(a) Total Contract Value: Once a firm qualifies as an MBE under this chapter, the entire dollar value of the contract awarded to the MBE shall be counted toward the relevant MBE goals.
(b) Proportional Ownership: The total contract value to an MBE owned and controlled by minorities shall be counted toward minority goals in proportion to the ownership and control percentage of each group in the business.
(c) Joint Venture: A contractor may count toward MBE goals the portion of the total contract value with an eligible joint venture, equal to the MBE partner's ownership and control percentage.
(d) Commercially Useful Function
(1) Contractors may only count toward MBE goals the expenditures to MBEs performing a commercially useful function, defined as responsibility for a distinct work element, with actual execution, management, and supervision.
(2) An MBE may subcontract consistently with industry practices. However, excessive subcontracting may be presumed as non-compliance with commercial usefulness. The MBE may present evidence to rebut this presumption to the Minority Business Coordinator.
(e) Materials and Supplies: A contractor may count toward its MBE goal:
(1) Sixty percent (60%) of expenditures for materials and supplies from an MBE regular dealer.
(2) One hundred percent (100%) of such expenditures from an MBE manufacturer.
(f) Specific Expenditures to Non-Manufacturers or Regular Dealers: A contractor may count toward MBE goals expenditures to MBEs that aren't manufacturers or regular dealers for:
(1) Fees for bona fide services, such as professional, technical, consulting, or managerial services, or procurement assistance, if deemed reasonable.
(2) Fees for material and supply delivery, excluding the cost of the materials themselves, if the delivery fee is reasonable.
(3) Fees for bonds or insurance specifically required for contract performance, if deemed reasonable.