HomeMy WebLinkAboutRES 85-290 R E S O L U T I O N
WHEREAS, the City of Beaumont deems it to be in the
public interest that small business concerns owned and controlled
by socially and economically disadvantaged individuals and by women
be utilized to the maximum extent feasible in the city' s contracts
for construction, professional services, purchaes of equipment and
supplies and all other services required by the city, for
Department of Transportation assisted projects, pursuant to 49 CFR,
Part 23, as amended; and,
WHEREAS, the City Council of the City of Beaumont deems
it to be in the public interest for contractors providing services,
materials or supplies to the City of Beaumont to provide employment
and subcontracting opportunities to disadvantaged individuals and
women to the maximum extent feasible;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the City Council of the City of Beaumont hereby adopts, as its
policy , the Disadvantaged/Women-Owned Business Enterprise Program
Policy Manual attached hereto;
BE IT FURTHER RESOLVED that the City Manager of the City
of Beaumont be, and he is hereby, authorized to execute for and on
behalf of the City of Beaumont said policy manual and any
amendments thereto;
BE IT FURTHER RESOLVED that the City Manager of the City
of Beaumont or his designee shall be the Disadvantaged/Women-Owned
n
Business Enterprise Liaison Officer for the City of Beaumont and
shall have authority to implement this policy.
PASSED BY THE CITY COUNCIL of the City of Beaumont this
the /Q� day o f �i���l,,y� J 1985.&
- Mayor -
2 -
City of Beaumont
Disadvantaged/Women-Owned Business Enterprise Program
Ff--I-r U. Ili I i z at I on of ,Tn,-,i I I .3nd D i szadv int aged Bust neSST's
in Department of Tr a ris p ort- at 11 on -assisted Pro jects
( Pursuant to 49 CYR Part 23 , as Amended'-
TABLE OF CONTENTS
PAGE
I . Policy Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
II . Liaison Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
III . Support Staff. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
IV . Procurements to Insure Equitable Opportunity. . . . . . . . . . . . . . . . 7
V . Disadvantaged and Women--Owned Banks . . . . . . . . . . . . . . . . . . . . . . . . . 7
VI . DBE/WBE Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
VII . DBE/WBE Eligibility and Joint Ventures Involving DBEs
and/or WBEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fs
VIII . Percentage Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
IX . Procedures to Require That DBEs/WBEs be Identified by
Name by Competitors for Contracts . . . . . . . . . . . . . . . . . . . . . . . . . 1D
X . Selection Criteria. to Insure That Prime Contracts are
Awarded to Competitors That Meet DBE/WBE Goals . . . . . . . . . . . . 11
XI . Compliance of Subrecipients , Contractors and Sub-Contractors
to the DBE/WBE Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
XII . Maintenance of Records and Reports . . . . . . . . . . . . . . . . . . . . . . . . . . 12
XIII . Requirements for Transit Vehicle Manufacturers . . . . . . . . . . . . . . 13
XIV . Policy Concerning Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
XV . Set Asides . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
XVI . Counting Participation Toward Meeting DBE/WBE Goals . . . . . . . . . 14
4- -,-,?_ ?e),r
� s
TABLE OF CONTENTS Cont .
APPENDIX
PAGE
Attachment. 1 : Information to be Included in All Contract
Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IS
Attachment 2 : Information to be Included in Contract
Documents With Contract Goals . . . . . . . . . . . . . . . . 1`+
Attachment 3 : Instructions to Bidders . . . . . . . . . . . . . . . . . . . . . . 21
Attachment 4 : Selection Criteria to insure That Prime
Contra cts are Awarded to Competitors Thai.
?sleet. DBE/WB Conis . . . . . . . . . . . . . . . . . . . . . . . . . . . `C
Attachment 5 : Counting Participation Toward Meeting
DBF/WBE Goals . . . . . . . . . . . . . . . . . . . . e . . . . . . . . . , ;;
Attachment 6 : Eligibility Standards . . . . . . . . . . . . . . . . . . . . . 32
Attachment 7 : Guidance for Making Determinations for
Social and Economic Disadvantages . . . . . . . . . . . . 39
Attachment 8: Challenge Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Attachment 9 : Appeals of Denial of Certification as a DBE
orWBE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Attachment 10 : Decertification Procedure . . . . . . . . . . . . . . . . . . . . 51
ScheduleA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
ScheduleB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
ScheduleC: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
'oe—f-s--:-2 P?
I . POLICY STATEMEINT
It is the policy of the City of Beaumont to involve minority
businesses , specifically Small and Disadvantaged Businesses (DBEs)
and Women-Owned Business (WBEs ) to the fullest extent feasible in
all phases of its procurement practices , and to provide them equal
opportunities to compete for contracts for construction, provision
of professional services , purchases of equipment and supplies , and
provision of other services required by the City , pursuant to 49 CFR
Part 23 as amended ,
To attain these policy objectives , the City of Beaumont has adopte:-1
this Policy Statement and the attached Disadvantaged/Women-Owned
Business Enterprise Program for all U . S . Department of
Transportation assisted contracts .
For purposes of this policy ; "small and disadvantaged business''
(DBE ) means a small business concern which ( a) is at least 51
percent owned by one or more socially and economicatly disadvantaged
individuals , or , in the case of any publicly owned business , at
least 51 percent of the stock of which is owned by one or more
socially and economically disadvantaged individuals , and (b)
whose management and daily business operations are controlled by one
or more of the socially and evomonically disadvantaged individuals
who own it .
"Small business concern" means a small business as defined pursuant
to Section 3 of the Small Business Act and relevant regulations
promulgated pursuant thereto .
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"Socially and economically disadvantaged individuals means those
individuals who are citizens of the United States ( or lawfully
admitted permanent residents) who are Black Americans , Hispanic
Americans , Native Americans , Asian-Pacific Americans , or
Asian-Indian Americans and any other minorities or individuals found
to be disadvantaged by the Small Business Administration pursuant to
Section $( a) of the Small Business Act .
The City shall make a rebuttable presumption that individuals in the
following groups are socially and economically disadvantaged. The
City also may determine , on a case-by-case basis , that individuals
who are not a member of one of the following groups are socially and
economically disadvantaged .
( a) "Black Americans" which includes persons having origins, in any
of the Black racial groups of Africa.
(b ) "Hispanic Americans" which includes persons of Mexican, Puerto
Rican , Central or South America, or other Spanish culture or
origin , regardless of race .
( c) "Native Americans" which includes persons who are American
Indians , Eskimos , Aleuts , or Native Hawaiians .
( d) "Asian-Pacific Americans" which includes persons whose origins
are from Japan , China, Taiwan , Korea , Vietnam, Laos , Cambodia ,
the Philippines , Samoa., Guam, the U. S . Trust Territories of
the Pacific , and the Northern Marianas .
