ARPA_DBE_Program_Provisions_March_2023_FINAL.pdf

Revised March 2023

ARPA DBE PROGRAM PROVISIONS

I. PROJECT GOAL

Per the U.S. Treasury Department, ARPA funds require the City to follow 2 CFR Part 200. The regulations do not require the City to assess a DBE goal for this project. However, the regulations do require the City and the prime contractor to take affirmative steps to use DBE firms as set forth in 2 CFR 200.321 Good Faith Efforts. In consideration of establishing DBE participation on this project, trade areas must be identified as potential prime and subcontracting opportunities. In addition, there are other DBE requirements including recordkeeping and reporting.

A. POLICY

The Disadvantaged Business Enterprise (DBE) Program is implemented as part of the City of Tucson’s responsibility as a recipient of federal financial assistance.

It is the policy of the City to ensure that DBEs have an equal opportunity to receive and participate in federal-assisted contracts. To achieve this, the City will strive:

1. To ensure nondiscrimination in the award and administration of federal-assisted contracts on the basis of race, color, sex, or national origin;

2. To create a level playing field on which DBEs can compete fairly for federal-assisted contracts;

3. To ensure that the DBE Diversity Program is narrowly tailored in accordance with applicable law;

4. To ensure that only firms that fully meet eligibility standards are permitted to participate as DBEs;

5. To help remove barriers to the participation of DBEs in federal-assisted contracts; and

6. To assist the development of firms that can compete successfully in the marketplace outside the DBE

Program.

7. To promote the use of DBEs in all types of federally-assisted contracts and procurement activities.

B. DBE PROGRAM COMPLIANCE

The prime contractor and all DBE subcontractors must comply with all aspects of the DBE federal program requirements. By submitting an offer to the City of Tucson. A DBE on a prime contract may participate as a DBE by virtue of the work it performs on the prime contract with its own forces.

Offeror’s bind themselves to make every good faith effort to have DBE participation. The contractor must also include a copy of the DBE contract provisions in every subcontract. An executed subcontract with all DBE subcontractors shall be completed prior to the Notice To Proceed, and available to the City of Tucson upon request.

Failure by the contractor to comply with the DBE provisions is a material breach of the contract which may result in remedies as deemed appropriate by the City, including but not limited to the following:

(1) Withholding monthly progress or final payments;

(2) Assessing sanctions;

(3) Liquidated damages; and/or;

(4) Disqualifying the contractor from future bidding as non-responsible.

Firms that are certified at time of DBE Plan submittal through the Arizona Unified Certification Program (AZUCP) under 49 CFR Part 26 are eligible to participate as DBEs on City of Tucson contracts that are federally funded wholly or in part.

The Arizona Unified Certification Program (AZUCP) Database contains the complete listing of those firms which are certified and therefore eligible to participate as a DBE on a project. DBE participation is NOT limited to Pima County firms. Any DBE firm recognized through the AZUCP is eligible to be recognized as a certified DBE. The AZUCP Database can be accessed through the following internet address: https://utracs.azdot.gov. If the name of a firm does not appear in the AZUCP database, it shall be the Offeror’s responsibility to ascertain the certification status of the firm.

Questions regarding the AZUCP and the City’s DBE Program can be addressed to the City’s Business Enterprise and Compliance Program at 520-837-4000.

C. ASSURANCES OF NON-DISCRIMINATION

The contractor, subrecipient, or subcontractor shall not discriminate on the basis of race, color, national origin or sex in the performance of this contract. The contractor shall carry out applicable requirements of 2 CFR Part 200 in the award and administration of federal assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the City, with U.S. Treasury concurrence if required, deems appropriate, which may include, but not limited to:

(1) Withholding monthly progress payments;

(2) Assessing sanctions;

(3) Liquidated damages; and/or

The contractor, subrecipient, or subcontractor shall ensure that all subcontract agreements contain this non-discrimination assurance.

D. DEFINITIONS

Commercially Useful Function - The performance of real and actual services in the discharge of any contractual endeavor. A DBE is performing a commercially useful function when it is responsible for execution of a distinct element of a contract and carries out its responsibilities by actually performing, managing, and supervising the work involved.

If a DBE does not perform or exercise responsibility for at least 30 percent of the total cost of its contract with its own work force, or the DBE subcontracts a greater portion of the work of a contract than would be expected on the basis of normal industry practice for the type of work involved, it is presumed that the DBE firm is not performing a commercially useful function and no DBE credit may be awarded toward DBE participation.

Committed DBE: DBE that was identified by the contractor, typically on a DBE Affidavit, to meet an assigned DBE participation as a condition of contract award and performance and includes any substitute DBE that has subsequently been committed work to meet the assigned DBE participation.

https://utracs.azdot.gov/

Contract - A legally binding relationship obligating a seller to furnish supplies or services (including, but not limited to, construction and professional services) and the buyer to pay for them.

Contractor - One who participates, through a contract or subcontract (at any tier), in a federally funded program.

For the purposes of DBE Plan evaluation, any offeror in negotiations with the City of Tucson pursuant to a Request for Qualifications is also subject to the Contractor DBE program compliance requirements.

