5-MWBE Trucking Procedure Compliance Packet (1).pdf

M/WBE Trucking Procedure Compliance:

Ensuring Commercially Useful Function

Department of Economic Equity and Opportunity

Presenter Notes Presentation Notes Overview of the factors and criteria for determining if an MBE or WBE trucking company is performing a Commercially Useful Function to receive M/WBE goal credit on a contract.

Responsibility and Management

M/WBE must manage and supervise the entire trucking operation for a specific contract.

No contrived arrangements to meet Contract Goals.

Presenter Notes Presentation Notes M/WBE trucking firms must be certified in one of the accepted certifications recognized by Harris County. Credit towards M/WBE Contract goals for the services of trucking firms is counted if the following criteria are met.

Ownership and Operation

Prime M/WBE Truck

Infographic

M/WBE must OWN and OPERATE at least one (1) truck AND employ one (1) Driver. M/WBE must employ drivers and not utilize independent contractors to receive credit.

• M/WBE receives credit for the total value of transportation services provided using trucks it owns, insures, and operates with employed drivers.

M/WBE Driver

Exclusive Use and Control

Lease must indicate exclusive use and control over the truck

Leased trucks must display the MBE or WBE's name and identification number

Clarify that the MBE or WBE has priority for use of the leased truck

Lease Non-M/WBE Firm, M/WBE Drivers

M/WBE

Truck

M/WBE firm CAN lease trucks from a Non- MWBE firm using its own drivers. M/WBE drivers must be employees of not independent contractors.

• M/WBE Transportation Services Credit = 100% of the expenditures paid to the M/WBE Firm will count toward the participation goal.

NON-

M/WBE Truck

LEASE

Lease Non-M/WBE Firm, No Driver

Prime M/WBE Truck

For every one (1) truck owned and operated by an M/WBE firm a truck CAN be leased from an Non- M/WBE and receive 100% credit, when the driver is employed by the

MWBE.

For every leased truck that exceeds what the MWBE owns and operates from a Non- M/WBE, contractor will only receive credit for fees and commissions.

• M/WBE Transportation Services Credit= Commissions and Fees paid to the M/WBE Firm will count toward the participation goal.

Non M/WBE Lease

LEASE

M/WBE

Truck

Driver

M/WBE Driver

Non M/WBE Lease

Non M/WBE Lease

M/WBE Driver M/WBE Driver

Driver

Presenter Notes Presentation Notes MBE or WBE may lease trucks from a non-certified firm, including owner-operators.

Credit for non-certified firm’s leased trucks is limited and subject to specific conditions.

For example, an MWBE Contractor is operating 4 trucks on a project. They only own and operate 1 truck, lease 3, and employ 4 drivers. They will only receive 100% credit for the 1 truck they own and operate and the 1 truck they lease, up to the value of transportation services provided for the owned truck. For the other two lease trucks they will only receive credit for the fees or commissions it pays for arranging the transportation services.

Leasing from MBE or WBE

M/WBE Truck

Infographic

Non-M/WBE Contractors may lease trucks from certified MBE or WBE, receiving credit for the total value of services provided by the leased trucks.

• M/WBE Transportation Services Credit = Commission paid to the M/WBE Firm will count toward the participation goal for arranging transportation services. The lease amount is what counts. Lease amount must be proportioned to standard industry practices.

NON-

M/WBE

Truck

LEASE

Subcontracting M/WBE Firm

NON-

M/WBE

Truck

M/WBE

Truck

Non-M/WBE may subcontract to an M/WBE truck owner and operator.

• M/WBE Transportation Credit = 100% of the expenditures paid to the M/WBE Firm will count toward the participation goal.

Questions Harris County Department of Economic Equity and Opportunity

1001 Preston, Suite 670 Houston, TX 77002

(713) 274-1400 DEEO@eeo.hctx.net

Department of Economic Equity and Opportunity > Home (harriscountytx.gov) mailto:DEEO@eeo.hctx.net https://deeo.harriscountytx.gov/