§ 58.417. Compliance with SDB and VBE commitments.
(a) To ensure compliance with a prime contractor’s SDB and VBE commitments, the BDISBO shall do all of the following:
(1) Verify that the firms listed in the utilization schedule are actually performing work and receiving compensation as set forth in the utilization schedule.
(2) Monitor and collect data on contractor compliance with the prime contractor’s SDB or VBE, or both, participation commitments.
(b) The prime contractor shall do all of the following:
(1) Permit the BDISBO and the contracting agency to inspect any relevant matter, including records and the jobsite and to interview subcontractors and workers.
(2) Ensure that SDBs or VBEs are paid any undisputed amount to which the SDB or the VBE is entitled within 14 calendar days for construction and design professional work and 10 calendar days for goods and services of the prime contractor’s receipt of payment from the Commonwealth for this work.
(3) Submit to the BDISBO, in the format required by the BDISBO, within the time frame set forth within the solicitation document, a utilization report listing payments made to each SDB or VBE. This information will be used to track and confirm the actual dollar amount paid to SDBs and VBEs and will serve as a record of fulfillment of the contractual commitments. If there was no activity the form must be completed by stating ‘‘No activity’’ and the BDISBO has the authority to impose a fine for noncompliance as stated in the contract with the prime contractor.
(c) Upon the BDISBO notifying the contracting agency that a prime contractor did not comply with their SDB or VBE commitments, the contracting agency or the BDISBO shall notify the prime contractor in writing of its findings and shall specify what corrective actions are required. The prime contractor is required to develop and submit a corrective action plan within 10 business days and complete the terms of the corrective action plan within the time specified by the contracting agency.
(d) If a contracting agency determines that material noncompliance with SDB or VBE contract provisions exists and that the prime contractor refuses or fails to take the corrective action required by the contracting agency, the contracting agency, in consultation with the BDISBO, may impose any and all sanctions and remedies available under the contract as it deems appropriate. These sanctions or remedies include, but are not limited to, any of the following:
(1) Termination of the contract.
(2) Revocation of the prime contractor’s SB, SDB or VBE status.
(3) Any actions under the Commonwealth’s Contractor Responsibility Program, up to and including suspension or debarment from future contracting opportunities with the Commonwealth.
Cross References This section cited in 4 Pa. Code § 58.412 (relating to small diverse business program); 4 Pa. Code § 58.413 (relating to construction and design professional services program); and 4 Pa. Code § 58.414 (relating to veteran business enterprise program).
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