DBE Plan - It includes submission of a completed Subcontractors List & DBE Commitment Form and/or the Affidavit of Good Faith Efforts Form.

Disadvantaged Business Enterprise or DBE - A for-profit small business concern certified under the Arizona Unified Certification Program (AZUCP) --

(a) That is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged or, in the case of a corporation, in which 51 percent of the stock is owned by one or more such individuals; and

(b) Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.

Eligible Contract - Any federally contract undertaken by the City, unless otherwise precluded by law, provided the estimate meets or exceeds one hundred thousand dollars ($100,000). An Eligible Contract does not include any project in which the estimated contract value is below one hundred thousand dollars ($100,000); contracts which are require a small business enterprise goal pursuant to the Tucson Procurement Code Chapter 28, Article XIII; contracts awarded under sections 28-21 (sole source procurement), 28-22 (emergency procurement) or 28- 23 (special procurement) of the City Procurement Code.

Good Faith Efforts - Efforts to achieve DBE participation or other requirement of this part which, by their scope, intensity, and appropriateness to the objective, can reasonably be expected to fulfill the program requirement.

Joint Checks: A two-party check between a subcontractor, DBE and/or non-DBE, a prime contractor and the regular dealer of material supplies

Joint Venture - An association of a DBE firm and one or more other firms to carry out a single, for-profit business enterprise, for which the parties combine their property, capital, efforts, skills and knowledge, and in which the DBE is responsible for a distinct, clearly defined portion of the work of the contract and whose share in the capital contribution, control, management, risks, and profits of the joint venture are commensurate with its ownership interest.

NAICS Code: The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the US business economy.

Primary Industry Classification - The four digit Standard Industrial Classification (SIC) code designation which best describes the primary business of a firm. The SIC code designations are described in the Standard Industry Classification Manual. As the North American Industrial Classification System (NAICS) replaces the SIC system, references to SIC codes and the SIC Manual are deemed to refer to the NAICS manual and applicable codes.

The SIC Manual and the NAICS Manual are available through the NAICS Association at https://www.census.gov/naics/

Prime Contractor – The contractor who is awarded a contract with the City of Tucson.

Program – Any undertaking on the City of Tucson’s part to use federal financial assistance, authorized by the laws to which this part applies.

https://www.census.gov/naics/

Race and Gender-Conscious – A measure or program that is focused specifically on assisting only DBEs.

Race and Gender-Neutral – A measure or program that is, or can be, used to assist all small businesses.

Recipient – Any entity, public or private, to which federal financial assistance is extended, whether directly or through another recipient, or who has applied for such assistance.

Small Business Concern – a business that meets all of the following conditions:

(1) Operates as a for-profit business;

(2) Operates a place of business primarily within the U.S., or makes a significant contribution to the U.S.

economy through payment of taxes or use of American products, materials, or labor;

(3) Is independently owned and operated;

(4) Is not dominant in its field on a national basis; and

(5) Does not have annual gross receipts that exceed the Small Business Administration size standards average annual income criteria for its primary North American Industry Classification System (NAICS) code.

Socially and Economically Disadvantaged Individual – Any individual who is a citizen (or lawfully admitted permanent resident) of the United States and who is –

(a) Any individual who the City of Tucson finds to be a socially and economically disadvantaged individual on a case-by-case basis.

(b) Any individual in the following groups, members of which are rebuttably presumed to be socially and economically disadvantaged:

(i) “Black Americans,” which includes persons having origins in any of the Black racial groups of Africa;

(ii) “Hispanic Americans,” which includes persons of Mexican, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race;

(iii) “Native Americans,” which includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians;

(iv) “Asian-Pacific Americans,” which includes persons whose origins are from Japan, China, Taiwan, Lorea, Burma (Myanmar), Vietnam, Laos, Cambodia (Kampuchea), Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, the U.S. Trust Territories of the Pacific Islands (Republic of Palau), the Commonwealth of the Northern Marianas Islands, Macao, Fiji, Tonga, Kirbati, Juvalu, Nauru, Federated States of Micronesia, or Hong Kong;

(v) “Subcontinent Asian Americans,” which includes persons who origins are from India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal, or Sri Lanka;

(vi) Women;

(vii) Any additional groups whose members are designated as socially and economically disadvantaged by the SBA, at such time as the SBA designation becomes effective.

E. APPLICABILITY

The City of Tucson has received federal financial assistance and has established a DBE Diversity Program for Contracts in accordance with applicable federal regulations. The DBE Diversity Program applies to all City and subrecipient contracts that are funded, in whole or in part, by federal financial assistance

ALL CONTRACTORS INCLUDING DBEs MUST COMPLY. Contractors who are DBEs must also comply with all requirements stated herein. However, a DBE on a prime contract may meet DBE participation by virtue of the work it performs on the prime contract with its own forces. By submitting to the City of Tucson, contractors bind themselves to make every good faith effort to meet DBE participation and federal regulations.

