Design Build for US52 Transmission Main Replacement.pdf

CITY OF ALBEMARLE, NORTH CAROLINA

Request for Qualifications

US52 TRANSMISSION MAIN REPLACEMENT

DESIGN-BUILD DELIVERY METHOD

City Solicitation Number: DB RFQ 2026-01

Ms. Linda Lewis, Purchasing Coordinator

144 N. Second Street, Albemarle, NC 28001

US52 Transmission Main Replacement Albemarle, NC RFQ for Design-Build Delivery Method City Solicitation Number: DB RFQ 2026-01

Request for Qualifications

This REQUEST FOR QUALIFICATIONS (“RFQ”) invites the submittal of a Statement of Qualifications (“SOQ”) from firms interested in providing design-build services for the Project described below.

By submitting an SOQ, the Offeror represents that it has carefully read the terms and conditions of this RFQ and all attachments and Addenda and agrees to be bound by them. This RFQ is not an offer to enter into a contract, but merely a solicitation of firms interested in submitting an SOQ to the Owner for the Project.

OWNER:

City of Albemarle, NC 144 N. Second Street Albemarle, NC 28001

PROJECT:

US52 Transmission Main Replacement

OWNER CONTACT PERSON AND SUBMISSION PROCESS:

Offerors shall submit the SOQ to the following individual’s attention:

Ms. Linda Lewis, Purchasing Coordinator 144 N. Second Street, Albemarle, NC 28001

Statements of qualifications must be submitted in a sealed envelope bearing the submitter’s name, address, and the following clearly shown on the envelop exterior:

Statement of Qualifications enclosed City solicitation number: DB RFQ 2026-01

Submit seven bound, printed copies and one USB flash with the proposal in PDF format in a sealed envelope.

All SOQs must be submitted pursuant to the instructions below. It is the Offeror’s sole responsibility to ensure that the SOQ is delivered in the manner required by this RFQ by the Due Date and Time. Owner has the right to reject any SOQs not properly delivered.

SCHEDULE FOR SOQ PREPARATION AND SUBMITTAL

Below is the schedule for preparation and submittal of Statements of Qualifications:

ITEM DATE

Non-mandatory pre-submittal meeting April 30, 2026 at 2:00pm EST

Final day for questions May 8, 2026

Statement of Qualifications due May 15, 2026 at 2:00pm EST

Conduct interviews, if needed Late May or early June

City’s intention to finalize selection July 6, 2026

PRE-SUBMITTAL MEETING

A non-mandatory pre-submittal meeting will be held at the date and time listed above. Meeting will be held at the following address:

Albemarle City Hall Council Chambers 144 N. Second Street Albemarle, NC 28001

QUESTIONS ABOUT THIS RFQ

Questions about this RFQ should be directed via email to the following individual:

Adam Kiker, PE LKC (Owner’s Agent) adam@LKCengineering.com

Modifications to any requirements or stipulations in this RFQ can only be made by an Addendum issued by the City. Verbal or email responses do not constitute a formal change.

SECTION 1: OWNER DESCRIPTION

1.1 General

Albemarle owns and operates a public water system to provide drinking water to residents, businesses, and other customers inside the city limits and surrounding areas. The City owns and operates two water treatment facilities, the largest of the two being the US52 Water Treatment Plant with a rated treatment capacity of 12 MGD.

This project focuses one of the two transmission pipelines that convey finished water from the US52 WTP to the City’s distribution tanks. The subject transmission main is an existing 20” pipe that is currently under the north-bound travel lane of US52 Highway from Snuggs St going north to the water plant site. This pipeline has leaked frequently over the years, and repairing even minor leaks is an expensive endeavor because the pipe is under the travel lanes.

The goal of the project is to install a new transmission main to replace the old pipeline. The route may follow the same route as the existing pipe, or it may shift to a different location. The route will be determined in collaboration with the selected design-builder.

1.2 Delivery Method and Phasing

Albemarle has decided to utilize the Design-Build construction delivery method for the project and invites qualified firms to submit Statements of Qualifications in accordance with NCGS 143- 128.1.A.

The project is to be implemented in two phases using the design-build delivery method:

Phase 1: Preconstruction Phase. Based on a collaborative approach to scope the project, the selected firm will prepare design documents necessary to prepare a Guaranteed Maximum Price (GMP) proposal, estimated to be completed at 60%-90% of design completion. Design shall be performed according to the City of Albemarle’s design expectations and applicable regulatory requirements, such as NCDOT and

NCDEQ.

Phase 2: Construction Phase. If a GMP is approved by the Owner from Phase 1, the design-build team will complete the design, acquire all permits necessary for construction, execute all construction activities, and provide startup services.

In the event a GMP cannot be negotiated that meets Albemarle’s expectations and/or the available budget, the City reserves the right to terminate the design-build contract and engage with the submitted designer to complete the design and permitting. The City may then use the approved plans to accept formal, competitive bids for construction.

1.3 Funding and Other Requirements

Albemarle plans to utilize SL2023-134 funding for this project.

This project will be subject to MBE / WBE compliance with NCGS 143-128.2 and NCGS 143-

182.4 as described in later sections.

