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HomeMy WebLinkAboutMINUTES - 05191987 - 1.84 TO: REDEVELOPMENT AGENCY FROM: Phil Batchelor, Executive Director DATE: May 6, 1987 SUBJECT: Undergrounding of utilities along Las Juntas Way in the Pleasant Hill BART Station Area. SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Approve the attached agreement with Pacific Bell and authorize the Executive Director or his designee to execute the Agreement, calling for the undergrounding of utilities along Las Juntas Way in the Pleasant Hill BART Station Area. FISCAL IMPACT None. The Agreement allows for full reimbursement for the cost of installing underground telephone facilities. BACKGROUND/REASONS FOR RECOMMENDATIONS The Board is considering an amendment to the Pleasant Hill BART Station Specific Plan to widen Oak Road between Buskirk Avenue and Wayne Drive from 2 lanes to 4 lanes and to extend Las Juntas Way westerly to intersect with Oak Road. If this amendment is approv- ed, improvements will take place on Las Juntas Way which should include the undergrounding of overhead wires as called for in this agreement. The Agency has been including the construction of underground structures as part of its street improvement contract. This provides for efficiencies in construction and coordination, as well as, cost savings for the utilities involved and the Agency. The Agreement provides for full reimbursement from Pacific Bell for its share of the substructure cost upon completion of th&t portion of the contract. CONTINUED ON ATTACHMENT: YES SIGNATURE: * a__ '001 7' RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATIOfgeot AGgNLf COMMITTEE APPROVE OTHER SIGNATURE(S) : ACTION OF AGENCY ON May 19 , 1987 APPROVED AS RECOMMENDED x OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT 1, 4 TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT AGENCY ON THE DATE SHOWN. cc: Redevelopment Agency ATTESTED May 19 , 1987 PW Design Construction PHIL BATCHELOR, Auditor Controller AGENCY SECRETARY Pacific Bell (via PW/DC) BY DEPUTY GR:krc ra13:5-19-87.ral f Underground Conversion Agreement May 6, 1987 Page 2 CONSEQUENCES OF NEGATIVE ACTION: Failure to approve the Agreement would cause a delay in the installation of underground facilities as the utility would accomplish the work on their own schedule. AERIAL TO UNDERGROUND CONVERSION AGREEMENT PACIFIC BELL AND CONTRA COSTA COUNTY CCC83-54 . 10 Table of Contents A. DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 B. RECITALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 C. SPECIFIC PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1. Term. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2. Tariff. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3. Coordination of Project, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4. Title to Underground Supporting Structure. . . . . . . . . . . . . . 4 5. Liens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 6. Payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 7. Licenses and Easements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 8 . Cost Sharing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 9. Performance by Pacific. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 10. Damage to Facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 D. GENERAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1. Indemnity. . . . . . . . . . — o - o — o - oo — o — oo . . . oo . . . . . . — . 6 2. Assignment. . . . . . . . o . . . . oo . . . o — o — o — o — oo — o — o - 6 3. Waiver and Amendment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 4. Insurance. . . . . . . . . . . . . . . . o . . . oo — . . . . . . . . . . . . . . .. . . . . 6 5. Independent Contractor Relationship. . . . . . . . . . . . . . . . . . . o7 6. Warranty. . . . . . . . . . . . . . . o . . . . o . . . . . . o . . . . - - o — 000 -7 7. Confidential information. . . . . . . . . . . oo . 000 — o . . . o . . . . . . 7 8. Termination. . . . . . . . oo . . . . o . . . . . . . . . . . o — oo . . . . . . o . . . . .7 9. Force Majeure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 10. Attorneys' Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 11. Jurisdiction. . . . . . . . . . . . . . . . . oo . . . o — oo . . . _ _ _ _ _ 8 12. Entire Agreement, . . . . . 000 . . o . . . o — 0000 . . . oo . . . . . . . . . _ 9 13. Applicable Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 14. Notices and Demands . . . . . . . . . . . . . . . — 000000 . . . . . . oo — o .9 15. Executive Orders. . . . . . . . . . oo . . . . oo . . . — 000000 . 0000 . . . . 9 i CCC83-54 . 10 AERIAL TO UNDERGROUND CONVERSION AGREEMENT THIS AGREEMENT ("Agreement") is between Contra Costa County, a municipal corporation ("Applicant") , and PACIFIC BELL, a California corporation ("Pacific") . A. DEFINITIONS As used in this Agreement, the following terms apply: 1. The term "Underground Supporting Structure" includes , but is not limited to, conduit, manholes, service boxes, and related equipment. 