DBE participation shall be counted toward meeting DBE goals set in accordance with this chapter as follows:
(a) Once a firm is determined to be an eligible DBE in accordance with this chapter, the total dollar value of the contract awarded to the DBE is counted toward the applicable DBE goals.
(b) The total dollars value of a contract to an DBE owned and controlled by disadvantaged individuals is counted toward the DBE goals for disadvantaged individuals in proportion to the percentage of ownership and control of each group in the business.
(c) A contractor may count toward its DBE 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 DBE partner in the joint venture.
(d) (1) A contractor may count toward its DBE goals only expenditures to DBEs that perform a commercially useful function in the work of a contract. An 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 an DBE 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 DBE may enter into subcontracts. If an DBE contractor subcontracts a significantly greater portion of the work of the contract than would be expected on the basis of normal industry practices, the DBE shall be presumed not to be performing a commercially useful function. The DBE may present evidence to rebut this presumption to the MBE Officer.
(e) A contractor may count toward its DBE goal sixty percent (60%) of its expenditures for materials and supplies required under a contract and obtained from an DBE regular dealer, and one hundred percent (100%) of such expenditures to an DBE manufacturer.
(f) A contractor may count toward its DBE goals the following expenditures to DBE 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.)