F. WORKING WITH DBES

The City works with DBEs and assists them in their efforts to participate in the federally-assisted construction projects. All firms should contact the City’s Business Enterprise and Compliance Program (BECP) for assistance in their efforts to use DBEs in the highway construction program of the Department. BECP contact information is as follows:

City of Tucson Business Services Department Business Enterprise and Compliance Program 255 W. Alameda, 6th Floor Tucson, AZ 85701 Phone (520) 837-4000 Email: Margot.Grossmann@tucsonaz.gov or John.Yslas@tucsonaz.gov Website: https://utracs.azdot.gov/search

G. DBE PARTICIPATION

DBE participation may only be met by a certified DBE firm performing a commercially useful function. A DBE may participate as a prime contractor, subcontractor, second-tier subcontractor, joint venture partner with either a prime contractor or a subcontractor, or as a vendor of materials or supplies. A DBE shall be responsible for a specific contract amount and a clearly defined portion of the work to be performed, in addition to meeting the requirements for ownership and control. Open ended contracts or reimbursable contracts may not be used to meet DBE participation at the time of bid submission. The contractor must also include a copy of the DBE contract provisions in every subcontract. An executed subcontract with all DBE subcontractors shall be completed prior to the Notice To Proceed, and available to the City of Tucson upon request.

A certified DBE must perform a commercially useful function, i.e., must be responsible for a clearly defined portion of the work and must carry out its responsibility by actually performing, managing and supervising the work. Unless specific subcontractor participation is expressed in the specifications, contractors may meet DBE participation through the following methods:

Prime Contractor Participation – DBE prime contractors may use their own participation. Credit will only be given for the dollar value of actual work performed by the prime contractor’s work force.

Subcontractor Participation – Where a prime contractor utilizes one or more certified DBE subcontractor(s) to satisfy its DBE participation commitment, the prime contractor may claim only the value of the commercially useful function to be performed by such subcontractor(s) in order to obtain credit.

1. Prime Contractors who utilize certified DBE firms whose participation is included in Force Account items, Allowances or in a Cost Reimbursement type contract, shall establish a signed contract value with the DBE firm and may only take credit for the dollar value of that contract towards satisfying its DBE commitment in their proposed DBE Plan. The dollar value must be a specific amount based on anticipated work calculated by the subcontractor and is not reliant on any estimated values that may be listed in the bid schedule and cannot be specified as a range.

2. When a DBE participates in a contract, only the work actually performed by the DBE will count towards the proposed DBE participation.

mailto:Margot.Grossmann@tucsonaz.gov mailto:John.Yslas@tucsonaz.gov https://utracs.azdot.gov/search

a. Credit will be given for the entire amount of that portion of a contract by the DBE performing a commercially useful function, including the cost of supplies and materials obtained by the DBE for the work of the contract (including supplies purchased or equipment leased by the DBE except supplies and equipment the DBE subcontractor purchases or leases from the prime contractor or its affiliate).

b. Credit will be given for the entire amount of fees or commissions charged by a DBE firm for providing a bona fide service, such as professional, technical, consultant, or managerial services, or for providing bonds or insurance specifically required for the performance of a federally funded contract provided the fee is reasonable and not excessive as compared with fees customarily allowed for similar services.

c. When a DBE subcontracts part of the work of its contract to another firm, the value of the subcontracted work may be counted toward proposed DBE participation only if the DBE’s subcontractor is itself a DBE. Work that a DBE subcontracts to a non-DBE firm does not count toward DBE participation.

d. The value of work that a non-DBE subcontractor subcontracts to a second-tier DBE firm may count toward DBE participation. Therefore, prime contractors are required to identify and report the use of any second tier subcontractors on the project on the DBE Plan form.

3. When a DBE is used as the source for materials or supplies:

a. If a DBE supplier manufactures the goods supplied, one hundred percent (100%) of the contract amount is credited towards the applicable proposed DBE participation.

b. If a DBE supplier is a regular dealer (a firm that owns, operates, or maintains a store, warehouse, or other establishment in which the materials, supplies, articles or equipment are bought, kept in stock, and regularly sold or leased to the public), 60% of the cost of the materials or supplies will be credited toward proposed DBE participation.

4. Where a contractor engages in a joint venture to satisfy its DBE commitment, the DBE joint venture partner must be responsible for a distinct and clearly defined portion of the work to be performed in addition to satisfying the requirements of ownership and control. DBE joint ventures do not have to be certified as a joint venture by the City prior to bid opening. However, prime contractors must submit information at the time of bid opening that includes a copy of the joint venture agreement and clearly outlines the work to be performed by the DBE joint venture partner, including the dollar amount and percentage of the contact to be performed.

When a DBE performs as a joint venture, the City will count a portion of the total dollar value of the contract equal to the distinct, clearly defined portion of the work of the contract that the DBE performs with its own forces toward the proposed DBE participation.

II. SUBMITTAL REQUIREMENTS

A. SUBMISSION OF A DBE PLAN

The Subcontractors List & DBE Commitment Form and/or Affidavit of Good Faith Efforts must be submitted with the project proposal.

