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HomeMy WebLinkAboutMBE/WBE Compliance Program City of Waterloo, Iowa seagitir afe TOO-•a MBE/WBE CONTRACT COMPLIANCE PROGRAM FOR THE CITY OF WATERLOO, IOWA (As amended 08-08-2002) i MBE/WBE CONTRACT COMPLIANCE PROGRAM FOR THE CITY OF WATERLOO, IOWA - 2002 PURPOSE The purpose of the Contract Compliance Program (hereinafter called Program) is to act as an impetus for increasing the participation of minority and women disadvantaged business enterprise (MBE/WBE) in City awarded construction contracts. The Program does not propose to eliminate any bonafide contractor or subcontractor from bidding on City contracts, but it will hopefully serve as a needed stimulus to help local MBE/WBE's grow and eventually become mainstream contractors and subcontractors. This Contract Compliance Program does not propose to include any set-aside or quotas, but only flexible goals where "good-faith efforts" are required by the contractor to use MBE/WBE subcontractors. This Program shall not eliminate the need for contractors to continue their "good-faith efforts" in using MBE/WBE subcontractors on City contracts estimated at less than $50,000. The City of Waterloo will make every effort to reduce in-house construction and maintenance work that would be more cost effectively performed by the private sector and, thus, would allow additional bidding opportunities for MBE/WBE firms. The City Contract Compliance Officer shall be advised of all City of Waterloo awarded construction contracts. DEFINITIONS Goals: A flexible numerically expressed objective which contractors are required to make "good-faith efforts," The key to the requirement is to make documented efforts. Goals are neither set-a-sides nor a device to achieve proportional representation or equal results. Numerical goals do not create set-a-sides for specific groups, nor are they designed to achieve proportional representation or equal results. Rather, the goal- setting process in affirmative action planning is used to target and measure the effectiveness of affirmative action efforts to eradicate and prevent discrimination. Quota: A flat numerical requirement that the contractor is required to meet in order to obtain the benefit or be in compliance. The numerical goal component of affirmative action programs is not designed to be, nor may it properly or lawfully be interpreted as, permitting unlawful preferential treatment and quotas with respect to persons of any race, color, religion, sex, or national origin. The regulations at 41 CFR 60- 2.12(a), 60-2.15 and 60-2.30, specifically prohibit discrimination and the use of goals and quotas. (U.S. Department of Labor) Set-Aside: An arrangement in which a particular contract is reserved for competition solely among minority business enterprise. Contractor: 2 As used in this document means contractor, subcontractor, supplier, vendor, and professional service provider. Minority Business Enterprise (MBE) Any business which is at least 51% owned by one or more minorities and whose management and daily business operations are controlled by one or more such individuals and is on the current State Unified Certification List, or were listed on the City of Waterloo Certified MBE/WBE Contractors list as of Julyl, 2002 Women Business Enterprise (WBE): Any business which is at least 51% owned by one or more women and whose management and daily business operations are controlled by one or more such individuals and is on the current State Unified Certification List or were on the City of Waterloo Certified MBE/WBE Contractors list as of July 1,2002 Minority: Any person or persons who are considered as socially and economically disadvantaged because of their identity as a group member without regard to their individual qualities. The groups include: Black American, Hispanic American, Native Americans, Eskimos, Aleuts, and Asian-Pacific Americans. 13 C.F.R. 124-l.1(c)(3)(ii)(1983). Lowest Responsible Bidder: Bidder who has offered the lowest bid and who has exhibited skill relative to the type of work bid on, judgment, financial responsibility, and evidence of working with the Affirmative Action Employment Program and the Contract Compliance Program. Broker: One buying or selling for others on commission or other fee basis without maintaining a warehouse or other similar inventory storage facility. Mayor's Advisory Committee: Mayor's Advisory Committee for Minority, Female, and Disadvantaged Business Enterprise. Good Faith Efforts: The successful bidder shall be selected on the basis of having submitted the lowest responsible bid. The obligation of the bidder is to make good faith efforts. The bidder can demonstrate that it has done so by the following: 1. The Prime Contractor met the project goal -No Action necessary 3 2. If the Prime Contractor failed to meet the goal, they must submit documentation of good faith efforts. CONTRACT COMPLIANCE PROGRAM/SUBCONTRACTING