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RULE §9.315Contract Goals

(a) The department may assign individual contract goals for SBE participation contracts as necessary to cumulatively meet the overall annual SBE goals.

(b) Contract goals will be based on the availability of qualified SBEs, work site location, dollar value of the contract, and type of work items specified in the contract.

(c) For work to be counted toward an SBE goal the work must actually be performed by an SBE.

(d) The entire amount of the fee or commission charged by an SBE 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 U.S. Department of Transportation assisted contract, will be counted toward SBE goals if that fee or commission is determined to be reasonable and not excessive as compared with those customarily allowed for similar services.

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

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

(g) If an SBE 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 SBE performs with its own forces may be counted toward the SBE goal.

(h) For the purposes of subsection (g) of this section, a "joint venture" is an association of an SBE 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 SBE 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 §9.315 adopted to be effective September 1, 2012, 37 TexReg 5320

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