MBE participation shall be counted toward meeting MBE goals set in accordance with this chapter as follows:
(a) Once a firm is determined to be an eligible MBE in accordance with this chapter, the total dollar value of the contract awarded to the MBE is counted toward the applicable MBE goals.
(b) The total dollars value of a contract to an MBE owned and controlled by minorities is counted toward the goals for minorities in proportion to the percentage of ownership and control of each group in the business.
(c) A contractor may count toward its MBE goals a portion of the total dollar value of a contract with a joint venture eligible under the standards of this chapter equal to the percentage of the ownership and controls of the MBE partner in the joint venture.
(d) (1) A contractor may count toward its MBE goals only expenditures to MBEs that perform a commercially useful function in the work of a contract. An MBE 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 an MBE is performing a commercially useful function, the MBE Officer shall evaluate the amount of work subcontracted, industry practices and other relevant factors.
(2) Consistent with normal industry practices, a MBE may enter into subcontracts. If an MBE contractor subcontracts a significantly greater portion of the work of the contract than would be expected on the basis of normal industry practices, the MBE shall be presumed not to be performing a commercially useful function. The MBE may present evidence to rebut this presumption to the MBE Officer.
(e) A contractor may count toward its MBE goal sixty percent (60%) of its expenditures for materials and supplies required under a contract and obtained from an MBE regular dealer, and one hundred percent (100%) of such expenditures to an MBE manufacturer.
(f) A contractor may count toward its MBE goals the following expenditures to MBE firms that are not manufacturers or regular dealers:
(1) 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.
(2) 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.
(3) 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.
(Ord. 90-478. Passed 8-28-90.)