may give on-the-spot approval of a verbal proposal with documentation in the diary. Approval of these types of arrangements should only be given for emergency situations where lack of personnel or equipment would impose a hardship on the DBE. An example of this would be an equipment breakdown during a concrete pour. In all non-emergency cases where a DBE desires to use equipment owned by another company or Contractor, the agreement for such usage shall be in the form of a written lease agreement or purchase order. The Resident Engineer will review the agreement and, if it is signed by both parties and otherwise in order, may give verbal approval with documentation in the diary. The cost of equipment or supplies a DBE purchases or leases from the Contractor or its affiliates will not be credited toward a DBE goal. Continued or repetitive use of another Contractor's personnel or equipment for a significant portion of a DBE's work on a project may be an indication that a commercially useful function is not being served. In addition to monitoring the DBE's construction activity, continuous reviews should also be made of delivery tickets, invoices, and similarities between the DBE and another Contractor in payroll format and personnel.
(b) Irregular Activities. If an irregular activity is noted which appears to be
inconsistent with Subsection 103.08 of the Standard Specifications, the Resident Engineer shall immediately advise the Contractor and the DBE Subcontractor, verbally, of such activity. 1. The Resident Engineer shall follow with written notification to the Contractor and DBE Subcontractor, stating the nature of the suspected irregular activity, and that payments for the affected work will be withheld until the matter is resolved. The Resident Engineer shall transmit copies of this letter to EEO, the District, and the Construction Office along with a memo further explaining this action and copies of any documentation (interview reports, etc.). 2. Upon being notified of an irregularity, the State Construction Engineer will determine if further review by the EEO Section is warranted. 3. Upon recommendation of the State Construction Engineer, a review will be conducted by the EEO Section and a recommendation regarding performance of a commercially useful function will be transmitted to the State Construction Engineer. 4. The State Construction Engineer will review the recommendation by EEO and advise
the Resident Engineer and the District Engineer of the determination. The Resident Engineer will proceed as follows:
If a commercially useful function has been served, the payments previously withheld will be released.
If a commercially useful function has not been served, the Contractor must submit a corrective action plan detailing how the goal will be achieved. Payments for the affected work will continue to be withheld until the Contractor has satisfied the contract goal or may, with the concurrence of the State Construction Engineer, be released upon approval of the corrective action plan.
5. Work performed on the construction on the project is as noted above.
project by DBEs should complete. Any subsequent
be monitored frequently until irregularity should be reported
(c) Documentation of Payment to DBEs / Non – DBEs. During the progress of a Federal-Aid Contract, the Contractor must provide a certification of payments made to any DBE Subcontractors, Suppliers, Manufacturers, and/or Non-construction services. If