2. The terms "Trench or Trenching" include, but are not limited to, excavating, backfilling, compacting, and, as necessary, breaking and replacing pavement, sidewalks, driveways, curbs and gutters; and restoring all other surface features disturbed by underground construction, including landscaping; plus the cost of performing such work. 3. The term "District" refers to the area in/on/along Las Juntas between Del Hombre and Oak Road where the undergrounding of existing aerial facilities is to take place. 4. The term "Project" means all of the work required to construct the Underground Supporting Structure needed to underground existing aerial facilities within the District, including work to be performed on behalf of Pacific Gas & Electric Company ("PG&E") and Televents of California ("CATV") . 5. The term "Tariff" refers to Schedule Cal . P.U..C. No. A2, Rule 32, Paragraph A.1. 6. The term "Participant" refers to PG&E and/or CATV if either or both will be sharing Project costs. B. RECITALS 1. Applicant has asked Pacific to replace its existing aerial communication facilities with underground communication facilities and perform other work upon facilities within the District. 2. To facilitate this request , Applicant is willing to construct and transfer ownership of the Underground Supporting Structure along the public way and upon Utility rights of way to Pacific. 3. To further facilitate the Project, all property owners 1 CCC83-54. 10 served by the aerial facilities to be replaced within the District have been required by suitable legislation, to provide and maintain the Underground Supporting Structure on their property. 4 . In contemplation of this Agreement, Applicant has made arrangements for the concurrent removal of all electric and communication aerial distribution facilities within the District. 5. Pacific is willing to underground its existing aerial communication facilities within the District, subject to the terms and conditions incorporated in this Agreement. In consideration of the above Recitals, the parties mutually agree as follows: C. SPECIFIC PROVISIONS 1. Term This Agreement is effective upon execution and shall continue in effect until terminated or canceled as provided by law or this Agreement . 2. Tariff The Project shall be conducted in accordance with the Tariff, which is by reference made a part of this Agreement. 3. Coordination of Project Applicant shall prepare all documents necessary to coordinate and implement Project plans within the District. The documents shall include, but shall not be limited to: a. Project Plans and Specifications Project plans and specifications shall be prepared in accordance with drawings furnished to Applicant by Pacific. b. Delineation of Underground Supporting Structure Project documents shall delineate all Underground Supporting Structure to be constructed and installed within District. Applicant will be responsible for the construction and installation of the necessary Underground Supporting Structure within the public right of way of District. 2 CCC83-54 . 10 c. Bid Package Applicant shall prepare a bid package covering the construction and installation of the Underground Supporting Structure for which Applicant is responsible under the Project. Pacific shall have the right to review the entire bid package prior to the solicitation of bids for the Project. Pacific shall also have the right to review all bids before acceptance by Applicant. d. Separate Agreements with Participants Applicant shall prepare and execute separate agreements with Participants pertaining to construction of their facilities for the Project. e. Contract Applicant shall prepare and execute a contract ("Contract") with an independent contractor for the construction and installation of Underground Supporting Structure for which Applicant is responsible under the Project. The Contract shall be awarded by Applicant to the lowest qualified bidder , subject to the approval of Pacific. The terms and conditions of the Contract shall oblige the Contractor to furnish all materials, adhere to Project plans and specifications (unless Pacific' s District Manager - Engineering gives prior written consent to a deviation) , and install the Underground Supporting Structure at locations designated on the map attached to this Agreement as Exhibit B. Applicant shall have full supervision and control over the independent contractor ' s construction and installation of the Underground Supporting Structure. However, Pacific shall be given the opportunity to inspect the construction and installation of the Underground Supporting Structure and to coordinate with Applicant to ensure that the construction and installation are completed in accordance with Project plans and specifications furnished to Applicant by Pacific. 