Attachment S- SBE Program Overview.pdf

ATTACHMENT S – WAYNE COUNTY AIRPORT AUTHORITY

SMALL BUSINESS ENTERPRISE (SBE) PROGRAM OVERVIEW

1. Definitions

In accordance with definitions listed in the current WCAA Procurement Ordinance, for purposes of this section, the following definitions apply:

“Air Trade Area” means the counties of Genesee, Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne, Michigan.

“Business Development Unit” means the Business Unit of the Airport Authority that manages and oversees operations concerning the Small Business Enterprise (SBE), the Disadvantaged Business Enterprise (DBE) and the Airport Concession Disadvantaged Business Enterprise (ACDBE) programs. The Business Development Unit participates in business outreach, implements programs that support contractor training, sets procurement goals, recommends minimum qualifications on solicitations, advises the Procurement Administrator and Evaluation Committees, ensures compliance by vendors after contracts are awarded, and tracks and reports SBE, DBE and ACDBE participation.

“Certified SBE” means an independently owned and operated business headquartered in the Air Trade Area for which any of the following apply: a. The Business maintains certification from the Airport Authority as a small business enterprise, which certification shall be granted to Businesses that meet the small business criteria of the United States Small Business Administration; b. the Business maintains small business certification from the United States Small Business Administration; or c. the Business maintains valid certification as a small business enterprise or equivalent (in the discretion of the Procurement Administrator) from any Public Agency located, in whole or in part, within the Air Trade Area.

“Certified SBE Development Contract” means a contract available for award only to a Certified SBE pursuant to Exhibit C of the Ordinance.

“Mentor Venture” or (“MV”) means a combination of separate businesses, approved by the Airport Authority, one of which shall be a Certified SBE or TGCE, which has been created to perform the specific contract the MV is responding to, and is evidenced by a written agreement which provides, at a minimum, that the Certified SBE or TGCE: A-6 (1) Is substantially included in all phases of the contract, including, but not limited to bidding and staffing; (2) Provides at least thirty percent (30%) of the total performance, responsibility and project management of a specific job performed under the contract; and (3) Shares proportionately in profits and losses.

“Targeted Growth Community” means a geographical area located both within the Air Trade Area and within a HUBZone Qualified Census Tract, which is any census tract designated as such by the Department of Housing and Urban Development (“HUD”) based on poverty and household income criteria. III.

“Targeted Growth Community Enterprise” (or “TGCE”) means a business that is either (1) certified by the United States Small Business Administration as a HUBZone small business and located in the Air Trade Area, or (2) a business located in a Targeted Growth Community that would qualify as a Certified SBE; and also (3) satisfies all of the following criteria: (1) It has made payment of property taxes on real or personal property within a Targeted Growth Community during the year prior to its approval by the Airport Authority on property which is ordinarily needed to perform the contract to which the TGCE is responding; (2) Its headquarters is physically located within a Targeted Growth Community, or it has been conducting business at a location with a permanent street address in one of the Targeted Growth Communities on an ongoing basis for not less than one taxable year immediately prior to the submission of its Proposal, Response, Bid or Quote; (3) It has been dealing for at least one year prior to its Proposal, Response, Bid or Quote on a regular commercial basis in the kind of goods or service which is the subject of the contract; A-9 (4) It is not merely displacing a business which has previously been the low bidder but does not qualify for the TGCE credit, by buying from that business and re-selling to the Airport Authority at a mark-up; (5) It provides its commercially viable product or service to other public or private sector clientele; (6) An adequate number of its regular full-time employees are staffed at its Targeted Growth Community location(s) to perform the contract to which it is responding; and (7) It has satisfied all other requirements of this Ordinance.

Supplier: A firm which provides materials or supplies as a manufacturer, regular dealer or other persons who assist in the procurement or delivery of goods:

(a) A manufacturer operates or maintains a factory or establishment that produces, on the premises, the materials, supplies, articles or equipment required under the contract.

(b) A regular dealer owns, operates or maintains store, warehouse, or other establishment in which the materials, supplies, articles or equipment are bought, kept in stock and regularly sold or leased in the usual course of business.

(c) A broker transports material as required under the contractual arrangement.

2. SBE Program Overview & Certification Application The Wayne County Airport Authority (WCAA) Small Business Enterprise (SBE) Program is an Authority-wide initiative governed by the WCAA Procurement & Contracting Ordinance. It was created to increase the number of opportunities available to small businesses located within the Southeast Michigan area, on non-federally funded Airport Authority contracts.

