Manufacturers and Regular Dealers Sample Clauses
The "Manufacturers and Regular Dealers" clause defines eligibility requirements for suppliers by specifying that only manufacturers or regular dealers may provide certain goods or services under a contract. In practice, this means that a business must either produce the items themselves or regularly engage in the sale of such items as part of their normal operations, rather than acting as a broker or middleman. This clause ensures that suppliers are reliable and capable of fulfilling contract obligations, thereby reducing the risk of supply chain disruptions and ensuring product quality.
Manufacturers and Regular Dealers. A contractor may count toward its MBE or WBE requirement the following expenditures to MBE/WBE firms that are not manufacturers or regular dealers:
(1) The fees or commissions charged by a MBE/WBE firm for providing a bona fide service, such as professional, technical, consultant, or managerial services, or for providing bonds or insurance specifically required for the performance of a DOT-assisted contract, provided the fees or commissions are determined to be reasonable and not excessive as compared with fees and commissions customarily allowed for similar services.
(2) With respect to materials or supplies purchased from a MBE/WBE, which is neither a manufacturer nor a regular dealer, count the entire amount of fees or commissions charged for assistance in the procurement of the materials and supplies, or fees or transportation charges for the delivery of materials or supplies required on a job site (but not the cost of the materials and supplies themselves), provided the fees are determined to be reasonable and not excessive as compared with fees customarily allowed for similar services.