4. Title to Underground Supporting Structure Upon completion of construction to Pacific' s satisfaction, title to the Underground Supporting Structure and any associated communications facilities placed by or for Pacific, except the underground service connections, shall vest in Pacific, provided that such is free of all liens and encumbrances. 3 CCC83-54 . 10 5. Liens Applicant , its agents and contractors shall keep the Underground Supporting Structure free from any statutory or common law lien arising out of any work performed, materials furnished or obligations incurred by Applicant, its agents or contractors. Applicant agrees to defend, indemnify and hold Pacific harmless from and against any such liens, claims, or actions, together with costs of suit, and reasonable attorneys ' fees incurred by Pacific in connection with any such claim or action. In the event a lien is recorded against the Underground Supporting Structure and it is not removed of record within ten (10) days after notice is given by Pacific to Applicant to do so, Pacific shall have the right to pay and discharge the lien without regard to whether the lien shall be lawful , valid or correct. Applicant shall, within thirty (30) days after written notice from Pacific, reimburse Pacific for any such claim paid by it. 6. Payment Provided the construction and installation of the Underground Supporting Structure is satisfactory to Pacific, Pacific shall pay to Applicant, within thirty (30) calendar days after receipt of Applicant's bill , the actual cost of the Project work completed under the Contract. As of the effective date of this Agreement, the estimated cost is twenty six thousand seven hundred fourteen dollars ($26, 714.00) . 7. Licenses and Easements Applicant shall grant to Pacific and to Participants any and all licenses or grants of easements which are necessary to accommodate the Project. 8. Cost Sharing Pacific and Applicant agree that Project costs shall be shared as indicated below, and that these same cost- sharing provisions shall be incorporated into separate agreements between Applicant and PG&E, and Applicant and CATV relating to this Project . a. Costs associated with Trenching which are not necessary for any required street improvements shall be shared proportionately by Pacific and Participants . b. Costs associated with the replacement of paving, landscaping or other surface features shall be shared proportionately by Pacific and 4 CCC83-54. 10 Participants. C. The proportionate share of costs shall be computed in accordance with the formula listed in Pacific' s System Instruction 51, Section 2, Paragraph 2. 10. Since the number of occupants in the trench may vary throughout the length of the Trench, each variation in the number of occupants will constitute a separate longitudinal section of Trench for the purpose of determining the proportionate sharing of costs . d. Unless otherwise agreed to in writing, Pacific, Applicant, and each Participant shall , individually, bear the entire cost of all extra work which is requested by and performed for each but is not required for the Project. Additionally, Applicant, Pacific or Participants, individually, shall be credited with any savings resulting from the omission of Project work falling within their respective realms of responsibility. 9. Performance by Pacific Pacific shall replace its existing aerial communication facilities with underground facilities when a) Applicant has constructed and installed Underground Supporting Structure in the public way; b) affected property owners have provided Undergrounding Supporting Structure on their properties in accordance with the Tariff; c) service to customers within District has been provided by means of the underground facilities; d) PG&E has removed its facilities from poles and anchors jointly owned by Pacific and PG&E; and e) CATV has removed its facilities from poles solely or jointly owned by Pacific and/or PG&E. 10. Damage to Facilities Applicant, its employees, agents or contractors shall exercise special precaution and care to avoid causing damage to Pacific' s facilities or the facilities of others in performing work under the Project. Applicant shall assume responsibility for any and all losses, costs or expenses arising out of, caused by, or in any way connected with such damages, including consequential damages. Applicant shall immediately report the occurrence of any such damage to Pacific and/or to Participants. Applicant shall , on demand, reimburse Pacific and/or Participants for the entire expense incurred in replacing or repairing the damage. 5 CCC83-54. 