1.4 Owner’s Agent

Albemarle will utilize the services of an Owner’s Agent (OA) for the project. The OA will contract directly with Albemarle and will provide consultation, planning, design review, and/or construction management/inspection services for the project. The OA does not have authority to direct actions or outcomes of the design-builder, that authority lies solely with the Owner.

The OA for this project is LKC Engineering out of Southern Pines, NC.

SECTION 2: OVERVIEW OF PROJECT

2.1 General

This project is expected to consist of approximately 14,000 feet of new water transmission main to connect the US52 WTP to the City’s distribution network in the vicinity of the Snuggs Rd / US52 Highway intersection, where the new pipe will connect to existing 20” and/or 24” transmission main.

The existing transmission main scheduled for replacement is not currently in service due to frequent and expensive repairs.

The new pipe is expected to be either 20” or 24” in size. Size determination will be made through a collaborative effort between the Owner, the OA, and the selected design-builder.

Budget may be a factor when determining the pipe size.

The route of the new pipeline is not yet finalized and will be determined in collaboration with the selected design-builder.

Multiple connections to existing pipelines will be required along the route. It is imperative that such connections are made with minimal disturbance of service to the Owner’s customers.

2.2 Project Objectives

Establish a collaborative relationship between the Owner and the Design-Build Team to deliver quality design and construction on time and within the Owner’s budget.

Maintain a safe, injury free work site.

Construct a new water transmission main that will replace and enhance the serve provided by the existing pipeline.

Provide a reliable, high-quality product that will reduce the Owner’s overall cost of ownership over a 50+ year period.

Minimize impacts to Owner’s customers through close coordination with the Owner and other stakeholders.

2.3 Scope of Work

See Attachment A.

2.4 Estimated Budget

The City’s budget for this project including contingency, engineering, and other soft costs is $6,500,000.

2.5 Project Procurement and Implementation Schedule

The Owner anticipates selecting the Design-Builder within two months of the SOQ due date. The Owner may conduct interviews with qualified firms or may choose to select the Design-Builder solely on the SOQs received.

Time is of the essence for this project, it will be expected that the selected design-builder be ready to proceed expeditiously through contract negotiations and begin design work immediately.

SECTION 3: PROCUREMENT PROCESS

3.1 General Information

3.1.1 Compliance with Legal Requirements

This Procurement will be in accordance with NC GS 143-128.1A and all applicable federal, state, and local laws, and Owner policies and procedures.

3.1.2 Conflict of Interest and Communications with the Owner

Offerors are required to conduct the preparation of their SOQs with professional integrity and free of lobbying activities. Communication with the Owner regarding this Project shall be via email or regular mail only and directed to the Owner’s Representative. Any verified allegation that a responding Offeror or Team Member or an agent or consultant of the foregoing has made such contact or attempted to influence the evaluation, ranking, and/or selection of short-listed Offerors may be the cause for Owner to disqualify the Offeror team from submitting an SOQ or Proposal, to disqualify the Team Member from participating in the Procurement, and/or to discontinue any further consideration of such Offeror or Team Member.

3.1.3 Expenses of Offeror and Payment of Stipend

The Owner accepts no liability for the costs and expenses incurred by firms in responding to this Procurement. Each Offeror that enters into the Procurement process shall prepare the required materials, the SOQ, at its own expense and with the express understanding that the Offeror cannot make any claims whatsoever for reimbursement from the Owner for the costs and expenses associated with the process, even in the event the Owner cancels this Project or rejects all Proposals.

3.1.4 Public Disclosure

All documentation and submittals provided to the Owner may be considered public documents under applicable laws and may be subject to disclosure. Offerors recognize and agree that the Owner will not be responsible or liable in any way for any losses that the Offeror may suffer from the lawful disclosure of information or materials to third parties.

3.1.5 Identification of Projects

For each Project identified in the SOQ, provide the following information.

a. Name of Project, Owner/Customer, and Location of the Project;

b. Description of the delivery method and integration of design and construction, identifying the firm(s) role as a prime consultant, subconsultant, contractor, subcontractor, or other;

c. Project description and applicability and relevance of the referenced Project to the evaluation criteria for this Project; Include the total project budget and footage and diameter of pipe for each project.

d. Name of any Key Team Member who is proposed for this Project who played a significant role on the Project example, including a description of their Project responsibilities and functions;

e. Project contact of the owner or customer (e-mail and phone number) who can verify the characteristics of the submitted Project example.

3.2 Owner Rights and Procurement Conditions

3.2.1 The Owner reserves without limitation, and may exercise at its sole discretion, the following rights and conditions with regard to this Procurement process:

a. To cancel the Procurement process and reject any and all SOQs and/or Proposals;

b. To waive any informality or irregularity;

c. To revise the Procurement Documents and Schedule via an Addendum;

d. To reject any Offeror that submits an incomplete or inadequate response or is not responsive to the requirements of this RFQ;

e. To require confirmation of information furnished by an Offeror, require additional information from an Offeror concerning its SOQ or Proposal and require additional evidence of qualifications to perform the work described in this RFQ.

f. To provide clarifications or conduct discussions, at any time, with one or more Offerors;

g. To contact references who are not listed in the Offeror’s SOQs and investigate statements on the SOQs and/or qualification of the Offeror and any firms or individuals identified in the SOQ;

h. To take any action affecting the RFQ process, the RFP process, or the Project that is determined to be in the Owner’s best interests; and

i. Approve or disapprove of the use of particular Subconsultants, Subcontractors, or Key Team Members and/or substitutions and/or changes to Subconsultants, Subcontractors, or Key Team Members from those identified in the SOQ or Proposal. Such approval or disapproval shall not be unreasonably exercised.

