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<br />(2) The contractor shall count toward meeting its DBE goal only those <br />expenditures originally committed to DBEs prior to contract award or through change <br />orders, those on which committed DBEs perform a commercially useful function (CUP) on <br />the project, and on those work areas in which the DBE has been certified. A subcontracting <br />arrangement which inflates DBE participation for the sole purpose of meeting contract goals <br />will not be accepted by the City. A DBE firm acting as a middle person or passive conduit <br />(where the activity is not standard industry practice) is essentially considered a "broker" and <br />is not performing a CUP for purposes of meeting the DBE contract goal. Second-tier DBE <br />subcontracts (whether with a DBE or non-DBE subcontractor) shall be counted toward the <br />prime contractor's DBE goal provided it was listed in the original DBE commitment prior <br />to bid award or through a change order. <br /> <br />M. Anpeals. The City shall provide by contract any appeal right required by law. <br /> <br />Dated and effective this 2 ( day or jL~--f <br />;;J ' <br />.~~~.-: / <br /> <br /> <br />Administrative Order - 12 <br />