Common use of Performance of DBE Contractors and other DBE Subcontractors/Suppliers Clause in Contracts

Performance of DBE Contractors and other DBE Subcontractors/Suppliers. a. A DBE does not perform a commercially useful function if its role is limited to that of an extra participant in a transaction, Preconstruction Services Contract, or project through which funds are passed in order to obtain the appearance of DBE participation. In determining whether a DBE is such an extra participant, examine similar transactions, particularly those in which DBEs do not participate. b. If a DBE does not perform or exercise responsibility for at least 30 percent of the total cost of its Preconstruction Services Contract with its own work force, or the DBE subcontracts a greater portion of the work of the Preconstruction Services Contract than would be expected on the basis of normal industry practice for the type of work involved, presume that it is not performing a commercially useful function.