Section 37-1-6203-00600-300A prime contractor will only be given credit toward the contract DBE goal when the DBE performs a commercially useful function. Federal regulation 49 CFR 26 states: A commercially useful function has been performed when a DBE is responsible for the execution of a distinct element of the work of a contract by actually managing, performing and supervising the work involved. The following guidelines should be used in determining a commercially useful function.
1.Work Performed:a. The DBE contractor must manage the work for which he/she has contracted. The management shall in clued scheduling work operations, ordering equipment and materials, preparing and submitting payrolls, hiring and firing employees, including supervisory positions and exercising control over the daily business operations.b. The DBE contractor must perform the work for which he/she has contracted with his/her own workforce. Repetitive use by a DBE of personnel from other contractors will not satisfy the commercially useful function requirement.c. The DBE must supervise the daily operations of the work contracted. This shall consist of independent direct supervision of the employees working for the DBE or by a skilled and knowledgeable superintendent/foreman employed by, paid wages by and under the control of the DBE contractor.d. The DBE must obtain all materials and equipment necessary to perform the contract work. The DBE shall negotiate and enter into equipment leases or purchase agreements directly with the equipment source. Equipment lease rates shall be in line with prevailing industry rates and shall not be inflated. Supplier/Manufacturer: (60% credit for supplier only) 37 Miss. Code. R. § 1-6203-00600-300