HomeMy WebLinkAboutResolution - 667 - Policy Statement - Minority Business Enterprise Program - Equal Opportunity - 12/11/1980l II)GV:bs RESOLUTION 4667 - December 11, 1980
RESOLUTION
Q ! WHEREAS, the City Council of the City of Lubbock deems it to be in the
?public interest to adopt a policy ensuring that members of the minority business
9community and females will have equal opportunity to compete for City of Lub-
slbock contracts for construction, professional services, purchases of equipment
and supplies and all other services required by the City, and
WHEREAS, the City Council of the City of Lubbock deems it to be in the
public interest for contractors providing services, materials or supplies to
the City of Lubbock to provide employment opportunities to minorities and female
equal to those opportunities provided other groups or individuals, NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock hereby adopts as its policy
the Policy Statement found upon pages 1 through 3 of the Minority Business
Enterprise Program attached hereto, and
THAT the Mayor of the City of Lubbock BE and is hereby authorized to exe-
cute for and on behalf of the City of Lubbock said Policy Statement and any
amendments thereto, and
THAT the City Manager of the City of Lubbock or his designee shall be the
Minority Business Enterprise Liason Officer for the City of Lubbock and shall
shave authority to implement this policy.
Passed by City Council this 11th day of December , 1980.
10
BILL McALISTER, MAYOR
!' ATTEST :
f -
Evelyn Ga fga, City ec et -Treasurer
IAPPROVED AS TO CONTENT:
Jiml6fJagg, Assistant 66,1anager
APPROVED AS TO FORM:
Donald G. Vandiver, Assistant City
Attorney
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fTABLE OF CONTENTS
1.
Policy Statement . . . . . . . . . . . . .
. . 1
Il.
Minority Business Enterprise (MBE) Liason Officer. . . .
. 4
III.
Procedure to Insure Equitable Opportunity to Compete for
Contracts and Subcontracts'. .. ,
, 6
IV.
Use of Minority and Women-Owned Banks. . . . . . . . . . . .
. . 6
V.
MBE Directory . . . . . . . . . . . . . . . .
. . 6
VI.
MBE Eligibility and Joint Ventures Involving MBEs. . . .
. 7
VII.
Percentage Goals . . . . . . . . . . . . . . . . . . .
. 7
VIII.
Procedures to Require that MBEs be Identified by Name by
Competitors that Meet MBE Goals . . . . . . . . . . .
9
IX.
Selection Criteria to Insure Prime Contracts are Awarded to
Competitors that Meet MBE Goals . . . . . . . . . . . .
9
X,
Compliance of Subrecipients, Contractors, and Subcontractors
to the MBE Requirements. . . . . . . . . . . . . . . . . . .
. 9
XI.
Maintenance of Records and Reports . . . . . . . . . . .
. . 9
X11.
Information to be Included in Contract Document. . . .
. 11
XIII.
MBE Requirements for Transit Vehicle Manufacturers . . . . .
. . 12-
XIV.
Policy Concerning leases . , . . . . . . . . . . . . . . .
. . 12
XV.
Set Asides . . . . . . . . . . . . . . . . . .
. . 13
APPENDIX
Attachment 1. Instructions to Bidders Regarding the City of
Lubbock's MBE Program . . . . ,
14
Attachment 2. Selecting Criteria to Insure that Prime
Contracts are Awarded to Competitors that
Meet MBE Goals . . . . . . . . . .
16
Attachment 3. Counting MBE Participation Toward Meeting
MBE Goals . . . . . . . . . . . . . . . .
. . 20
Attachment
4, Eligibility Standards , . , ..
21
• •Table of
Contents (continued)
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Page
Attachment $
Appeals of Denial of Certification as an MBE . .
. . . 24
Schedule
A.
Certification Form . . . . . . . . . . . . . .
. . 25
Schedule
B.
Joint Venture Eligibility Form . . . . . . . ...
. . 28
Schedule
C.
Schedule of MBE Participation . . . . . . . . .
. . . 34
Schedule
D.
MBE/WBE Participation Quarterly Report . . . . _
. 35
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CITY OF LUBBOCK
MINORITY BUSINESS ENTERPRISE POLICY
I. POLICY STATEMENT
It is the policy of the City of Lubbock, Texas to:involve Minority
Business Enterprises to the fullest extent feasible in all phases of
its procurement practices, and to provide them equal opportunities to
compete for contracts for construction, provision of professional
services, purchases of equipment and supplies, and provision of other
services required by the City.
As a part of the effort to attain these policy objectives, it is the
intent of the City of Lubbock to develop and implement a Minority Business
Enterprise Program to ensure that the members of the minority business
community will have equal opportunities to be utilized in all apsects of
the City's procurement programs.
For the, purpose of this policy,, a Minority Business Enterprise is defined
as: a small business concern which is owned and controlled by one or more
minorities or women. "Owned and controlled" is specified as a business
which a) is at least 51% owned by one or more minorities or women or in
the -case of a publicly owned business, at least 51% of the stock of which
is owned by one or more minorities or women, and b) whose management and
daily business operations are controlled by one or more such individuals.
Such persons would include any person who is a citizen or lawful resident
of the United States and who is:
A. Black (a person having origins in any of the black racial groups of Africa)
B. Hispanic (a person of Spanish or Portuguese culture with origins in Mexico,
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South or Central America, or the Caribbean Islands, regardless of race.)
