(a) An SBE contractor or subcontractor shall comply
with the terms of the contract or subcontract for which it was selected.
(b) Work products, services, and commodities must meet
contract specifications.
(c) The SBE's work performance must include being responsible
for:
(1) the performance of the work subject to the contract
and for the execution of its responsibilities by actually performing,
managing, and supervising the work involved; and
(2) the provision of the materials and supplies used
in the performance of its contract, unless the contract provides for
labor services only and is approved by the department, and includes:
(A) negotiation of the price of the materials and supplies;
(B) determination of the quality, if applicable, and
quantity of the materials and supplies;
(C) ordering of the material and supplies;
(D) installation of the material, if applicable; and
(E) payment for the material.
(d) An SBE's performance should not include a role
that is limited to that of an extra participant in a transaction,
contract, or project through which funds are passed in order to obtain
the appearance of SBE participation. In determining whether an SBE
is an extra participant, the department will examine similar transactions,
particularly those in which SBEs do not participate.
(e) An SBE must be responsible for at least 25 percent
of the total cost of its contract with its own work force or, if a
lesser percentage is expected under normal industry practice for the
type of work involved, may not subcontract a greater portion of the
work of the contract than would be expected on the basis of normal
industry practice for that type of work.
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