3.3 Outline of the Procurement Process

3.3.1 Request for Qualifications (RFQ).

a. This RFQ invites firms to submit SOQs describing in detail their technical, management, and financial qualifications to design, permit, construct, commission, and close out the Project. The issuance of this RFQ is the first phase of the Procurement process.

b. Offerors must submit their SOQ and other deliverables required pursuant to this Procurement at the time and in the manner set forth in this RFQ and any Addenda. The Owner will not consider any SOQ or other deliverables that are submitted after the Time set forth in the RFQ. Offerors are solely responsible for making sure that the Owner receives the SOQ in a timely fashion.

c. The Owner will evaluate the information submitted by each Offeror to 1) determine whether the Offeror meets the mandatory minimum requirements and

2) evaluate the SOQ provided by each Offeror pursuant to the evaluation system described below. Any Offeror who fails to meet the mandatory minimum requirements set forth in this SOQ will be deemed non-responsive and will not be considered further by the Owner in this Procurement.

d. All SOQs will be evaluated in accordance solely with the criteria established in the RFQ and any Addenda issued thereto. The evaluation criteria are listed below, including the relative weight or importance given to each criterion.

e. The Owner will select a Design-Build Team from the SOQ’s received.

f. Design-Build Team Members and individual Key Team Members will be used as a basis for selection. Neither the Offeror nor Team Members that are submitted to the Owner as part of the SOQ may substitute a listed consultant, subconsultant or subcontractor, or any individual listed as a Key Team Member; however, a change to any submitted Team Member or Key Team Member will result in re-evaluation and may result in a change to the evaluation and ranking of the Offeror.

3.3.2 No Price Proposal

There will not be an RFP process. The Owner intends to negotiate a scope and fee for services with the selected Design-Build Team.

3.3.3 Evaluation and Ranking of Offerors

In the evaluation and ranking of Offerors, the Owner will consider the information submitted in the SOQ. In accordance with the evaluation criteria set forth in the RFQ. The result of the evaluation will be a comparative ranking of Offerors. Qualification Packages will be evaluated on the firms’ ability to meet the requirements of this Request for Qualifications (RFQ). The selection criteria listed below:

Criteria Weight

Bonding and Insurance Requirements Pass / Fail

Qualifications and abilities of key individuals / team members identified in the Qualifications Package. 30%

The firm’s and team’s experience in successfully executing projects similar in scope and nature in similar communities 30%

The design-builder’s approach to the project, including design, GMP preparation, and construction. 20%

References 10%

The estimated percentage of the work that the Design-Builder will self-perform. Design-builder includes the designer and contractor. 10%

3.4 Contract Format

The Owner will enter into negotiations for the Design-Build Agreement with the Preferred Offeror.

The Design-Build Agreement is anticipated to utilize the Design-Build Institute of America Progressive Design-Build Agreement for Water and Wastewater Projects, Form Number 545, and the DBIA Standard Form of General Conditions of Contract Between Owner and Design-Builder, Form 535.

SECTION 4: SOQ DOCUMENTATION REQUIREMENTS

4.1. SOQ Format Requirements

The SOQs shall comply with the following format requirements:

4.1.1 SOQs shall be formatted in searchable PDF format.

4.1.2 The body of the SOQ, when printed, shall be limited to a maximum of twenty (20) pages, 8.5”x11” only. Single-sided pages are requested. If double-sided pages are used, a double-sided page shall count as two pages.

a. The only documentation that is not included in the page count is the following:

i. Cover page, provided it contains no substantive content.

ii. Cover letter;

iii. Divider tabs, provided they contain no substantive content;

iv. Statements of Offeror’s ability to meet the Owner’s Bonding and Insurance requirements;

v. Required forms to document compliance with MBE / WBE programs.

b. SOQs that exceed the page limit may be rejected. The Owner, at its sole discretion, reserves the right to remove pages from the sections of any non-conforming SOQ submittals to bring each non-conforming SOQ submittal within the page count requirement.

c. A “page” shall be defined as one single-sided piece of paper that has words, charts, tables, pictures, or graphics. Pages shall be 8.5 x 11 inches. 11x17 sized pages should not be used.

d. The font size shall be no smaller than 10 point.

4.2 SOQ Organization

SOQs shall consist of the following parts:

4.2.1 Cover Letter indicating general information about the Design-Builder and the firm’s interest in the project. Cover letters are requested to be no more than two pages and do not count towards the page limit.

Cover letters should include at a minimum: (1) the name and contact info for the lead design firm and lead construction firm; (2) the name and type of firm or organization (corporation, partnership, joint venture, etc.) that will serve as the prime contracting party; and (3) a list of all subconsultants and/or subcontractors to be used for the Project not listed in (1) above.