C. 'Asian American (a person having origins in any of the original peoples
of the Far East, Southeast Asia, the Indian subcontinent, or the.Pacific
Islands),
D. American Indian, and Alaskan Native (a person having origins in any of
the original peoples of North America),
E. Members of other groups, or other individuals found to be economically
and socially disadvantaged by the Small Business Administration under
Section 8(a) of the Small Business Act, as amended (15 U.S.C.(3] ,&LL
To the extent legally practicable, the City of Lubbock will insure that all
contractors providing services, materials or supplies to the City provide
employment opportunities to minorities and females equal to those provided
all other groups or individuals. Such contractors will also be required to
take positive steps toward the utilization of minority business enterprises,
to the maximum extent compatible with prompt and satisfactory completion of
the projects for which they contract.
The City will provide assistance, when requested, to Minority Business
Enterprises in providing instructions on the preparation of bid specifications,
compliance with procurement policy, and fulfillment of general bid requirements.
In addition, the City will provide information on job performance requirements,
procurement opportunities and prerequisites for bidding on contracts.
The City of, Lubbock will encourage joint ventures among Minority Business
Enterprises and between majority and :minority firms bidding for City contracts.-
The City of Lubbock will seek and will use its best efforts to insure that
Minority Business Enterprises are informed of current and future
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�t procurement activities through newsletters, including minority newspapers,
focal minority chambers of commerce, and other minority organizations as well
as through direct contact with minority entreprenuers.
As evidence of its intent to vigorously pursue the object of this Minority
Business Enterprise Program, the City Manager has designated the Assistant
City Manager as the Minority Business Enterprise Liaison Officer for the
Department of Transportation related projects, who will be assisted by the
City of Lubbock's Human Relations Department, Transit Department, and Department
of Aviation, in developing, administering, and implementing the City's Minority
Business Enterprise Program.
APPROVED AND ADOPTED this 11th day of December , 19$0 by the Lubbock City Council.
Approved as to form:
C `? -, ,
tlohn C, Ross, Jr., City Attorney
City Attorney
December 11, 1980
Date
CITY BBOCK, E S
.,0*
Bill MCAltster, Mayor
City of Lubbock, Texas
December 11, 1980
Date
Larry Pnni.ngham, it'Manager
December 11, 1980
Date
s
1I. LIAISON OFFICER
the City of Lubbock has designated the Assistant City Manager to serve as the
City's Liaison Officer for the Minority Business Enterprise Program.
The Liaison Officer reports directly to the City of Lubbock's City Manager, the
Assistant City Manager has been charged with the responsibility for developing
and executing the Minority Business Enterprise Program.
The duties of the Liaison Officer shall include the following:
A. Development, managing,implementing, and evaluating the MBE Program.
B. The review of all contract language and supporting data submitted in
all phases of project administration to assure compliance with the MBE
Program requirements and applicable federal, state, and local laws.
C. The monitoring via periodic reviews of the contractors' compliance
with the City's MBE Program as a mechanism for evaluation and planning.
D. Maintenance and updating of a registry of minority and women -owned businesses, a!
certified by SBA or other appropriate agency, with specific•inforriation on exper-
tise work performance, and other information .including verification of ownershil
E. The design and conduct of "in-house" MBE Seminars as well as the provision
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of technical assistance to interested bidders.
F. Analyzation of available planning tools to project priority areas of
MBE efforts.
G. -Providing assistance to City departments in resolving specific problems
related to implementation of the MBE program and achievement of stated
goals.
H. Publication of business opportunities to MBE's and assistance to such
businesses in obtaining contracts and sub -contracts.
I. Attendance of pre-bid and pre -construction conferences to explain MBE
requirements.
J. Participation on bid and proposal review panels.
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K. The maintenance of MBE contract records, and regular reporting to the
-City Manager and to the Mayor.
L. The coordination of the MBE Program with the procurement and legal de-
partments, and other appropriate local agencies.
M. Submit all reports as required by DOT and other Federal Regulations.
SUPPORTIVE STAFF
The MBE Liaison Officer shall have adequate staff to perform the duties.
The Coordinators of the Transportation, Aviation, and other appropriate de-
partments or their designated representative will serve as the MBE Coordinator
for their respective departments. The Departmental Coordinator will be at a
minimum, responsible for:
A. Notifying the MBE Liaison Officer of all grants being applied for through
the U.S. Department of Transportation,
B. Notifying the Liaison Officer of approved grant awards,
C. Evaluating approved grants for potential MBE participation,
D. Involving the MBE Liaison Officer in the entire bid process for DOT
assisted projects, which includes, but is not limited to:
1. Notification in advance by appropriate department of consultant and/or
construction contracts
2. Providing the Officer the opportunity to review bid proposals and
requests for proposals {RFP} prior to their formal advertisements to
insure that the City's MBE requirements have been met.
3. Notifying the Officer of the time and place for all.pre-bid conferences
if any, so that the MBE requirements can be explained and questions
answered,
4. Making sure that the Liaison Officer has an opportunity to evaluate all
bids received in an effort to assure the validity of the degree of MBE
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set forth in the regulations.
VI. MBE ELIGIBILITY AND JOINT VENTURES INVOLVING MBE's
To insure that the MBE program only benefits firms owned and controlled by
minorities or women, the :Sr-aII Business Administration shall certify the eli9ibiIit)
MBE's and joint ventures involving MBE"s that are named by competitors by
completing Schedule A and/or B. (For exceptions, see Attachment 2, Part G.)
The City shall require prime contractors to make good faith efforts to replace
an MBE contractor that is unable to perform successfully with another MBE.
The City shall reserve the right to approve all substitutions of subcontractors
before bid opening and during contract performance, in order to insure that the
substitute firms are eligible MBE's
VII PERCENTAGE GOALS
A. Overall Goals
The overall goals for the City of Lubbock's MBE program is eight percernt (8%)
of the contract amount of minority-owned f1rms*and two. percent (2%) for bus-
inesses owned by women. In no case shall these goals constitute a fixed
quota; The following factors were considered in arriving at these goals:
1. The number and types of contracts to be awarded by the City during
its fiscal year;
2. The number and types of MBE's and WBE's that have been identified
by the City: and SBA;
3. The number and types of MBE's and WBE's I ikely to be available to
compete for contracts during the funding period.
