173.08 COUNTING MBE/DBE PARTICIPATION.

   (a)   MBE participation shall be counted toward meeting MBE goals set in accordance with this chapter as follows:

      (1)   Once a firm is determined to be an eligible MBE, in accordance with this chapter, the total dollar value of the contract or subcontract awarded to the MBE is counted toward the applicable MBE goals.

      (2)   A contractor may count toward its MBE goals the following expenditures to MBE firms that are not manufacturers or regular dealers:

         A.   The fees or commissions charged for providing a bona fide service, such as professional, technical, consultant or managerial services and assistance in the procurement of essential personnel, facilities, equipment, materials or supplies required for performance of the contract, provided that the fee or commission is determined by the recipient to be reasonable and not excessive as compared with fees customarily allowed for similar services.

         B.   The fees charged for delivery of materials and supplies required on a job site (but not the cost of the materials and supplies themselves) when the hauler, trucker or delivery service is not also the manufacturer of or a regular dealer in the materials and supplies, provided that the fee is determined by the recipient to be reasonable and not excessive as compared with fees customarily allowed for similar services.

            The fees or commissions charged for providing any bonds or insurance specifically required for the performance of the contract, provided that the fee or commission is determined by the recipient to be reasonable and not excessive as compared with fees customarily allowed for similar services.

   (b)   DBE participation shall be counted toward meeting DBE goals set in accordance with this chapter as follows:

      (1)   Once a firm is determined to be an eligible DBE in accordance with this chapter, the total dollar value of the contract or subcontract awarded to the DBE is counted toward the applicable DBE goals.

      (2)   A contractor may count toward its DBE goals only expenditures to DBE's that perform a commercially useful function in the work of a contract. A DBE is considered to perform a commercially useful function when it is responsible for execution of a distinct element of the work of a contract and carrying out its responsibilities by actually performing, managing and supervising the work involved. To determine whether a DBE is performing a commercially useful function, the MBE Officer shall evaluate the amount of work subcontracted, industry practices and other relevant factors.

         (Ord. 93-001. Passed 1-5-93.)