4.2.2 Introduction and Overview. List the contracting firm and design firm / construction firm if not the lead. Provide a general descriptions of the history of the firm(s), available resources, and office location to serve this project.

4.2.3 Team Organization and Experience

a. Provide a brief description of the project team including the design firm, expected Engineer of Record, construction group, construction superintendent, and named subconsultants / subcontractors. Include the overall person in charge of the project and person with signatory authority for the contracting entity. Include individual(s) responsible for the following tasks:

• Design management and oversight

• Constructability review and guidance on the pipeline route

• Cost controls and budgeting

• Construction management and oversight

b. Provide an organizational chart depicting how the team will manage the Phase 1 (pre-construction) and Phase 2 (construction) services.

c. Resumes of key team members. Resumes should be no longer than two pages and should provide information on the relevant education, licensure, and experience of the individual, including the duration of employment at the current firm. Resumes count towards the page limit.

4.2.4 Past Performance with Similar Projects

a. Identification of Projects should give the Owner the desired insight and confidence in the submitter’s ability to execute this project. A minimum of three project descriptions shall be provided, with weight given to more recent experience.

b. Separate project descriptions can be used to demonstrate the contractor’s experience and the design team’s experience. Preference is given to projects executed with the specific design-build team.

c. If available, projects should demonstrate the submitter’s experience with the design-build process.

d. Project descriptions should include reference information including the utility owner, design engineer, and construction team for the project.

e. Descriptions should include the footage(s) and diameter(s) of pipe and the final construction cost.

f. Descriptions should include any funding agency used for the project, with preference given to demonstrated experience with projects funded by NCDEQ Division of Water Resources.

g. Descriptions shall include the name and contact information (phone / email) for the primary contact of the utility owning the project.

4.2.5 Project Approach. The design-builder’s technical and management approach to pre-construction and construction phase services, including a description of how the submitter will prepare the GMP. This section can provide unique ideas to project execution to distinguish your team from other submitters. The Owner should be able to read this section and have confidence that the submitter has a sound, strategic approach to complete the project.

The Project Approach section should include discussion on how the GMP is prepared.

Which parts of the project will be competitively bid, and how with the Owner be involved in reviewing bids received? How does the design-builder determine the cost of its own labor, equipment, overhead, and profit?

In this section the submitter should include language about how the firm, if selected, will follow Albemarle’s HUB requirements when preparing the GMP.

4.2.6 References. Provide a minimum of four references with relevant contact information including phone number and email address. A minimum of two references, each, should be provided for the construction firm and design firm.

4.2.7 Self-performance of Work. Based on the submitter’s experience with similar projects, provide a general description of which portions of the design and permitting scope will be self-performed by the design firm versus using subconsultants; and which portions of the construction work will be self-performed by the construction firm versus using subcontractors.

4.2.8 Insurance and Bonding Requirements (Not included in page limit)

a. Statement of Offeror’s Ability to Provide Performance and Payment Bond. (See Attachment B)

b. Statement of Offeror’s Ability to Meet the Owner’s Insurance Requirements. (See Attachment C)

4.2.9 Minority Business Participation Documentation (Not included in page limit)

Albemarle has an established HUB Program that is included as an attachment to this RFQ. It is the submitter’s responsibility to ensure he/she has received and reviewed all attachments.

The following HUB documents are attached to this RFQ:

Attachment D: Albemarle’s HUB Program and Mediated Settlement Conferences for Construction Projects

Attachment E: Albemarle’s HUB Program, Certification of Offeror HUB Status.

This form shall only be provided if the submitter itself is HUB certified.

Submitters SHOULD NOT include dollar amounts or percentages of the Phase 1 or Phase 2 costs in the HUB documentation.

When preparing the submission for the project, the following items must be submitted with the Statement of Qualifications:

a. Affidavit A - Identification of HUB Participation. This is found inside Attachment D.

No dollar amount is required at the bottom, only a table summary of HUB participation, if any, included as part of the project team.

b. Affidavit B – Good Faith Effort. This is found inside Attachment D. Submitters are required to achieve a minimum of 50 points.

c. Option: Affidavit C – Intent to Perform Contract with Owner Workforce. This is only to be submitted if no subcontractors are proposed as part of the team. If Affidavit C is submitted, Affidavits A and B do not need to be submitted.

SECTION 5: OTHER SUBMITTAL INFORMATION

5.1 Insurance and Bonding Requirements

5.1.1 Statement of Offeror’s Ability to Provide Performance and Payment Bond

As a mandatory minimum requirement, the Offeror must have the ability to obtain a performance and payment bond in the amount of $6,000,000. Offeror shall provide a letter signed by an authorized representative of Offeror’s surety company (or agent) confirming that the Offeror can meet this minimum requirement. Any Offeror who fails to meet this mandatory minimum requirement will be considered non-responsive and will not be considered further by the Owner in this Procurement process.

5.1.2 Statement of Offeror’s Ability to Meet the Owner’s Insurance Requirements.

As a mandatory minimum requirement, the Offeror must document that it has the ability to meet the minimum insurance requirements as set forth in the RFQ. Offeror shall provide a letter from Offeror’s insurance company or broker, or a Certificate of Insurance, indicating that the Offeror is capable of complying with the insurance requirements specified in Attachment D. Any Offeror who fails to meet this mandatory minimum requirement will be considered non-responsive and will not be considered further by the Owner in this Procurement. The insurer shall be a company authorized to conduct business in the state where the Project is located.

