Disciplinary Action For Failure To Perform

(1) The Tennessee Department of Transportation may discipline any certified DBE contractor who is found to be acting as a broker, conduit or in any other similar type of arrangement. The first time a DBE contractor is discovered taking part in such an arrangement he shall be suspended from participation as a DBE on future contracts for Tennessee Department of Transportation projects for one letting and given a warning letter. For the second violation, the DBE contractor shall be decertified for six months. For the third and each additional violation the contractor shall be decertified for twelve months. (2) Written notice shall be sent from the Contract Compliance Office concerning the activities of the contractor. The contractor shall have fifteen (15) days to respond to the deficiencies. If the contractor does not respond or if the contractor’s explanation is insufficient, then the contractor shall be advised by certified mail, return receipt requested, of the preliminary finding of the Contract Compliance Office. Reasons shall be given for the preliminary finding. (3) The contractor shall have fifteen (15) days after receipt of notice to request in writing an appeal to the Tennessee Department of Transportation DBE Review Committee which may reverse or uphold the Contract Compliance Office’s preliminary finding in its final decision. (4) Should the contractor not appeal within the fifteen (15) day period, then the preliminary finding of the Contract Compliance Office shall become the final decision of the Review Committee. (5) Final decisions of the Tennessee Department of Transportation DBE Review Committee may be appealed to the U.S. Department of Transportation, Office of the Secretary.