10 D. GENERAL PROVISIONS 1. Indemnity Applicant shall indemnify, defend and hold harmless Pacific, and its officers, agents and employees, as well as its associated and affiliated companies and their respective officers, agents and employees, from any losses or liabilities incurred as result of any injury or death to any person(s) or damage to any property(ies) arising out of the materials used or the work to be performed by Applicant under this Agreement, except where such injury, death or damage is caused by the. sole negligence or willful misconduct of Pacific, its associates and affiliated companies and their respective officers, agents and employees. Upon the request of Pacific, Applicant shall , at no cost or expense to Pacific, defend any suit or legal proceeding asserting a claim for losses or liabilities. Applicant shall pay any costs and attorneys ' fees that may be incurred by Pacific in connection with any such suit or legal proceeding. 2. Assignment Applicant shall not wholly or partially assign this Agreement without the prior written consent of Pacific. This Agreement shall be for the benefit of and is binding upon the respective successors and assigns of the parties. 3. Waiver and Amendment The provisions of this Agreement shall not be waived, altered, or amended by any representations or promises of any party unless consented to in writing by Pacific. 4. Insurance Any and all insurance and/or bonds that Applicant and/or Participants, their agents or contractors may be required to obtain under the laws , ordinances and regulations of any governmental authority, including, but not limited to, Workers ' Compensation Insurance, shall be the sole responsibility of Applicant and Participants and their agents and contractors. 5. Independent Contractor Relationship Applicant, its. agents , employees and contractors shall perform all work under this Agreement as independent contractors and not as affiliates , partners , joint- venturers, agents, employees, servants or assigns of 6 CCC83-54 . 10 Pacif ic. 6. Warranty Applicant warrants that all work and materials to be furnished under this Agreement (1) shall conform in all respects to the requirements of this Agreement , (2) are adequate for the purposes for which they are intended, (3) are free from any defects in design, materials, workmanship and title, and (4) are free of defects causing caving or sinking of trenches, paving or other materials, for a period of two (2) years following acceptance of the Underground Supporting Structure. Applicant further warrants that all work and materials shall be performed by qualified personnel promptly and with diligence, to Pacific' s reasonable satisfaction, and that work and materials shall be also subject to all statutory and express or implied warranties. This warranty shall survive inspection, acceptance and payment. 7. Confidential Information In connection with this Agreement, Applicant, its contractors and/or agents may have access to Pacific' s outside plant construction and engineering techniques, customer, business and other information in written, graphic, oral or other tangible or intangible forms, including but not limited to specifications, records , data , computer programs, drawings, technical information, reports and internal instructions (collectively, "Information") owned or controlled by Pacific. The Information may contain material that is proprietary or confidential , or material that is subject to applicable laws regarding secrecy of communications or trade secrets. Accordingly, Applicant agrees: (1) that all such Information acquired by it or its employees, contractors or agents under this Agreement is and shall remain Pacific' s exclusive property; and, (2) to inform all of its employees, contractors and agents who have access to such Information of its confidential character and of the existence of applicable laws regarding secrecy of communications. 8. Termination In the event of any material default or breach of this Agreement by Applicant, in addition to all other rights and remedies which Pacific may have at law or equity, Pacific shall have the immediate right to terminate this Agreement by giving thirty (30) days ' prior written notice of termination. The notice shall specify the cause of termination and shall give 7 CCC83-54 . 10 Applicant a reasonable opportunity to cure and correct any such cause. In the event this Agreement is terminated or suspended as provided in this Paragraph 8, Pacific shall not be liable to Applicant or any other person or entity for any losses , damages or claims which may arise as a result of termination. Applicant shall refund to Pacific any costs or expenses incurred by Pacific prior to the termination of this Agreement. . Any termination of this Agreement in whole or in part shall not release Applicant from any liability or obligation under this Agreement, whether of indemnity or otherwise, which may have accrued or which may be accruing or which arises out of any claim that may have accrued or may be accruing at the time of termination. 