6-MWBE Goal Participation Information Packet.pdf

MWBE GOAL PARTICIPATION

Harris County (the County) strives to engage with prime contractors and subcontractors that represent the diverse businesses of the County. We will ensure that historically underutilized minority- and woman-owned businesses (M/WBEs) receive a fair and equal opportunity to participate in the County's procurement process. The County requires Vendors to make a good faith effort to meet or exceed a _______% goal for participation by M/WBEs on this project. Failure to either demonstrate that the proposer will meet the M/WBE goal or has made sufficient good faith efforts to do so at the time of bid submission will result in the rejection of the bid. The ability or desire of the proposer to perform the project work with its own organization does not relieve the proposer of the responsibility to make good faith efforts.

Additional definitions and guidance are provided in the County’s Minority- and Woman-Owned Business Enterprise Policy, adopted in 2020.

M/WBE Utilization Plan - Bidder shall include a M/WBE Utilization Plan to meet the M/WBE goal established for this project by Harris County. If the bidder is unable to meet the established M/ WBE goal, the bidder must illustrate a good faith effort was fulfilled which will be evaluated by Harris County. If the M/WBE Utilization Plan or documentation of good faith efforts is not submitted prior to the date and time set forth by this bid, the bid will be considered non-responsive. Refer to the M/WBE Utilization Plan TIP SHEET for information on how to complete the Utilization Plan and required documentation.

Minority and Women-Owned Business Enterprise Utilization Commitment Form - Offeror shall complete and return as specified herein.

For purposes of the bid, Harris County will accept M/WBE certifications from the City of Houston, Historically Underutilized Business certifications (HUB) from the State of Texas, Disadvantaged Business Enterprise (DBE) certifications from the Texas Unified Certification Program and 8(a) certifications from the U.S. Small Business Administration.

A copy of the proposed M/WBE firm’s certification sought to be counted towards the M/WBE goal and a Letter of Intent (LOI) shall accompany the bid. The firm must be certified at the time of bid submission; pending applications will not be accepted.

Only Certified businesses that have Significant Local Presence can be counted towards the contract goal. To establish a Significant Local Presence, a firm without a location in the market area can provide documentation that it has performed at least three contracts or subcontracts, in the market area (the counties of Harris, Fort Bend, Montgomery, Brazoria, and Galveston Counties, Texas) in the last three years. A location utilized solely as a post office box, mailbox, or telephone message center, or any combination thereof, with no substantial work function, shall not be construed as Significant Local Presence.

Participation by certified M/WBEs will be counted as follows:

1. The proposer that is an M/WBE may count the entire amount of the prime contractor’s self-performance that the M/WBE is performing with its own forces.

2. When an M/WBE subcontracts part of the work of its contract to another firm, the value of the sub-contracted work may be counted only if the M/WBE's subcontractor is itself an M/WBE.

Work that an M/WBE subcontracts to a non-certified firm does not count towards the M/WBE contract goal.

3. The proposer may count a M/WBE supplier towards the M/WBE goal if the supplier meets the following criteria: Negotiate Price; Determine quality and quantity; Order the materials; Receive the invoice in the certified firm’s name; Pay for the material itself; Control Delivery; and be certified to provide the supplies in the appropriate NAICS code.

4. When an M/WBE performs as a participant in a joint venture, the joint venture proposer may count only the portion of the total dollar value of the contract equal to the distinct, clearly defined portion of the work of the contract that the M/WBE performs with its own forces. The M/WBE participant in the joint venture must be responsible for a clearly defined portion of the work to be performed equal to its share in the ownership, control, management responsibility, risks and profits of the joint venture. The County shall review the profits and losses, initial capital investment, actual participation of the M/WBE joint venture partner in the performance of the contract with its own forces and for which it is separately at risk, and other pertinent factors of the joint venture. The joint venture agreement must be approved by the County and it is required to operate in accordance with the approved joint venture agreement.

Calculating MWBE Participation:

1. The proposer may count the entire amount of that portion of the contract that is performed by the M/WBE's own forces, including the cost of supplies and materials, or equipment leased by the M/WBE for the work of the contract. Supplies and equipment the M/WBE subcontractor purchases or leases from the prime contractor or its affiliate does not count towards the contract goal.

2. The proposer may count the entire amount of fees or commissions charged by an M/WBE for providing a bona fide service, such as professional, technical, consultant, or managerial services, or for providing bonds or insurance specifically required for the performance of a contract, provided the County determines the fee to be reasonable and not excessive as compared with fees customarily allowed for similar services.

