Washington Administrative Code › Title 468 - Transportation, Department of (See Title 88) › Chapter 468-19 - Minority and women business enterprises enforceable goals program › Section 468-19-030 - Termination and substitution

Current through Register Vol. 24-14, July 15, 2024
(1) The
			 prime contractor cannot change the scope or reduce the amount of work committed
			 to an MWBE without good cause. Reducing MWBE commitment is considered
			 termination, and therefore subject to the termination procedures, described
			 herein.
(2) In the event that work
			 committed to an MWBE firm under runs the original planned quantities, the prime
			 contractor may be required by WSDOT to substitute other remaining work to
			 another MWBE.
(3) In instances
			 where WSDOT makes changes that result in reductions to work that was committed
			 to an MWBE, the prime contractor may be directed to subcontract other remaining
			 contract work for possible MWBE participation.
(4) Termination of a MWBE is only allowed in
			 whole or in part for good cause and with prior written approval of WSDOT. If
			 the prime contractor terminates or substitutes a MWBE without the prior written
			 approval of WSDOT, the prime contractor may not be entitled to payment for work
			 committed to, but not performed/supplied by the MWBE.
(5) Prior to requesting approval to terminate
			 or substitute a MWBE, the prime contractor shall give notice in writing to the
			 MWBE with a copy to WSDOT of their intent to terminate the MWBE and the reasons
			 for doing so. The MWBE shall have five days to respond to the prime
			 contractor's notice. The MWBE's response shall either support the termination
			 or advise WSDOT and the prime contractor of the reasons it objects to the
			 termination of its subcontract or MWBE commitment.
(6) If the request for termination is
			 approved, the prime contractor is required to make a good faith effort (GFE) to
			 find another MWBE to perform at least the same dollar amount of work under the
			 contract as the MWBE that was terminated. A plan to replace the MWBE commitment
			 or GFE shall be submitted to WSDOT within seven calendar days of the approval
			 of termination.
(7) Good cause
			 typically includes situations where the MWBE is unable or unwilling to perform
			 the work of its subcontract.
(a) Good cause
			 may exist if:
(i) The MWBE fails or refuses to
			 execute a written contract.
(ii)
			 The MWBE fails or refuses to perform the work of its contract in a way
			 consistent with normal industry standards.
(iii) The MWBE fails or refuses to meet the
			 prime contractor's reasonable nondiscriminatory bond requirements.
(iv) The MWBE becomes bankrupt, insolvent, or
			 fails to pay their suppliers, unions, other creditors, or employees.
(v) The MWBE is ineligible to work on public
			 works projects because of suspension and debarment proceedings pursuant to
			 federal law or applicable state law.
(vi) The MWBE is ineligible to receive credit
			 for the type of work involved.
(vii) The MWBE voluntarily withdraws from the
			 project and provides written notice of its withdrawal.
(viii) The MWBE's work is deemed
			 unsatisfactory by the agency and not in compliance with the contract.
(ix) The MWBE's owner dies or becomes
			 disabled, with the result that the MWBE is unable to complete its work on the
			 contract.