( e) "Asian-Indian Americans" which includes persons whose origins
are from India , Pakistan , and Bangladesh .
,& ,Ps-,-p?o 2
t.
"Women-owned business" (WBE) means a small business concern which
( a) is at least 51 percent owned by one or more women, or in the
case of any publicly owned business , at least 51 percent of the
stock of which is owned by one or more women, and (b) whose
management and daily business operations are controlled by one or
more of the women who own it .
To the extent legally practicable, the City of Beaumont will insure
that all contractors providing services , materials or supplies to
the City provide employment: opportunities to disadvantaged
individuals and females equal to those provided all other groups or
individuals . Such contractors will also be expected to take
positive steps toward the utilization of DBEs and WBEs to the
maximum extent feasible, consistent with sound procurement
principles and applicable law .
The City will provide assistance, when requested, to DBEs and WBEs
by providing instructions on the preparation of bid specifications ,
compliance with procurement policy, and fulfillment of general bid
requirements . In addition, the City will provide information on job
performance requirements , procurement opportunities and
prerequisites for bidding on contracts .
The City will seek and will use its best efforts to insure that DBEs
and WBEs are informed of current and future procurement activities
through newsletters , including minority newspapers , local minority
chambers of commerce , and other minority organizations as well as
through direct, contact with minority entrepreneurs .
U �-,- /Z' 3
8
axe
a �
As evidence of its intent to vigorously pursue the objective of this
Disadvantaged/Women-Owned Business Enterprise Program , the City
Manager has designated the Director of Transportation as the DBEIWBE
Liaison Officer for the Department of Transportation related
projects , who will be assisted by the City of Beaumont ' s
Transportation and Purchasing Departments in administering, and
implementing the City' s Disadvantaged and Women-Owned Business
Enterprise Program.
II . LIAISON OFFICER
The City of Beaumont has designated t.hFv Director of Transportation
to serve as the City' s Liaison Officer for the DBEIWBE Program . The
Liaison Officer reports directly to t11aF> City of Beaumont ' s City
Manager who , in turn , reports directly to the Mayor and City
Council -
The duties of the Liaison Officer, shall include the following:
A . Developing, managing, implementing, and evaluating the DBt;,/WPE
program;
B . Disseminating information on available business opportunities so
that DBEs and WBEs are provided an equitable opportunity to bid
on DOT-assisted City contracts .
C . Maintaining and updating a directory of small and disadvantaged
and women owned business enterprises .
D . Providing assistance to City departments in re;.sol.vii,g spe(, ific
to i^7 ? �. e":?iE:":t. ?t. ... >7"t of ( h- T)TQ- 1W1J _? >,-;, �r -1ryn <'4�1c:t
achievement of stated goals .
zed
A
E . Advising prospective contractors and others on necessary steps
to bring them into compliance with requirements regarding
DBE/WBE participation .
F. Attending pre-bid and pre-construction conferences to explain
DBE/WBE requirements and to respond to questions .
G . Reviewing bid proposals prior to formal advertising to make sure
that proper instructions are included regarding the City' s
DBE/WBE requirements .
H . Reviewing bids after they have been opened to verify the degre(z
of DBE/WBF participation and to assure that those firms listed
have been properly certified based on established criteria .
K Maintaining accurate and up-to-date records demonstrating
DBF/WBF efforts and accomplishments .
i . Assisting in the arrangement of joint ventures between DBE/WBE
and non-DBE/WILE firms and between two or more DBE/WBF firms .
K . Submitting all reports as required by DOT and other Federal
regulations .
III . SUPPORT STAFF'
The DBF/WBE Liaison Officer shall have adequate staff to perform his
duties . The department heads of the transportation , purchasing, and
other appropriate departments will serve ag the PBF/WPF Coordinators
for their respective departments . The Departmental Coordinator will
be , at a minimum , responsible for !
a ,
A. Notifying the DBE/WBE Liaison Officer of all grants being
applied for through the U. S . Department of
Transportation .
B . Notifying the Liaison Officer of approved grant awards .
C . Evaluating approved grants for potential DBE and WBE
participation.
D . Involving the DBE/WBE Liaison Officer in the entire bid process
for DOT assisted projects , which includes , but is not limited
to.
1 . Notification in advance by appropriate department of
consultant and/or construction contracts .
2 . Providing the DBF/WBF Lia-ison Officer the opportunity to
review bid proposals and requests for proposals LRFPj prior
to their formal advertisements to insure that the City' s
DBE/WBE requirements have been met .
3 . Notifying the DBE/WBE Liaison Officer of the time and place
for all pre-bid conferences if any, so that the DBE/WBE
requirements can be explained and questions answered.
4 . Assuring that the Liaison Officer has an opportunity to
evaluate all bids received in an effort. to assure the
validity of the degree of DBE and/or WBE participation
claimed .
E . Reporting to the DBE/WBE Liaison Officer on no less than a
quarterly basis the status of achieving DBE/WBF goals .
A
TV . PROC17REMENTS TO INSURE EQUITABLE OPPORTITNTTY TO COMPETE FOR
CONTRACTS AND SUBCONTRACTS
The City of Beaumont will develop and use affirmative action
techniques to facilitate DBE/WBE participation in contracting
activities . These techniques shall include , but are not limited
to:
A . Arranging solicitations , time for the presentation of bids ,
quantities , specifications , and delivery schedules so as to
facilitate the participation of DBEs and WBEs .
B . Providing assistance to DBEs and WBEs in over-coming barriers,
such as the inab:1 lity to obtain bonding, financing , -)r- technic-pal
assistant._'stance by working with aside agr-rw-ies to provide these
C . Carrying out information and cnmmunil cation s pro grams on
contracting procedures and specific contracting opportunities in
a timely manner ,
D . Holding pre--bid conference-- to explain the projects and
encourage prime contractors to use DBEs and WBFs as
subcontractors .
E . Including the C"It-\" s goal for DBF,/WIIl" part icipai ion
in the bid solicitations for D(DIT-assisted, projects .
V . DISADVANIVAGED AND WOMEN- OWNED BANI(4
There are no minority or women - owned banks, in the Beaumont
a ro,,i . Should this sittuatio---, (',hange in thy, future , th(•
Cl. ty of thorouvilly inkus' t ig!Atu 1 111t_' f'(-i !
7
extent of services offered, and make the greatest feasible
use of such banks .
VI . DBE/WBE DIRECTORY
The City' s DBE/WBE Liaison Officer is responsible for maintaining a
directory to facilitate identification of DBEs and WBEs with
capabilities relevant to general contracting requirements and to
particular bid solicitations . The directory is available to bidders
to assist in their efforts to meet DBE/WBE participation
requirements .
