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2025 FEDERAL OVERLAY, W MUKILTEO BLVD – GLENWOOD AVE TO DOGWOOD DR <br /> PAGE SP37 OF SP123 SPECIAL PROVISIONS <br />WORK ORDER #3842 April 15, 2025 FEDERAL AID# NHPP-2776(011) <br />Original Quantity Underruns 1 <br />In the event that Work committed to a DBE firm as part of the COA underruns the 2 <br />original planned quantities the Contractor may be required to substitute other 3 <br />remaining Work to another DBE. 4 <br /> 5 <br />Contractor Proposed DBE Substitutions 6 <br />Requests to substitute a COA DBE must be for good cause (see DBE termination 7 <br />process below) and requires prior written approval of the Engineer. After receiving a 8 <br />termination with good cause approval, the Contractor may only replace a DBE with 9 <br />another certified DBE. When changes between Contract Award and Execution result 10 <br />in a substitution of COA DBE, the substitute DBE shall be certified prior to the bid 11 <br />opening on the Contract. 12 <br /> 13 <br />DBE Termination 14 <br />Termination of a COA DBE (or an approved substitute DBE) is only allowed in whole 15 <br />or in part for good cause and with prior written approval of the Contracting Agency. If 16 <br />the Contractor terminates a COA DBE without the prior written approval of the 17 <br />Contracting Agency, the Contractor shall not be entitled to payment for work or 18 <br />material committed to, but not performed/supplied by the COA DBE. In addition, 19 <br />sanctions may apply as described elsewhere in this specification. 20 <br /> 21 <br />Prior to requesting approval to terminate a COA DBE, the Contractor shall give notice 22 <br />in writing to the DBE with a copy to the Engineer of its intent to request to terminate 23 <br />DBE Work and the reasons for doing so. The DBE shall have five days to respond to 24 <br />the Contractor’s notice. The DBE’s response shall either support the termination or 25 <br />advise the Engineer and the Contractor of the reasons it objects to the termination of 26 <br />its subcontract. 27 <br /> 28 <br />If the request for termination is approved, the Contractor is required to substitute with 29 <br />another DBE to perform at least the same amount of work as the DBE that was 30 <br />terminated (or provide GFE Documentation). A plan to replace the COA DBE 31 <br />Commitment amount shall be submitted to the Engineer within 2 days of the approval 32 <br />of termination. The plan to replace the Commitment shall provide the same detail as 33 <br />that required in the DBE Utilization Certification. 34 <br /> 35 <br />As mentioned above, the Contractor must have good cause to terminate a COA DBE. 36 <br /> 37 <br />Good cause typically includes situations where the DBE subcontractor is unable or 38 <br />unwilling to perform the work of its subcontract. Good cause may exist if: 39 <br /> 40 <br />1. The DBE fails or refuses to execute a written contract. 41 <br /> 42 <br />2. The DBE fails or refuses to perform the Work of its subcontract in a way 43 <br />consistent with normal industry standards. 44 <br /> 45 <br />3. The DBE fails or refuses to meet the Contractor’s reasonable 46 <br />nondiscriminatory bond requirements. 47 <br /> 48 <br />4. The DBE becomes bankrupt, insolvent, or exhibits credit unworthiness. 49 <br /> 50