OAR 123-200-1230
Determination of Independence


The business must be a “for profit” independent, properly licensed and registered with the Secretary of State in the State of Oregon.


In determining whether a certified firm is an independent business, the COBID must scrutinize relationships with non-certified firms in such areas as personnel, facilities, equipment, financial and/or bonding support, and other resources.


The COBID may consider whether present or recent employer/employee relationships between the owner(s) of the certified firm and non-certified firms, or persons associated with non-certified firms, compromise the independence of the certified firm.


The COBID may examine the certified firm’s relationship with prime contractors to determine whether a pattern of exclusive or primary dealings with a prime contractor compromises the independence of the certified firm.


While reviewing factors related to the independence of a certified firm, the COBID must consider the consistency of relationships between the firm and non-certified firms with normal industry practice.


The COBID will consider whether owner(s) of the business owns or leases equipment and resources necessary to perform the services provided. If the business leases equipment, leasing must follow normal industry practice and the lease must not involve a relationship with a prime contractor or non-disadvantaged individual that compromises the control and independence of the firm.


The COBID may certify a business operating under a franchise or license agreement if it meets the standards in this subpart and the franchiser or licenser does not have an affiliation with the franchisee or licensee. The franchisor or license issuer must not have the ability to control employees, location, or prevent the certified owners from making any business decision for the firm without the cooperation or vote of any non-certified individual.

Source: Rule 123-200-1230 — Determination of Independence, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-200-1230.

Last Updated

Jun. 8, 2021

Rule 123-200-1230’s source at or​.us