Section 2.1
Definitions
Definitions. The following terms as used in this section are
defined as follows:
(a) His own
organization shall be construed to include only workmen employed and paid
directly by the contractor and equipment owned, leased or rented by him from a
non-debarred person, with or without operators. Such term does not include
employees or equipment of a subcontractor, assignee, agent, or supplier of the
contractor.
(b) Specialty Items
shall be construed to be limited to work that requires highly specialized
knowledge, craftsmanship, or equipment not ordinarily available in the type of
contracting organizations qualified and expected to bid on the contract as a
whole. In general, such items are to be limited to minor components of the
overall contract. However, the fabrication and erection of certain types of
steel structures are of such a nature and intricacy that they should be
considered "Specialty Items," even though the cost of this work may constitute
the major portion of the contract amount.
(c) Contractor means the individual,
partnership, firm, corporation, or any acceptable combination thereof or joint
venture, which is a party to the contract with the Department, undertaking the
execution of the work under the terms of the contract and acting directly or
through its agents or employees. The term "Contractor" is referred to as the
prime Contractor as differentiated from the subcontractor.
(d) Subcontractor means an individual,
partnership, firm, corporation, or any acceptable combination thereof, or joint
venture, to whom the Contractor, with written consent of the Department,
sublets part of the contract.
(e)
Commercially useful function means the contractor/subcontractor is responsible
for the execution of a distinct element of the work of a contract and carries
out its responsibilities by actually performing, managing, and supervising the
work involved. A contractor/subcontractor must have the latitude to
independently:
(1) Select contracts to be
bid.
(2) Determine prices to be
quoted.
(3) Select material
suppliers.
(4) Hire, fire,
supervise and pay employees.
(5)
Direct or cause the direction of the management and policies of the firm. A
contractor/subcontractor may not broker work for another firm or act as a
bidding conduit.
Section
2.2 Allowable Subcontracting
A Contractor must perform with its own organization contract
work amounting to not less than 50 percent of the total contract price. For
purposes of this paragraph an assignment of contract work is considered
synonymous with a subcontract to perform such work.
Section 2.3 Contractor Performance
Requirements
(a) A contractor/subcontractor
shall perform a commercially useful function.
(b) To assure that any subcontracted work is
performed in accordance with the contract requirements, the contractor shall be
required to furnish:
(1) A competent
superintendent or foreman who is employed by the contractor, who has full
authority to direct performance of the work in accordance with the contract
requirements, and who is in charge of all construction operations (regardless
of who performs the work).
(2) Such
other of the contractor's organizational capability and responsibility
(supervision, management, and engineering services) as the Agency Construction
Engineer determines is necessary to assure the performance of the
contract.
Section
2.4 Specialty Items
The cost of "Specialty Items" may be deducted from the total
contract price before computing the amount of work required to be performed by
the contractor's own organization. Specialty items shall be designated in the
advertised specifications and amy be performed by subcontract.
Section 2.5 Special Criteria
To determine whether the contractor is in compliance with the
requirement that it perform with its own organization contract work amounting
to not less than 50 percent (minus designated "Specialty Items") of the total
original contract price, the following criteria shall apply:
(a) The cost of materials and manufactured
products to be purchased or produced under the contract provisions shall be
included in the contract amount upon which the 50 percent requirement is
computed.
(b) The percentage of
subcontracted work shall be based on the contract, rather than subcontract unit
prices. If only a part of a contract item is to be sublet, its proportional
value shall be determined administratively on the same basis.
(c) When a firm sells materials to a
contractor and performs the work of incorporating the materials into the
project, these phases must be considered in combination and as constituting a
single subcontract.
Section
2.6 Contract Assignment
The Contractor shall not sublet, assign, sell, transfer or
otherwise dispose of the contract or any portion thereof, or of its right,
title or interest therein, to any individual, firm or corporation, without the
written consent of the Agency Chief Engineer. In case such consent is given,
the Contractor must file with the Agency copies of all subcontracts.
After approval to sublet a portion of the contract, the
subcontractors shall not in turn sublet or assign any of the work pertaining to
the subcontract without the Contractor obtaining further permission from the
Agency. No subcontracts or transfer of contract shall in any case release the
Contractor of its liability under its contract and bonds.
Section 2.7 DBE/WBE Requirements
Contractors must ensure that Disadvantaged and Women Business
Enterprises have the maximum opportunity to participate in the performance of
contracts financed in whole or in part with Federal funds. Contractors
subletting portions of federal aid contracts must assure:
(a) That in all solicitations, either by
competitive bidding, or negotiation, for subcontracts, including procurements
of materials and leases of equipment, each potential subcontractor, supplier or
lessor is notified by the contractor of the contractor's obligations relative
to non-discrimination on the grounds of race, color, sex, or national
origin.
(b) That in the selection
and retention of subcontractors, including procurements of materials and leases
of equipment, the contractor does not discriminate on the grounds of race,
color, sex, or national origin.
(c)
That subcontract agreements, including procurements of materials and leases of
equipment, unless exempt by the regulations of the Secretary of Transportation
( 49 CFR Part
21) or directives issued pursuant to the regulations, shall
contain the contract provisions implementing Title VI of the Civil Rights Act
of 1964 ( 23 CFR Part
633).
Contractors requesting subcontractor approvals must submit
evidence, in writing to the Agency Construction Engineer, documenting their
good faith efforts to secure WBE/DBE subcontractors.
Section 2.8 Payrolling
A contractor/subcontractor is not permitted to place on the
payroll the employees of another firm for the purpose of avoiding Federal or
State Regulations.