The program proposes numerical projections or goals regarding utilization of Minority Business Enterprise (MBE) and Women Business Enterprise (WBE) as subcontractors in the performance of contracts awarded by the City of Waterloo,Iowa. A goal of at least 10%for MBE participation on all City funded construction projects that are estimated at $50,000 or more and projects under $50,000 where applicable at the Contract Compliance Officer's discretion. There is at least 2% WBE goal on City funded projects. Any project which is funded solely or in part with Federal funds shall follow the respective agencies contract compliance program and goals. Any project which is funded solely or in part with State funds shall follow the respective agencies contract compliance program and goals. The City of Waterloo Contract Compliance Program is for City awarded construction contracts only. The prime contractor shall make "good-faith efforts" to meet the Contract Compliance MBE/WBE goals. The MBE/WBE subcontracts must provide the prime contractor a reasonably competitive price for the service being rendered or the contractor is not required to accept the bid. Administrative Reconsideration As part of this reconsideration,the bidder will have the opportunity to provide written documentation or arguments concerning the issue of whether they made adequate good faith efforts to meet the goals.The bidder will have the opportunity to meet in person with the City of Waterloo's Administrative Reconsideration Committee to discuss the issue of whether they made adequate good faith efforts. The Administrative Reconsideration Committee will forward a written decision on reconsideration to the Mayor and City Council, explaining the basis for finding that the bidder did or did not meet the goal or make adequate good faith efforts to do so. Documentation required will include but is not limited to the following: * Making portions of the work available for MBE/WBE subcontracting * Evidence of negotiating with MBE/WBE firms * MBE/WBE quotes obtained and non-MBE/WBE quotes used * Reasons agreements were not reached * Follow-up after initial solicitations * Efforts to assist in obtaining equipment, supplies and materials (at competitive prices), bonding, lines of credit, insurance, etc. * Evidence of past compliance or non-compliance by same contractor The Contract Compliance Officer will determine the weight to be given to each item listed above (supported by appropriate documentation) based on overall program goals. 4 RESPONSIBILITIES I. City of Waterloo A. The City Contract Compliance Officer has the responsibility to assure the City's compliance with Federal, State and Municipal regulations. B. The City Contract Compliance Officer is responsible for maintaining a current directory of certified firms. Certification of MBE/WBE/DBE contractors is through the Iowa Department of Transportation and its Unified Certification Program. Only firms certified based on guidelines prescribed in 49 CFR Part 26 and provisions of this agreement, shall be recognized as certified by the City of Waterloo. C. The City Contract Compliance Officer is responsible for making available a list of future project information notices to MBE/WBE firms. D. The City Contract Compliance Officer shall send notices to appropriate MBE/WBE firms in the directory of each bid solicitation with opening date. E. The City Contract Compliance Officer will receive MBE/WBE Letter(s)of Intent to Bid and within two (2)business days forward the complete list of MBE/WBE bidders who submitted a Letter of Intent to Bid to prime contractors. II. Prime Contractors In order to be in compliance with the guidelines of this program, the prime contractor must show good-faith efforts in following the MBE/WBE Contract Compliance Program. Good-faith efforts include, but are not limited to, the following: A. Prime contractors shall send solicitation letters (Form CCO-3) to appropriate MBE/WBE (those certified in directory prepared by City Contract Compliance Officer) at least seven (7) working days prior to bid date. Letters should identify specific items to be subcontracted. A minimum of three (3) disadvantaged business contacts must be made and documented, if there are at least three disadvantaged businesses offering services in the area to be subcontracted(See City of Waterloo MBE/WBE Certification List). If less than three (3) are offering the services to be subcontracted, then a contact is required for any that are listed as providing that service. If the Prime Contractor submits a MBE/WBE contact not on the City's MBE/WBE list, attach a copy of the MBE/WBE/DBE Certifications from another government agency. B. If a prime contract bidder is unable to identify MBE/WBE firms to perform portions of the work, the City Contract Compliance Officer should be contacted for assistance immediately. C. Prime contract bidders may solicit MBE/WBE proposals by telephone or personal interviews, but all such contacts shall be confirmed by Certified Mail, or subcontract bid request forms (Form CCO-2). D. If any MBE/WBE business submitting bids is not selected for subcontract award, documentation must accompany the "MBE/WBE Business Enterprise Pre-Bid Contact Information Form" (Form CCO-4 and CCO-4A) on why the MBE/WBE was not selected. These reasons could include: a. Not low bid. Copies of the competing bids may be required for verification. b. MBE/WBE did not bid,withdrew bid or non-responsive. 