Section 14 010 003 - POLICY ON CONTRACTING AND SUBCONTRACTINGSection 2.1 Definitions Definitions. The following terms as used in this section are defined as follows:
(a) His own organization shall be construed to include only workmen employed and paid directly by the contractor and equipment owned, leased or rented by him from a non-debarred person, with or without operators. Such term does not include employees or equipment of a subcontractor, assignee, agent, or supplier of the contractor.(b) Specialty Items shall be construed to be limited to work that requires highly specialized knowledge, craftsmanship, or equipment not ordinarily available in the type of contracting organizations qualified and expected to bid on the contract as a whole. In general, such items are to be limited to minor components of the overall contract. However, the fabrication and erection of certain types of steel structures are of such a nature and intricacy that they should be considered "Specialty Items," even though the cost of this work may constitute the major portion of the contract amount.(c) Contractor means the individual, partnership, firm, corporation, or any acceptable combination thereof or joint venture, which is a party to the contract with the Department, undertaking the execution of the work under the terms of the contract and acting directly or through its agents or employees. The term "Contractor" is referred to as the prime Contractor as differentiated from the subcontractor.(d) Subcontractor means an individual, partnership, firm, corporation, or any acceptable combination thereof, or joint venture, to whom the Contractor, with written consent of the Department, sublets part of the contract.(e) Commercially useful function means the contractor/subcontractor is responsible for the execution of a distinct element of the work of a contract and carries out its responsibilities by actually performing, managing, and supervising the work involved. A contractor/subcontractor must have the latitude to independently:(1) Select contracts to be bid.(2) Determine prices to be quoted.(3) Select material suppliers.(4) Hire, fire, supervise and pay employees.(5) Direct or cause the direction of the management and policies of the firm. A contractor/subcontractor may not broker work for another firm or act as a bidding conduit.Section 2.2 Allowable Subcontracting A Contractor must perform with its own organization contract work amounting to not less than 50 percent of the total contract price. For purposes of this paragraph an assignment of contract work is considered synonymous with a subcontract to perform such work.
Section 2.3 Contractor Performance Requirements(a) A contractor/subcontractor shall perform a commercially useful function.(b) To assure that any subcontracted work is performed in accordance with the contract requirements, the contractor shall be required to furnish: (1) A competent superintendent or foreman who is employed by the contractor, who has full authority to direct performance of the work in accordance with the contract requirements, and who is in charge of all construction operations (regardless of who performs the work).(2) Such other of the contractor's organizational capability and responsibility (supervision, management, and engineering services) as the Agency Construction Engineer determines is necessary to assure the performance of the contract.Section 2.4 Specialty Items The cost of "Specialty Items" may be deducted from the total contract price before computing the amount of work required to be performed by the contractor's own organization. Specialty items shall be designated in the advertised specifications and amy be performed by subcontract.
Section 2.5 Special Criteria To determine whether the contractor is in compliance with the requirement that it perform with its own organization contract work amounting to not less than 50 percent (minus designated "Specialty Items") of the total original contract price, the following criteria shall apply:
(a) The cost of materials and manufactured products to be purchased or produced under the contract provisions shall be included in the contract amount upon which the 50 percent requirement is computed.(b) The percentage of subcontracted work shall be based on the contract, rather than subcontract unit prices. If only a part of a contract item is to be sublet, its proportional value shall be determined administratively on the same basis.(c) When a firm sells materials to a contractor and performs the work of incorporating the materials into the project, these phases must be considered in combination and as constituting a single subcontract.Section 2.6 Contract Assignment The Contractor shall not sublet, assign, sell, transfer or otherwise dispose of the contract or any portion thereof, or of its right, title or interest therein, to any individual, firm or corporation, without the written consent of the Agency Chief Engineer. In case such consent is given, the Contractor must file with the Agency copies of all subcontracts.
After approval to sublet a portion of the contract, the subcontractors shall not in turn sublet or assign any of the work pertaining to the subcontract without the Contractor obtaining further permission from the Agency. No subcontracts or transfer of contract shall in any case release the Contractor of its liability under its contract and bonds.
Section 2.7 DBE/WBE Requirements Contractors must ensure that Disadvantaged and Women Business Enterprises have the maximum opportunity to participate in the performance of contracts financed in whole or in part with Federal funds. Contractors subletting portions of federal aid contracts must assure:
(a) That in all solicitations, either by competitive bidding, or negotiation, for subcontracts, including procurements of materials and leases of equipment, each potential subcontractor, supplier or lessor is notified by the contractor of the contractor's obligations relative to non-discrimination on the grounds of race, color, sex, or national origin.(b) That in the selection and retention of subcontractors, including procurements of materials and leases of equipment, the contractor does not discriminate on the grounds of race, color, sex, or national origin.(c) That subcontract agreements, including procurements of materials and leases of equipment, unless exempt by the regulations of the Secretary of Transportation ( 49 CFR Part 21) or directives issued pursuant to the regulations, shall contain the contract provisions implementing Title VI of the Civil Rights Act of 1964 ( 23 CFR Part 633). Contractors requesting subcontractor approvals must submit evidence, in writing to the Agency Construction Engineer, documenting their good faith efforts to secure WBE/DBE subcontractors.
Section 2.8 Payrolling A contractor/subcontractor is not permitted to place on the payroll the employees of another firm for the purpose of avoiding Federal or State Regulations.
14-003 Code Vt. R. 14-010-003-X
Effective Date: July 29, 1985 (SOS Rule Log #85-43)