Section 4: CUF and Certification
Certification and CUF are separate and distinct
issues.
Certification decisions address the nature of a firm's ownership
and structure while CUF primarily concerns the role a firm has played
in a transaction.
A DBE firm's repeated failure to perform a CUF may raise questions
regarding the firm's control, as it relates to independence, and
perhaps ownership. If there is evidence of a pattern of failing
to perform a CUF that raises serious issues with the firm’s ability
to control the work and its independence from the non-DBE firm,
TxDOT must address this matter and may commence or initiate a proceeding
under 49 CFR, Part 26.87 to determine the continued eligibility
of the DBE firm.
If a DBE firm is a mere pass-through or middle man between
two performing parties, the contractor seeking participation credits
may be exposing itself to serious criminal and civil liability.
In cases of deliberate attempts to circumvent the intent of the
DBE Program, or fraud, these actions may lead to criminal prosecution
of both the prime contractor and the DBE.