The statement of proposed DBE Plan must include:

1. The names of the DBE subcontractors/suppliers;

2. The type and scope of work or service each DBE will perform including NAICS codes;

3. The dollar value of work as a percentage of the total contract value

4. If DBE participation is not met, evidence of good faith efforts.

If the completed Subcontractors List & DBE Commitment Form or, if necessary, a documented waiver application is not included with the proposal, the proposal will be considered non-responsive.

B. REVIEW OF DBE PLANS

The Director of Procurement may determine that the DBE Plan and/or Affidavit of Good Faith Effort is nonresponsive where the contractor, (1) failed to provide a completed Subcontractors List & DBE Commitment Form; (2) failed to identify DBEs by name, the scope of work and value of work as a percent of the total project amount; (3) failed to provide written and signed documentation of commitment to use a DBE subcontractor for participation; or (4) failed to meet the requirements for a waiver. The Director’s determination shall be in writing and shall state the basis for such decision.

III. GOOD FAITH EFFORT

A contractor must, in order to be responsive, make good faith efforts towards DBE participation. The contractor can meet this requirement in either of two ways. First, the contractor can document commitments for participation by DBE firms. Second, the contractor can document adequate good faith efforts. This means that the contractor must show that it took all necessary and reasonable steps to achieve DBE participation.

The contractor must provide documented evidence including a narrative statement with supporting affidavits and/or exhibits verifying the good faith efforts to meet DBE participation.

The following is a list of types of actions which the City will consider as part of the good faith efforts to obtain DBE participation. It is not intended to be a mandatory checklist, nor is it intended to be exclusive or exhaustive.

Other factors or types of efforts may be relevant in appropriate cases.

A. Soliciting through all reasonable and available means the interest of all certified DBEs who have the capability to perform the work of the contract. The contractor must solicit this interest within sufficient time to allow the DBEs to respond to the solicitation. The contractor must determine with certainty if the DBEs are interested by taking appropriate steps to follow up initial solicitations.

B. Selecting portions of the work to be performed by DBEs in order to increase the likelihood that DBE participation will be achieved. This includes, where appropriate, breaking out contract work items into economically feasible units to facilitate DBE participation, even when the prime contractor might otherwise prefer to perform these work items with its own forces.

C. Providing interested DBEs with adequate information about the plans, specifications, and requirements of the contract in a timely manner to assist them in responding to a solicitation.

D. (1) Negotiating in good faith with interested DBEs. It is the contractor’s responsibility to make a portion of the work available to DBE subcontractors and suppliers and to select those portions of the work or material needs consistent with the available DBE subcontractors and suppliers, so as to facilitate DBE participation. Evidence of such negotiation includes the names, addresses, and telephone numbers of DBEs that were considered; a description of the information provided regarding the plans and specifications for the work selected for subcontracting; and evidence as to why additional agreements could not be reached for DBEs to perform the work.

(2) A contractor using good business judgment would consider a number of factors in negotiating with subcontractors, including DBE subcontractors, and would take a firm’s price and capabilities as well as DBE participation into consideration. However, the fact that there may be some additional costs involved in finding and using DBEs is not itself sufficient reason for failure to meet DBE participation , as long as such costs are reasonable. Also, the ability or desire of a prime contractor to perform the work of a contract with its own organization does not relieve them of the responsibility to make good faith efforts.

Prime contractors are not, however, required to accept higher quotes from DBEs if the price difference is excessive or unreasonable.

E. Not rejecting DBEs as being unqualified without sound reasons based on a thorough investigation of their capabilities. The contractor’s standing within its industry, membership in specific groups, organizations, or associations and political or social affiliations (for example union vs. non-union employee status) are not legitimate causes for rejection or non-solicitation of bids in the contractor’s efforts to meet project DBE participation.

F. Making efforts to assist interested DBEs in obtaining bonding, lines of credit, or insurance as required by the City of Tucson or contractor.

G. Making efforts to assist interested DBEs in obtaining necessary equipment, supplies, materials, or related assistance or services.

H. Effectively using the services of available minority/women community organizations; minority/women contractors’ groups; local, state, and Federal minority/women business assistance offices; and other organizations as allowed on a case-by-case basis to provide assistance in the recruitment and placement of DBEs.

I. Communicating with the Business Enterprise & Compliance Program seeking technical or professional assistance in identifying available DBEs and requesting the most current Arizona Unified Certification Program (AZUCP) directory of certified DBE firms.

The City’s Director of Procurement shall review the waiver application and approve the waiver where the contractor has demonstrated good faith efforts or deem them nonresponsive where they failed to meet the good faith efforts.

IV. ADMINISTRATIVE RECONSIDERATION

If it is determined by the City’s Director of Procurement that the contractor has failed to document adequate good faith efforts, the contractor shall have the opportunity for administrative reconsideration. Therefore, within five (5) working days of being notified by the Business Enterprise Compliance Program that it is not responsive because it has not documented adequate good faith efforts, a contractor may request administrative reconsideration. Contractors must make this request in writing to the following individual:

Procurement Director

255 W. Alameda – PO Box 27210 Tucson, Arizona 85726.

The request for reconsideration must include the reasons and factual grounds for reconsideration with any supporting documents. The Procurement Director shall appoint a Reconsideration Official who will not have played any role in the original determination that the Offeror did not document sufficient good faith efforts. The Reconsideration Official shall hold a hearing within ten (10) working days of the request for reconsideration. The contractor will have the opportunity to meet in person with the City’s Reconsideration Official to discuss the issue of whether it made adequate good faith efforts to do so. The Reconsideration Official can also take testimony from City employees.

