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2025 FEDERAL OVERLAY, BROADWAY – CALIFORNIA ST TO 18TH ST SPECIAL PROVISIONS <br />FEDERAL AID# STBGUL-2715(012); COE PW# 3841 SP-37 May 6, 2025 <br /> <br />to that COA DBE. If there is a reduction to the total dollar amount to be applied 1 <br />towards the goal for a COA DBE Commitment, regardless of the reason, it shall be 2 <br />viewed as DBE termination, and subject to the termination procedures below. A 3 <br />notification to the DBE shall occur as soon as possible but no later than two weeks 4 <br />after the Contractor is aware of the upcoming change. 5 <br /> 6 <br />Original Quantity Underruns 7 <br />In the event that Work committed to a DBE firm as part of the COA underruns the 8 <br />original planned quantities the Contractor may be required to substitute other 9 <br />remaining Work to another DBE. 10 <br /> 11 <br />Contractor Proposed DBE Substitutions 12 <br />Requests to substitute a COA DBE must be for good cause (see DBE termination 13 <br />process below) and requires prior written approval of the Engineer. After receiving a 14 <br />termination with good cause approval, the Contractor may only replace a DBE with 15 <br />another certified DBE. When changes between Contract Award and Execution result 16 <br />in a substitution of COA DBE, the substitute DBE shall be certified prior to the bid 17 <br />opening on the Contract. 18 <br /> 19 <br />DBE Termination 20 <br />Termination of a COA DBE (or an approved substitute DBE) is only allowed in whole 21 <br />or in part for good cause and with prior written approval of the Contracting Agency. If 22 <br />the Contractor terminates a COA DBE without the prior written approval of the 23 <br />Contracting Agency, the Contractor shall not be entitled to payment for work or 24 <br />material committed to, but not performed/supplied by the COA DBE. In addition, 25 <br />sanctions may apply as described elsewhere in this specification. 26 <br /> 27 <br />Prior to requesting approval to terminate a COA DBE, the Contractor shall give notice 28 <br />in writing to the DBE with a copy to the Engineer of its intent to request to terminate 29 <br />DBE Work and the reasons for doing so. The DBE shall have five days to respond to 30 <br />the Contractor’s notice. The DBE’s response shall either support the termination or 31 <br />advise the Engineer and the Contractor of the reasons it objects to the termination of 32 <br />its subcontract. 33 <br /> 34 <br />If the request for termination is approved, the Contractor is required to substitute with 35 <br />another DBE to perform at least the same amount of work as the DBE that was 36 <br />terminated (or provide GFE Documentation). A plan to replace the COA DBE 37 <br />Commitment amount shall be submitted to the Engineer within 2 days of the approval 38 <br />of termination. The plan to replace the Commitment shall provide the same detail as 39 <br />that required in the DBE Utilization Certification. 40 <br /> 41 <br />As mentioned above, the Contractor must have good cause to terminate a COA DBE. 42 <br /> 43 <br />Good cause typically includes situations where the DBE subcontractor is unable or 44 <br />unwilling to perform the work of its subcontract. Good cause may exist if: 45 <br /> 46 <br />1. The DBE fails or refuses to execute a written contract. 47 <br /> 48 <br />2. The DBE fails or refuses to perform the Work of its subcontract in a way 49 <br />consistent with normal industry standards. 50 <br /> 51