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EXHIBIT "C"
<br />Local Assistance Procedures Manual
<br />VI. SUBLETTING OR ASSIGNING THE CONTRACT
<br />This provision is applicable to all Federal -aid construction contracts
<br />on the National Highway System pursuant to 23 CFR 635.116.
<br />1. The contractor shall perform with its own organization contract
<br />work amounting to not less than 30 percent (or a greater percentage
<br />if specified elsewhere in the contract) of the total original contract
<br />price, excluding any specialty items designated by the contracting
<br />agency. Specialty items may be performed by subcontract and the
<br />amount of any such specialty items performed may be deducted
<br />from the total original contract price before computing the amount of
<br />work required to be performed by the contractor's own organization
<br />(23 CFR 635.116).
<br />a. The tern "perform work with its own organization" in paragraph
<br />1 of Section VI refers to workers employed or leased by the prime
<br />contractor, and equipment owned or rented by the prime contractor,
<br />with or without operators. Such term does not include employees or
<br />equipment of a subcontractor or lower tier subcontractor, agents of
<br />the prime contractor, or any other assignees. The term may include
<br />payments for the costs of hiring leased employees from an
<br />employee leasing firm meeting all relevant Federal and State
<br />regulatory requirements. Leased employees may only be included in
<br />this term if the prime contractor meets all of the following conditions:
<br />(based on longstanding interpretation)
<br />(1) the prime contractor maintains control over the supervision of
<br />the day-to-day activities of the leased employees;
<br />(2) the prime contractor remains responsible for the quality of the
<br />work of the leased employees;
<br />(3) the prime contractor retains all power to accept or exclude
<br />individual employees from work on the project; and
<br />(4) the prime contractor remains ultimately responsible for the
<br />payment of predetermined minimum wages, the submission of
<br />payrolls, statements of compliance and all other Federal
<br />regulatory requirements.
<br />b. "Specialty Items" shall be construed to be limited to work that
<br />requires highly specialized knowledge, abilities, or equipment not
<br />ordinarily available in the type of contracting organizations qualified
<br />and expected to bid or propose on the contract as a whole and in
<br />general are to be limited to minor components of the overall
<br />contract. 23 CFR 635.102.
<br />2. Pursuant to 23 CFR 635.116(a), the contract amount upon which
<br />the requirements set forth in paragraph (1) of Section VI is
<br />computed includes the cost of material and manufactured products
<br />which are to be purchased or produced by the contractor under the
<br />contract provisions.
<br />3. Pursuant to 23 CFR 635.116(c), the contractor shall furnish (a) a
<br />competent superintendent or supervisor who is employed by the
<br />firm, has full authority to direct performance of the work in
<br />accordance with the contract requirements, and is in charge of all
<br />construction operations (regardless of who performs the work) and
<br />(b) such other of its own organizational resources (supervision,
<br />management, and engineering services) as the contracting officer
<br />determines is necessary to assure the performance of the contract.
<br />4. No portion of the contract shall be sublet, assigned or otherwise
<br />disposed of except with the written consent of the contracting officer, or
<br />authorized representative, and such consent when given shall not be
<br />construed to relieve the contractor of any responsibility for the fulfillment
<br />of the contract. Written consent will be given only after the contracting
<br />agency has assured that each subcontract is evidenced in writing and
<br />that it contains all pertinent provisions and requirements of the prime
<br />contract. (based on long-standing interpretation of 23 CFR 635.116).
<br />Exhibit 12-G
<br />Required Federal -Aid Contract Language
<br />5. The 30-percent self -performance requirement of paragraph (1) is not
<br />applicable to design -build contracts; however, contracting agencies
<br />may establish their own self -performance requirements. 23 CFR
<br />635.116(d).
<br />VII. SAFETY: ACCIDENT PREVENTION
<br />This provision is applicable to all Federal -aid construction contracts
<br />and to all related subcontracts.
<br />1. In the performance of this contract the contractor shall comply with
<br />all applicable Federal, State, and local laws governing safety, health,
<br />and sanitation (23 CFR Part 635). The contractor shall provide all
<br />safeguards, safety devices and protective equipment and take any
<br />other needed actions as it determines, or as the contracting officer
<br />may determine, to be reasonably necessary to protect the life and
<br />health of employees on the job and the safety of the public and to
<br />protect property in connection with the performance of the work
<br />covered by the contract. 23 CFR 635.108.
<br />2. It is a condition of this contract, and shall be made a condition of
<br />each subcontract, which the contractor enters into pursuant to this
<br />contract, that the contractor and any subcontractor shall not permit
<br />any employee, in performance of the contract, to work in surroundings
<br />or under conditions which are unsanitary, hazardous or dangerous to
<br />his/her health or safety, as determined under construction safety and
<br />health standards (29 CFR Part 1926) promulgated by the Secretary of
<br />Labor, in accordance with Section 107 of the Contract Work Hours
<br />and Safety Standards Act (40 U.S.C. 3704). 29 CFR 1926.10.
<br />3. Pursuant to 29 CFR 1926.3, it is a condition of this contract that the
<br />Secretary of Labor or authorized representative thereof, shall have
<br />right of entry to any site of contract performance to inspect or
<br />investigate the matter of compliance with the construction safety and
<br />health standards and to carry out the duties of the Secretary under
<br />Section 107 of the Contract Work Hours and Safety Standards Act (40
<br />U.S.C. 3704).
<br />Vill. FALSE STATEMENTS CONCERNING HIGHWAY PROJECTS
<br />This provision is applicable to all Federal -aid construction contracts
<br />and to all related subcontracts.
<br />In order to assure high quality and durable construction in conformity
<br />with approved plans and specifications and a high degree of reliability
<br />on statements and representations made by engineers, contractors,
<br />suppliers, and workers on Federal -aid highway projects, it is essential
<br />that all persons concerned with the project perform their functions as
<br />carefully, thoroughly, and honestly as possible. Willful falsification,
<br />distortion, or misrepresentation with respect to any facts related to the
<br />project is a violation of Federal law. To prevent any misunderstanding
<br />regarding the seriousness of these and similar acts, Form FHWA-1022
<br />shall be posted on each Federal -aid highway project (23 CFR Part
<br />635) in one or more places where it is readily available to all persons
<br />concerned with the project:
<br />18 U.S.C. 1020 reads as follows:
<br />'Whoever, being an officer, agent, or employee of the United States,
<br />or of any State or Territory, or whoever, whether a person,
<br />association, firm, or corporation, knowingly makes any false
<br />statement, false representation, or false report as to the character,
<br />quality, quantity, or cost of the material used or to be used, or the
<br />quantity or quality of the work performed or to be performed, or the
<br />cost thereof in connection with the submission of plans, maps,
<br />specifications, contracts, or costs of construction on any highway or
<br />related project submitted for approval to the Secretary of
<br />Transportation; or
<br />Page 17 of 28
<br />August 2022
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