5.2 Technical and Management Qualifications

The SOQ shall demonstrate the Design-Build Team’s ability to undertake the Project by providing the technical and management qualifications of the Offeror, Team Members, and individual Key Team Members. The Offeror is responsible for ensuring that contact information contained in their referenced Project profiles is correct. The inability to contact a reference may have a detrimental impact on the evaluating qualifications.

Emphasis should be placed on past performance and expertise in performing substantive work on projects that are of Similar Scope and Complexity. The Owner reserves the right to award more points to projects that have more similar characteristics to the current project than those that do not. The Owner also reserves the right to award more points to successful projects in which the Offeror, Team Members, and/or individual Key Team Members had substantial responsibility for their respective scopes of work.

SECTION 6: LIST OF ATTACHMENTS

A. Scope of Work, including a map of the existing pipeline route

B. Performance and Payment Bond requirements

C. Insurance Requirements and Instructions

D. Albemarle’s HUB Program and Mediated Settlement Conferences for Construction Projects.

E. Albemarle’s HUB Program, Certification of Offeror HUB Status

Attachment A Project Scope of Work

The scope of work for this project will be determined as the project progresses based on field evaluations and other engineering, constructability, and budget criteria. Potential scope items include:

Pre-Construction (Phase 1):

1. Working with the City and OA to determine the best route for the new pipeline, factoring site constructability and required connections to other existing pipelines.

2. Preparing hydraulic calculations to support the recommended pipe diameter based on the desired pumping rate from the US52 Water Treatment Plant high service pumps, or reviewing calculations performed and provide by the Owner and offering feedback.

3. Field surveying.

4. Water line plan and profile drawings.

5. Details of how connections will be made to other existing pipelines.

6. Developing a sequence of construction to reduce impact to existing customers.

7. Geotechnical evaluations.

8. Subsurface utility evaluations.

9. Right-of-way acquisition consulting. (Note the City plans to prepare easement maps, deeds, and recordation outside the scope of this contract.)

10. Submission of the 60% (or other pre-determined percentage) plans to NCDEQ Division of

Water Infrastructure for review and approval prior to preparing a GMP.

11. GMP preparation including competitive bidding for certain material and construction scopes.

Construction (Phase 2):

Note: Phase 2 would only occur if a GMP is reached with the design-builder.

12. Regulatory permitting of water lines including NCDOT and NCDEQ.

13. Submission of a final set of construction plans, with all issued permits, to NCDEQ Division of Water Infrastructure for review and approval.

14. Water line construction, expected to be 20” or 24” in diameter.

15. Steel casing installed by bore and jack under roadways.

16. Stream crossings by directional boring and/or open-cutting.

17. Roadway paving to City and/or DOT standards.

18. Connections to existing water lines, sequenced to reduce impact to existing customers.

19. Water line pressure testing and disinfection to NCDEQ standards.

Attachment B Performance and Payment Bond Instructions

The selected Design-Builder will be required to provide the following bonds for this Project:

Payment Bond in the amount of $6,000,000 Performance Bond in the amount of $6,000,000

Offerors must submit a statement from their bonding company that the Offeror can meet the bonding requirements set forth above.

Attachment C Insurance Requirements and Instructions

The Design-Builder shall demonstrate with a certificate of insurance that it can meet the following requirements:

1. Workers’ Compensation, and related coverages under Paragraphs 6.03.A.1 and A.2 of the General Conditions:

State: Statutory

Federal, if applicable (e.g., Longshoreman’s): Statutory

Employer’s Liability:

Bodily injury, each accident $ 100,000

Bodily injury by disease, each employee $ 100,000

Bodily injury/disease aggregate $ 100,000

2. Contractor’s Commercial General Liability

General Aggregate $ 1,000,000

Personal and Advertising Injury $ 1,000,000

Each Occurrence (Bodily Injury and Property Damage)

$ 1,000,000

3. Automobile Liability Combined Single Limit of $ 1,000,000

4. Excess or Umbrella Liability:

Per Occurrence $ 1,000,000

General Aggregate $ 1,000,000

5. Designer’s Professional Liability Policy

Per Occurrence $ 2,000,000

General Aggregate per Year $ 2,000,000

ATTACHMENT D

US52 TRANSMISSION MAIN REPLACEMENT

DESIGN-BUILD DELIVERY METHOD

Historically Underutilized Business (HUB) Program

Mediated Settlement Conferences for Construction Projects

HUB Program: Effective 11-18-02 2 Revised 09-08-09 Revised 01-06-14

TABLE OF CONTENTS

Page

INTRODUCTION…………………………………….………………………… 3

POLICY STATEMENT………………………………………………………… 4

OBJECTIVES…………………………………………………………………… 5

DEFINITIONS………………………………………………………………….. 7

PROGRAM ADMINISTRATION

Owner Responsibilities………………………………………………….. 8 - 9

Designer Responsibilities……………………………………………….. 9 Contractor Responsibilities……………………………………………… 9 - 10 Historically Underutilized Business Responsibilities…………………… 10 Calculating Historically Underutilized Business Participation…….……. 10 Monitoring Historically Underutilized Business Program Activity……… 10 Penalties………………………………………………………………….. 10