SBE Program Application Checklist

• Business in operation for a minimum of one (1) year with signed federal taxes filed and ready for upload

• Gross receipts available for the last five (5) years

• Taxes filed and available for any affiliate firms and partners

• Full-time physical business headquarters located within the ATA

• Proof of physical headquarters location (ex., deed, lease, utility bill)

• W-9 form, if applicable

• EIN number available

• NAICS codes available (click here to check your codes)

WCAA Vendors must complete the application process using our Business Development Portal, click here. No LOG-IN REQUIRED. Go directly to the APPLY FOR/RENEW CERTIFICATION button to get started.

WCAA SBE Certifications are valid for a period of 3 years and may be renewed provided the eligibility requirements are still met and a new application is submitted.

Most questions/concerns can be addressed directly by clicking the "Contact Support" button in the application portal. For further information on the Small Business Enterprise Program or application assistance, contact the Business Development Unit at (734) 955-5785 or email us business.development@wcaa.us.

3. SBE Minimum Qualification for this Contract

Before a contract is awarded, Prime Contractors are required to submit a proposed SBE plan. Any solicitation that has it listed as a minimum qualification requirement will include the necessary forms.

Additionally, the Airport Authority closely oversees contractors SBE participation to support an internal initiative that non-federally funded contracts have at least 20% SBE participation and/or utilization.

Once the contract is awarded, contractors participating in projects at Detroit Metro and Willow Run Airports have their progress toward achievement closely observed, and compliance toward their SBE commitment actively tracked. Compliance requires the active monitoring of contractors’ progress toward their SBE commitment. Monitoring includes on and off-airport work site inspections - including Prime Contractors’ and Sub- Contractors’ administration offices and warehouses – as well as tracking monthly participation. To ensure compliance with the WCAA Procurement Ordinance, the Airport Authority will monitor Small Business Enterprise (SBE) participation on non-federally funded contracts and require the submittal of SBE Participation Progress Reports to facilitate the tracking of funds paid to Airport Authority certified SBEs. SBE Participation reports must be submitted on the 15th of each month to the Airport Authority to be deemed compliant under their agreement.

https://www.census.gov/naics/ https://metroairport.diversitycompliance.com/

SBE Participation – Progress Report

The successful respondent will be required to submit a monthly report (SBE Progress Report) to monitor and track the SBE Participation towards the fulfillment of the SBE Contract Commitment. The monthly report is due by the fifteenth (15th) day of each month including the following:

1. Amount paid to each SBE subcontractor (value of SBE participation) per month, and additionally cumulative to the overall progress of the contract.

2. SBE Subcontractor performance feedback.

NEED LINK FOR B2GNOW AND INFO (NAME OF MODULE, WHAT THEYRE GOING

TO BE DOING IN THE MODULE, TRAINING, ETC)

The Airport Authority works diligently to set realistic SBE goals when planning solicitations.

The SBE program encourages participation through usage of the following mechanisms:

A) SBE Minimum Qualifications

B) SBE Equalization Credits

C) SBE Development Contracts

A) SBE Minimum Qualifications are set from 0-100% per solicitation. The minimum qualification requires the respondent to supply a SBE commitment equal to or greater than the minimum qualification to be considered responsive. The SBE commitment will be included in the contract agreement and the respondent will be required to meet the commitment before the contract term ends.

B) SBE Equalization Credits: In the course of the solicitation and evaluation process for Bids, Proposals, Responses and Quotes, the Procurement Administrator or their designee shall apply equalization credits and shall have the authority to designate contracts as Certified SBE Development Contracts as set forth in Exhibit C attached to this Ordinance.

An equalization credit will be available to Certified SBEs, MVs, TGCEs and other Businesses that respond to a solicitation, as follows:

For all contracts, a 7% equalization credit is available to a contractor that responds to a solicitation so long as a Certified SBE, MV or TGCE, or combination thereof, will perform at least 30% of the scope of the Services or Goods solicited, regardless of whether the Certified SBE, MV or TGCE performs the Services or Goods solicited as a prime contractor or as one or more subcontractors.