3. The proposer may count the entire amount of expenditures with M/WBEs for materials or supplies, provided the M/WBE is responsible for ordering and paying for the materials and supplies in full, using its own credit and accepting all the risks of the purchase.

4. Provided that the M/WBE firm is responsible for ordering and paying for the materials and supplies in full, the proposer may count sixty percent (60%) of the cost of the goods or supplies toward M/WBE goals.

5. If the materials or supplies are obtained from a M/WBE manufacturer, the proposer may count one hundred percent (100%) of the cost of the materials or supplies toward M/WBE goals.

6. For additional information regarding credit towards M/WBE contract goals for the services of trucking firms, reference Section VI of the Harris County M/WBE Program Policy.

The dollar value of work performed under a contract with a certified firm after it has ceased to be certified can count toward the contract goal if the proposer’s contract with the County was executed prior to removal of the firm’s certification, except in situations where fraud is the reason why the firm is no longer certified.

M/WBE Subcontractor participation only counts toward a prime contractor's compliance with its Utilization Plan when the amount being counted has actually been paid to the M/WBE.

Commercially Useful Function:

Only expenditures to an M/WBE that is performing a commercially useful function shall be counted towards the contract goal. To perform a commercially useful function, the M/WBE must also be responsible, with respect to materials and supplies used on the contract, for negotiating price (if applicable), determining quality and quantity (if applicable), ordering the material, and installing and paying for the material itself. To determine whether an M/WBE is performing a commercially useful function, the County will evaluate the amount of work subcontracted, industry practices, whether the amount the firm is to be paid under the contract is commensurate with the work it is actually performing and the M/WBE credit claimed for its performance of the work, and other relevant factors.

An M/WBE does not perform a commercially useful function if its role is limited to that of an extra participant in the contract through which funds are passed in order to obtain the appearance of M/WBE participation. In determining whether an M/WBE is such an extra participant, the County will examine similar transactions, particularly those in which M/WBEs do not participate. The prime contractor is responsible for ensuring that the firm is performing a commercially useful function. If the M/WBE does not perform or exercise responsibility for at least thirty percent (30%) of the total cost of its contract with its own work force, or the M/WBE subcontracts a greater portion of the work of a contract than would be expected on the basis of normal industry practice for the type of work involved, the County will presume that it is not performing a commercially useful function.

The proposer shall submit a Utilization Plan with the bid. The Utilization Plan must demonstrate how it will meet the contract goal or demonstrate its good faith efforts to do so, as described below. The proposer must also submit a signed Letter of Intent for each M/WBE firm specified in the Utilization Plan, with a copy of each M/WBE’s current Letter of Certification from an agency recognized by the County as listed above.

When an M/WBE is presumed not to be performing a commercially useful function, the M/WBE may present evidence to rebut this presumption. The County’s determination that an M/WBE is not performing a commercially useful function shall be final.

https://deeo.harriscountytx.gov/Portals/18/Documents/Harris_County_MWBE_Policy_Final_11-10-2020.pdf?ver=1puN3SpnUGekMcZpTaD4xw%3d%3d

M/WBE UTILIZATION PLAN TIP SHEET

In accordance with Harris County Minority- and Woman-Owned Business Enterprise (M/WBE) Policy, M/WBE Utilization Plans must be submitted by the Bidder or Proposer (hereafter Bidder) listing the certified firms and non-certified firms that the Bidder intends to use in the performance of a contract. This Tip Sheet has been created to assist Bidders in submitting a compliant M/WBE Utilization Plan.

A. A compliant Utilization Plan (UP) submittal for MEETING THE M/WBE ADVERTISED GOAL must include the following:

1. A completed M/WBE Utilization Commitment Form (p. 1 of M/WBE UP packet).

2. Sections I through V of the M/WBE Utilization Plan must be completed (p. 2-6 of M/WBE UP).

Instructions on how to complete the sections are included in this TIP SHEET.

3. Letters of Intent SIGNED BY BOTH the Bidder and all M/WBE subcontractors listed on the UP.

The term subcontractor refers to any subcontractor, subconsultant, supplier or trucking firm fulfilling a tiered role on the contract. When using trucking firms to meet the goal, refer to Harris County M/WBE Policy found on the DEEO website to ensure they will count for goal credit.

