|(a) If a contract has an SBE contract goal, the contractor
may not substitute or terminate an SBE subcontractor submitted on
a commitment agreement without the prior written consent of the department.
(b) Before requesting the department's approval to
terminate or substitute for an SBE, the contractor must give written
notice to the listed SBE with a copy to the department of the contractor's
intent to request the termination or substitution of the SBE and provide
a detailed explanation for the request.
(c) The contractor must give the listed SBE five days
to respond to the notice and to advise the department and the contractor
of the reasons the listed SBE objects to the proposed termination
or substitution. The department may provide a shorter response time
if required in a particular case as a matter of public necessity.
(d) When an SBE subcontractor is terminated or fails
to complete its work on the contract for any reason, the contractor
shall make good faith efforts to find, as a substitute for the original
SBE, another SBE to perform, at least to the extent needed to meet
the established contract goal the work that the original SBE was to
have performed under the contract. If the contractor cannot find another
SBE to perform the work originally committed to the terminated SBE
the contractor shall make good faith efforts to obtain SBEs to perform
other work under the contract equal to the work originally committed
to the terminated SBE.
(e) The contractor must submit for approval the name
of the SBE subcontractor that is to replace the SBE subcontractor
listed in the original commitment agreement. Work performed by a substitute
before the department has approved the substitution will not be counted
toward the SBE goal.
(f) If the department determines there is good cause
for the termination or replacement, the department will provide written
consent for the action.
(g) Each contract will contain provisions that state
the appropriate administrative remedies that apply if the contractor
fails to comply with this section.