The past efforts of the City to contract with MBE's and WBE's.
The overall goals shall -be reviewed on an annual basis.. The review process
shall analyze projected versus actual MBE participation during the previous
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participation claimed. This will include verification of the information
' included In Schedule A.
E. Reporting to the Liaison Officer on no less than a quarterly basis on the
various departments efforts at achieving the MBE goals.
III. PROCEDURE TO INSURE EQUITABLE OPPORTUNITY TO COMPETE FOR CONTRACTS AND SUBCONTRACTS
The City of Lubbock will develop and use affirmative action techniques to
facilitate MBE participation in contracting activities. These techniques shall
include, but are not limited to:
A. Arranging solicitations, time for the presentation of bids, quantities,
specifications, and delivery schedules so as to facilitate the partici-
pation of MBE's;
B. Providing assistance to MBE's in overcoming barriers such as the inability to
obtain bonding, financing, or technical assistance by working with outside
agencies to provide these resources;
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C. Carrying out information and communications programs on contracting-
procedures and specific contracting opportunities in a timely manner;
D. Holding pre-bid conferences to explain the projects and encourage prime
contractors to use MBE's as subcontractors; and
E. Including the City's goal requirement for MBE participation in the bid
F solicitations for DOT -assisted projects.
IV. USE OF MINORITY AND WOMEN -OWNED BANKS
There are no minority or women -owned banks in Lubbock. However, should this
situation change in the future, the City of Lubbock will thoroughly investigate
the full extent of services offered and make the greatest feasible ,use of these
banks. ^.
V. MBE DIRECTORY
Such directory or source list shall specify which firms listed have been
determined by DOT or SBA to be eligible MBE's in accordance with procedures
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fiscal year. Whatever revisions considered necessary, shall be made and
submitted to the Department of Transportation for approval.
B. Contract Goals
Contract goals will be set on specific, projects which the bidder/proposer must
meet or exceed or demonstrate that it would not meet despite its best
efforts. The goals will be set based on the known availability of
qualified MBE's.
C. Publication of Goals
At the time the City submits its overall goals to the Department of
Transportation for approval, it shall publish a notice announcing these
goals, informing the public that the goals and a description of how they
were selected are available for inspection during normal business hours
at the City Manager's Office for 30 days following the date of notice,
and informing the public that the Department and the City will accept
comments on the goals for 45 days from the date of the notice. The
notice shall include addresses to which comments may be sent, and shall
be published in general circulation media and available minority -focus'
media and trade association publications, and shall state that the
comments are for informational purposes only.
D. Geographic Area
The City of Lubbock and contractors shall at a minimum, seek MBE's in
same geographic area in which contractors or subcontractors are sought
for a given solicitation. If the goals cannot be met by using MBE's
from this geographic area, the City and contractors shall expand its
search to a reasonably wider area.
*1lill. `PROCEDURES TO REQUIRE THAT MBE's BE IDENTIFIED BY NAME BY COMPETITORS FOR
CONTRACTS
In solicitations for DOT-assisted contracts that provide opportunities for MBE
participation, the City shall indicate its goals for the use of firms owned
and controlled by minorities and women.
A. All bidders/proposers will be required to submit a written assurance of
meeting the goals in their bids of proposals by completing Attachment 1.
B. Within a reasonable period of time after the opening of bids, and before
the award of the contract, the City shall require all bidders wishing to
remain in competition for the contract to submit Schedule C which provides:
1. The names and addresses of MBE subcontractors;
2. A description of the work each is to perform; and,
3• The dollar value of each proposed MBE subcontract.
C. The time allowed for submission of Schedule C will beset for individual
contracts and may vary, depending on circumstances.
D. Agreements between a bidder/proposer and an MBE in which the MBE promises
not to provide subcontracting quotations to other bidders/proposers
are, prohibited.
IX. SELECTION CRITERIA TO INSURE THAT PRIME CONTRACTS ARE AWARDED TO COMPETITORS
THAT MEET MBE GOALS
To insure that prime contracts are awarded to competitors who meet MBE goals,
the selection criteria which is outlined in Attachment 2 will be followed.
X. COMPLIANCE OF SUBRECIPIENTS, CONTRACTORS AND SUBCONTRACTORS TO THE'MEE
REQUIREMENTS
The City of Lubbock does not have any subrecipients at this time. Should
the situation change in the future, all subrecipients must comply with the
MSE requirements outlined in this program.
XI. MAINTENA14CE OF RECORDS AND REPORTS
A. In order to monitor the progress of its MBE program, the City shall maintain
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a recordkeeping system which will identify and assess MBE contract awards.
.prime contractors' progress in achieving MBE subcontract goals and other
MBE affirmative action efforts.
B. Specifically, the City shall maintain records showing:
1. Procedures which have been adopted to comply with the requirements
of this program.
2. Awards to 11BE's. These awards shall be measured against projected
MBE awards and/or MBE goals. To assist in this effort, the City
shall obtain regular reports from prime contractors on their progress
in meeting contractual MBE obligations.
3• Specific efforts to identify and award contracts to MBE's.
C. Records shall be available, upon request, to an authorized officer or
employee of the government.
