprise. You went to same cast of characters pretty much in course of your career? Yes.

11:33AM Witness says you can be Detroit-based business without being Detroit headquartered.

Kwame and Bobby are laughing at something. For the life of me, I can't imagine what is funny in this courtroom right now.

You get certificate from Human Rights department to say you're Detroit-based? Yes.

Witness says at time of bid, prime does not have to list sub-contractors. Just check off if you're Detroit-based, headquartered and resident. If 51% of your employees are residents, it increases points for ultimate score.

General contractors in order to increase their points they will use sub-contractors? Yes.

Witness says it's advantageous for prime contractors to use sub-contractors who meet all the Detroit-based criteria.

Witness says when talking about RFP, equalization is non-existent. In 2002 to 2008, anything that is RFP that is scored, you're talking local economic development not equalization.

Local economic development is where criteria is established as 35% of the weight. Equalization is where the bids come in, they do a bid tab and then after the bid tab, they look at what the prime contractor is certified as, based headquartered or resident. Those are applied to bid amount to reduce the amount of contractor in question so that when they compare the bids, the bids of Detroit based and headquartered business will be given preferential treatment because they have been reduced by credit amount.

So lowest bidder doesn't always get the contract? That is true.

You're familiar with minority front? Yes. Minority front is a business which is being used for the purposes of stating that the contractor is using a minority company when in essence they are not.

The general contractors use minority fronts to increase score? Yes they could have at times.

And that's been a problem with DWSD through the years? Yes it has been.

The prime contractor using a minority front, they may bill for materials? Correct.

The minority front is reimbursed later by the prime? Yes.

You would agree that prior to Kilpatrick administration this was major problem? It happened.

When Kilpatrick came in, they wanted real minority businesses working?

Blackwell objects. Judge sustains.

re you familiar with Phillip Patel (not sure on last name) he worked with DWSD? Yes.

And then at Lakeshore at night?

Blackwell objects. Judge sustains.

Can't work at DWSD with proper bonds and insurance? Yes.

Describe the kinds of insurance contractor would need. Witness says general liability, auto liability, umbrella liability, builder's risk insurance.

Different bonds? Performance bonds that guarantees performance for DWSD. If job not done, then DWSD can force them to do the job. Payment bonds in place for protection of DWSD and for the sub-contractors.

Prime contractor has to have all bonds and insurances you spoke of? They should, yes.