4. Copy of the current active certification for all M/WBE firms listed on the UP. Harris County only recognizes the certifications below for credit in meeting the M/WBE goal:

• Minority or Woman Owned Business Enterprise (MBE or WBE) by the City of Houston

• Historically Underutilized Business (HUB) by the State of Texas

• Disadvantaged Business Enterprise (DBE) by the Texas Unified Certification Program

• 8(a) certification by the U.S. Small Business Administration 8(a) Program

5. (As required) Proof of Significant Local Presence (SLP) for M/WBE firms that do not have a listed location in the market area on their M/WBE certification documentation. See Section IV TIPS.

B. A compliant Utilization Plan (UP) submittal for NOT MEETING THE M/WBE ADVERTISED GOAL must also include the following:

• All components of Section A on this TIP SHEET must be addressed.

• Good Faith Effort documentation is required. Please see the attached Good Faith Effort Documentation guidelines on this TIP SHEET and address all items. Failure to address all items will result in a non-responsive UP submission removing the Bidder from consideration for award.

POSSIBLE CAUSES FOR UTILIZATION PLAN REJECTION (LIST NOT ALL INCLUSIVE):

• Failure to follow instructions on the M/WBE UP, this TIP SHEET, and/or Harris County M/WBE Policy

• Failure to properly notify M/WBEs and/or provide sufficient information to bid

• Failure to include supporting documentation of all Good Faith Efforts listed on this TIP SHEET

• Failure to select M/WBE firms recognized by Harris County for M/WBE credit

• Failure to select currently certified/active M/WBEs that meet SLP requirements

• Failure to fully execute Letters of Intent

**NOT SUBMITTING THE AFOREMENTIONED INFORMATION WILL DEEM YOUR SUBMITTAL NON-

RESPONSIVE (NON-COMPLIANT) **

THE FOLLOWING ARE STEPS IN COMPLETING A COMPLIANT UTILIZATION PLAN (UP pages 2-6):

Section I- Project Identification and Goal

1. Enter Project Name: full name as advertised by Harris County.

2. Enter Solicitation Number: six-digit number, also called job number.

3. Enter Project Goal: the advertised goal for the project.

Section II- Prime Company Information

1. Enter Bidder’s Company information as requested, i.e., company name, address, etc.

2. Enter Name and title of Contact Person. This person is responsible for answering questions that pertain to the utilization plan.

3. Enter Contact Person Email and Phone Number.

4. Select whether the Bidder is an M/WBE certified firm or an M/WBE Joint Venture.

5. Signature and date by the individual who has signature authority for the organization.

Section III- Utilization Plan Summary

1. Enter Bidder’s own participation in project: percentage amount of contract Bidder intends to self-perform (if Bidder is a M/WBE certified firm, this percentage will be applied toward the advertised M/WBE goal, can be up to 100% if self-performing all work and not utilizing subcontractors).

2. Enter M/WBE(s): total percentage amount of work to be performed by all listed M/WBE firms.

• This percentage will be applied toward the advertised M/WBE goal

3. Enter Non-Certified Subcontractor(s): percentage of work to be done by non-certified firms.

4. Total participation must equal 100%.

5. The Bidder must select if the stated M/WBE goal of the solicitation will be met or not. If they are not able to meet the goal, an explanation must be provided in the space below, along with documentation of Good Faith Efforts as outlined by DEEO.

Good Faith Efforts should include:

• Advertising in general circulation

• Using services of the chambers of commerce and/or trade associations

• Following up on initial solicitations of interest

• Unbundling the project for smaller firms to participate

• Documenting all contacts with potential firms and providing emails and verifying correspondence as part of the packet.

(See the attached Good Faith Effort Documentation guidelines on how to submit)

Section IV- Disclosure of M/WBE Participation

1. Enter Name of MBE/WBE certified firm: name of subcontractor being utilized on the project. For purposes of the M/WBE contract goal, M/WBE refers to one of the certifications accepted for credit by the Harris County M/WBE Program.

2. Ensure that the M/WBE has an active certification listed below by one of the following approved agencies and select the appropriate box:

a. Minority- or Woman-Owned Business Enterprise (MBE or WBE) by the City of Houston

b. Historically Underutilized Businesses (HUB) by the State of Texas Comptroller HUB

Program

c. Disadvantaged Business Enterprises (DBE) by the Texas Unified Certification Program

d. 8(a) certification by the U.S. Small Business Administration 8(a) Program

3. Enter Address/City/State/Zip: information of certified firm.

4. Enter Name, e-mail address, and phone number of Contact Person: person responsible for

M/WBE updates.