The City will send the contractor, via certified mail, a written decision on reconsideration, explaining the basis for finding that the contractor did or did not make adequate good faith efforts to do so. The decision will be sent within five (5) working days of the Reconsideration Hearing. The result of the reconsideration process is not administratively appealable. Copies of the reconsideration documentation, including supporting documents and the Reconsideration Officials final decision, shall be maintained in the contract file at the Department of Procurement.

Failure to submit the required information by the stated time and in the manner herein specified shall be cause for the contractor to be deemed non-responsive.

The Procurement Director may verify and/or clarify information and request resubmittal of information based on clarification as it relates to the affidavit of good faith efforts, and/or the statement of proposed DBE Plan.

V. MONITORING PAYMENTS TO SUBCONTRACTORS

For construction, construction services and professional design service contracts, the prime contractor must comply with applicable Prompt Payment regulations, Tucson Code Section 11-38, Arizona Revised Statutes Title 32 - Chapter 10 - Article 5 and applicable federal regulations. This section does not pertain to other contract types not identified above which are paid in accordance with the standard terms & conditions contained in the solicitation.

The City of Tucson requires that the prime contractor and each subcontractor of any tier must pay all subcontractors for satisfactory performance of their contracts within seven (7) days from the receipt of each progress payment made by the City of Tucson.

Prime contractors will report the actual value of any contract to DBE firms for work committed to them at the time of the contract award.

The Business Enterprise and Compliance Program (BECP) will actively monitor progress payments from the City of Tucson to the prime contractor and proactively contact subcontractors to ensure compliance with the prompt payment requirements are met.

1. BECP will monitor the City’s financial system to determine the actual date a payment is made to the Prime.

2. BECP will contact the subcontractor(s) via email or telephone to verify payment receipt.

3. The prime contractor shall report on a monthly basis indicating the amounts paid to all subcontractors, of all tiers, working on the project.

4. If payment was not received timely or if there is a discrepancy between the invoice amount from the subcontractor to the Prime contractor and the actual amount paid to the subcontract, BECP will contact the Prime contractor regarding the discrepancy.

5. The Prime contractor must provide a verifiable explanation of the discrepancy.

6. BECP will review the information to determine if the Prime Contractor acted in good faith regarding the prompt payment requirements. BECP reserves the right to request and receive documents from the Prime contractor and all subcontractors at any tier, in order to determine whether prompt payment requirements are met.

Failure to make prompt partial payment, or prompt final payment including any retention, will result in remedies the City of Tucson deems appropriate which may include but are not limited to:

• Request contractor right of assurance with payment resolution plan;

• Withhold full or partial monthly progress payment(s) until the issue is resolved and full payment has been made to all subcontractors;

• Assess prompt payment liquidated damages, in addition to liquidated damages provided elsewhere in the contract, in an amount identified in the contract;

• Terminate the contract for default;

• Disqualify the Prime contractor from bidding on federal-assisted projects, temporarily or permanently, depending upon the severity and number of violations.

The Business Enterprise and Compliance Program will also monitor project completion of subcontractors work and ensure prompt retention payments. The prime contractor agrees further to return retainage payments to each subcontractor within 30 days after the subcontractors work is satisfactorily completed. For the purposes of this section, a subcontractor's work is satisfactorily completed when all the tasks called for in the subcontract have been accomplished and accepted by the prime contractor as required by the City of Tucson. Payment of retention by a prime contractor to subcontractors following completion and acceptance of work is NOT dependent on the billing of, or payment from, the City of Tucson for the retention release. Required timelines are indicated below:

A. When a subcontractor has completed all the tasks called for in the subcontract, the subcontractor will submit a written request to the prime contractor for an acceptance inspection and release of all retention.

B. Within 10 days of receipt of an inspection request by a subcontractor, the contractor shall schedule an inspection / walk through for acceptance of the work.

C. Within 30 days of the acceptance of a subcontractors work, the prime contractor shall pay all retention owed to a subcontractor.

Once a subcontractor’s work has been accepted, a prime contractor may bill the City of Tucson for release of retention equal to the amount of retention that is/has been released to a subcontractor.

The City of Tucson will ensure the inclusion of the following clauses in all federal–assisted prime contracts:

The prime contractor agrees to pay each subcontractor under this prime contract for satisfactory performance of its contract no later than seven (7) days from the receipt of each payment the prime contract receives from the City of Tucson. The prime contractor further agrees to return retainage payments to each subcontractor within 30 days after the subcontractors work is satisfactorily completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of the City of Tucson. This clause applies to both DBE and non-DBE subcontracts.

The City will keep a record of committed and actual payments to DBE firms.