CONTRACT COMPLIANCE REQUIREMENTS

Compliance Requirements……………………………………………… 13 Bid Submittal Requirements……………………………………………. 14 - 15 Good Faith Efforts………………………………………………………. 16 Documentation Forms…………………………………………………… 17 - 23 Affidavit A: Identification of HUB Participation 17 Affidavit B: Good Faith Efforts 18 Affidavit C: Intent to Perform Contract with Own Workforce 19 Affidavit D: Portion of the Work to be Performed by HUB Firms 20 Affidavit E: Good Faith Efforts 21 Affidavit F: HUB Documentation for Contract Payments 22 Affidavit : Minority Participation - Informal Construction Contracts 23

DISPUTE RESOLUTION………………………………………………………. 24 - 32

HUB Program: Effective 11-18-02 3

INTRODUCTION

The City Council adopted the June 1989 General Assembly provisions for Senate Bill 308 which amended Chapter 480 and Section 74.17 of Chapter 770, thereby rewriting G.S. 143-128 on May 7, 1990, which allowed all public owners to advertise for bids for public building projects using single contract (single prime) system as an alternative to the traditional separate (multi-prime) contracts system. Included in the amendments adopted by the General Assembly was the requirement that each public owner adopt and implement a Minority and Women’s Business Enterprise (M/WBE) Plan that would include specific conditions to be met for each public building project constructed under the provisions of G.S. 143-128.

The intent of these amendments was and still is to increase the opportunities for M/WBEs to become involved in public building projects let to contract in North Carolina. Within the guidelines of Senate Bill 308 was the requirement that each public body adopt an appropriate verifiable percentage goal for participation by minority businesses in the total value of work for which a contract or contracts are awarded.

Each local government was given the responsibility for ascertaining an appropriate verifiable percentage goal(s).

The City of Albemarle City Council adopted a verifiable goal of ten percent (10%) for minority participation in building construction contracts awarded.

Senate Law 2001-496, Senate Bill 914 became effective January 1, 2002, revising G.S. 143-128.2 to enhance and improve good faith efforts to recruit and select minority businesses for participation in public construction contracts.

The City of Albemarle adopted its first Historically Underutilized Business (HUB) Program on November 18, 2002, to include redefined goals:

1) 10% HUB overall participation in construction and consulting expenditures, and

2) 10% HUB overall participation in procurement and professional expenditures.

3) The overall program participation percentage goal will be reviewed annually or on a project by basis as soon as relevant data becomes available.

4) Historically Underutilized Businesses will have an opportunity to receive technical assistance in licensing, bonding, certification, completing bid forms, clarification of any area of the contract in which there are questions (not including estimates for any specific project), and other procedures involved in securing City contracts.

The services of the City of Albemarle’s Underutilized Business Program are not designed to provide in-depth business management, estimating or other technical assistance to participants in bid preparation and contract negotiations.

HUB Program: Effective 11-18-02 4

OUTREACH PLAN AND GUIDELINES

FOR RECRUITMENT AND SELECTION OF

HISTORICALLY UNDERUTILIZED BUSINESSES FOR PARTICIPATION IN

THE CITY OF ALBEMARLE’S BUILDING CONSTRUCTION CONTRACTS

In accordance with G.S. 143-128.2, effective January 1, 2002, these guidelines establish goals for Historically Underutilized Business (HUB) participation in single-prime bidding, separate-prime bidding, dual bidding, construction manager-at-risk, and alternative contracting methods on City of Albemarle building construction projects in the amount of $300,000 or more. The Outreach Plan shall also be applicable to the selection process of architectural, engineering and construction manager-at-risk services.

The City of Albemarle has a verifiable ten percent (10%) goal for Historically Underutilized Business (HUB) participation by HUB businesses in the total value of work for each project for which a contract or contracts are awarded for public building construction. The overall goal will be reviewed annually or as soon as relevant data is available.

POLICY STATEMENT

To broaden opportunities for participation, increase competition, and ensure the proper diligent use of public funds, it is the intent of the City of Albemarle to provide minorities and women equal opportunity to participate in all aspects of the City of Albemarle’s contracting and purchasing programs. Opportunities include, but are not limited to, participation in procurement contracts for commodities and services, as well as for construction and construction renovation projects, and lease agreements as they relate to requirements established by federal, state, and local governments.

The City of Albemarle is committed to economic development of small business enterprises and the minority community and prohibiting discrimination against any person or business in pursuit of these opportunities on the basis of race, color, sex, religion, national origin, age, disability, or veteran status.

The City of Albemarle’s Historically Underutilized Business Program (HUB) is not a set-aside as it relates to contracting;

it is a voluntary goal program. Competitive bidding is required for all contractors, subcontractors, suppliers and distributors. The HUB program encourages contractors to actively and aggressively seek HUB participation.

Nothing in these guidelines shall be construed to require contractors or awarding authorities to award contracts or subcontracts to or to make purchases of materials or equipment from HUB contractors or HUB subcontractors who do not submit the lowest responsible responsive bid or bids.