VII . DBE/WBE ELIGIBILITY AND JOINT VENTURES INVOLVING DBEs AND_�04 WBEs
To insure that the DBE/WBE program only benefits firms owned and
controlled by disadvantaged individuals or women , the City of
Beaumont shall certify the eligibility of DBEs and WBEs and joint
ventures involving DBEs and WBEs that are named by competitors by
completing Schedule A and/or B .
The City shall require prime contractors to make good faith efforts
to replace a DBE or WBE contractor that is unable to perform
successfully with another DBE or WBE. The City shall reserve the
right to approve all substitutions of subcontractors before bid
opening and during contract performance, in order to insure that the
substitute firms are eligible DBEs and WBEs .
VIII . PERCENTAGE GOALS
A. Overall Goals
The overall goals for the City of Beaumont ' s DBE/WBE program are
ten percent ( 10%) of the contract amount for disadvantaged
businesses and three percent ( 3% ) for businesses awned by women .
11s=40d 8
In no case shall these goals constitute a fixed quota. The
following factors were considered in arriving at these goals :
1 . The number and types of contracts to be awarded by the City
during its fiscal year .
2 . The number and types of DBEs and WBEs that have been
identified by the City,
3 . The number and types of DBEs and WBEs likely to be available
to compete for contracts during the funding period ,
4 . The past efforts of the City to contract with DBEs and
WBEs .
The overall goals shall be reviewed on an annual basis . The
review process shall analyze projected versus actual DFE/WBE
participation during the previous fiscal year. Whatever
revisions are considered necessary, shall be made and submitted
to the Department of Transportation for approval .
B . Contract Goals
Contract goals will be set on specific projects which the
bidder/proposer must meet or exceed or demonstrate that it could
not meet despite its best efforts . The goals will be set based
on the known availability of qualified DBE ' s and WBE ' s . For
contracts for professional services exceeding $25 , 000 the City
has established a goal of 20% parti "ipation for Disadvantaged
Business Enterprises .
91
1
C . Publication of Goals
At the time the City submits its overall goals to the Department
of Transportation for approval , it shall publish a notice
announcing these goals , informing the public that the goals , and
a description of how they were selected, are available for
inspection during normal hours at the Transportation
Department ' s Office for 30 days following the date of the
notice. The notice shall include addresses to which comments
may be sent , and shall be published in general circulation media
and available minority-focus media and trade association
publications , and shall state that the comments are for
informational purposes only.
D . Geographic Area
The City of Beaumont and contractor:- shall , at a minimum, seek
DBEs and WBEs in the same geographic area in which contractors
or subcontractors are sought for a given solicitation. If' the
goals cannot be met by using DBEs and WBEs from this geographic
area, the City and contractors shall expand the search to a
reasonable wider area.
IX. PROCEDURES TO REQUIRE THAT DBEs/WBEs BE IDENTIFIED BY NAME BY
COMPETITORS FOR CONTRACTS
In solicitation for DOT-assisted contracts that provide
opportunities for DBE/WBE participation , the City shall indicate its
goals for the use of small firms owned and controlled by
disadvantaged persons , and by women .
(J � �< � 10
A. All bidders/proposers will be required to submit a written
assurance of meeting the goals in their bids or proposals by
completing Attachment 2 .
B . Within a reasonable period of time after the opening of bids ,
and before the award of the contract the City shall require all
bidders wishing to remain in competition for the contract to
submit Schedule C which provides :
1 . The names and addresses of DBE and./or WBE subcontractors ;
2 . A description of the work each is to perform; and
3 . The, cl(--,,I I ar v& I ue of each proposed DBF and/or WBE
s ub c o n t r a;--- IL .
C' . The i i-m e 11 1 (-)w c-d P o r submission o F S c h e d u 1 veil It 1,e
individual contracts and may vary , depending on circumstances .
D . Agrcement.s between a bidder/proposer and a DBE/WB-F in which the
DBE/WBE promises not to provide subcontracting quotations to
other bidders/proposers are prohibited.
X . SELECTION CRITERIA TO INSURE THAT PRIME CONTRACTS ARE AWARDED TO
COMPETITORS THAT MEET DBE/WBE GOALS
To insure that prime contracts are awarded to competitors who meet
DBFI/WBF goals , the ,elect -ion criteria which is outlined in
Attachment 4 will be followed .
XI . COMPLIANCE OF SUBRECIPIENTS , CONTRACTORS AND SUBCONTRACTORS TO THE
DBE/WBE REQUIREMENTS
The City of Beaumont does not have any subrecipients at this time.
Should the situation change in the future, all subrecipients must
comply with the DBE/WBE requirements outlined in the program.
XII . MAINTENANCE OF RECORDS AND REPORTS
A. In order to monitor the progress of its DBE/WBE program, the
City shall maintain a recordkeeping system which will identify
and access DBE/WBE contract awards , prime contractors ' progress
in achieving DBE/WBE subcontract goals and other DBE/WBE
affirmative action efforts .
B . Specifically, the City shall maintain records showing:
1 . Procedures which have been adopted to comply t. ith the
requirements of this program .
2 . Awards to DBEs and WBEs . These awards shall be measured
against projected awards and/or goals . To assist in this
effort , the City shall obtain regular reports from prime
contractors on their progress in meeting contractual DBE/WBE
obligations .
C . Records shall be available , upon request , to an authorized
officer or employee of the government .
D . The City shall. submit reports conforming in frequency and format
to existing contract reporting requirements of the applicable
department element. . Where no such contract reporting
12
requirements exist , DBE/WBE 'reports shall be submitted
quarterly.
These reports shall include as a minimum:
1 . The number of contracts awarded to DBEs and WBEs .
2. A description of the general categories of contracts so
awarded.
3 . The dollar value of contracts so awarded.
4 . The percentage of the dollar value of all contracts awarded
during this period which were awarded to DBEs and WBEs .
5 . An indication of whether , and the extent to which , the
percentage met or exceeded the goal specified in the
application .
E . The records and reports shall provide information relating to
small firms owned and controlled by disadvantaged persons
separately from information relating to firms owned and
controlled by women . If the records and reports include any SBA
8(a) contractors that are not disadvantaged or women ,
information concerning these contractors shall also be recorded
and reported separately.
XIII . REQUIREMENTS FOR TRANSIT VEHICLE MANUFACTURERS
The City shall require all transit vehicle manufacturers who bid on
DOT-assisted contracts to certify that they have complied with the
requirements of Section 23 . P7 of 49 CFP . Part 22 , Suhpart 1) dated
July 21 , 1983 . The manufacturer may make the certification if it
?,�) 13
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has submitted its DBE/WBE goals to the UMTA Administrator, and the
UMTA Administrator has either approved, or not disapproved, said
goals .
