Chapter 11: Contract Award and Subcontract ExecutionAnchor: #i999559
Section 1: Subcontracts
In accordance with TxDOT Standard Specifications, the prime contractor must submit a copy of the executed subcontract agreement or purchase order for all DBE subcontracts including all tiered DBE subcontracts on federal-aid projects.Anchor: #i999569
The prime contractor must incorporate the following TxDOT provisions in all subcontract agreements or material purchase agreements:
- Anchor: #CBSUWDXA
- Disadvantaged Business Enterprise in Federal-Aid Contracts (000-394) Anchor: #i999061
- Special Provision Measurement and Payment (009-009) Anchor: #JTTEECLH
- Contract Assurance (49 CFR, Part 26.13)
The prime contractor should review these provisions with the DBE.
It is considered a best practice to include language into the subcontract regarding the ability of a DBE to perform a CUF. Advise the DBE that it is expected to manage, supervise, and perform its work, with its own organization and resources. A DBE’s failure to perform a CUF is considered by TxDOT as a valid cause for termination. For more information regarding the CUF requirements, please refer to Chapter 6 of this Guide and 49 CFR, Part 26.55.Anchor: #MOBXGSKI
The prime contractor is ultimately responsible for the actions of its subcontractors and any second tiered DBE subcontractors. The prime contractor should, therefore, ensure that any subcontract between a first tier subcontractor and a DBE subcontractor contains language that the DBE goals are to be met and that the DBE performs a CUF. Additionally, the prime contractor should be certain that the first tier subcontractors understand the process of terminating a DBE subcontractor.