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TITLE 43TRANSPORTATION
PART 1TEXAS DEPARTMENT OF TRANSPORTATION
CHAPTER 9CONTRACT AND GRANT MANAGEMENT
SUBCHAPTER JDISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM
RULE §9.231Computing Work Performed by DBE

(a) To be counted toward a DBE goal:

  (1) the work must actually be performed by a DBE; and

  (2) the DBE must perform a commercially useful function.

(b) The entire amount of the fee or commission charged by a DBE for providing a bona fide service, such as professional, technical, consultant, or managerial services, or for providing bonds or insurance specifically required for the performance of a DOT-assisted contract, will be counted toward DBE goals, provided that the fee or commission is determined to be reasonable and not excessive as compared with those customarily allowed for similar services.

(c) The amount of the part of a construction contract or other contract not covered by subsection (a) of this section that is performed by the DBE's own forces may be counted toward the DBE goal. The cost of supplies and material obtained by the DBE for the contract work, including supplies purchased or equipment leased by the DBE, other than supplies and equipment the DBE purchases or leases from the prime contractor or its affiliate, is included.

(d) If a DBE subcontracts a part of the work of its contract to another firm, the value of the subcontracted work will be counted toward the DBE goal only if the DBE's subcontractor is a DBE.

(e) If a DBE is a participant in a joint venture, only the part of the total value of the contract equal to the distinct, clearly defined part of the contract work that the DBE performs with its own forces may be counted toward the DBE goal. For the purposes of this subsection, a "joint venture" is an association of a DBE firm and one or more other firms to carry out a single, for-profit business enterprise, for which the parties combine their property, capital, efforts, skills, and knowledge, and in which the DBE is responsible for a distinct, clearly defined portion of the work of the contract and whose share in the capital contribution, control, management, risks, and profits of the joint venture are commensurate with its ownership interest.


Source Note: The provisions of this §9.231 adopted to be effective September 1, 2012, 37 TexReg 5320

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