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Section 3: CUF and Certification

Certification and CUF are separate and distinct issues.

Certification decisions address the nature of a firm's ownership and structure while CUF primarily concerns the role a firm has played in a transaction.

A DBE firm's repeated failure to perform a CUF may raise questions regarding the firm's control, as it relates to independence, and perhaps ownership. If there is evidence of a pattern of failing to perform a CUF that raises serious issues with the firm’s ability to control the work and its independence from the non-DBE firm, TxDOT must address this matter and may commence or initiate a proceeding under 49 CFR, Part 26.87 to determine the continued eligibility of the DBE firm.

If a DBE firm is a mere pass-through or middle man between two performing parties, the contractor seeking participation credits may be exposing itself to serious criminal and civil liability. In cases of deliberate attempts to circumvent the intent of the DBE Program, or fraud, these actions may lead to criminal prosecution of both the prime contractor and the DBE.

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