5. Enter Percentage of Total Contract Value: percentage of the amount of work to be performed by listed M/WBE firm.

6. Enter Description of services: services the subcontractor will perform and is certified for. A

M/WBE will not receive goal credit for performing work they are not certified to do.

7. Enter 6-digit NAICS/NIGP codes for work to be performed: NAICS/NIGP codes describe the services a subcontractor is certified to perform. The codes must match the description of services entered in 6 above.

• (North American Industry Classification System: www.naics.com)

• (Texas Comptroller of Public Accounts: https://comptroller.texas.gov/purchasing/nigp/)

In addition to having one of the above-mentioned certifications, M/WBE firms must have a Significant Local Presence.

To establish a significant local presence, a M/WBE firm must have a location, or have performed at least three (3) contracts or subcontracts, in the market area within the last three (3) years. The market area is defined as the Counties of Harris, Fort Bend, Montgomery, Brazoria, or Galveston, TX.

** If the M/WBE does not have a location in the market area listed on their M/WBE certification document, additional documentation must be provided with the M/WBE Utilization Plan detailing the three contracts it has performed in the market area within the last three years.

This list of contracts should include the name of the prime contractor, contract name, dates, and location.

http://www.naics.com/ https://comptroller.texas.gov/purchasing/nigp/

Section V- Disclosure of Non-Certified Sub-consultants

1. Enter Name of non-MBE/WBE certified firm: name of non-certified firm participating in the project

2. Enter Address/City/State/Zip: information of non-certified firm

3. Enter Name, e-mail address, and phone number of Contact Person: person responsible for updates

4. Enter Percentage of Total Contract Value: percentage amount of work to be performed by firm

5. Enter Description of services: services the subcontractor will perform

6. Enter 6-digit NAICS/NIGP codes for work to be performed: NAICS/NIGP codes describe the services a subcontractor is to perform

7. The codes must match the description of services entered in 6 above.

• (North American Industry Classification System: www.naics.com)

• (Texas Comptroller of Public Accounts: https://comptroller.texas.gov/purchasing/nigp/) http://www.naics.com/ https://comptroller.texas.gov/purchasing/nigp/

SUBMIT LETTER OF INTENT TO SUBCONTRACT:

Bidder must submit a fully executed Letter of Intent to subcontract. This letter is part of the Utilization Plan. Both parties must sign and date the Letter of Intent form. Pending signatures will not be accepted.

LETTER OF INTENT

A Letter of Intent must be submitted by the Bidder for each certified M/WBE firm that the Bidder intends to use in the performance of a contract.

A compliant Letter of Intent must include the following:

1. The project number and title.

2. The name of the Bidder and the M/WBE firm.

3. A description of goods and services to be provided by the M/WBE firm on the contract.

4. The estimated amount and/or percentage of the total estimated contract value to be performed by the M/WBE.

5. Signature with date from BOTH the Bidder and the M/WBE. Include the printed name and title of the parties executing the Letter of Intent.

COPY OF M/WBE CERTIFICATIONS:

Provide a copy of the current active certification for all M/WBE firms listed on the UP. Harris County only recognizes the certifications below for credit in meeting the M/WBE goal:

• Minority or Woman Owned Business Enterprise (MBE or WBE) by the City of Houston

• Historically Underutilized Business (HUB) by the State of Texas

• Disadvantaged Business Enterprise (DBE) by the Texas Unified Certification Program

• 8(a) certification by the U.S. Small Business Administration 8(a) Program

Required Documentation - A copy of an ACTIVE certification from one of the agencies outlined above.

Pending or inactive certifications will not be accepted.

GOOD FAITH EFFORT DOCUMENTATION

A Bidder may request a partial or total reduction of the advertised M/WBE goal stated in the solicitation documents based on its Good Faith Efforts and supporting documentation to meet the goal. Forms submitted without Good Faith Efforts documentation, as outlined by DEEO, will render the bid non-responsive and rejected by the County.

Good Faith Efforts should include:

• Advertising in general circulation

• Using services of the chambers of commerce and/or trade associations

• Following up on initial solicitations of interest

• Unbundling the project for smaller firms to participate

• Documenting all contacts with potential firms and providing emails and verifying correspondence as part of the packet.

