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H. Credit for DBE trucking companies will be as follows: I. The DBE must be responsible for the management and supervision of the entire trucking operation for which it is responsible on a particular contract, and there cannot be a contrived arrangement for the purpose of meeting the DBE goal; 2. The DBE must itself own and operate at least one fully licensed, insured. and operational truck used on the contract; 3. The DBE receives credit for the total value of the transportation services it provides on the contract using trucks its owns, insures. and operates using drivers it employs; 4. The DBE may lease trucks from another DBE firm. including an owner - operator who is certified as a DBE. The DBE who leases trucks from another DBE receives credit for the total value of the transportation services the lessee DBE provides on the contract; 5. The DBE may also lease trucks from a non -DBE firm, including an owner - operator. The DBE who leases trucks from a non -DBE is entitled to credit only for the fee or commission it receives as a result of the lease arrangement. The DBE does not receive credit for the total value of the transportation services provided by the lessee, since these services are not provided by a DBE; 6. For the purposes of this paragraph H, a lease must indicate that the DBE has exclusive use of and control over the truck. This does not preclude the leased truck from working for others during the term of the lease with the consent of the DBE, so long as the lease gives the DBE absolute priority for use of the leased truck. Leased trucks must display the name and identification number of the DBE. 1. Noncompliance by the Contractor with the requirements of the regulations constitutes a breach of this contract • and may result in termination of the contract or other appropriate remedy for a breach of this contract; J. Bidders are encouraged to use services offered by financial institutions owned and controlled by DBEs. • (Use the following if no DBE goals are specified) It is the policy of the City of San Leandro that disadvantaged business enterprises (DBEs), as defined in Part 26, Title 49 CFR. shall be encouraged to participate in the performance of contracts financed in whole or in part with Federal Funds. The Contractor should ensure that DBEs, as defined in Part 26, Title 49 CFR. have the opportunity to participate in the performance of this contract and shall take all necessary and reasonable steps. as set forth in Part 26. Title 49 CFR. for this assurance. The Contractor shall not discriminate on the basis of race, color, national origin. or sex in the award and performance of subcontracts. Failure to carry out the requirements of this paragraph shall constitute a breach of contract and may result in termination of this contract or other remedy the City of San Leandro may deem appropriate. Bidders shall be fully informed respecting the requirements of the Regulations and are urged to obtain DBE • participation in this project. although there is no specific goal for DBE participation. • Rev. 8 -00 Page 60 Special Provisions — Section 2 Project No.