Ohio Administrative Code › Title 123:2 - Division of EEO for Construction › Chapter 123:2-14 - Applications for certification, expedited certification, or re-certification into the Minority Business Enterprise (MBE); Encouraging Diversity, Growth, and Equity (EDGE); or Women-owned Business Enterprise (WBE) › Section 123:2-14-06 - Commercially useful function

Current through all regulations passed and filed through July 1, 2024
(A)
								An MBE, EDGE, or
			 WBE-certified business must have a necessary and useful role in the transaction
			 that is real and required to complete the contract, of a kind for which there
			 is a market outside the context of the certification program(s). A necessary
			 and useful role includes being responsible for the execution of the work of the
			 contract and for carrying out the contract responsibilities by (but not limited
			 to) actively performing, paying, managing, and supervising the work
			 involved.
(B)
								Agencies may count toward their goals only those
			 expenditures to MBE, EDGE, and/or WBE-certified businesses that perform a
			 commercially useful function.
(C)
								The Ohio
			 Department of Administrative Services, Equal Opportunity Division (DAS/EOD)
			 will consider but is not limited to the following when determining if a
			 certified business is performing a commercially useful function:
(1)
									do the regular
			 employee(s) of the certified business have responsibility with respect to the
			 execution of the work of the contract. Regular employees are certified business
			 employees who would be working for the certified business on any other
			 contract. An individual is not considered a regular certified business employee
			 if the individual is an independent contractor or the employee of a
			 subcontractor to the certified business or any other business;
(2)
									are the certified
			 business's employees directed, given work assignments, supervised, and
			 responsible to an appropriate individual employed by the certified
			 business;
(3)
									is the final decision for the hiring and terminating of
			 the certified business's employees made by the certified
			 business;
(4)
									is the equipment used on a contract by the certified
			 business owned, rented, or leased. If the equipment is rented or leased, is the
			 equipment procured from a traditional rental or leasing source pursuant to a
			 written rental or lease agreement;
(a)
										equipment is not considered under the control of the
			 certified business if the equipment belongs to a business awarded the contract
			 or to another contractor working on the contract;
(5)
									does the
			 certified business have the responsibility with respect to the execution of the
			 work of the contract, for actively managing, performing, and supervising the
			 work involved. Examples include (but are not limited to) the following:
(a)
										negotiating the
			 price and profit margin of the goods, services, labor, and/or
			 materials;
(b)
										arranging delivery of the goods, services, and
			 materials;
(c)
										taking ownership of the goods, services, and materials
			 (when appropriate);
(d)
										preparation of formal estimates and bids (e.g., in
			 writing);
(e)
										determining quantity of goods and materials;
			 and
(f)
										determining the quality of materials.