D. The City shall submit reports conforming in frequency and format to
existing contract reporting requirements of the applicable Department
element. Where no such contract reporting requirements exist, MBE reports
shall be submitted quarterly. These reports shall include as a minimum:
(See Schedule D)
1 The number of contracts awarded to MBE's;
2. A description of the general categories of contracts awarded to MBE's;
3. The dollar value of contracts awarded to MBE's;
4. The percentage of the dollar value of all contracts awarded during
this period which were awarded to MBE's; and,
5. An indication of whether and the extent of which the percentage met
or exceeded the goal specified in the application.
E. The records and reports shall provide information relating to firms owned
and controlled by minorities separately from information relating to firms
owned and controlled by women. If the records and reports include any SBA
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• $(a) contractors that are not minorities or women, information concerning these
contractors shall also be recorded and reported separately.
X11. INFORMATION TO BE INCLUDED IN CONTRACT DOCUMENT
1. Policy. It is the policy of the Department of Transportation that minority
business enterprises as defined in 49 CFR Part 23 shall have the maximum
opportunity to participate in the performance of contracts financed in
whole or in part with Federal funds under this agreement. Consequently,
the MBE requirements of 49 CFR Part 23 will be included in all contract
documents.
2. MBE Obligation. The City of Lubbock or its contractor agrees to insure
that minority business enterprises, as defined in 49 CFR Part 23, have the
maximum opportunity to participate in the performance of contracts and
subcontracts financed in whole or in part with Federal funds provided under
this agreement. In this regard, the City or ,its contractors shall take all
necessary and reasonable steps in accordance with 49 CFR Part 23 to insure
that.minority business enterprises have the maximum opportunity to compete
for and perform contracts. The City and its contractors shall not dis-
criminate on the basis of race, color, national origin, or sex in the award
and performance of DOT -assisted contracts.
3. The City shall advise each subrecipient, contractor, or subcontractor that
failure to carry out the requirements set forth in this program shall con-
stitute a breach of contract and, after the notification of the Department,
may result in termination of the agreement or contract by the City or such
remedy as the City deems appropriate.
4. In addition, the following items will be provided to prospective bidders in
the specification documents:
(a) MBE goals,; (Attachment 1)
(b) MBE selection criteria; (Attachment 2)
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(c) Certification Schedules A and B; -
(d) MBE definitions; (Attachment 1)
(e) Methods of counting MBE participation; and (Attachment 3)
(f) -Form for reporting names and addresses of MBE subcontractors,
work to be performed, and dollar value of each proposed MBE
,contract. (Schedule C)
XIII. MBE REQUIREMENTS FOR TRANSIT VEHICLE MANUFACTURERS
Transit vehicle manufacturers who bid on UMTA-assisted transit vehicle pro-
curement contracts shall have an UMTA approved MBE program. Bid invitation
issued for UMTA-assisted transit vehicles shall include the provisions listed
below:
A. Policy. It is the policy of the Department of Transportation that minority
business enterprises as defined in 49 CFR Part 23 shall have the maximum
opportunity to participate in the performance of contracts financed in
whole or in part with Federal funds under this agreement. Consequently,.
the MBE requirements of 49 CFR Part 23 apply to this agreement.
B. MBE, Obligation . The contractor agrees to insure that minority business
enterprises as defined in 49 CFR Part 23 have the maximum opportunity to
participate in the performance of contracts and. subcontracts. The con-
tractor shall not discriminate on the basis of race, color, national origin,
-or sex in the award and performance of DOT -assisted contracts.
C. Contractor Obligation. Contractors and subcontractors failing to carry out
the above requirements are to be advised that failure to meet provisions in
Schedules A and B above, shall constitute a breach of contract.
XIV. POLICY CONCERNING LEASES
The following action will be taken concerning leases:
A. The .City of Lubbock shall not exclude MBE's from participation in business
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opportunities by entering into long-term exclusive agreements with non -
.MBE's for the operation of major transportation related activities or
major activities for the provision of goods and services to the facility
or to the public on the facility.
XV. MBE SET ASIDES
The City of Lubbock will limit the use of set asides to include subcontracts
as they are utilized by the prime or general contractor. The City of Lubbock
is prohibited by the Texas Competitive Bidding Stature, Article 236x, Tex.Rev.
Civ.Stat.Ann. CVernon's Supp. 1980) to bid total contract amounts only to
MBEs/WBEs. Based on these rulings the City of Lubbock cannot take the
whole contract and allow only MBEs/WBEs to bid on it, but the City can
specify in the contract with the prime contractor that a certain percent-
age of the contract money will be spent by the prime contractor with
MBE/WBE subcontractors.
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ATTACHrENT 1
°t Page 1 of 2
INSTRUCTIONS TO BIDDERS
REGARDING THE CITY OF LUBBOCK'S
MINORITY BUSINESS ENTERPRISE PROGRAM
The City of Lubbock has a Minority Business Enterprise (MBE) program which has
set goals of .8q of the contract amount for participation on the part of MBE's
and 2% women -owned businesses in DOT -assisted projects. Failure to carry out
the requirements set forth in this program shall constitute a breach of
contract and, after notification of the Department of Transportation, may result
in termination of the agreement or contract by the City, or such other remedy as
the City deems appropriate.
The City defines a "minority" as a person who is a citizen or lawful permanent
resident of'the United States and who is:
(a) Black (a person having origins in any of the black racial groups
of Africa);
(b) Hispanic (a person of Spanish or Portuguese culture with origins
in Mexico, South or Central America, or the Caribbean Islands, re-
gardless of race);
(.c) Asian American (a person having origins in any of the original
peoples of the Far East, Southeast Asia, the Indian subcontinent,
or the Pacific Islands);
(d) American Indian and Alaskan Native (a person having origins in any
of the original peoples of North America); or,
(e) Members of other groups, or other individuals, found to be economically
and socially disadvantaged by the Small Business Administration under
Section 8 (a) of the Small Business Act, as amended (15 U.S.C. 637 (a)).