GOOD FAITH EFFORTS GUIDELINES

Good Faith Efforts are steps taken to achieve the advertised M/WBE goal which, by their scope, intensity and appropriateness to the objective, can reasonably be expected to fulfill the M/WBE Program’s requirements. These efforts also demonstrate the Bidder's actions to meet or exceed the goal throughout the duration of the contract.

https://houston.mwdbe.com/FrontEnd/searchcertifieddirectory.asp https://mycpa.cpa.state.tx.us/tpasscmblsearch/tpasscmblsearch.do https://txdot.txdotcms.com/FrontEnd/SearchCertifiedDirectory.asp?XID=9729&TN=txdot https://www.sba.gov/federal-contracting/contracting-guide/prime-subcontracting

If the advertised M/WBE contract goal is not met, evidence of good faith efforts must be documented and submitted with the solicitation. The efforts will be reviewed to determine whether they were reasonably sufficient to meet the Good Faith Efforts requirement.

Good Faith Efforts must include the following documented steps to be deemed compliant when not meeting the advertised M/WBE contract goal:

1. DIRECT SOLICITATION TO M/WBE FIRMS:

Written notice to potential M/WBE partners (subcontractors, subconsultants, vendors, suppliers, and truckers) provided not less than fifteen (15) calendar days prior to bid submittal.

The written notice of the Bidder’s interest in partnering with an M/WBE firm and/or receiving bids/quotes related to the County procurement to M/WBE businesses with an interest in performing identified work items must include:

• Project name;

• Name of the bidder;

• Areas of work available for partnering, subcontracting and procurement opportunities;

• Contact person's name and phone number;

• Information on availability of plans and specifications;

• Date the subcontractor's interest and written bid/estimate are due to the bidder;

• Bidder's policy concerning assistance to subcontractors, suppliers, and vendors in obtaining bonds, financing, and/or insurance.

Bidders are encouraged to review all appropriate websites to view a list of M/WBEs available for use to meet M/WBE goals and engage potential M/WBE firms.

The due date for subcontractor written bid/estimates to the Bidder should not be less than seven (7) calendar days prior to the Bidder's bid submittal due date to County.

Required Documentation that will demonstrate satisfaction of this requirement includes, but is not limited to, a copy of each notice sent to subcontractors by the bidder for each item of work to be performed or each procurement. If there is only one master notification, the bidder should submit a copy with a list of its recipients noting the firm names, certifications, and emails belonging to each solicited firm. Faxed copies of the notice and copies sent by electronic transmission or e-mail must include fax transmittal confirmation slip or written confirmation of receipt by e-mail from the recipient, showing the date of transmission. Phone logs do not demonstrate satisfaction of the requirement.

2. BROAD-BASED ADVERTISEMENT:

The Bidder must conduct an advertising campaign designed to reach all segments of the community by advertising in newspapers, trade associations, trade publications, special interest publications, trade journals, community papers, chamber of commerce/trade organizations newsletters or another media.

Advertisement must be specific to the County contract or procurement, not generic, and may not be a plan holder advertisement provided by the publication. Advertisement must be worded to ensure it does not exclude or limit the number of potential bidders, and must include:

• Project name;

• Name of the bidder;

• Areas of work available for subcontracting;

• Contact person's name and phone number;

• Information on the availability of plans and specifications;

• Date the subcontractor's interest and written bid/estimate are due to the bidder;

• Bidder's policy concerning assistance to subcontractors, suppliers, and vendors in obtaining bonds, financing, and/or insurance.

Bidders are encouraged to advertise before the solicitation opens and not less than fifteen calendar days prior to the bid submittal due date. The due date for subcontractor written bid/estimates to the Bidder should not be less than seven (7) calendar days prior to the Bidder's bid submittal due date to County.

Required Documentation that may satisfy this requirement includes copies of advertisements, proof of publication dates and/or emailed verification of request sent to trade organizations, chambers of commerce or development organizations.

3. FOLLOW-UP TO INITIAL SOLICITATIONS:

The Bidder must follow up on the initial written notices to M/WBE firms to determine interest in specific portions of project work and/or the procurement, answer questions, record phone quotes and record interest of M/WBEs in bidding any portion of the subject project.

Required Documentation includes a copy of follow up emails, fax and/or telephone logs that must be submitted to demonstrate follow-up with all M/WBE firms to whom the bidder sent written notices.

Telephone logs should include the date and time of the call, the name of the caller, the name and telephone number of the MWBE firm’s contact person, and the result of the call.

** Days means calendar days. In computing any period of time described in this document, the day from which the period begins to run is not counted, and when the last day of the period is a Saturday, Sunday, or federal holiday, the period extends to the next day that is not a Saturday, Sunday, or federal holiday.

Similarly, in circumstances where Harris County Government offices are closed for all or part of the last day, the period extends to the next day on which Harris County Government is open.

GOAL: 19.60