XIV . POLICY CONCERNING LEASES
The following action will be taken concerning leases :
A. The City of Beaumont shall not exclude DBEs or WBEs from
participation in business opportunities by entering into
long-term exclusive agreements with non-DBEs/WBEs for the
operation of major transportation related activities or major
activities for the provision of goods and services to the
facility or to the public on the facility .
XV . SET ASIDES
The City of Beaumont will limit the use of set asides to include
subcontracts as they are utilized by the prime or general
contractor . The City of Beaumont is prohibited by the Texas
Competitive Bidding Statute , Article 236a, Tex. Rev . Civ. Stat . Ann .
( Vernon' s Supp. 1980) to bid total contract amounts only to
DBEs/WBEs . Based on these rulings , the City of Beaumont cannot take
the whole contract and allow only DBEs/WBEs to bid on it , but the
City can specify in the contract with the prime contractor that a
certain percentage of the contract money will be spent by the prime
contractor with DBE,/WBE subcontractors .
XVI . COUNTING PARTICIPATION TOWARD MEETING DBE/WBE GOALS
DBE/WBE participation shall be counted toward meeting goals set in
accordance with DOT ' s DBE/hBE regulations at 43 CFF? Fart 2? and the
City of Beaumont ' s program as follows :
14
1 . Once a firm is determined to be an eligible DBE or WBE in
accordance with the provisions specified in this program, the
total dollar value of the contract awarded is counted toward ttie
applicable goal .
2 . The total dollar value of a contract to a firm owned and
controlled by both disadvantaged males and non-disadvantaged
females is counted toward the goals for DBEs and WBEs
respectively, in proportion to the percentage of ownership and
control of each group in the business . The total dollar value
of a contract with a firm owned and controlled by disadvantaged
women is counted toward either the DBE goal or the WBE goal , but
not to both. The contractor employing the firm or the City of
Beaumont may choose the goal to which the contract value is
applied.
3 . The City of Beaumont or the contractor employing a DBE: or WBE
firm may count toward its goals a portion of the total dollar
value of a contract with a joint venture eligible under the
DBE/WBE eligibility criteria specified herin equal to the
percentage of the ownership and control of the DBE or WBE
partner in the joint venture .
4 . The City or a contractor will count toward its goals only
expenditures to DBEs or WBEs thit perform a commercially useful
function in the work of a contract . A DBE or WBE considered is
to perform a commercially useful function when it is responsible
for execution of a distinct element. of the work of a contract
and carrying out its responsibilities by actually performing,
managing, and supervising the work involved . To determ=ine
O �e/10 15
whether a DBF/WBE is performing a commercially useful function ,
the City or a contractor shall evaluate the amount of work
subcontracted, industry practices , and other relevant factors .
5 . Consistent with normal industry practices , a DBE or WBE may
enter into subcontracts . If a DBE or WBE contractor
subcontracts a significantly greater portion of the work of the
contract than would be expected on the basis of normal industry
practices , the DBE/WBE shall be presumed not to be performing a
commercially useful function . The DBE,,/WBE may present evidence
to rebut this presumption to the City . The City ' s decision on
the rebuttal of this presumption is final , subject to review by
the Department of Transportation in instances of DOT-assisted
contracts ,
6 . The City or a contractor may count toward its DBE/WBF goals
expenditures for materials and supplies obtained from DBF/WBE
suppliers and manufacturers provided that the DBFs/WBEs assume
the actual and contractual responsibility for the provision of
the materials and supplies . The City or a contractor may count
its entire expenditure to a DBE/WBE manufacturer ( i . e . , a
supplier that produces goods from raw materials or substantially
alters them before resale:; . The City will count 20 percent of
its expenditures to DBE/WBF suppliers that are not
manufacturers , provided that such suppliers perform a
commercially useful function in the supply process .
, .
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APPENDIX
'
( To be included in all Bid Solicitations )
'TACHMENT 1 , Page I of I
INFORMATION TO BE INCLUDED IN ALL CONTRACT DOCUMENTS
A. Policy. It is the policy of the Department of Transportation that
small and disadvantaged businesses and women-owned businesses as
defined in 49 CFR Part 23 shall have the maximum opportunity to
participate in the performance of contracts financed in whole or in
part with Federal funds under this agreement . Consequently, the
DBE and WBE requirements of 49 CFR Part 23 , as amended will be
included in all contract documents .
B . DBE/WBE Obligation . The City of Beaumont or its contractor agrees
to insure that small and disadvantaged businesses and women--owned
businesses as defined in 49 CFR Part 23 , have the maximum
opportunity io participate in the performanen of contracts and
subcontracts financed in whole or in part with KO . T . funds
provid- d under this agreemani . in this regard , the Cif or its
contractors shall take all necessary and reasonable steps in
accordance with 49 CFR Part 23 to insure that DBEs and WISES have-
the maximum opportunity to compete for and perform contracts . The
City and its contractors shall not discriminate on the basis of
race, color , national origin , or sex in the award and performance
of DOT-assisted contracts .
C . The City shall advise each subrecipient , contractor , or
subcontractor that failure to carry out the requirements set forth
in this program shall constitute a breach of contract and , after
the notification of the Department , may result in termination of
the agreement or contract by the City or such remedy as the City
deems appropriate .
18
TTACHMENT 2 , Page I of 2
INFORMATION TO BE INCLUDED IN CONTRACT DOCUMENTS WITH CONTRACT
GOALS
A. Policy . It is the policy of the Department of Transportation that
small and disadvantaged businesses and women-owned businesses as
defined in 49 CFR Part 23 shall have the maximum opportunity to
participate in the performance of contracts financed in whole or in
part with Federal funds under this agreement . Consequently, the
DBE and WBE requirements of 49 CFR Part 23 , as amended will be
included in all contract documents .
B . DBE/WBF Obligation . The City of Beaumont or its contractor agrees
to insure that small and disadvantaged businesses and women-owned
businesses as defined in 49 CYR Part 23 , hav,= the maximum
opportunity to part if., i-pat (- in the performance of coniracts and
suhc,ontvacts mane--c! in wholr, ,-)r in : ,, -, t with D . O . T . funds
provided under this agree.ment , In this regard , the City or its
contractors shall take all necessary and reasonable steps Jin
accordance with 49 CFR Part 23 to insure that DBEs and WBEs have
the maximuir opportiin .lty to compete for and perform contracts . The-
City and its contractors shall not discriminate OD the basis of
race , color , national origin , or sex in the award and performance
of DOT-assisted contracts .