VI. MISCELLANEOUS PROVISIONS

A. SUBCONTRACTOR TERMINATION / SUBSTITUTION REQUESTS:

The contractor shall make all reasonable efforts to avoid terminating or substituting a DBE listed on the Subcontractors List and DBE Commitment form. At a minimum, the contractor shall negotiate in good faith, give timely notices and/or extend deadlines to the extent that it will not jeopardize the contract with the City.

Reasonable methods to resolve performance disputes must be applied and documentation provided to the City before attempting to substitute or terminate a DBE.

The contractor’s distinct contract items of work to be awarded to DBE’s shall be performed by the designated DBE. The DBE must perform a commercially useful function, that is, the DBE must manage, perform, and supervise a distinct element of work.

The contractor shall not terminate a DBE subcontractor listed on the Subcontractors List and DBE Commitment form or complete the work contracted to the DBE with its own forces or with a non-DBE firm without the City’s written consent. Before submitting a formal request to the City for DBE termination/substitution, the contractor shall give written notice to the DBE subcontractor with a copy to the City of its intent to terminate or substitute the DBE identifying the reason for the action. The notice shall include the deadline for the DBE to submit a written response advising the contractor and the City of its position which shall be a minimum of five calendar days after the notice is given. Before making a determination for approval regarding the contractor’s termination and substitution request, the City will consider both the contractor’s request and the DBE firm’s response.

All subcontractor modifications (addition, modification, substitution, deletion) pursuant to the Tucson Procurement Code Section 28-48(2), may only be allowed at the sole discretion of the Procurement Director.

Approval must be obtained prior to the subcontractor beginning the work.

In the event that a DBE is unable or unwilling to fulfill its agreement with the contractor, the contractor shall immediately notify the Business Enterprise & Compliance Program, the Contract Officer and the Project Manager. The DBE firm can only be terminated for good cause. The contractor shall immediately take reasonable good faith efforts to obtain another certified DBE firm to perform an equal or greater dollar value of the work. The contractor shall provide all pertinent information regarding the DBE modification request including but not limited to:

1. The date the contractor determined the DBE to be unwilling, unable, or ineligible to perform.

2. A brief statement of facts describing the situation and citing specific actions or inaction by the DBE firm giving rise to contractor’s assertion that the DBE firm is unwilling, unable, or ineligible to perform.

3. A brief statement of the good faith efforts undertaken by the contractor to enable the DBE firm to perform.

4. The total dollar amount currently paid for work performed by the DBE firm.

5. The total dollar amount remaining to be paid to the DBE firm for work completed, but for which the

DBE firm has not received payment, and over which the contractor and the DBE firm have no dispute.

6. The projected date that the contractor requires a substitution or replacement DBE to commence work, if consent is granted to the request.

7. The DBE’s response to the notice of intent to terminate. If there is no response from the DBE within the time allowed in the notice of intent to terminate, the contractor shall state that no response was received.

Written consent for modifying the contract work for any DBE listed on the Subcontractors List and DBE Commitment form will be granted only where the contractor can demonstrate good cause showing that the DBE is unable, unwilling, or ineligible to perform. Such written consent to terminate any DBE shall concurrently constitute written consent to substitute or replace the terminated DBE. Termination or substitution of a DBE listed on the Subcontractors List and DBE Commitment form will not be allowed based solely on a contractor's ability to negotiate a more advantageous contract with another subcontractor. Prior to making a determination for approval regarding the contractor’s termination and substitution request, the City will consider both the contractor’s request and the DBE firm’s response.

Contract items eliminated from the project, with the approval of the Project Manager, may not reduce the contractor’s obligation for DBE participation.

B. DBE PROGRAM COMPLIANCE

The contractor and all DBE subcontractors must comply with all aspects of the DBE federal program requirements. By submitting an offer to the City of Tucson; Offeror’s bind themselves to make every good faith effort to have DBE participation. The contractor must also include a copy of the DBE contract provisions in every subcontract. An executed subcontract with all DBE subcontractors shall be completed prior to the Notice To Proceed, and available to the City of Tucson upon request.

Failure by the contractor to comply with the DBE provisions is a material breach of the contract which may result in remedies as deemed appropriate by the City, including but not limited to the following:

(1) Withholding monthly progress or final payments;

(2) Assessing sanctions;

(3) Liquidated damages; and/or;

The contractor must comply with applicable Prompt Payment regulations, Tucson Code Section 11-38 and Arizona Revised Statutes Title 32 - Chapter 10 - Article 5. The City of Tucson may withhold payment from the prime contractor for work performed by subcontractors unless and until the prime contractor ensures that the subcontractors are promptly paid for the work they have performed.

The prime contractors must provide notice to all subcontractors that complaints of violations of the prompt payment provision may be submitted in writing to the City of Tucson, Shared Services Procurement, Business Enterprise and Compliance Program, 255 W. Alameda, 6th floor Tucson, Arizona 85701 – PO Box 27210, Tucson, Arizona 85726. The complaint shall set forth the facts and identify the prime contractor and the construction project. Subcontractors will be assisted by the Business Enterprise & Compliance Program with the complaint process as detailed in the City of Tucson Construction Fairness Ordinance comprised of Chapter 28, Tucson Procurement Code Section 28-101, Tucson Code Chapter 11-38 and Tucson Code, Chapter 8-2.2.

