California Department of Transportation

Contract 06-0J4504

The responses to bidder's inquiries, unless incorporated into a formal addendem to the contract, are not a part of the contract and are provided for the bidder's convenience only. In some instances, the question and answer may represent a summary of the matters discussed rather than a word-for-word recitation. The availability or use of information provided in the responses to bidder's inquiries is not to be construed in any way as a waiver of the provisions of Section 2-1.03 of the Standard Specifications or any other provision of the contract, the plans, Standard Specifications or Special Provisions, nor to excuse the contractor from full compliance with those contract requirements. Bidders are cautioned that subsequent responses or contract addenda may affect or vary a response previously given.

Q1) We have been contacted DVBE companies that want to broker materials, namely hot mix asphalt, asphalt emulsion, screenings, and sand cover. These commodities will be quoted by various local producers. The DVBE companies want to buy the material (at the price quoted for the
project) and sell it to our company with a markup. They are telling us we will then get that dollar amount to use towards our DVBE goal. Does this meet your “commercially useful function” definition?

Are we able to utilize a DVBE to purchase material with 100% going towards the goal, even if they aren’t a supplier, for us in order to meet the 5% incentive?

We have already left messages for Dept. of General Services Office of Small Business Services (916) 375-4950, with no returned call. This would be the reason for my inquiry.

A1) The DVBE that has been listed as a subcontractor on a state-funded contract for which the prime contractor is claiming DVBE participation must first be certified by Department of General Services. All new and renewing small business and DVBE applicants are sent a questionnaire and asked to provide Commercially Useful Function information.

The response must demonstrate how, as a certified small business, microbusiness and/or DVBE contractor, subcontractor or supplier meets the commercially useful function requirements under Government Code section 14837(d)(4) and Military and Veterans Code section 999(b)(5)(B).

A business performing a commercially useful function is one that does all of the following:

· Is responsible for the execution of a distinct element of the work of the contract.
· Carries out its obligation by actually performing, managing, or supervising the work involved.
· Performs work that is normal for its business, services and function.
· Is not further subcontracting a portion of the work that is greater than that expected to be subcontracted by normal industry practices.

A contractor, subcontractor, or supplier will not be considered to perform a commercially useful function if the contractor's, subcontractor's, or supplier's role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of a small business, microbusiness, or DVBE participation.