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the work of a contract. A HUB/MBEMIBE is considered to perform a commercially useful <br />function when it is responsible for execution of a distinct element of the work of a contract and <br />carrying out its .responsibilities by actually performing, managing, and supervising the work <br />involved. To determine whether a HU6/MBE/WBE is performing a commercially useful function, <br />the Department will evaluate the amount of work subcontracted, industry- practices, whether the <br />amount the firm is to be paid. under the contract is commensurate with the work it is actually <br />performing and the HUB/MBE/WBE credit claimed for its performance of the work, and other <br />relevant factors. <br />8. Consistent with norma! industry practices, a <br />HUB/MBE/WBE may enter into subcontracts. Work that aHUB/MBEM/BE subcontracts to <br />another HUB/MBEMBE firm may be counted toward the contract utilization. Work that a <br />HUB/MBE/WBE subcontracts to a non-MBE/WBE firm does not count toward the contract <br />utilization. If a HUB/MBEMBE Firm or Subcontractor subcontracts a significantly greater portion <br />of the work of the contract than would be expected on the basis of normal industry practices, the <br />HUB/MBE/V116E shall be presumed not to be pertorming a commercially useful function. <br />9. All requests for approval of subcontracts involving <br />HUB/MBE/WBE subcontractors shall be accompanied by a certification executed by both the <br />proposer and the HUB/MBE/WBE subcontractor attesting to the agreed upon unit prices and <br />extensions for the affected contract items. This document shall be on the Department's Form <br />RS-2, or in lieu of using this form, copies of the actual executed agreement between the <br />proposer and the HUB/MBE/VVBE subcontractor may be submitted. In any event, the <br />Department reserves the right to require copies of actual subcontracts/agreements involving <br />HUB/MBENVBE Subcontractors. The RS-2 certification forms may be obtained from the <br />Department. These certifications shall be considered a part of the project records, and <br />consequently will be subject to penalties under Federal I_aw associated with falsifications of <br />records related to projects. <br />07-SC-056 Page 24 of 59 <br />Orange County <br />