123:2-16-15 Commercially useful function.

(A) A contractor awarded a contract pursuant to Chapters 123., 125., and 153. of the Revised Code may count toward its EDGE goal only those expenditures to EDGE certified businesses that perform a commercially useful function.

(B) AN EDGE business will be considered to have performed a commercial useful function based on the following criteria:

(1) The workers on the EDGE contract are regular employees of the contracted EDGE business.

(a) Regular employees are employees that would be working for the EDGE business on any other subcontract with any other contractor.

(b) An individual is not considered a regular employee if the individual is an employee of the contractor or of a supplier of goods or services to the EDGE business.

(2) The equipment used by the EDGE business is owned or controlled by the EDGE business.

(a) Equipment is controlled by the EDGE business if:

(i) The EDGE business owns or rents or leases from a traditional rental or leasing source pursuant to a written rental or lease agreement; and

(ii) The equipment would be used by the EDGE business on other contracts with other contractors.

(b) Equipment is not considered under the control of the EDGE business if the equipment belongs to the contractor awarded the contract or to another contractor working on the project.

(3) The EDGE business has the responsibility, with respect to execution of the work of the contract, for actively managing, performing, and supervising the work involved.

(4) The EDGE business has the responsibility, with respect to materials and supplies used on the contract, for negotiating price, determining quality and quantity, ordering, payment, and, where applicable, installation.

(5) The EDGE business does not purchase any of the required materials for the project from the contractor.

(6) The relationship between the contractor and the EDGE business remains at arms length throughout the performance of the contract.

(C) An EDGE certified business enterprise shall provide all information requested by the equal opportunity division of the department of administrative services concerning the commercially useful function of the EGDE business on a project. Failure to provide the requested information may lead to decertification pursuant to paragraph (A)(6) of rule 123:2-16-06 of the Administrative Code.

(D) The equal opportunity division of the department of administrative services may conduct onsite inspections and investigations at any location of the EDGE business, including locations at which the EDGE business has contracted to provide services, to determine whether an EDGE business is performing a commercially useful function on a project. Failure to cooperate in such onsite inspection may lead to decertification pursuant to paragraph (A)(6) of rule 123:2-16-06 of the Administrative Code.

Effective: 03/16/2009
R.C. 119.032 review dates: 03/16/2014
Promulgated Under: 119.03
Statutory Authority: 123.152
Rule Amplifies: 123.152