C . Th(-, Citv shall advise eac-h subrecipient , contractor , or
subcontractor that failure to carry out the requirements set forth
in this prograi,,,, shall constitute a of conti- cjc1L drid , after
t is n ot F ca t i c I
n o f t h cl rlep a r- i TV e n t m o.v r-t-_�s ti 1 t in t k,r m i n a t ion o f
th o a t,i u,_-,me,iii or c ozi t ra c t L)y the C t y or _U Ch 1,eme dy -j t 11 Cl' I t
ATTACHMENT 2 , Page 2 of 2
D . In addition , the following items will be provided to prospective
bidders in the specification documents :
1 . DBE/WBE goals ; (Attachment 3 )
2 . DBE/WBE selection criteria; (Attachment 4)
3 . Certification Schedules A and B ;
4 . DBE and WBE definitions ; (Attachment 3 )
5 . Methods of counting DBE/WBE participation; (Attachment 5 )
6 . Form for reporting names and addresses of DBE/WBE
subcontractors , work to be performed, and dollar value of each
proposed DBE/WBE contract . (Schedule C)
7 . Eligibility standards ; ( Attachment 6)
8. Guidance for making determinations for social and economic
disadvantage; ( Attachment 7 )
9. Challenge procedure ; "Attachment 8)
10 . Appeals of denial of certification as a DBE or WBE ; (Attachment
9)
11 . Decertification Procedure (Attachment 10)
-�s� � go
ATTACHMENT 3 , Page 1 of 5
INSTRUCTIONS TO "BIDDERS
REGARDING THE CITY OF BEAUMONT
DISADVANTAGED/WOMEN-OWNED BUSINESS ENTERPRISE PROGRAM
The City of Beaumont has a Disadvantaged/Women-Owned Business Enterprise
program which has set goals of 10%8 of the contract amount for
participation on the part of small and disadvantaged businesses and 3%
women-owned businesses in DOT-assisted projects . Failure to carry out
the requirements set forth in this program shall constitute a breach of
contract and, after notification of the Department of Transportation ,
any result in termination of the agreement or contract by the City, or
such other remedy as the City deems appropriate .
For purposes of this program: "small and disadvantaged business" (DBE)
means a small business concern which (a) is at least 51 percent owned by
one or more socially and economically disadvantaged individuals , or , in
the case of any publicly owned business , at least 51 percent of the
stock of which is owned by one or more socially and economically
disadvantaged individuals , and (b) whose management and daily business
operation are controlled by one or more of the socially and economically
disadvantaged individuals who own it. .
"Small business concern" means a small business as defined pursuant to
Section 3 of the Small Business Act and relevant regulations promulgated
pursuant thereto.
"Socially and economically disadvantaged individuals" means those
individuals who are citizens of the United States ( or lawfully admitted
permanent residents ) who are Black American, Hispanic Americans , Native
Americans , Asian-Indian, Americans and any other minorities or
individuals found to be disadvantaged by thE. Small Business
xe_6�Z�16, 21
ATTACHMENT 3 , Page 2 of 5
Administration pursuant to Section 8( a) of the Small Business Act .
The City shall make a rebuttable presumption that individuals in the
following groups are socially and economically disadvantaged. The City
also may determine, on a case-by-case basis , that individuals who are
not a member of one of the following groups are socially and
economically disadvantaged.
(a) "Black Americans" which includes persons having origins in any of
the Black racial groups of Africa.
(b ) "Hispanic Americans" which includes persons of Mexican , Puerto
Rican , Central or South American , or other Spanish culture or
origin , regardless or race.
(c) "Native. Americans" which includes persons who are American Indians ,
Eskimos , Aleuts , or Native Hawaiians .
(d) "Asian-Pacific Americans" which includes persons whose origins are
from Japan , China, Taiwan , Korea , Vietnam, Laos , Cambodi :� , the
Philippines , Samoa , Guam, the U. S . Trust Territories of the
Pacific , and the Northern Marianas .
(e) "Asian-Indian Americans" which includes persons whose origins are
from India , Pakistan , and Bangladesh .
"Women-owned business" (WBE) means a small business concern which ( a) is
at least 51 percent owned by one or more women , or in the case of any
publicly owned business , at least 51 percent of the stock of which is
owned by one or more women , and (b) whose management and daily business
operations are controlled by one or more of the women who own it. .
�� .��� 22
'TACHMENT 3 , Page 3 of b
A
' Y
In order to receive favorable consideration on this project , bidders are
expected to provide assurances , in writing, that. at least 10% of the
contract amount will go to disadvantaged businesses and at least 3% will
go to women business enterprises . This can be done by completing the
bottom portion of this attachment and supplying whatever other
supplemental information necessary . In any event , the lowest bidder,
meeting the DBE/WBE requirements will receive the most favorable
consideration.
THE UNDERSIGNED BIDDER HEREBY ASSURES THAT HIS/HER FIRM IS IN COMPLIANCE
WITH THE CITY OF BEAUMONT ' S DBE/WBF PROGRAM AND HAS A GOAL OF
OF THE DOLLAR VALUE OF' THIS PROJECT FOR DISADVANTAGED BUSINESS AND
ro FOR WOMEN--OWNED BUSINESSES .
NAME OF COMPAN a' DATE
SIGNATURE � TITLE
ATTACHMENT 3 , Page 4 of 5
' s
SUPPLEMENTAL INSTRUCTIONS TO BIDDERS
A. Other Attachments
1 . The selection criteria to insure that prime contractors are
awarded to the bidder/proposer that meets DBE/WBE goals is
outlined in Attachment 4 .
2 . The method for counting DBE/WBE participation toward meeting
goals is discussed in Attachment 5 .
3 . The eligibility standards for determining whether firms are small
business and are owned and controlled by disadvantaged persons or
women are outlined in Attachment 6.
4. Guidance on determining social and economic disadvantage is set
forth in Attachment 7 .
5 . The third party challenge procedure is described in Attachment 8 .
6. The process for appealing denials or certification as a DBE or
WBE is outlined in Attachment 9.
7 . The procedure for decertifying DBE/WBE firms is outlined in
Attachment 10 .
B . In order to comply with the City of Beaumont ' s DBE/WBE requirements ,
it may be necessary to complete all of the following forms :
1 . Schedule A -- Certification of DBE/WBE Eligibility . This form
must be completed and placed on file with the City for each
DBF/WBE listed Jri Schedule C prior to contract. award . If t_hFa
��� 1 `- 24
ATTACHMENT 3 , Page 5 of 5
prime contractor is a DBE or WBE , Schedule A should accompany the
bid submission .
2 . Schedule B - Joint Venture Eligibility. This form must be
completed and placed on file with the City for all joint ventures
between DBE/WBE and non-DBE/WBE firms on DOT-assisted projects .