5 c. Documentation of other business-related reason for not selecting the MBE/WBE business for a subcontract. d. Prime contractor self performs work. e.Any other reason relied on by prime. The Contract Compliance Officer will determine the weight to be given to each item listed above (supported by appropriate documentation)based on overall program goals. III. MBE/WBE Firms A. MBE/WBE firms shall be certified by the Iowa Department of Transportation as owners and controllers of their respective businesses, or were listed on the City of Waterloo Certified MBE/WBE Contractors list as of July 1, 2002 B. MBE/WBE firms must perform the work on the project; they cannot act as a broker by subcontracting the work out to others. C. Each MBE/WBE firm planning to submit quotes on construction projects with goals, shall submit a Letter of Intent to Bid(Form CCO-5)to the City Contract Compliance Officer seven(7) working days prior to bid opening, listing specific items which the MBE/WBE firm is interested in bidding. If sufficient Letters of Intent to Bid are not received by the City Contract Compliance Officer seven(7)working days prior to bid opening, goals on subject project will be reduced accordingly. Agreements between the bidder/proposer and a MBE/WBE in which the MBE/WBE promises not to provide subcontracting quotations to other bidders/proposers are prohibited. NONCOMPLIANCE OF CONTRACTORS A. Noncompliance exists when the contractor's actions are not consistent with the requirements of the Contract Compliance Program in the areas of employment and subcontracting. B. A bidder's failure to show good-faith efforts to meet project goals or a failure to use certified MBE/WBE firms may be grounds for finding its bid not responsible. C. The Contract Compliance Officer shall submit to City Council his/her recommendation on any non-compliant contract in writing. NOTICE TO PROCEED Notice to proceed on any project with goals will not be issued until City Contract Compliance Officer determines the lowest responsible bidder has used good-faith efforts to comply with this Compliance Program and the bid was responsive. 6 CONCLUSION This program repeals or revises all sections of previous Waterloo Contract Compliance Programs. 7 CONTRACT COMPLIANCE FORM INDEX (as of 07-08-2002) Form CCO-I, Contract Compliance Policy This is the Current Contract Compliance Program for the City of Waterloo and must be adhered to for any City of Waterloo contracts over$50,000, funded solely with City funds. Form CCO-2, Subcontractors Bid Request Form This form acknowledges that the Prime Contractor has contacted potential MBE/WBE subcontractors. This form is initiated and signed by the Prime Contractor then signed by the MBE/WBE subcontractor and returned to the Prime contractor by the MBE/WBE contractor. Form CCO-3, -Letter to be used when soliciting for Subcontractor Quotes This is a sample letter from the Prime Contractor to Subcontractors soliciting bids for various contract items. Form CCO-4,Pre-Bid Contact Information Form This form and the accompanying Form CCO-4A, must be completed and submitted with the Prime Contractor's Bid. Certification of Prime Contractor Regarding MBE/WBE Unavailability If any MBE/WBE's submitting bids are not selected for subcontract award, documentation must accompany Form CCO-4. Form CCO-4A, Pre-Bid Contact Information Instructions Detailed instructions on how Form CCO-4 should be completed and the responsibilities of the Prime Contractor and the Subcontractor. Form CCO- 5, Letter of Intent to Bid from MBE/WBE Contractor Each MBE/WBE firm planning to submit quotes on construction projects with goals, shall submit a Letter of Intent to Bid to the City Contract Compliance Officer seven (7) working days prior to bid opening, listing specific items which the MBE/WBE firm is interested in bidding. If sufficient scope letters are not re ceived by the City Contract Compliance Officer sev en (7) days prior to bid opening, goals on subject project will be reduced accordingly. This form is completed and signed by the MBE/WBE. Form CCO-6,Final MBE/WBE Participation Amounts Upon Completion and Finalization of the project, the Prime Contractor must submit this form with their final documents. It shall be filled out and signed by the Prime Contractor on the project. If project goals are not met, a detailed report must accompany this form prior to release of retainage. 8