A "Minority Business" means a small business concern which is owned and controlled'
by one or more minorities or women. Owned and controlled means a business:
(a) Which is at least 51 percent owned by one or more. minorities. or women
or, in the case of a.publicly owned business, at least 51 percent of the
stock which is owned by one or more minorities or women; and
(b) Whose management and daily business operations are controlled by one or
more such individuals.
In order to receive favorable consideration on this project, bidders are expected tc
provide assurances, in writing, that at least 8"% of the contract amount will go
to minority business enterprises and at least 2% will go to women business enter-
prises. This can be done by completing the bottom portion of this attachment and
supplying whatever other supplemental information necessary. In any event, the low-
est bidder, meeting the MBE requirements will receive the most favorable considerate
THE UNDERSIGNED BIDDER HEREBY ASSURES THAT HIS/HER FIRM IS IN COMPLIANCE WITH THE
CITY OF LUBSOCK'S MBE "PROGRAM AND HAS A GOAL OF % OF THE DOLLAR VALUE OF THIS
PROJECT FOR MINORITY-OWNED BUSINESSES AND % FOR WOMEN -OWNED BUSINESSES.
14AME OF COMPANY
SIGNATURE
•
ATTACHMENT i
Page 2 of 2
SUPPLEMENTAL INSTRUCTIONS TO BIDDERS
A. Other Attachments
1. The selection criteria to insure that prime contractors are
awarded to the bidder/proposer that meet MBE goals is outlined
in Attachment 2.
2. The method for counting MBE participation toward meeting MBE
goals is discussed in Attachment 3.
3. The eligibility standards for determining whether firms are
owned and controlled by minorities or women are outlined in
Attachment.
4. The process for appealing denials of certification as an MBE
is outlined in Attachment 5.
B. In order to comply with the City of Lubbock's MBE requirements, it may
be necessary to complete all of the following forms:
1. Schedule A - Certification of MBE Eligibility. This form must
be completed and placed on file with the City for each MBE
listed in Schedule C. If the prime contractor is a minority
or women, Schedule A must accompany the bid submission. For
information related to Third Party Certification, see Attachment
2, page 2, part G.)
2. Schedule B - Joint Venture Eligibility. This form must be com-
pleted and placed on file with the City for all joint ventures
between minority and non -minority firms on DOT -assisted projects.
3. Schedule C - Schedule of MBE Participation. You must indicate the
MBE firms you propose to use, the type of work to be performed and
the dollar value of the contract.
C. Agreements between a bidder/proposer and an MBE in which the MBE promises
not to provide subcontracting quotations to other bidders/proposers are
prohibited.
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ATTACHMENT 2
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SELECTION CRITERIA TO INSURE THAT PRIME CONTRACTS ARE
AWARDED TO COMPETITORS THAT MEET MBE GOALS
A. If any competitor offering a reasonable price meets the MBE contract goal,
the City of Lubbock shall presume that all competitors that
failed to meet the goal have failed to exert sufficient reasonable efforts
and consequently are ineligible to be awarded the contract.
B. To implement this presumption, the City shall determine whether the competitor
offering the lowest price of firms meeting the MBE contract goal has offered
a reasonable price for the contract:
I. if it is determined that this competitor has offered a reasonable
price, the City shall award the contract to the firm;
2. If the City determines that this competitor's price is not reasonable,
it shall consider the next price offered by the competitor with the
highest percentage of MBE participation of those firms that failed
to meet the goal. If the City determines that this price is reasonable,
it shall award the contract to this competitor;
3. If it is determined that this price is not reasonable, the City shall
consider the other competitors that failed to meet the goal in order
of their percentage of MBE participation until it selects one with a
reasonable price; and,
4. If it is determined that no competitor with MBE participation has
offered a reasonable price, the City may award the contract to any
competitor that demonstrates that it has made sufficient reasonable
efforts to meet the MBE contract goal.
C. To decide whether a price offered by a competitor is reasonable, the City of
Lubbock shall use the same criteria that it would use to determine whether,
if the competitor had made the only offer to perform the contract, the City
would award the contract.
D. To demonstrate sufficient reasonable efforts to meet the MBE contract goal,
a contractor shall document the steps it has taken to obtain MBE participation,
including, but not limited to, the following:
1. Attendance at a pre-bid conference, if any, scheduled by the 'City
to inform MBE's of subcontracting opportunities under a given
solicitation;
2. Advertisement in general circulation media, trade association
publications, and minority -focus media for at least 20 days before
bids or proposals are due. If 20 days are not available, publication
for a shorter reasonable time is acceptable.
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ATTACHMENT 2
Page 2 of_V_
3. Written notification to MBE's that their interest lin :the contract
is solicited;
4. Efforts made to select portions of the work proposed to be performed
by MBE's in order to increase the likelihood of achieving the stated
goal;
5. Efforts to negotiate with MBE's for specific subbids including at
minimum:
(a) The names, addresses, and telephone numbers of MBE's
that were contacted;
(b) A description of the information provided to MBE's regarding
the plans and specifications for portions of the work to
be performed; and
(c) A statement of why additional agreements with MBE's were not
reached.
6. Concerning each MBE the competitor contacted but rejected as
unqualified, the reasons for the competitor's conclusion;
7. Effort made to assist the MBE's contacted that needed assistance in
obtaining bonding or insurance required by the competitor or City.
E. Competitors that fail to meet MBE goals and fail to demonstrate sufficient
reasonable efforts shall not be eligible to be awarded the contract.