C. CONTRACTOR PERFORMANCE EVALUATION

At the conclusion of every City of Tucson construction project, the prime contractor is required to complete the Prime Contractor Report of Subcontractor Utilization form. In addition to identifying all subcontractors utilized on a project, the report will include a section to rate the performance of project subcontractors from 1 – 5, based on industry standards. The performance rating section shall be completed. A score of 3 is considered average.

A score of 4 or 5 is considered above average. A score of 1 or 2 is considered as poor performance. A rating of 1 or 2 of a subcontractor will require the prime contractor to complete a Substandard Performance Report documenting the cause for the substandard performance rating. The City of Tucson Project Manager must concur with all poor performance ratings.

D. RECORD-KEEPING

The City of Tucson will require prime contractors to maintain records and documents of payments to DBE for three years following the performance of the contract. These records will be made available for inspection upon request by any authorized representative of the City of Tucson or federal government. The reporting requirement also extends to any certified DBE subcontractors.

E. FALSE, FRAUDULENT OR DISHONEST CONDUCT

In addition to any other remedies or actions, the Department will bring to the attention of the applicable federal agency any appearance of false, fraudulent, or dishonest conduct in connection with the DBE program, so that the federal agency can take steps such as referral to the Department of Justice for criminal prosecution, referral to the federal agency Inspector General for possible initiation of suspension and debarment proceedings against the offending parties or application of “Program Fraud and Civil Penalties” rules.

F. NON-DISCRIMINATION

The City of Tucson shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any federal contract or in the administration of its DBE Program. The recipient shall take all necessary and reasonable steps to ensure nondiscrimination in the award and administration of federal contracts. The recipient’s DBE Program, is incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement.

Upon notification to the City of Tucson of its failure to carry out its approved program, the Department may impose sanctions as provided for under Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).

Business Enterprise & Compliance Program Subcontractors List and DBE Commitment Form

Solicitation/Contract No. _________________ Project Name: _________________________________________

Enter your DBE subcontractors for this project in the following table per submission requirements contained in the applicable Tucson Procurement Code Section 28-150(4), 28-150(5) or 28-151.1(3). Any addition, deletion or substitution to the listed SBE subcontractors requires approval from and is at the sole discretion of the Procurement Director.

ALL PROPOSED DBE FIRMS

Subcontractor’s Name

Trade/Industry

Dollar Value of Contract

Enter your committed subcontractors for this project in the following table per submission requirements contained in Tucson Procurement Code Section 28-48(2). Any addition, deletion or substitution to the listed subcontractors requires approval from and is at the discretion of the Procurement Director.

FIRST TIER SUBCONTRACTORS AT AND ABOVE $5,000

Subcontractor’s Name

Trade/Industry

Dollar Value of Contract

Bidder’s Base Bid Amount $

Total Claimed DBE Participation $_________________ _______%

I hereby certify by signing below that the foregoing DBE firms shall be contracted to work on the trades identified above and/or supply material and/or equipment for this project. The information shown above is a true reflection of the proposed subcontracts expressed as a percentage of the base bid.

Company Name: __________________________________________

Signature: _______________________________________________ Phone No. _____________

Date: _________________ Name & Title: ______________________________________________

A COMPLETED SUBCONTRACTORS LIST & DBE COMMITMENT FORM AND/OR AFFIDAVIT OF GOOD

FAITH EFFORTS MUST BE SUBMITTED WITH THE PROPOSAL.

Business Services Department, Business Enterprise & Compliance Program

AFFIDAVIT OF GOOD FAITH EFFORTS

CONTRACT NO:

PROJECT NAME: ________________________________________________________________

COMPANY NAME:________________________________________________________________

CONTACT NAME:

PHONE NUMBER:____________________ FAX NUMBER:

WHERE A CONTRACTOR FAILS TO EXERCISE “GOOD FAITH” EFFORTS TO MEET DBE

PARTICIPATION, AS REQUIRED BY THE CITY OF TUCSON, THE BIDDER WILL BE DEEMED

NONRESPONSIVE.

The intent of this certification is to document the good faith efforts implemented by the bidder in soliciting and utilizing DBE firms. This certificate will assist the City of Tucson’s Business Services Department, Business Enterprise & Compliance Program in determining whether the bidder has implemented comprehensive good faith efforts. Pursuant to Administrative procedures and policies, the Procurement Director may verify and/or clarify information as it relates to the Affidavit of Good Faith Efforts and/or the Bidder’s Subcontractors List & Commitment DBE Form. The burden of proof rests with the bidder.

1. Which portions of the contract proposal, in terms of the nature of the work, were selected to be subcontracted to DBE firms? Attach supporting documentation (e.g. memo, proposal, project breakdown, etc.).

2. Which portion of the contract proposal, in terms of suppliers was identified for DBE firms? Attach supporting documentation (e.g. memo, proposal, project material breakdown etc.).