9. Force Majeure Except for the payment of monies due under this Agreement, no party shall be deemed in default of this Agreement to the extent that any delay or failure in the performance of its obligations results from any cause beyond its reasonable control and without its fault or negligence, such as acts of God, acts of civil or military authority, embargoes , epidemics, war , riots, insurrections, fires , explosions, earthquakes, floods, unusually severe weather conditions, or strikes. In the event of any such excused delay, the time for performance shall be extended for a period equal to the time lost by reason of the delay. If any excused delay occurs, the party unable to perform shall give immediate notice to the other party, while simultaneously seeking, in good faith, to utilize alternative means of accomplishing the purposes of this Agreement and preventing delay. 10. Attorneys' Fees If any action is brought to adjudicate the rights granted in this Agreement or to enforce any of the terms of this Agreement, the prevailing party shall be entitled to an award of reasonable attorneys' fees in an amount to be determined by a court or a tribunal of competent jurisdiction. 11. Jurisdiction This Agreement is subject to the applicable rules, regulations and tariffs on file with the California Public Utilities Commission ("Commission") and is also subject to changes or modification as the Commission may order. 8 CCC83-54. 10 12. Entire Agreement This Agreement and the attached Exhibits which are by this reference incorporated into this Agreement, constitute the entire Agreement between the parties concerning to the subject matter. Except as otherwise provided in this Agreement, all prior agreements, representations, statements, negotiations and understandings are superseded . 13. Applicable Law ' This Agreement shall be governed by and construed in accordance with the laws of the State of California . 14. Notices and Demands All written notices or demands to be given or made under this Agreement shall be considered given and made when deposited in the United States mail , postage prepaid and addressed as follows, or forwarded to such other address as either party may direct in writing to the other party: To: Contra Costa County Public Works Department 255 Glacier Drive Martinez, Ca 94553 Attn: Lowell Tunison To: PACIFIC BELL 401 Lennon Lane, Room 2081 Walnut Creek, Ca 94598 Attn: George Groess, manager-Engineering-Diablo 15. Executive Orders As used in the attached Exhibit A ("Executive Orders and Associated Regulations") , "Contractor" means Applicant . (Signature Page at Page 10) 9 CCC83-54. 10 The duly authorized representatives of Contra Costa County and Pacific have executed this Agreement by affixing their signatures on the dates indicated below. COUNTY OF CONTRA COSTA By: Title: Date Signed: PACIFIC BELL By: Title: Engineering Mgr. Diablo Date Signed: 10 PACIFK BELL- NEVAd1RBEll.. GA 1501 (7/86) Pseft Tei i Compwws EXHIBIT A - EXECUTIVE ORDERS AND ASSOCIATED REGULATIONS Pacific Bell and Nevada Bell,as common carriers of telecommunications services, (d)Contractors acting in good faith may rely on written representations by their engage in work as contractors for various departments and agencies of the United subcontractors regarding their status as either a small business concern or a small States Government.Also,certain facilities may be constructed pursuant to federally business concern owned and controlled by socially and economically disadvan- assisted construction programs. Because of the forgoing, work under this contract taged individuals. may be subject to the provisions of certain Executive Orders, federal laws and Small Business and Small Disadvantaged Business Subcontracting Plan associated regulations. To the extent that such Executive Orders, federal laws and Contractor,unless it is a small business concern,as defined in section 3 of the associated regulations apply to the work under this contract,and only to that extent, Small Business Act,agrees to adopt and comply with a small business and small Contractor agrees to comply with the provisions of all such Executive Order$,federal disadvantaged business subcontracting plan,which shall be included in and made laws and associated regulations,as now in fore or as may be amended in the future, apart of this contract. The p8 parties incorporate herein by this reference the including, but not limited to the following: regulations and contract clauses required by 48 C.F.R., Ch. 1,$19.704(4) and 1.EQUAL EMPLOYMENT OPPORTUNITY PROVISIONS 19.708(b)to be made a part of Government contracts and subcontracts. In accordance with Executive Order 11246,dated September 24,1965,and 41 S.WOMEN-OWNED SMALL BUSINESSES C.F.R.S60-1.4,the parties incorporate herein by this reference the regulations and As prescribed in 48 C.F.R.,Ch. 1,119.902,the following clause is included in contract clauses