F. To insure that all obligations under contracts awarded to MBE's are met,
the City shallreview the contractor's MBE involvement efforts during the
performance of the contract. The contractor shall bring to the attention
of the City of Lubbock any situation in which regularly scheduled progress
payments are not made to MBE subcontractors.
G. Under the following circumstances, a business seeking to participate as a
MBE in :the City of Lubbock's procurements and contracts need not submit the
Minority Business Certification Affidavit(s).
1. If the potential MBE contractor has been determined by the Small
Business Administration to be owned and controlled by a socially -
and economically disadvantaged individual under section 8(a) of
the Small Business Act, as amended.
2. If the potential MBE contractor states in writing that it has submitte,
the same information to or has been certified by a DOT element, or
another Federal agency that uses essentially the same definition and
ownership and control criteria as the City. The potential .MBE
contractor shall obtain the information and certification (if any)
from the other agency and submit it to the City or cause the other
agency to submit it. The City of Lubbock may rely upon such a
certification. However, the City reserves the right to make its
own determination based on the information it has obtained from
the other agency.
-17- .
• ATTACHMENT 2
Page 3 of E
3. if the potential MBE contractor is certified by another organization
or agency with which the City has a formal joint certificationagree-
ment, it is understood that the City will only enter into such agree-
ments with agencies that use essentially the same definition and owner-
ship and control criteria as the City and DOT.
-18-
'
ATTACHMENT 2
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COUNTING MBE PARTICIPATION TOWARD
MEETING MBE GOALS
ATTACHMENT 3
MBE participation shall be counted toward meeting MBE goals as follows:
A. Once a firm is determined to be an eligible MBE, the total dollar
value of the contract awarded to the MBE's is counted toward the
applicable MBE goals.
B. The total dollar value of a contract to an MBE owned and controlled
by both minority males and non -minority females is counted toward the
goals for minorities and women, respectively, in proportion to the
percentage of ownership and control of each group in the business.
The total dollar value of a contract with an MBE owned and controlled
by minority women is counted toward either the minority goal or the
goal for women, but not to both. The City or the contractor employing
the firm may choose the goal to which the contract vaiue is applied.
C. The City or contractor may count toward its MBE goals a portion of the
total dollar value of a contract with a joint venture eligible under
the standards equal to the percentage of the ownership and controls
of the MBE partner in the joint venture.
D. The City or contractor may count toward its MBE goals only expenditures to
MBE's that perform a commercially useful function in the work of a contract.
An MBE is considered to perform a commercially useful function when it is
responsible for execution of a distinct element of the work of an contract
and carrying out its responsibilities by actually performing, managing,
and supervising the work involved. To determine whether an MBE is per-
forming a commercially useful function, the City or contractor shall eval-
uate the amount of work subcontracted, industry practices, and other
relevent factors.
E.• Consistent with normal. industry practices, an MBE may enter into sub-
contracts. if an MBE contractor subcontracts a significantiy greater
portion of the work of the contract than would be expected on the basis of
normal industry practices, the MBE shall be presumed not to be performing a
commercially useful function. The MBE may present evidence to rebut this
presumption to the City. The City's decision on the rebuttalofthis pre-
sumption is subject to review by the Department of Transportation.
F. The City or contractor may count toward its MBE goals expenditures for
materials and supplies obtained from MBE suppliers and manufacturers, pro-
vided that the MBE's assume the actual and contractual responsibility for th
provision of the materials and supplies.
(1) The City or contractor may count its entire expenditure to
an MBE manufacturer (i.e. a supplier that produces goods
from raw materials or substantially alters them before resale)..
(2) The City may count 20 percent of its expenditures. to MBE suppliers
that are not manufacturers, provided that the MBE supplier performs
a commercially useful function .in the supply process.
-20-
ATTACHMENT 4
Page 7 of 3
ELIGIBILITY STANDARDS
A. The following standards shall be used by the City in determining whether a
firm is owned and controlled by one or more minorities or women is and shall
therefore be eligible to be certified as an MBE. Businesses aggrieved by the
determination may appeal in accordance with procedures set forth in Attachment 1
(1) Bona fide minority group membership shall be established on the
basis of the individuallIs claim that he or she is a member of a
minority group and is so regarded by that particular minority
community. However, the City is not 'required to accept this
claim if it determines the claim to be invalid.
(2) An eligible minority business enterprise under this part shall be
an independent business
(a) The ownership and control by minorities or women shall be
real, substantial, and continuing and shall go beyond
the pro forma ownership of the firm as reflected in its
ownership documents.
(b) The minority or women owners shall enjoy the customary
incidents of ownership and shall share in the risks and
profits commensurate with their ownership interests, as
demonstrated by an examination of the substance rather
than form of arrangements.
(c) Recognition of the business as a separate entity for tax
or corporate purposes is not necessarily sufficient for
recognition as an MBE.
(d) In determining whether a potential MBE is an independent
business; the City shall consider all relevent factors,
including the date the business was established, the
adequancy-of its resources for the work of the contract,
and the degree to which financial, equipment leasing, and
other relationships with non -minority firms vary from
industry practice.
(3) The minority or women owners shall also possess the power to direct
or cause the direction of the management and policies of the firm
and to make the day-to-day as well as major decisions on matters
of management, policy, and operations, The firm shall not be subject
to any formal or informal restrictions which limit the customary
discretion of the minority or women owners. There shall be no
restrictions through, for example, bylaw provisions, partnership
agreements, or charter requirements for cumulative voting rights or
otherwise that prevent the minority or women owners, without the
cooperation or vote of any owner who is not a minority or woman.
from making a business decision of the firm.