Name of Company Contacted Contact Person Dates of Contact Telephone #

4. Was the City of Tucson’s Business Services Department, Business Enterprise & Compliance

Program technical or professional staff contacted for assistance? (Note that it is the policy of the Department of Procurement to offer technical support to respondents to ensure that all avenues have been exhausted in meeting DBE participation.) Attach necessary documentation.

Yes ____ No _____ Date of Contact _________________

Contact Person __________________________________

3. Which DBE firms were solicited in writing for subcontract or supplier quotes/bids? Also, in the appropriate space identify when the firms received subsequent telephone solicitations. Attach supporting documentation (e.g. copy of written solicitation to DBE firms, along with copies of telephone logs documenting follow-up communications, etc.).

5. Describe any efforts undertaken to provide DBE firms with information about the project plans, specifications and requirements of the contract.

Name of DBE Firm Explanation for Rejecting Quotes

6. Describe any additional efforts undertaken to assist DBE firms (e.g. dividing total requirements into smaller tasks or quantities, bonding assistance, lines of credit, delivery schedules, etc. ).

7. Indicate which DBE firms submitted quotes on the contract proposal and provide a brief explanation of the reasons why these quotes were rejected. If price was a factor provide documentation to show quotes received from non-certified firms.

8. Were any proposals from DBE subcontractors that were no more than 15% or $250,000 greater than the accepted Non-DBE subcontractor rejected? If so, describe in detail.

9. Describe in detail any supplemental items or efforts which you wish to have the department consider as part of your Good Faith Effort. Attach additional documentation or sheets for this item.

BUSINESS ENTERPRISE & COMPLIANCE PROGRAM (BECP)

FINAL SUB-CONTRACTORS LIST

(To be submitted prior to contract/project award)

Contract No.: Project:

Prime Contractor:

The undersigned Contractor certifies that the following list of subcontractors is the exhaustive list of all subcontractors that will perform work on the above listed contract/project.

The Federal Labor Standards requires that the Contractor and each subcontractor to provide their Employer (IRS) Number and their Business Racial/Ethnic Classification, and the dollar value of each subcontract. The Racial/Ethnic Code indicates the racial/ethnic character of the owner(s) and controller(s) of 51% of the business. When 51% or more of the business is not owned or controlled by a single racial/ethnic category, enter the code that seems most appropriate. The Racial/Ethnic Code may be a combination of two-code number – for example 2/3.

Racial/Ethnic Codes:

1= White Americans 2= Black Americans 3= Native Americans 4=Hispanic Americans 5= Asian/Pacific Americans

Work Category(ies) Subcontractor’s Name & AZ ROC License Number

Value of Contract

Tax ID # (9 digits)

DUNS #

Ethnic Code

Contractor Representative:

Phone # Email:

Signature: Date:

BECP Approval: Date

19 Revised March 2023

The modification of any subcontractor after contract award requires prior approval by the Business Services Director

TYPE OF REQUEST ADDITION REMOVAL REPLACEMENT

INCREASE REDUCTION

ARE ANY SBE / DBE FIRMS AFFECTED? YES NO If yes, please explain:

Contract # Contract Name:

Prime Contractor: Contact Name

Email: Phone:

CURRENT

SUBCONTRACTOR

PROPOSED

SUBCONTRACTOR

SUBCONTRACTOR

NAME

SUBCONTRACT

VALUE

CONTACT NAME

EMAIL

PHONE

ADDRESS

DUNS

SBE / DBE ? SBE / DBE

(circle one, if applicable)

SBE / DBE

(circle one, if applicable)

SIGNATURE By signing below, the Current Subcontractor indicates their understanding of, and agreement with, this modification and the explanation provided by the Prime Contractor in the “Reason for Request” field on this form:

Signature of Current Subcontractor (required)

Business Enterprise and Compliance Program (BECP) Subcontractor Modification Form

20 Revised March 2023

Revised February 2023 REASON FOR REQUEST: (Note: Prime Contractor must explain why the subcontractor that was identified in the Prime Contractor’s bid is now being modified. Reason must demonstrate that this modification does not violate City of Tucson Ordinance 9158 as well as Section 28-48(2), Section 28-150(6)(5), Section 28-151.4(1), and Section 28-151.4(2) of the Tucson Procurement Code. The City seeks to ensure that this request is not being made as a result of “bid shopping” on the part of the Prime Contractor.)

________________ (attach supporting documentation as necessary)

Signature of Prime Contractor:_________________________________ Date: _______________________________

*********************************************COT Use Only********************************************

APPROVAL

BUSINESS ENTERPRISE DATE

BUSINESS SERVICES DIRECTOR DATE

21 Revised March 2023

Business Enterprise & Compliance Program (BECP)

Prime Contractor/Consultant Evaluation of Subcontractors/Subconsultants

Date: Prime Contractor/Consultant:

Contract #: Contract Name:

List all subcontractors/subconsultants that performed work on this contract.

Prime contractors/consultants must rate the subcontractor/subconsultant performance on this contract.