3 . Schedule C - Schedule of DBE/WBE Participation . Bidders must
indicate the DBE and/or WBE firms they propose to use, the type
of work to be performed, and the dollar value of the Contract .
The time allowed for submission of Schedule C will be set for
individual contracts , and may vary , depending on circumstances ,
but will in all cases be after the deadline for submission of
bids , and prior to contract award .
C . Agreements between a bidder/proposer and DBEs and WBFs in which
the DBE/WBF promises not to provide subcontracting quotations to
other bidders/proposers are prohibited.
�—'5 1 25
ATTACHMENT 4 , Page 1 of 4
SELECTION CRITERIA TO INSURE THAT PRIME CONTRACTS ARE
AWARDED TO COMPETITORS THAT MEEfi DBE WBE GOALS
A. If any competitor offering a reasonable price meets the DBE/WBE
contract goal , the City shall presume that all competitors that
failed to meet the goal have failed to exert sufficient reasonable
efforts , and consequently are ineligible to be awarded the
contract .
B . To implement this presumption, the City shall determine whether the
competitor offering the lowest price of firms meeting the DBE/WBE
contract goal has offered a reasonable price for the contract :
1 . If it is determined that this competitor has offered a
reasonable price, the City shell. award the contract to the
firm;
2 . If the City determines that this competitor' s price is not
reasonable , it shall consider the next price offered by the
competitor with the highest percentage of DBE/WBE participation
of those firms that failed to meet the goal . If the City
determines that this price is reasonable , it shall award the
contract to this competitor .
3 . If it is determined that this price is not reasonable, the City
shall consider the other competitors that failed to meet the
goal in order of their percentage of DBE/WBE participation until
it selects one with a reasonable price ; ar,d,
4 . If it is determined that no competitor with DBE/WBE
participation 'spas offered a reasonable price , L may awat_d
the contract to any competitor that demonstrates that it has
,/`'�/v z C ,:::� 26
ATTACHMENT 4, Page 2 of 4
made sufficient reasonable efforts to meet the DBE/WBE contract
goal .
C . To decide whether a price offered by a competitor is reasonable, the
City shall use the same criteria that it would use to determine
whether, if the competitor had made the only offer to perform the
contract , the City would award the contract .
D. To demonstrate sufficient reasonable efforts to meet the DBE/WBE
contract goal , a contractor shall document the steps it has taken to
obtain DBE/WBE participation , including, but not limited to, the
following.
1 . Attendance at a pre-bid conference , if any, scheduled by the
City to inform DBEs and WBEs of subcontracting opportunities
ur."cler a giver solicitation .
2 . Advertisement in general circulation media, trade association
publications , and minority--focus media at least 20 days before
bids or proposals are due. If 20 days are not available,
publication for a shorter reasonable time is acceptable.
3 . Written notification to DBEs and WBEs that their interest in the
contract is solicited.
4 . Efforts made to select portions of the work proposed to he
performed by DBEs and WBEs in order to increase the likelihood
of achieving the stated goal ;
5 . Efforts to negotiate with DBEs and/or WBEs for specific subbids
including at minimum:
27
TTACHMENT 4 , Page 3 of 4
( a) The names , addresses , and telephone numbers of DBEs and/or
WBEs -that were contacted;
(b ) A description of the information provided to DBEs and/or
WBEs regarding the plans and specifications for portions of
the work to be performed, and
( c) A statement of why additional agreements with DBEs and/or
WBEs were not reached.
6. Concerning each DBE and/or WBE the competitor contacted but
rejected as unqualified, the reasons for the competitor ' s
conctusion :
7 . Ffforts, made to assist tht., DBE-4 and WBEs, contacted that nced,
assistance in obtaining bonding ur insurance required 1)g the
coripetitor or
F . Compet Mors that fail to meet 11BF,/WBF goals and fail to demonstrate
sufficient reasonable efforts shall not be eligible to be awarded
the contract .
F . To insure that all obligations under contracts awarded to DBEs
and/or WBEs are met , the City shall review the contractor ' s DBE/WBE
involvement efforts during the p(-_,rformance of the contract . The
contractor shall bring to the attention of the City of Beaumorit , and
situation in which regularly scheduled progress payments are not
made to DBE/WBE contractors .
2 R
TACHMENT 4 , Page 4 of 4
CHART I
Selection Process for
DBE/WBE Contracts
Did any Bid Meet DBE WBE Goals at Reasonable Price?
Yes Reasonably Priced None Reasonably
BUT Priced
Failed to Meet Goals
Award to Lowest
Responsive Bidder
in This Group Reject Bids
V
V
DBE/WBE Pari i c i P a 4 on No DBE/W11;
Below -Goal Participation
Award to that Bid which Bidden Can No Bidder Can
has Highesi DBE/WBE Prove Reasonable Prove Reasonable
Participation Efforts Efforts
I
Award to Lowest
Responsive Bidder Reject Bids
In This Group
1119
TTACHMENT v , Page I of 2
COUNTING PARTICIPATION TOWARD MEETING DBELWBE GOALS
DBE/WBE participation shall be counted toward meeting goals set in
accordance with DOT' s DBE/WBE regulations at 49 CFR Part 23 and the City
of Beaumont ' s program as follows :
1 . Once a firm is determined to be an eligible DBE or WBE in accordance
with the provisions specified in this program, the total dollar
value of the contract awarded is counted toward the applicable
goal .
2 . The total dollar- value of a contract to a firm owned and controlled
by both disadvantaged males and non-disadvantaged females is counted
tow:3rd the go-,tls for MBEs and WBEs respectively , in proportion to
the percentage of ownership and control of each group in the
business . The total dollar value of a contract with a f i_rtri ownr-d
and controlled by disadvantaged women is counted toward either the
DBE goal or the WBE goal , but not to both . The contractor employing
the firm or the City of Beaumont may choose the goal. to which the
contract value is applied.
3 . The City of Beaumont or the contractor employing a DBE or WBE firm
may count toward its goals a portion of the total dollar value of a
contract with a joint venture eligible under the DBEWBF eligibility
criteria specified herein equal. to the percentage of the ownership
and control of the DBE or WBF partner in the joint venture .
4 . The Cite or a contractor will. count toward its goals only
expenditures to DBEs or WUEs that perform a commerci-+l l y use_Ful
function in the work of a coat: act . A D=IL or, Whh is considered to
pe rf orm n usr% Fiil fund i on wh( n it i s respons i cal e for-
ev_!3_�f� 30
TTACHMENT 5 , Page 2 of 2
execution of a distinct element of the work of a contract and
carrying out its responsibilities by actually performing , managing,
and supervising the work involved. To determine whether a DBE/WBE
is performing a commercially useful function, the City or a
contractor shall evaluate the amount of work subcontracted , industry
practices , and other relevant factors .