(4) If the owners of the firm who are not minorities or women are dis-
proportionately responsible for the operation of the firm; then the
firm is not controlled by minorities or women and shall not be con-
sidered an MBE within the meaning of this program. Where the actual
-21-
ATTACHMENT 4
Page. 2 of 3
management of the firm is contracted out to individuals other
than the owner, those persons who have the ultimate power to
hire and fire the managers can, for the purposes of this part,
be considered as controlling the business.
{5) All securities which constitute ownership and/or control of a Cor-
poration for purposes of establishing it as an MBE under this part
shall :be held directly by minorities or women. No 'securities held in
trust, or by any guardian for a minor, shall be considered as held
by minority or women in determining the ownership or control of a
corporation.
(G) The contributions of capital or expertise by the minority or women
owners to acquire their interests in the firm shall be real and
substantial.
Examples of insufficient contributions include a promise to contribute capital,
a note payable to the firm or its owners who are not socially and economically
disadvantaged, or the mere participation as an employee, rather than as a manage
B. In addition to the above standards, the City shall give special consideration
to the following circumstances in determining eligibility under this program:
(1) Newly formed firms and firms whose ownership and/or controls has
changed since the date of the advertisement of the contract are
closely scrutinized to determine the reasons for the timing of the
formation or change in the firm.
.. (2) A'previous and/or continuing employer-employee relationship between
or among present owners is carefully reviewed to insure that the
employee -owner has management responsibilities and capabilities
discussed in this section.
(3) Any relationship between an MBE and a business which is not an MBE
which has an interest in the MBE is carefully reviewed to determine
if the interest of the non -MBE conflicts with the ownership and control
requirements of this program.
C. A Joint venture is eligible under this part if the MBE partner of the joint
venture meets the standards for an eligible MBE set forth above and the MBE
partner is responsible fora clearly defined portion of the work to be performed
and shares in the ownership, control, management responsibilities, risks, and
profits of the joint venture.
D. A business wishing to be certified as an MBE or joint venture MBE by the SBA
shall cooperate with the City by supplying additional information which may
be requested in order to make a determination.
E. Once certified, an MBE shall update its submission annually by submitting a
new Attachment C or certifying that the Attachment C on file is still
accurate. If at any time there is a change in ownership or control of the
firm, the MBE shall submit a new Attachment C.
F. Except as provided in Attachment 1, the denial of.a certification by the
Department of Transportation or City shall be final, for that contract and
other contracts being let by the City at the time of the denial of certifi
•
ATTACHMENT 4
Page 3 of 3
r
cation. MBE's and joint ventures denied certification may correct
deficiencies in their ownership and control and apply for certifi-
cation only for future contracts.
G. The City shall safeguard from disclosure to unauthorized persons
information that reasonably may be regarded as confidential business
information, consistent with Federal, State and local law..
-23-
ATTACHMENT 5
Page 1 of 1
APPEALS OF DENIAL OF CERTIFICATION AS AN MBE
A. Filing
Any firm which believes that it has been wrongly denied certification
as an MBE or joint venture by the Department of Transportation or the
City may file an appeal in writing, signed and dated, with the Department
of Transportation. The appeal shall be filed no later than 180 days
after the date of denial of certification." The Secretary of Transportation
may extend the time for fiiing or waive the time limit in the interest of
justice, specifying in writing the reasons for so doing. Third.parties
who have reason to believe that another firm has been wrongly denied or
granted certification as an MBE or joint venture may advise the Secretary.
This information is not considered as appeal pursuant to this section.
B. Decision to Investi ate
The Secretary insures that a prompt investigation is made.pursuant to
prescribed DOT Title VI investigation procedures.
C. Status of Certification During the Investigation
The Secretary may at his/her discretion, deny the MBE or joint venture
in question eligibility to participate as an MBE DOT -assisted contracts
let during the pendency of the investigation, after providing the MBE
or joint venture in question an opportunity to show cause by written
statement to the Secretary why this should not occur.
D. Cooperation in Investigation
All parties shall cooperate fully with the investigation. Failure or
refusal to furnish requested information or other failure to cooperate
.refusal
a violation of this part.
E. Determinations
The Secretary makes one of the following determinations and informs the
MBE or joint venture in writing of the reasons for the determination:
(1) The MBE or joint venture is certified; or
(2) The MBE or joint venture is not eligible to be certified
and is denied eligibility to participate as an MBE in
any direct or DOT -assisted contract until a new application
for certification is approved by the City.
-24-
SCHEDULE A
Page -1 of 5
• P CITY OF LUBBOCK
MINORITY BUSINESS ENTERPRISE
CERTIFICATION FORM
1. Name of Firm
2. Address
3. Phone Number
4. Legal Structure:
Sole -Proprietorship / / Joint Venture f /
Partnership / / Corporation
Other, Specify
5. Nature of Business
6. Numbers of Years in Business
7. Ownership: Identify those who own 5% or more. Columns a and f need be filled
out only if the firm is less than 100 percent minority owned.
(a) (b) (c) (d) (e) (f)
Years of Ownership Voting
Name Race Sex Ownership Percentage Percentage
With firms less than 100 percent minority owned, list the contributions of
money, equipment, real estate, or expertise of each of the owners:
Name Money Equipment Real Estate Expertise
-25..
SCHEDULE A
• Certification Form Page 2 of 5
V2
8. CONTROL OF FIRM: Identify by name, race, sex, and title in the firm those
individuals (including owners and non -owners) who are responsible for day-
to-day management and policy decision-making, including, but not limited to,
those with prime responsibility for:
Name Race Sex Title
Financial
Decisions
Management Decisions,
such as estimating,
marketing/sales, hiring/
firing of management per-
sonnel, and purchases of
major items/supplies.
Supervision of Field
Operations
9. For each of those listed in question 8, provide a brief summary of the person's
experience and number of years with the firm, indicating the person's qualifi-
cations for the responsibilities given him/her.
