Common use of Good Faith Effort for DBE Termination/Substitution Clause in Contracts

Good Faith Effort for DBE Termination/Substitution. The termination of a DBE with ADOT’s approval shall not relieve Developer of its obligations under these Special Provisions. If ADOT approves the termination of a Committed DBE, Developer shall make Good Faith Efforts as identified in Section 13.01 of these DBE Special Provisions and 49 CFR Part 26, Appendix A to find another DBE Subcontractor to substitute for the original DBE. Developer shall direct the Good Faith Efforts, at finding another DBE to perform at least the same amount of Work under as the Committed DBE that was terminated, to the extent needed to meet the DBE Goals. Developer shall provide documentation of such Good Faith Efforts to ADOT within seven days after ADOT delivers a request therefor. Developer’s inability to find a replacement DBE at the original price is not alone sufficient to support a finding that Good Faith Efforts have been made to replace the Committed DBE. The fact that Developer has the ability and/or desire to perform the subject Work with its own forces does not relieve Developer of the obligation to make Good Faith Effort to find the replacement DBE, and it is not a sound basis for rejecting a prospective replacement DBE’s reasonable quote. ADOT will not credit the unpaid portion of the terminated Committed DBE’s Subcontract toward the DBE Goals. If ADOT has eliminated items of Work subcontracted to a Committed DBE, then Developer shall still make Good Faith Efforts to replace the Committed DBE with another DBE for the extent necessary to meet the DBE Goals. ADOT will review the quality, thoroughness, and intensity of those efforts. When a DBE substitution is necessary, Developer shall submit a new DBE Intended Participation Affidavit and Intended Participation Affidavit Summary to ADOT for review and comment with the substitute DBE's name, description of work, NAICS code and dollar value of Work. All the provisions of Sections 12.02 and 12.03 of these Special Provisions shall apply with respect to the proposed substitute DBE. In the event Developer is unable, after substantial Good Faith Efforts, to obtain another certified DBE, ADOT may lower the affected DBE Goal. However, ADOT must approve this in writing prior to a Non-DBE starting the Work that had been subcontracted to the Committed DBE.