§ 26.37 - What are a recipient's responsibilities for monitoring?

§ 26.37 What are a recipient's responsibilities for monitoring the performance of other program participants?

Cross Reference

Link to an amendment published at 89 FR 24966, Apr. 9, 2024.

(a) You A recipient must implement appropriate mechanisms to ensure compliance with the requirements in this part 's requirements by all program participants (e.g., applying legal and contract remedies available under Federal, state State, and local law). You The recipient must set forth these mechanisms in your its DBE program.

(b) Your A recipient's DBE program must also include a monitoring and enforcement mechanism to ensure that work committed, or in the case of race-neutral participation, the work subcontracted, to all DBEs at contract award or subsequently (e.g., as the result of modification to the contract) is actually performed by the DBEs to which the work was committed or subcontracted to, and such work is counted according to the requirements of § 26.55. This mechanism must include a written certification verification that you have reviewed contracting records and monitored work sites in your state for this purposethe work site to ensure the counting of each DBE's participation is consistent with its function on the contract. The monitoring to which this paragraph (b) refers may be conducted in conjunction with monitoring of contract performance for other purposes (e.g., close-out reviews for a contract)such as a commercially useful function review.

(c) This mechanism must provide for You must effectively implement the following running tally mechanisms:

(1) With respect to achieving your overall goal, you must use a running tally

of actual DBE attainments (e.g., payments actually made to DBE firms), including a means of comparing these attainments to commitments. In your reports of DBE participation to the Department, you must display both commitments and attainments.

[64 FR 5126, Feb. 2, 1999, as amended at 65 FR 68951, Nov. 15, 2000; 68 FR 35554, June 16, 2003; 76 FR 5097, Jan. 28, 2011

that provides for a frequent comparison of cumulative DBE awards/commitments to DOT-assisted prime contract awards to determine whether your current implementation of contract goals is projected to be sufficient to meet your annual goal. This mechanism should inform your decisions to implement goals on contracts to be advertised according to your established contract goal-setting process.

(2) With respect to each DBE commitment, you must use a running tally that provides for a frequent comparison of payments made to each listed DBE relative to the progress of work, including payments for such work to the prime contractor to determine whether the contractor is on track with meeting its DBE commitment and whether any projected shortfall exists that requires the prime contractor's good faith efforts to address to meet the contract goal pursuant to § 26.53(g).

[89 FR 24966, Apr. 9, 2024]