Common use of Counting MBE/WBE Participation Toward the Task Order Specific Clause in Contracts

Counting MBE/WBE Participation Toward the Task Order Specific. Goals a. Only expenditures to firms that perform a Commercially Useful Function as defined above may count toward the Task Order Specific Goals. i. The CPO will determine whether a firm is performing a commercially useful function by evaluating the amount of work subcontracted, whether the amount the firm is to be paid under the contract is commensurate with the work it is actually performing and the credit claimed for its performance of the work, industry practices, and other relevant factors. ii. A MBE or WBE does not perform a commercially useful function if its participation is only required to receive payments in order to obtain the appearance of MBE or WBE participation. The CPO may examine similar commercial transactions, particularly those in which MBEs or WBEs do not participate, to determine whether non MBE and non WBE firms perform the same function in the marketplace to make a determination. iii. Indications that a Subcontractor is not performing a commercially useful function include, but are not limited to, labor shifting and equipment sharing or leasing arrangements with the prime Consultant or a first tier Subcontractor. b. Only the value of the dollars paid to the MBE or WBE firm for work that it performs in its Area of Specialty in which it is certified counts toward the Task Order Specific Goals, except as provided in MCC 2-92-525(b)(2).. c. For maintenance, installation, repairs or inspection, or professional services, if the MBE or WBE performs the work itself: 100% of the value of work actually performed by the MBE’s or WBE’s own forces shall be counted toward the Task Order Specific Goals, including the cost of supplies and materials purchased or equipment leased by the MBE or WBE from third parties or second tier Subcontractors in order to perform its (sub)contract with its own forces (except supplies and equipment the MBE or WBE Subcontractor purchases or leases from the prime Consultant or its affiliate). 0% of the value of work at the project site that a MBE or WBE subcontracts to a non- certified firm counts toward the Task Order Specific Goals. d. If the MBE or WBE is a manufacturer: 100% of expenditures to a MBE or WBE manufacturer for items needed for the Contract shall be counted toward the Task Order Specific Goals. A manufacturer is a firm that operates or maintains a factory or establishment that produces on the premises the materials or supplies obtained by the bidder or Consultant. e. If the MBE or WBE is a distributor or supplier: 60% of expenditures for materials and supplies purchased from a MBE or WBE that is certified as a regular dealer or supplier shall be counted toward the Task Order Specific Goals. f. If the MBE or WBE is a broker: i. Zero percent (0%) of expenditures paid to brokers will be counted toward the Task Order Specific Goals. ii. As defined above, Brokers provide no commercially useful function. g. If the MBE or WBE is a member of the joint venture Consultant/bidder: i. A joint venture may count the portion of the total dollar value of the contract equal to the distinct, clearly defined portion of the work of the contract that the MBE or WBE performs with its own forces toward the Task Order Specific Goals; or ii. If employees of this distinct joint venture entity perform the work then the value of the work may be counted toward the Task Order Specific Goals at a rate equal to the MBE or WBE firm’s percentage of participation in the joint venture as described in the Schedule B. iii. A joint venture may also count the dollar value of work subcontracted to other MBEs and WBEs. h. If the MBE or WBE subcontracts out any of its work: i. 100% of the value of the work subcontracted to other MBEs or WBEs performing work in its Area of Specialty may be counted toward the Task Order Specific Goals.

Counting MBE/WBE Participation Toward the Task Order Specific. Goals a. Only expenditures to firms that perform a Commercially Useful Function as defined above may count toward the Task Order Specific Goals. i. The CPO will determine whether a firm is performing a commercially useful function by evaluating the amount of work subcontracted, whether the amount the firm is to be paid under the contract is commensurate with the work it is actually performing and the credit claimed for its performance of the work, industry practices, and other relevant factors. ii. A MBE or WBE does not perform a commercially useful function if its participation is only required to receive payments in order to obtain the appearance of MBE or WBE participation. The CPO may examine similar commercial transactions, particularly those in which MBEs or WBEs do not participate, to determine whether non MBE and non WBE firms perform the same function in the marketplace to make a determination. iii. Indications that a Subcontractor subcontractor is not performing a commercially useful function include, but are not limited to, labor shifting and equipment sharing or leasing arrangements with the prime Consultant contractor or a first tier Subcontractorsubcontractor. b. Only the value of the dollars paid to the MBE or WBE firm for work that it performs in its Area of Specialty in which it is certified counts toward the Task Order Specific Goals, except as provided in MCC 2-92-525(b)(2)... c. For maintenance, installation, repairs or inspection, or professional services, if the MBE or WBE performs the work itself: 100% of the value of work actually performed by the MBE’s or WBE’s own forces shall be counted toward the Task Order Specific Goals, including the cost of supplies and materials purchased or equipment leased by the MBE or WBE from third parties or second tier Subcontractors subcontractors in order to perform its (sub)contract with its own forces (except supplies and equipment the MBE or WBE Subcontractor subcontractor purchases or leases from the prime Consultant contractor or its affiliate). 0% of the value of work at the project site that a MBE or WBE subcontracts to a non- certified firm counts toward the Task Order Specific Goals. d. If the MBE or WBE is a manufacturer: 100% of expenditures to a MBE or WBE manufacturer for items needed for the Contract shall be counted toward the Task Order Specific Goals. A manufacturer is a firm that operates or maintains a factory or establishment that produces on the premises the materials or supplies obtained by the bidder or Consultantcontractor. e. If the MBE or WBE is a distributor or supplier: 60% of expenditures for materials and supplies purchased from a MBE or WBE that is certified as a regular dealer or supplier shall be counted toward the Task Order Specific Goals. f. If the MBE or WBE is a broker: i. Zero percent (0%) of expenditures paid to brokers will be counted toward the Task Order Specific Goals. ii. As defined above, Brokers provide no commercially useful function. g. If the MBE or WBE is a member of the joint venture Consultantcontractor/bidder: i. A joint venture may count the portion of the total dollar value of the contract equal to the distinct, clearly defined portion of the work of the contract that the MBE or WBE performs with its own forces toward the Task Order Specific Goals; or ii. If employees of this distinct joint venture entity perform the work then the value of the work may be counted toward the Task Order Specific Goals at a rate equal to the MBE or WBE firm’s percentage of participation in the joint venture as described in the Schedule B. iii. A joint venture may also count the dollar value of work subcontracted to other MBEs and WBEs. h. If the MBE or WBE subcontracts out any of its work: i. 100% of the value of the work subcontracted to other MBEs or WBEs performing work in its Area of Specialty may be counted toward the Task Order Specific Goals.