required by those provisions to be made a part of nonexempt solicitations and contracts when the contract amount is expected to be over the contracts and subcontracts. small purchase threshold,unless(a)the contract is to be performed entirely outside 2.CERTIFICATION OF NONSEGREGATED FACILITIES the United States,its possessions,Puerto Rico,and the Trust Territory of the Pacific In accordance with Executive Order 11246,dated September 24, 1965,and 41 Islands,or(b)a personal services contract is contemplated: C.F.R.160-1.8,Contractor certifies that it does not and will not maintain or provide (a)"Women-owned small businesses;'as used in this clause,means businesses for its employees any facilities segregated on the basis of race,color,religion,sex, that are at least 51 percent owned by women who are United States citizens and or national origin at any of its establishments,and that it does not and will not permit who also control and operate the business. its employees to perform their services at any location, under its control,where "Control;' as used in this clause means exercising the power to make policy such segregated facilities are maintained. The term 'facilities" as used herein decisions. means wafting rooms,work areas,restaurants and other eating areas,time clocks, "Operate;'as used in the clause,means being actively involved in the day-today restrooms,wash rooms,locker rooms and other storage or dressing areas,parking management of the business. lots, drinking fountains, recreation or entertainment areas, transportation, and (b)It is the policy of the United States that women-awned small businesses shall housing facilities provided for employees, provided that separate or single-user have the maximum practicable opportunity to participate in performing contracts toilet and necessary changing facilities shall be provided to assure privacy between awarded by any Federal agency. the sexes.Contractor will obtain similar certifications from proposed subcontractors (c) The Contractor agrees to use its best efforts to give women-owned small prior to the award of any nonexempt subcontract. businesses the maximum practicable opportunity to participate in the subcontracts 3.CERTIFICATION OF AFFIRMATIVE ACTION PROGRAM it awards to the fullest extent consistent with the efficient performance of its Contractor certifies that it has developed and is maintaining an Affirmative Action contract. Planus required by 41 C.F.R.160.1.40. 9.LABOR SURPLUS AREA CONCERNS 4.CERTIFICATION OF FILING As prescribed in 48 C.F.R., Ch. 1,§W.302(axb), the following clauses are Contractor certifies that it will file annually,on or before the 31st day of March, included: complete and accurate reports on Standard Form 100(EEO-1)or such forms as (a)Applicability.This clause is applicable if this contract exceeds the appropriate may be promulgated in its place as required by 41 C.F.R.160-1.7. small purchase limitation in Part 13 of the Federal Acquisition Regulation. 5. AFFIRMATIVE ACTION FOR DISABLED VETERANS AND VETERANS OF (b)Policy.It is the policy of the Government to award contracts to concerns that THE VIETNAM ERA agree to perform substantially in labor surplus areas(LSA's)when this can be done In accordance with Executive Order 11701, dated January 24, 1973, and 41 consistent with the efficient performance of the contract and at prices no higher C.F.R.160.250.20,the parties incorporate herein by this reference the regulations than are obtainable elsewhere. The Contractor agrees to use its best efforts to and contract clauses required by those provisions to be made a part of Government place subcontracts in accordance with this policy. contracts and subcontracts. (c) Order of Preference. In complying with paragraph (b) above and with 6.AFFIRMATIVE ACTION FOR HANDICAPPED PERSONS paragraph(c)of the clause of this contract entitled Utilization of Small Business In accordance with Executive Order 11758, dated January 15, 1974, and 41 Concerns and Small Disadvantaged Business Concerns, the Contractor shall C.F.R.160-741.20,the parties incorporate herein by this reference the regulations observe the following order of preference in awarding subcontracts: (1) small and contract clauses required by those provisions to be made a part of Government business concerns that are LSA concems,(2)other small business concerns,and contracts and subcontracts. (3)other LSA concerns. 7. UTILIZATION OF SMALL BUSINESS CONCERNS AND SMALL DISADVAN- (d)Definitions."Labor surplus area;'as used in this clause,means a geographi- TAGED BUSINESS CONCERNS cal area identified by the Department of Labor in accordance with 20 C.F.R.