It is further the intent of these guidelines that the City of Albemarle, as awarding authority for construction projects, and the contractors and subcontractors performing the construction contracts awarded, shall cooperate, and in good faith do all things, legal, proper and reasonable to achieve participation by HUB in each construction project as mandated by N.C.G.S. 143-128.2.

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OBJECTIVES

The primary objective of the City of Albemarle Historically Underutilized Business Program will be to focus on full utilization of minority and women businesses in the City’s construction and procurement activities; the assurance of a Good Faith Effort Program that benefits contractors, subcontractors and vendors alike; and early conflict intervention of general and discriminatory concerns in addition to the following areas of assistance:

Maintain and promote minority-owned and women-owned business utilization.

Increase the City of Albemarle’s knowledge of minority and women owned business firms and become familiar with their product line.

Up-to-date information on City bidding opportunities.

Management and technical assistance guidance and support throughout the process to ensure significant minority and female business participation.

HUBs will have an opportunity to receive technical assistance in licensing, bonding, completing bid forms, clarification of any area of the contract in which there are questions (not including estimates for any specific project), and other procedures involved in securing City contracts.

On-going communications program to sponsor special seminars and training programs to assist minorities and women in becoming actively involved in procurement and construction contract projects.

Provide and administer procedures for reporting and monitoring compliance of contract activity, subject to the provisions of the HUB requirements of the City of Albemarle.

Provide and administer procedures for resolving complaints of discrimination made against businesses holding construction or equipment and service contracts with the City of Albemarle.

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DEFINITIONS

Bidder

Any person, firm, partnership, corporation, association, or joint venture seeking to be awarded a public contract or subcontract. For a design-build solicitation, the term “Bidder” shall be interchangeable with “Submitter”.

Certification

To qualify for certification, a firm must meet the definition of a minority person, as outlined in accordance with N.C.G.S. 143-128, and/or be socially and economically disadvantaged as defined in 15 U.S. C. 637 of the Federal Code.

Any person having a current 8(a) certification from the Small Business Administration is considered socially and economically disadvantaged.

Contract

A mutually binding legal relationship, or any modification thereof, obligating the seller to furnish equipment, materials or services, including construction, and obligating the buyer to pay for them.

Contractor

Any person, firm, partnership, corporation, association, or joint venture which has contracted with City of Albemarle to perform construction work or repair.

Designer

Any person, firm, partnership, or corporation, which has contracted with City of Albemarle to perform architectural or engineering work.

Minority

A person who is a citizen or lawful permanent resident of the United States and who is:

a. American Indian, that is, a person having origins in any of the original peoples of North America

b. Asian American, that is, a person having origins in any of the original peoples of the Far East, Southeast Asia and Asia, the Indian subcontinent, or the Pacific Islands

c. Black, that is, a person having origins in any of the black racial groups in Africa

d. Female

e. Hispanic, that is, a person of Spanish or Portuguese culture with origins in Mexico, South or Central

American, or the Caribbean Islands, regardless of race

f. Persons qualifying as socially or economically disadvantaged

Minority Business

a. A business in which at least fifty-one percent (51%) is owned by one or more minority persons, or in the case of a corporation, in which at least fifty-one percent (51%) of the stock is owned by one or more minority persons or socially and economically disadvantaged individuals; and

b. Of which the management and daily business operations are controlled by one or more of the minority persons or socially and economically disadvantaged individuals who own it.

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Socially and economically disadvantaged individual

Means the same as defined in 15 U.S.C. 637 of the Federal Code.

Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regards to their individual qualities.

Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged.

Owned and Controlled

A business which is (1) a sole proprietorship legitimately owned by an individual who is a minority or female, (2) a partnership or joint venture controlled by minorities and/or females, or (3) a corporation or other entity controlled by minorities and/or females and in which at least 51% of the voting interests and 51% of the beneficial ownership interests are legitimately held minorities and/or females. These persons must control the management and operation of the business on a day-to-day basis.

Owner

City of Albemarle.

Public Entity

State and all public subdivisions and local government units.

Subcontractor

A firm under contract with the prime contractor or Construction Manager-at-Risk for supplying materials or labor and materials and/or installation. The subcontractor may or may not provide materials in the subcontract.

Verifiable Goal

The City of Albemarle has adopted written guidelines specifying the actions that will be taken to ensure a Good Faith Effort in the recruitment and selection of female and minority businesses for participation in contracts awarded.

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PROGRAM ADMINISTRATION

Responsibilities of the Owner

1. Develop, implement, manage, and monitor for compliance, the City of Albemarle’s Historically Underutilized

Business (HUB) Outreach Plan, as contained herein, in accordance with federal, state, and local government requirements.

2. Work with minority-focused and small business groups that support Historically Underutilized Business and small business inclusion in the solicitation of bids.

3. Place more emphasis on the importance of soliciting certified Historically Underutilized Business firms and small businesses for subcontracting opportunities at pre-bid conferences and in the bid documents. Examine specifications to identify special subcontracting opportunities and strongly encourage prime contractors to solicit bids for subcontracts from HUB firms.

4. Hold meetings with the majority contractors to provide detailed information concerning the Guidelines for Recruitment and Selection of Historically Underutilized Business, information on G.S. 143-128 and G.S. 143-129, and to ensure that solicitations contain the clauses and goals required by the program.

