Pellco Construction, Inc. 6/22/2016

1 • When a DBE subcontracts to another firm, the value of the 2 subcontracted Work may be counted as participation only if the DBE's 3 lower tier Subcontractor is also a DBE. Work that a DBE subcontracts 4 to a non-DBE firm shall not be credited. 5 6 7 • When non-DBE Subcontractor further subcontracts to a lower-tier 8 Subcontractor or supplier who is a certified DBE, then that portion of 9 the Work further subcontracted may be credited as DBE participation, 10 provided it is a distinct clearly defined portion of the Work that the DBE 11 is certified to perform and the DBE Subcontractor performs the Work 12 with its own forces. 13 14 • If a firm is not certified as a DBE at the time of the execution of the 15 contract, their participation cannot be counted toward any DBE goals. 16 17 Trucking 18 Use the following factors in determining DBE credit and whether a DBE 19 trucking company is performing a commercially useful function: 20 21 1. The DBE must be responsible for the management and supervision 22 of the entire trucking operation for which credit is being claimed. 23 24 2. The DBE must itself own and, with its own workforce, operate at least 25 one fully licensed, insured, and operational truck used on the 26 Contract. 27 28 3. The DBE receives credit only for the value of the transportation 29 services it provides on the Contract using trucks it owns or leases, 30 licenses, insures, and operates with drivers it employs. For purposes 31 of this requirement a lease must indicate that the DBE has exclusive 32 use of and control over the truck. This does not preclude the leased 33 truck from working for others provided it is with the consent of the 34 DBE and the lease provides the DBE first priority for use of the 35 leased truck. Leased trucks must display the name and identification 36 number of the DBE. 37 38 4. The DBE may lease trucks from another DBE firm including an 39 owner-operator provided they are certified as a DBE for trucking. The 40 DBE who leases trucks from another DBE may claim participation for 41 the total value of the transportation services the lessee DBE provides 42 on the Contract. 43 44 5. The DBE may also lease trucks from a non-DBE firm and may enter 45 into an agreement with an owner-operator who is a non-DBE. The 46 DBE shall only receive credit for the number of additional non-DBE 47 trucks equal or less than the number of DBE trucks the firms owns or 48 has leased/subcontracted through another DBE trucking company. 49 The DBE must control the work of the non-DBE trucks. If the non- 50 DBE is performing the work without supervision of that work by the HAWTHORNE ELEMENTARY SAFE ROUTES TO SCHOOL FED AID#SRTS-0420(021);COE#3540 SP-38 March 16,2016