HomeMy WebLinkAboutCONTRACT PROVISION Exhibit C
CONTRACT PROVISION
Targeted Small Business (TSB)
Affirmative Action Responsibilities
on
Non-Federal Aid Projects (Third-Party State-Assisted Projects)
May 2012
May 2012
CONTRACT PROVISION
Targeted Small Business (TSB)Affirmative Action Responsibilities
on Non-Federal-aid Projects (Third-party State-Assisted Projects)
1. TSB DEFINITION
A TSB is a small business, as defined by Iowa Code Section 15.102(5), which is 51% or more owned,
operated and actively managed by one or more women, minority persons or persons with a disability.
Generally this is a for-profit small business enterprise under single management, is located in Iowa and
has an annual gross income of less than 3 million dollars computed as an average of the three preceding
fiscal years.
2. TSB REQUIREMENTS
In all State-assisted projects made available through the Iowa Department of Transportation, local
governments have certain affirmative action requirements to encourage and increase participation of
disadvantaged individuals in business enterprises. These requirements are based on Iowa Code Section
19B.7 and 541 Iowa Administrative Code Chapter 4. These requirements supersede all existing TSB
regulations, orders, circulars and administrative requirements.
3. TSB DIRECTORY INFORMATION
Available from: Iowa Department of Inspections and Appeals
Targeted Small Business
Lucas Building
Des Moines, IA 50319
Phone: 515-281-7102
Website: http://dia.iowa.gov/page7.html
4. THE CONTRACTOR'S TSB POLICY
The contractor is expected to promote participation of disadvantaged business enterprises as suppliers,
manufactures and subcontractors through a continuous,positive,result-oriented program. Therefore the
contractor's TSB policy shall be:
It is the policy of this firm that Targeted Small Business (TSB) concerns shall have the
maximum practical opportunity to participate in contracts funded with State-assisted funds which
are administered by this firm(e.g. suppliers, manufactures and subcontractors). The purpose of
our policy is to encourage and increase the TSB participation in contracting opportunities made
available by State-assisted programs.
5. CONTRACTOR SHALL APPOINT AN EQUAL EMPLOYMENT OPPORTUNITY(EEO) OFFICER
The contractor shall designate a responsible person to serve as TSB officer to fulfill the contractors
affirmative action responsibilities. This person shall have the necessary statistics, funding, authority and
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TSB Affirmative Action Responsibilities
responsibility to carry out and enforce the firm's EEO policy. The EEO officer shall be responsible for
developing, managing and implementing the program on a day-to-day basis. The officer shall also:
A. For current TSB information, contact the Iowa Department of Inspections and Appeals (515-281-
7102) to identify potential material suppliers, manufactures and contractors.
B. Make every reasonable effort to involve TSBs by soliciting quotations from them and
incorporating them into the firm's bid.
C. Make every reasonable effort to establish systematic written and verbal contact with those TSBs
having the materials or expertise to perform the work to be subcontracted, at least two weeks
prior to the time quotations are to be submitted. Maintain complete records of negotiation
efforts.
D. Provide or arrange for assistance to TSBs in seeking bonding, analyzing plans/specifications or
other actions that can be viewed as technical assistance.
E. Ensure the scheduled progress payments are made to TSBs as agreed in subcontract agreements.
F. Require all subcontractors and material suppliers to comply with all contract equal opportunity
and affirmative action provisions.
6. COUNTING TSBs PARTICIPATION ON A PROJECT
TSBs are to assume actual and contractual responsibilities for provision of materials/supplies,
subcontracted work or other commercially useful function.
A. The bidder may count:
(1) Planned expenditures for materials/supplies to be obtained from TSB suppliers and
manufacturers; or
(2) Work to be subcontracted to a TSB; or
(3) Any other commercially useful function.
B. The contractor may count:
(1) 100% of an expenditure to a TSB manufacturer that produces/supplies goods
manufactured from raw materials.