5 . Consistent with normal industry practices , a DBE or WBE may enter
into subcontracts . if a DBE or WBE contractor subcontracts a
significantly greater portion of the work of the contract than would
be expected on the basis of normal industry practices , the DBF,/WBE
shall be presumed not to be performing a commercially useful
function . The DBF/WBF may present evidence to rebut this
presumption to the City . The City ' s decision on the rebuttal of
this presumption is final , subject to review by the Department of
Transportation in instances of DOT-assisted contracts .
F . The City or a contractor may count toward its DBF/WBE goals
expenditures for materials and supplies obtained from DBE/WBE
suppliers and manufacturers prokdded that the DBEs/WBEs assume the
actual and contractual responsibility for the provision of the
materials and supplies . The City or a Contractor may count its
entire expenditure to a DBE/WBE manufacturer ( i . e . , a supplier that
produces goods from raw materials or substantially alters them
before resale) . The City will count 20 percent of its expenditures
to DBE/WBF suppliers that ate not manufacturers , provided that sueti,
suppliers perform a commercially user" I function in the supVly
process .
31
TACHMENT 6 , Page 1 of 7
ELIGIBILITY STANDARDS
A. Determination of Small Business Status
In determining the eligibility of a business as a DBE or WBE , the
City will first determine whether or not the firm is a small
business concern as defined by Section 8 of the Small Business Act .
If a business is not a small business concern according to these
standards , it is not eligible to participate as a Women—Owned, or a
small and disadvantaged business under 49 CFR Part 23 , as amended .
This is true even though the business may be owned and controlled by
women , or socially and economically disadvantaged individuals , and
is eligible in all other respects . Even a firm certified by the SBE
under the 8! a program is not eligible under this regulation if it
is not also a small business .
In determining whether u business is a small business concern , the
City shall apply the standards established by the Small Business
Administration in 13 CFR Dart 121 as follows :
1 . Subcontracts of $10 , 000 or less :
A business is small if, including its affiliates , it does not
have more than 500 employees .
2 . Subcontracts over $10 , 000 and prime contracts :
A business is regarded as small if it meets the following;
criteria:
( a ) Construction
( l 1 General Construct icon ( in which less than 75 p ranni of'
the work falls into one of the categories in paragraph
• �� .1 2
ATTACHMENT 6 , Page 2 of f
The firm' s average annual receipts for three preceding
fiscal years do not exceed $17 million .
(2) Special trade contractors :
Maximum average annual
receipts in preceding
Type of Firm 3 fiscal years
Plumbing, heating (except electric) and air $7 million for all
conditioning types of contractors
Painting, paperhanging, and decorating on this list
Masonry, stone setting, and other stonework
Plastering, drywall , acoustical and insulating
work
Terazzo, tile, marble, and mosaic work
Carpentering and flooring
Floor laying and other floorwork
Roofing and sheet metal work
Concrete work
Water- well drilling
Structural steel erection
Glass and glazing work
Excavating and foundation work
Wrecking and demolition work
Tnstallct._ion or erection of building equipment.
Special trade contractors , no elswhere classified
(b ) Suppliers of manufactured goods : The firm. including its
affiliates , must not have more than 500 employees .
(c) Service Contractors :
Maximum average annual.
receipts in preceding
3 fiscal years
Type of Firm min millions of dollars )
Engineering $7 . 5
Janitorial and custodial 8. 0
Computer programming or data processing 7 . 0
Computer maintenance 7 . 0
Protective Service 4 . 5
Others not mentioned in 13 CRF 121 . 3-B ( e ) 2 . 0
-, ',-5-,{_g":�7 3 3
ATTACHMENT 6, Page 3 of 7
F y
B . Determination of Ownership and Control
The additional following standards shall be used in determining
whether a firm is 51 percent owned by socially and economically
disadvantaged individuals or women , and whether one or more of the
owners control the firm. Businesses aggrieved by the determination
may appeal in accordance with procedures set forth in Attachment 8.
1 . Bona fide disadvantaged group membership shall be established on
the basis of the individual ' s claim that he or she is a member
of a disadvantaged group and is so regarded by that particular
disadvantaged community. However , the City is not required to
accept this claim if it determines the claim to be invalid.
? . An eligible DBF or WBE shall be an independent business , and
a . The ownership and control by disadvantaged persons or women
shall be real , substantial , and continuing and shall go
beyond the pro forma ownership of the firm as reflected in
its ownership documents .
b . The disadvantaged or women owners steal -' enjoy the customary
incidents of ownership and shall share in the risks and
profits commensurate with their ownership interests , as
demonstrated by an examination of the substance rather than
form or arrangements .
C. Recognit.ion of the business as a separate entity for tax or
corporate purposes is not necessarily sufficient for
recognition as a DBE or WBE .
"��� 34
a
ATTACHMENT 6, Page 4 of 7
d. In determining whether a potential DBE or WBE is an
independent, business , the City shall consider all relevant.
factors , including the date the business was established,
the adequacy of its resources for the work of the contract ,
and the degree to which financial , equipment leasing, and
other relationships with non-minority firms vary from
industry practice.
3 . The disadvantaged or women owners shall also possess the power
to direct or cause the direction of the management and policies
of the firm and to make day--to-day as well as major decisions on
matters of management , policy , and operations . The firm shall
not be subject to any formal or informal restrictions which
limit the customary discretion of the disadvantaged or women
owners . There shall be no restrictions through , for example ,
by-law provisions , partnerhsip agreements , or charter
requirements for cumulative voting rights or otherwise that
prevent the disadvantaged or women owners , without the
cooperation or vote of any owner who is not disadvantaged or a
woman , from making a business decision of the firm.
4 . If the owners of the firm who are not disadvantaged or women are
disproportionately responsible for the operation of the firm ,
then the firm is not, controlled by disadvantaged individuals or
women and shall not be considered a DBE or WBE within the
meaning of this program. Where the actual management of the
firm is contracted out to individuals other than the owner ,
those persons who have the u' timate power to hire and fire the
��� C v 35
ATTACHMENT 6, Page 5 of 7
managers can, for the purpose of *this part , be considered as
controlling the business .
5 . All securities which constitute ownership and/or control of a
corporation for purposes of establishing it as a DBE or WBE
shall be held directly by disadvantaged persons or women. No
securities held in trust , or by any guardian for a minor, shall
be considered as held by a disadvantaged individual or a woman
in determining the ownership or control of a corporation .
6 . The contributions of capital or expertise by the disadvantaged
or women owners to acquire their interests in the firm shall be
real and substantial .