5. Explain the City of Albemarle’s Historically Underutilized Business participation requirements at pre-bid conferences.

6. Assess the effectiveness of the HUB Program, and identify opportunities to enhance it, by evaluating

HUB participation and compliance and reviewing the “Good Faith Efforts” provided in bid packages.

7. Identify subcontracting opportunities unique to each construction contract and project and concentrate heavily on targeting certified HUB firms and small businesses that have expressed an interest in City of Albemarle projects.

8. Make available to minority-focused agencies, a list of subcontracting opportunities when they are identified, and a list of prime bidders that subcontractors may wish to contact for subcontracting consideration no later than 10-days prior to the bid opening.

a. A description of the work for which the bid is being solicited.

b. The date, time and location where bids are to be submitted.

c. The name of a representative of the Owner who will be available to answer questions about the Project.

d. Where bid documents may be received.

e. Any special requirements that may exist, such as insurance, licenses, bonds and financial arrangements.

9. Build new business relationships through networking and continue networking with other North Carolina cities and counties to find out how their Outreach Program and HUB program is working and sharing “best practices and ideas” to improve the program.

10. Participate in education opportunities throughout the community as they become available and offer training sessions to share the City of Albemarle’s Outreach Plan with interested businesses and organizations.

11. Be visible through participation in trade shows and business organizations of interest to HUB firms, majority contractors and small businesses, and provide information to the general public about the HUB Program, and continue outreach efforts to the business community.

12. On-going Communications Program.

Upon request, the City of Albemarle will make available complete information on the City’s construction programs and projects and a brief description of each to HUBs, HUB associations, assistance agencies, and training resources. A copy of this list will be maintained in the office of HUB Program Coordinator.

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All bid notices for construction projects over $100,000 will be advertised in a daily newspaper having general circulation in the area for which bids are requested. The City will ensure that bid notices are made available to HUB trade associations, minority economic development groups and HUBs with capabilities relevant to the bid notices as identified by the HUB Source Listing.

The City will periodically conduct workshops, seminars, or training sessions designed to acquaint HUBs with the City’s contracting procedures. Historically Underutilized Businesses will have an opportunity to receive technical assistance in licensing, bonding, completing bid forms, clarification of any area of the contract in which there are questions (not including estimates for any specific project), and other procedures involved in securing City contracts. The HUB Program Coordinator shall be responsible for achieving this goal.

13. Advertise upcoming bid opportunities in minority-focused media, if available.

14. Work with architects, consultants, and engineers to ensure that subcontracting opportunities are more noticeable, that specific opportunities are identified and easily understood by potential contractors and subcontractors.

15. Reporting, quarterly, to the North Carolina State Department of Administration, minority participation, as contained herein.

Designer

Under the single-prime bidding, separate prime bidding, dual bidding, construction manager-at-risk, or alternative contracting method, the designer must do all of the following:

1. Attend the scheduled prebid conference to explain minority business requirements to the prospective bidders.

2. Assist the owner to identify and notify prospective minority business prime and subcontractors of potential contracting opportunities.

3. Maintain documentation of any contacts, correspondence, or conversations with minority business firms made in an attempt to meet the goals.

4. Review jointly with the owner, all requirements of G.S. 143-128.2(c) and G.S. 143-128.2(f) – (i.e. bidder’s proposal for identification of the minority businesses that will be utilized with corresponding dollar value of the bid and Affidavit Listing Good Faith Efforts or Affidavit of Self-Performance of Work, if the contractor will perform work under contract by its own workforce) – prior to recommendation of an award.

5. During the construction phase of the project, review “HUB Documentation for Contract Payment” form with monthly pay applications to the owner and forward copies to the City of Albemarle.

Prime Contractor(s), Construction Manager-At Risk, and its First-Tier Subcontractors

Under the single-prime bidding, the separate-prime bidding, dual bidding, Construction Manager-at-Risk and alternative contracting methods, contractor(s) must do all of the following:

1. Attend the scheduled prebid conference.

2. Identify or determine those work areas of a subcontract where minority businesses may have an interest in performing subcontract work.

3. At least ten (10) days prior to the scheduled day of bid opening, notify minority businesses of potential subcontracting opportunities listed in the proposal. The notification must include all of the following:

(a) A description of the work for which the subbid is being solicited.

(b) The date, time and location where subbids are to be submitted.

(c) The name of the individual within the company who will be available to answer questions about the project.

(d) Where bid documents may be reviewed.

(e) Any special requirements that may exist, such as insurance, licenses, bonds and financial arrangements.

4. During the bidding process, comply with the contractor(s) requirements listed in the proposal for minority participation.

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5. Identify on the bid the minority businesses that will be utilized on the project with corresponding total dollar value of the bid and Affidavit Listing Good Faith Efforts as required by G.S. 143-128.2(c) and G.S. 143-128.2(f) or Intent to Perform Contract With Own Workforce Affidavit.

6. Make documentation showing evidence of implementation of Prime Contractor, Construction Manager-at-Risk and First Tier Subcontractor responsibilities available for review by City of Albemarle upon request.

7. Provide one of the following upon being named the apparent low bidder: (1)…