(2) 60% of an expenditure to TSB suppliers that are not manufacturers; provided the
suppliers perform a commercially useful function in the supply process.
(3) Only those expenditures to TSBs that perform a commercially useful function in the work
of a contract, including those as a subcontractor.
(4) Work the Contracting Authority has determined that it involves a commercially useful
function. The TSB must have a necessary and useful role in the transaction of a kind for
which there is a market outside the context of the TSB program. For example, leasing
equipment or purchasing materials from the prime contractor would not count.
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TSB Affirmative Action Responsibilities
7. REQUIRED DATA, DOCUMENTS AND CONTRACT AWARD PROCEDURAiS FROM
BIDDERS/CONTRACTORS FOR PROJECTS WITH ASSIGNED GOALS
A. Bidders
Bidders who fail to demonstrate reasonable positive efforts may be declared ineligible to be
awarded the contract. Bidders shall complete the bidding documents plus a separate form called
"TSB Pre-Bid Contact Information". This form includes:
(1) Name(s) of the TSB(s) contacted regarding subcontractable items.
(2) Date of the contract.
(3) Whether or not a TSB bid/quotation was received.
(4) Whether or not the TSB's bid/quotation was used.
(5) The dollar amount proposed to be subcontracted.
B. Contractors Using Quotes From TSBs
Use those TSBs whose quotes are listed in the "Quotation Used in Bid" column along with a
"yes" indicated on the Pre-bid Contact Information form.
C. Contractors NOT Using Quotes From TSBs
If there are no TSBs listed on the Pre-bid Contract Information form, then the contractor shall
document all efforts made to include TSB participation in this project by documenting the
following:
(1) What pre-solicitation or pre-bid meetings scheduled by the contracting authority were
attended?
(2) Which general news circulation, trade associations and/or minority-focused media were
advertised concerning the subcontracting opportunities?
(3) Were written notices sent to TSBs that TSBs were being solicited and was sufficient time
allowed for the TSBs to participate effectively?
(4) Were initial solicitations of interested TSBs followed up?
(5) Were TSBs provided with adequate information about the plans, specifications and
requirements of the contract?
(6) Were interested TSBs negotiated with in good faith? If a TSB was rejected as
unqualified, was the decision based on an investigation of their capabilities?
(7) Were interested TSBs assisted in obtaining bonding,lines of credit or insurance required
by the contractor?
(8) Were services used of minority community organization, minority contractors groups;
local, State and Federal minority business assistance offices or any other organization
providing such assistance.
The above documentation shall remain in the contractor's files for a period of three (3) years after the
completion of the project and be available for examination by the Iowa Department of Inspections and
Appeals.
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TSB Affirmative Action Responsibilities
8. POSITIVE EFFORT DOCUMENTATION WHEN NO GOALS ARE ASSIGNED
Contractors are also required to make positive efforts in utilizing TSBs on all State-assisted projects
which are not assigned goals. Form "TSB Pre-bid Contact Information" is required to be submitted with
bids on all projects. If there is no TSB participation, then the contractor shall comply with section 7C. of
this document prior to the contract award.
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UTILIZATION OF TARGETED SMALL BUSINESS (TSB) ENTERPRISES
ON NON-FEDERAL AID PROJECTS
(THIRD-PARTY STATE-ASSISTED PROJECTS)
In accordance with Iowa Code Section 19B.7 and 541 Iowa Administrative Code (IAC) Chapter 4, it is the
policy of the Iowa Department of Transportation (Iowa DOT) that Targeted Small Business (TSB) enterprises
shall have the maximum practicable opportunity to participate in the performance of contracts financed in
whole or part with State funds.
Under this policy the Recipient shall be responsible to make a positive effort to solicit bids or proposals from
TSB firms and to utilize TSB firms as contractors or consultants. The Recipient shall also ensure that the
contractors or consultants make positive efforts to utilize TSB firms as subcontractors, subconsultants,
suppliers, or participants in the work covered by this agreement.
