[Code of Federal Regulations]
[Title 23, Volume 1]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 23CFR635.116]

[Page 178]
 
                           TITLE 23--HIGHWAYS
 
 CHAPTER I--FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 635--CONSTRUCTION AND MAINTENANCE--Table of Contents
 
                     Subpart A--Contract Procedures
 
Sec. 635.116  Subcontracting and contractor responsibilities.

    (a) Contracts for projects shall specify the minimum percentage of 
work that a contractor must perform with its own organization. This 
percentage shall be not less than 30 percent of the total original 
contract price excluding any identified specialty items. Specialty items 
may be performed by subcontract and the amount of any such specialty 
items so performed may be deducted from the total original contract 
before computing the amount of work required to be performed by the 
contractor's own organization. The contract amount upon which the above 
requirement is computed includes the cost of materials and manufactured 
products which are to be purchased or produced by the contractor under 
the contract provisions.
    (b) The SHA shall not permit any of the contract work to be 
performed under a subcontract, unless such arrangement has been 
authorized by the SHA in writing. Prior to authorizing a subcontract, 
the SHA shall assure that each subcontract is evidenced in writing and 
that it contains all pertinent provisions and requirements of the prime 
contract. The Division Administrator may permit the SHA to satisfy the 
subcontract assurance requirements by concurrence in a SHA process which 
requires the contractor to certify that each subcontract arrangement 
will be in the form of a written agreement containing all the 
requirements and pertinent provisions of the prime contract. Prior to 
the Division Administrator's concurrence, the SHA must demonstrate that 
it has an acceptable plan for monitoring such certifications.
    (c) To assure that all work (including subcontract work) is 
performed in accordance with the contract requirements, the contractor 
shall be required to furnish:
    (1) A competent superintendent or supervisor who is employed by the 
firm, has full authority to direct performance of the work in accordance 
with the contract requirements, and is in charge of all construction 
operations (regardless of who performs the work), and;
    (2) Such other of its own organizational resources (supervision, 
management, and engineering services) as the SHA contracting officer 
determines are necessary to assure the performance of the contract.