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Washington Administrative Code (Last Updated: November 23, 2016) |
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Title 326. Minority and Women's Business Enterprises, Office of |
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Chapter 326-02. General provisions. |
Section 326-02-045. Factors considered in determining performance of commercially useful function.
Latest version.
- (1) In determining the performance of a commercially useful function, factors which may be considered include, but are not limited to, the following:(a) Whether the work to be performed by the business is within the scope of work included in the Standard Industrial Classification code(s) under which the business is listed in the directory of certified businesses published by the office or in the records of the office.(b) Whether the business could be considered a conduit, front, or pass-through;(c) Whether the minority and/or woman and/or socially and economically disadvantaged individual owner(s) has the skill and expertise to perform the work for which the business is being or has been certified;(d) Whether the business is or will be responsible for executing a distinct element of work in the performance of a contract; and the principals or employees of the business actually perform, manage, and supervise the work for which the business is or will be responsible;(2) In addition, a business that functions as a supplier shall:(a) Be the manufacturer of the goods or materials or assume the actual and contractual responsibility for furnishing the goods or materials and execute material changes in the configuration of those goods or materials; or(b) Prior to submitting an application for certification, secure a contract or distributor agreement with a manufacturer to act as an independent authorized representative capable of passing on product warranties to the purchaser.(3) Factors which may indicate that a supplier is not performing a commercially useful function include, but are not limited to, the following:(a) A minimum amount of inventory is not maintained.(b) Billing and shipping arrangements are performed by nonowners or staff of nonowners.(c) A significant amount of deliveries are shipped directly from the producer or manufacturer to the end user.(d) The firm does not take ownership of the product.