§654, 48 C.F.R.,Ch. 1,119.704(4)and 19.708(a)require that the following clause is Subpart A,as an area of concentrated unemployment or underemployment or an included: area of labor surplus. Utilization of Small Busmw Concerns and Small Disadvantaged Business "Labor surplus area concern:' as used in this clause, means a concern that Concerns(June, 1985) together with its first-tier subcontractors will perform substantially in labor surplus (a)It is the policy of the United States that small business concerns and small areas. Performance is substantially in labor surplus areas if the costs incurred business concerns owned and controlled by socially and economically disadvan- under the contract on account of manufacturing, production, or performance of raged individuals shall have the maximum practicable opportunity to participate in appropriate services in labor surplus areas exceed 50 percent of the contract price. performing contracts let by any Federal agency, including contracts and subcon- Labor Surplus Area Subcontracting Program tracts for subsystems, assemblies, components, and related services for major (a)See the Utilization of Labor Surplus Area Concerns clause of this contract for systems. It is further the policy of the United States that its prime contractors applicable definitions. establish procedures to ensure the timely payment of amounts due pursuant to the (b)The Contractor agrees to establish and conduct a program to encourage labor terms of their subcontracts with small business concerns and small business surplus area(LSA)concerns to compete for subcontracts within their capabilities concerns owned and controlled by socially and economically disadvantaged indi- when the subcontracts are consistent with the efficient performance of the contract viduals. at prices no higher than obtainable elsewhere.The Contractor shall— (b)The Contractor hereby agrees to carry out this policy in the awarding of (1) Designate a liaison officer who will (i) maintain liaison with authorized subcontracts to the fullest extent consistent with efficient contract performance. representatives of the Government on LSA matters,(ii)supervise compliance with The Contractor further agrees to cooperate in any studies or surveys as may be the Utilization of Labor Surplus Area Concerns clause, and (iii) administer the conducted by the United States Small Business Administration or the awarding Contractor's labor surplus area subcontracting program; agency of the United States as may be necessary to determine the extent of the (2) Provide adequate and time) consideration of the Contractor's compliance with this clause. Y potentialities of LSA Pl� concerns in all make-or-buy decisions; (c)As used in this contract, the term "small business concern" shall mean a (3)Ensure that LSA concerns have an equitable opportunity to compete for small business as defined pursuant to section 3 of the Small Business Act and subcontracts, particularly by arranging solicitations, time for the preparation of relevant regulations promulgated pursuant thereto. The term "small business offers, quantities, specifications, and delivery schedules so as to facilitate the concern owned and controlled by socially and economically disadvantaged individ- participation of LSA concerns; uals"shall mean a small business concern- (4)Include the Utilization of Labor Surplus Area Concerns clause in subcon- (1)Which is at least 51 percent owned by one or more socially and economi- tracts that offer substantial LSA subcontracting opportunities;and tally disadvantaged individuals;or,in the case of any publicly owned business,at (5)Maintain records showing(i)the procedures adopted and(ii)the Contrac- least 51 percentum of the stock of which is owned by one or more socially and tor's performance,to comply with this clause.The records will be kept available for economically disadvantaged individuals;and review by the Government until the expiration of 1 year after the award of this (2)Whose management and daily business operations are controlled by one or contract,or for such longer period as may be required by any other clause of this more of such individuals• contract or by applicable law or regulations. The Contractor shall presume that socially and economically disadvantaged (c)The Contractor further agrees to insert in any related subcontract that may individuals include Black Americans, Hispanic Americans, Native Americans, exceed M,000 and that contains the Utilization of Labor Surplus Area Concerns Asian-Pacific Americans,Asian-Indian Americans and other minorities,or any other clause,terms that conform substantially to the language of this clause, including individual found to be disadvantaged by the Administration pursuant to section 8(a) this paragraph(c),and to notify the Contracting Officer of the names of subcontrac- of the Small Business Act. tors. s Lek co Y CE Uj R W S NW )has `ao�f � 5 P3V N 2 •_ N, � � I 0.K�Jy 1 �1J z 3 3 �] a a ;, �;r? v PIP In i H fit{ m fUf���a asq rzx A o I. qW � tn 00 r 'E V � � ..� � �-- „ dNln � d ( � I nl 6 V ` .10j, a � ro V ail LSE / - = I E- -a TV . 0. Y m EA 4S;1 � � n Sy o, os