HM Pacific Northwest Inc. 5/18/2023

I 1 2 Original Quantity Underruns 3 In the event that Work committed to a DBE firm as part of the COA underruns 4 the original planned quantities the Contractor may be required to substitute other I 5 remaining Work to another DBE. 6 7 Contractor Proposed DBE Substitutions I 8 9 Requests to substitute a COA DBE must be for good cause (see DBE termination process below), and requires prior written approval of the Engineer. 10 After receiving a termination with good cause approval, the Contractor may only 11 replace a DBE with another certified DBE. When any changes between 12 Contract Award and Execution result in a substitution of COA DBE,the substitute 13 DBE shall have been certified prior to the bid opening on the Contract. I 14 15 DBE Termination 16 Termination of a COA DBE (or an approved substitute DBE) is only allowed in 17 whole or in part for good cause and with prior written approval of the Engineer. 18 If the Contractor terminates a COA DBE without the prior written approval of the 19 Engineer, the Contractor shall not be entitled to payment for work or material 20 committed to, but not performed/supplied by the COA DBE. In addition, I 21 sanctions may apply as described elsewhere in this specification. 22 23 Prior to requesting approval to terminate a COA DBE, the Contractor shall give I 24 25 notice in writing to the DBE with a copy to the Engineer of its intent to request to terminate DBE Work and the reasons for doing so. The DBE shall have five (5) 26 days to respond to the Contractor's notice. The DBE's response shall either I 27 support the termination or advise the Engineer and the Contractor of the reasons 28 it objects to the termination of its subcontract. 29 30 If the request for termination is approved, the Contractor is required to substitute I31 with another DBE to perform at least the same amount of work as the DBE that 32 was terminated (or provide documentation of GFE). A plan to replace the COA 33 DBE Commitment amount shall be submitted to the Engineer within 2 days of 34 the approval of termination. The plan to replace the Commitment shall provide 35 the same detail as that required in the DBE Utilization Certification. 36 37 The Contractor must have good cause to terminate a COA DBE. 38 39 Good cause typically includes situations where the DBE Subcontractor is unable I 40 or unwilling to perform the work of its subcontract. Good cause may exist if: 41 42 • The DBE fails or refuses to execute a written contract. I 43 44 • The DBE fails or refuses to perform the Work of its subcontract in a 45 way consistent with normal industry standards. 46 47 • The DBE fails or refuses to meet the Contractor's reasonable 48 nondiscriminatory bond requirements. 49 50 • The DBE becomes bankrupt, insolvent, or exhibits credit unworthiness. 51 I 2023 FEDERAL OVERLAY i FEDERAL AID#STBGUL-2715(011) WO#3788 March 2,2023 SP-41