The Recipient's "positive efforts" shall include,but not be limited to:
1. Obtaining the names of qualified TSB firms from the Iowa Department of Inspections and Appeals
(515-281-7102) or from its website at: http://dia.iowa.gov/page7.html.
2. Notifying qualified TSB firms of proposed projects involving State funding. Notification should be
made in sufficient time to allow the TSB firms to participate effectively in the bidding or request for
proposal (RFP)process.
3. Soliciting bids or proposals from qualified TSB firms on each project, and identifying for TSB firms the
availability of subcontract work.
4. Considering establishment of a percentage goal for TSB participation in each contract that is a part of
this project and for which State funds will be used. Contract goals may vary depending on the type of
project, the subcontracting opportunities available, the type of service or supplies needed for the project,
and the availability of qualified TSB firms in the area.
5. For construction contracts:
a. Including in the bid proposals a contract provision titled"TSB Affirmative Action Responsibilities
on Non-Federal Aid Projects (Third-Party State-Assisted Projects)" or a similar document developed
by the Recipient. This contract provision is available on-line at:
http://www.dot.state.ia.us/local_systems/publications/tsb_contract_provision.pdf
b. Ensuring that the awarded contractor has and shall follow the contract provisions.
6. For consultant contracts:
a. Identifying the TSB goal in the Request for Proposal (RFP), if one has been set.
b. Ensuring that the selected consultant made a positive effort to meet the established TSB goal, if any.
This should include obtaining documentation from the consultant that includes a list of TSB firms
contacted; a list of TSB firms that responded with a subcontract proposal; and, if the consultant does
not propose to use a TSB firm that submitted a subcontract proposal, an explanation why such a TSB
firm will not be used.
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• The Recipient shall provide the Iowa DOT the following documentation:
1. Copies of correspondence and replies, and written notes of personal and/or telephone contacts with any
TSB firms. Such documentation can be used to demonstrate the Recipient's positive efforts and it
should be placed in the general project file.
2. Bidding proposals or RFPs noting established TSB goals, if any.
3. The attached"Checklist and Certification." This form shall be filled out upon completion of each
project and forwarded to: Iowa Department of Transportation, Civil Rights Coordinator, Office of
Employee Services, 800 Lincoln Way, Ames, IA 50010.
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CHECKLIST AND CERTIFICATION
For the Utilization of Targeted Small Businesses(TSB)
On Non-Federal-aid Projects(Third-Party State-Assisted Projects)
Recipient: Project Number:
County: Agreement Number:
1. Were the names of qualified TSB firms obtained from the Iowa Department of Inspections and Appeals? ❑ YES ❑ NO
If no, explain
2. Were qualified TSB firms notified of project? ❑ YES ❑ NO
If yes, by ❑ letter, ❑telephone, ❑ personal contact, or ❑ other(specify)
If no, explain
3. Were bids or proposals solicited from qualified TSB firms? ❑YES ❑ NO
If no, explain
4. Was a goal or percentage established for TSB participation? ❑ YES ❑ NO
If yes, what was the goal or percentage?
If no, explain why not:
5. Did the prime contractor or consultant use positive efforts to utilize TSB firms on subcontracts? ❑YES ❑ NO
If no, what action was taken by Recipient?
Is documentation in files? ❑ YES ❑ NO
6. What was the dollar amount reimbursed to the Recipient
from the Iowa Department of Transportation? $
What was the final project cost? $
What was the dollar amount performed by TSB firms? $
Name(s) and address(es) of the TSB firm(s)
(Use additional sheets if necessary)
Was the goal or percentage achieved? ❑ YES ❑ NO
If no, explain
As the duly authorized representative of the Recipient, I hereby certify that the Recipient used positive efforts to utilize
TSB firms as participants in the State-assisted contracts associated with this project.
Title
Signature
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