10. Describe or attach a copy of any stock options or other ownership options that
are outstanding, and any agreements between owners or between owners and third
parties which restrict ownership or control of minority owners.
-26-
•
Certification Form Page 3 of 5
1-1. Identify any owner.(see item 7) or management official (see item 8)
of the named firm who is or has been an employee of another firm that
'had an ownership interest in or a present business relationship with
the named firm. Present business relationships include shared space,
equipment, financing, or employees as well as both firms having some of
the same owners.
12. What are the gross receipts of the firm for each of the last two years?
Year ending $
Year ending $
13. Name of bonding company, if any:
Bonding Limit
14. Are you authorized to do business in the state as well as locally?
` Yes /—/ No / /
Licenses Held:
15. Indicate if this firm or other firms with any of the same officers have
previously received or been denied certification or participation as an
MBE= and describe the circumstances.
Certifying Authority
Date of Certification (or Denial)
SCHEDULE A
• Page 4 of 5
AFFIDAVIT
CERTIFICATION OF ELIGIBILITY
"The undersigned swears that the foregoing statements are true and
correct and include all material information necessary to identify and
explain the operations of (Name of firm) as
well as the ownership thereof. Further, the undersigned agrees to provide
through the prime contractor or, if no prime, directly to the grantee current,
complete and accurate information regarding actual work performed on the project,
the payment therefor and any proposed changes, if any, of the foregoing arrange-
ments and to permit the audit and examination of books, records and files of the
named firm. Any material misrepresentation will be grounds for terminating
any contract which may be awarded and for initiating action under Federal or
State laws concerning false statements."
NOTE: If, after filing this Schedule A and before the work of this firm is
completed on the contract covered by this regulation, there is any significant.
change in the information submitted, you must inform the City of Lubbock of the
change .through the prime contractor, if no prime contractor, inform the City
directly.
Signature
Name
Title
Date
Corporate Sea] (where appropriate).
Date
State of
County of
1 I 1
SCHEDULE A
Page 5 of 5
r
On this day of 19 before me appeared
to me personally known, who being duly
sworn, did execute the foregoing affidavit, and did state that he/she was
properly authorized by (Name of firm)
to execute the affidavit and did so as his/her free act and deed.
Notary Public
Commission Expires
•
SCFIE ULE B
Page 1 of 4
CITY OF LUBBOCK
MINORITY BUSINESS ENTERPRISE
JOINT VENTURE ELIGIBILITY
(This form need not be filled in if all joint venture firms are minority owned.)
1. Name of Joint Venture
2. Address
3. Phone Number
4. Identify the firms which comprise the joint venture. ( The MBE partner must
complete Schedule A.}
(a) Describe the role of the MBE firm in the joint venture.
(b) Describe very briefly the experience and business qualifications of
each non -MBE joint venture.
5. Nature of the joint venture's business
6. Provide a copy of the joint venture agreement.
E�
9.
(5) Supervision of field operations
Note: If, after filing -this Schedule B and before the completion of the joint
venture's work on the contract covered by this regulation, there is any
significant change in the information submitted, the joint venture must
inform the City, either directly or through the prime contractor if the
joint venture is a subcontractor.
-31-
SCHEDULE B
Page 2 of 4
What is the claimed percentage of MBE ownership?
Ownership of joint venture: (This need not be filled in
if described in
the joint venture agreement, provided by question 6.)
(a) Profit and loss sharing.
(b) Capital contributions, including equipment.
(c) Other applicable ownership interests.
Control of and participation in this contract. Identify
by name, race, sex,
and "firm" those individuals (and their titles) who are
responsible for day-
to-day management and policy decisionmaking, including,
but not limited to,
those with prime responsibility for:
(a) Financial decisions
(b) Management decisions, such as:
(1) Estimating
(2) Marketing and sales
(3) Hiring/Firing of management personnel
(4) Purchasing of major items/supplies
(5) Supervision of field operations
Note: If, after filing -this Schedule B and before the completion of the joint
venture's work on the contract covered by this regulation, there is any
significant change in the information submitted, the joint venture must
inform the City, either directly or through the prime contractor if the
joint venture is a subcontractor.
-31-
I I
SCHEDULE B
AFFIDAVIT Page 3 of 4
'JOINT VENTURE
.J
"The undersigned swear that the foregoing statements are correct and
include all material information necessary to identify and explain the terms
and operation of our joint venture and the intended participation by each
joint venturer in the undertaking. Further, the undersigned covenant and
agree to provide to the City current, complete and accurate information re-
garding actual joint venture work and the payment therefor and any proposed
changes in any of the joint venture arrangements and to permit the audit and
examination of the books, records and files of the joint venture, or those
of each joint venturer relevant to the joint venture, by authorized represent-
atives of the City or the Federal funding agency. Any material misrepresent-
ation will be grounds for terminating any contract which may be awarded and
for initiating action under Federal or State laws concerning false statements."
Name of Firm
Signature
Name
Title
Da to
Date
State of
County of
Name of Firm
Signature
Name
Title
Date
SCHEDULE B
.;. �► Page 4 of 4
r A .
On this day of , 19 before me appeared
to me personnaly known, who being duly
sworn, did execute the foregoing affidavit, and did state that he/she
was properly authorized by (Firm)
to execute the affidavit and did so as his/her free act and deed.
Notary Public
Commission Expires
(Seal)
Date
State of
County of
On -this day of 19 before me appeared
to me personally known, who, being
duly sworn, did execute the foregoing affidavit, and did state that he/she
was properly authorized by
to execute the affidavit and did so as his/her free act and deeds
Notary Public
Commission Expires
(Seal)
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