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<br />following procedures be followed: <br /> <br />(1) The contractor shall notify the Department's DBE coordinator of a reduction <br />of DBE participation in the project and request a meeting with the City's involved <br />Department DBE coordinator and City DBE Liaison officer. <br /> <br />(2) At this meeting, the contractor shall document the circumstances which <br />brought about the reduction in DBE participation and the contractor's plans to bring DBE <br />participation back to the bid level. <br /> <br />(3) The City Department's DBE coordinator and the City's DBE Liaison Officer <br />or designee shall evaluate the circumstances resulting in the reduction and determine if the <br />reduction warrants assessment of any sanctions or other remedies set forth in the <br />specifications for bid or as provided by law. <br /> <br />I. Sanctions. The contractor must take all necessary and reasonable steps to <br />ensure that DBEs have the maximum opportunity to perform. The contractor shall be <br />required by contract provisions to meet the DBE participation goals or to demonstrate good <br />faith efforts to meet the goals, to enable committed DBEs to perform, to ensure that DBEs <br />perform a commercially useful function, and to follow the proper procedures for DBE <br />substitution. Specific sanctions for violation shall be set forth in each contract. <br /> <br />J. Reauirements for Contract Performance. In order to ensure compliance with <br />the DBE requirements placed on subrecipients, contractors and subcontractors, the City will <br />include the following requirements in all federally funded contracts, where applicable and <br />appropriate, unless contrary to law: <br /> <br />(1) Contractor's DBE Liaison Officer. The contractor shall designate a DBE <br />Liaison Officer to be responsible for and administer the contractor's DBE program. The <br />name of this individual shall be provided to the City at the Preconstruction Conference. <br /> <br />(2) Submission of Subcontracts. The contractor must enter into subcontracts with <br />the DBEs identified in the Contractor's DBE Participation Commitment and submit the <br />same to the City prior to the start of work under the subcontract. All required federal and <br />state provisions must be included in the subcontracts. All subcontracts must be approved <br />by the Department DBE coordinator prior to commencement of the work for compliance <br />with the requirements of this policy. <br /> <br />(3) Commerciallv Useful Function (CUF). The contractor shall ensure that all <br />committed DBEs working on the project perform a commercially useful function (CUP). <br />Only expenditures to DBEs that perform a CUP may be counted toward achievement of the <br />contractor's DBE participation goal. The requirement that a CUF be performed is a <br />contract provision which, if breached, may result in specific consequences or sanctions <br />authorized in the contract. <br /> <br />(a) A DBE is considered to perform a CUP when the DBE is responsible <br />for execution of a distinct element of the contract work and is carrying out the <br /> <br />Administrative Order - 7 <br />