The 7% equalization credit is available to a Business that is not a Certified SBE, so long as it responds to a solicitation as a prime contractor or submits a Bid, Proposal, Response or Quote https://cdn.metroairport.com/uploads/sbe_-_monthly_progress_report.pdf that includes Certified SBE, MV or TGCE subcontractor(s) that will perform or provide at least 30% of the value of the Services or Goods solicited. A Business that is not a Certified SBE, MV or TGCE cannot substitute for or perform the work of a Certified SBE, MV or TGCE subcontractor listed in a Bid, Proposal, Response or Quote without prior approval of the Chief Executive Officer.

For all contracts, a 1% equalization credit, which may be in addition to the 7% equalization credit in subpart (1) above, is available to a contractor that responds to a solicitation so long as one or more TGCEs will perform at least 30% of the scope of the Services or Goods solicited, regardless of whether the TGCE(s) performs the Services or Goods solicited as a prime contractor or as one or more subcontractors.

Equalization Credit for Veteran-Owned Business.: A 2% equalization credit will be available for Veteran-Owned Businesses with headquarters located in the Air Trade Area, responding to solicitations that are not funded, in whole or in part, with federal funds. No Business shall receive this Veteran-Owned Business credit unless it has been certified by the Airport Authority as a Veteran-Owned Business at or prior to the time the Business submits its Bid, Proposal, Response or Quote. In the course of the evaluation process for Bids, Proposals, Responses and Quotes, the Procurement Administrator or their designee shall apply the Veteran-Owned Business equalization credit in the manner set forth in Exhibit C, Section 3(B) of the Ordinance.

A Veteran-Owned Business may also be eligible for an additional equalization credit under the Small Business Enterprise Program as set forth in Exhibit C, Section 3(A), of the Ordinance

Application of Equalization Credits.

• The equalization credits described in subsection (a) above, and in Article IV, Section 1(G), will be applied during the evaluation processes set forth in Article IV of the Procurement Ordinance based upon the type of solicitation, and shall be used to determine the lowest bidder or the most Responsible Proposer, Respondent, or Business submitting a Quote, but shall not affect a Bid or Quote total or the fee total in a Proposal.

• With respect to RFBs and to SFQs based on price only, in determining the lowest bidder or Quote, the amount of the Bid or Quote of a Business entitled to an equalization credit pursuant to subsection (a) above, and/or Article IV, Section 1(G), will be reduced by the applicable equalization credit percentage of the lowest Bid or Quote submitted by a Business that is not entitled to an equalization credit pursuant to subsection (a) above or Article IV, Section 1(G).

• With respect to RFPs, RFQs, and SFQs based on price and other evaluation criteria, in evaluating the applicable Proposals, Responses and Quotes, a Business entitled to an equalization credit pursuant to subsection (a) above, and/or Article IV, Section 1(G), will receive additional points equal to the applicable equalization credit percentage of the total points available to be assigned to Proposers, Respondents or Businesses submitting Quotes, as the case may be, by the Evaluation Committee, as established by the Evaluation Committee in accordance with the provisions of Article IV of the Procurement Ordinance.

SECTION 4: CERTIFIED SBE DEVELOPMENT CONTRACT PROGRAM

A. Applicability. When an RFP, RPB, or SFQ is being used to procure the following types of contracts and the total costs of the contract do not exceed the amounts, the Airport Authority, through the Procurement Administrator, may designate the contracts as a Certified SBE Development Contract to which the below provisions of this Section 4 shall apply: (1) a Construction contract the total costs of which do not exceed $3,000,000 and for which the contractor will not be a Specialty Trade Contractor; (2) a contract the total costs of which do not exceed $1,500,000 and for which the contractor will be a Specialty Trade Contractor;

and (3) all other contracts the costs of which do not exceed $750,000.

B. Certified SBE Development Contract Implementation.

(1) Where the Procurement Administrator has determined that three or more

Certified SBEs are available and willing to provide the desired Construction, Goods, or Services, the Procurement Administrator may, in their sole discretion and in collaboration with the head of the Business Unit that originated the relevant Requisition and the head of the Business Development Unit – on the basis of contract category, type, size standard or other consistent criteria for selection – identify and select those contracts for award only to Certified SBEs under this Section 4. The designation of a contract as a Certified SBE Development

Contract is encouraged in all instances, but should be the standard for contracts that have not previously been awarded to SBEs or for contracts of the type that SBEs have historically not been contracted to perform at the Airports, unless there is a compelling reason not to designate the contract as such.

(2) Where so done, the Procurement Administrator shall require, as a matter of Responsiveness to the RFB, RFP, RFQ, or SFQ, that a Business possess Certified SBE status as of the Bid, Proposal, Response, or Quote Deadline.