Examples of insufficient. contributions include a promise to
contribute capital , a note payable to the firm or its ou.r:ers who are
not socially and economically disadvantaged, or the mere
participation as an employee, rather than as a manager .
C . In addition to the above standard, the City shall give special
attention to the following circumstances in determining eligibility
under this program:
1 . Newly formed firms , and firms whose ownership and/or control has
changed since the date of the advertisement of the contract , are
closely scrutinized to determine the reasons for the timing of
the formation of, or change in , the firm.
Z . A previous and/or continuing employer- employee relationship
between or among present owners is carefully reviewed to ensure
'TACHMENT 6, Page 6 of 7
that the employee-owner has management responsibilities and
capabilities discussed in this section .
3 . Any relationship between a DBE/WBE and a business which is not a
DBE or WBE which has an interest in the DBE/WBE is carefully
reviewed to determine if the interest of the non-DBE/WBE
conflicts with the ownership and control requirements of this
program.
D . A joint venture is eligible under this program if the DBE/WBE
partner of the joint venture meets the standards for an eligibl-
DBE,"WBE set forth above , and the DBE,"WBE partner is responsible I or
a clearly defined portion of the work to be performed and shares in
the ownership , control , ni.a.r.agelitent respor)sibi l i i ies , rlls-ks , and
profits of the joint venture .
E . A business wishing to he certified as a DBY or WBE or Joint venture
DBF.'WBE by the City, shall cooperate with the City by supplying
additional information which may be requested in order to make a
determination .
F. Once certified , a DBE or WBE shall update its submission annually by
submitting a new Schedule A or certifying that: the Schedule A on,
filE-' is still aC(:LtrFt (, , if at any t4M,- tll(,r(- 4S
L - J a change in
ownership or control. of the firm , the firm sha'JI submit a new
Schedule A.
C . P f.-hmenl 9 , the rlenjal c.t' i cf- rt .i -rication by
F x c et I i s r)1,ov i d e(I i n A t t -i
the City of Beaumont shall. be. final f o r t h.--I t C or,t ra-t a Ild C,t L,---
o n t r a is being i I f,t by the C i t y a i I TI c t i Ili f, ()f t11 (1 e r)i a I of
L i. 1, 1Cat i <)11 D B E S , VV B s and J u i I I f V e 1) t 1-1 1,f-s d el i d t i f i i o
,A4
ATTACHMENT 6, Page 7 of 7
F
may correct deficiencies in their ownership and control and apply
for certification only for future contracts .
H. The City shall safeguard from disclosure to unauthorized persons
information that reasonably may be regarded as confidential business
information, consistent with Federal , state and local law.
ATTACHMENT 7 , Page I of 7
GUIDANCE FOR MAKING DETERMINATIONS FOR
SOCIAL AND ECONOMIC DISADVANTAGES
A. Before making any determination of social and economic disadvantage,
the City will determine whether a firm is a small business concern
as described in Attachment 6 . If it is not , then the firm is not
eligible to be considered a disadvantaged business , and no further
determinations need be made.
B . Under the definition of "socially and economically disadvantaged
individual" , members of the named groups (Black Americans , Hispanic
Americans , Native Americans , Asian--Pacific Americans , and
Asian-Indian Americans ) and persons certified as socially and
economically disadvantaged by the Small Business Administration
under the SBE ' s Section 8( a ), program are presumed to be both
socially and economically disadvantaged . This presumption is
rebuttable . A third party may challenge the eligibility of a firm
certified by the City by presenting evidence that the firm' s owners
are not truly socially and/or economically disadvantaged, even
though they are members of one of the presumptive groups . In case
of challenge, the City will follow the procedure described in
Attachment 8.
C . Any person who has been certified by SBA under its 8(a) program as
socially and economically disadvantaged is automatically considered
to be a socially and economically disadvantaged individual .
However- , the absence of an 8( al/ certification does not meat) that an
individual or firm is inc, ligible .
39
ATTACHMENT 7 , Page 2 of r
D . The City will make its own judgment about whether an individual is
in fact a member of one of the presumptive groups . If' an individual
has not maintained identification with the group to the extent that
he or she is commonly recognized as a group member, it is unlikely
that he or she is will in fact have suffered the social disadvantage
which members of the group are presumed to have experienced. If an
individual has not held himself or herself out to be a member of one
of the groups , has not acted as a member of a community of
disadvantaged persons , and would not be identified by persons in the
population at large as belonging to the disadvantaged group, the
individual should be required to demonstrate social disadvantage on
an individual basis .
For example. , an individual could demonstrate that he had a Chinese
ancestor . However , this hypothetical person has never lived in a
Chinese-American community, has held himself out to be white for
driver ' s license or other official record purposes , has not
previously claimed to be a Chinese-American , and would not be
perceived by others in either the Chinese-American community or
non-minority community to be a Chinese-American (or any other sort
of Asian-Pacific American) by virtue of his appearance , culture ,
language or associations . The City would not regard this individual
to be an Asian-Pacific American .
E . Individuals who are not presumed to be socially and economically
disadvantaged by virtue of membership in one of the presumptive
groups may, nevertheless , bf• found to be socially and economically
disadvantages( on a case-by--case basis . it an individual requests
that his or her business be certified as an eligible dis�idvantaged
�� ��
40
TACHMENT 7 , Page 3 of 7
business , the City as a part of its certification process , is
responsible for making a determination of social and economic
disadvantage.
In making determinations of social and economic disadvantage , the
City will be guided by the following standards , which have been
adopted from materials prepared by the SBA .
1 . Elements of Social Disadvantage
In order to determine that an individual is socially
disadvantaged, the City must conclude the individual meets the
following standards .
( a) The individual ' s social disadvantage must stein from hi F: ot-
her color ; national origin < gender ; physical handicap ;
long term residence ii., an envirr,,nmei-it isolatc-, front the
mainstream of American society ! or other similar cause
beyond the individual ' s control . The individual cannot
establish social disadvantage on the basis of factors which
are common to small business persons who are not socially
disadvantaged . For example , because of their marginal
financial status , many small businesses have difficulty
obtaining credit through normal banking channels . An
individual predicating a social disadvantage claim on
denial of bank credit to his or her firm would have to
establish that tlir= dler.ial was on one or more of the
listed causes " or siini I
-i Ll fz, ; 1)0 t
individual ' s or the fi_ rin ' ., inarpi-11al finanriaO
41
ATTACHMENT 7 , Page 4 of 7
(b) The individual must demonstrate that he or she has
personally suffered social disadvantage, not merely claim
membership in a non-designated group which could be
considered socially disadvantaged. This can be achieved,
for example, by describing specific instances of
discrimination which the individual has experienced, or by
recounting in some detail how his or her development in the
business world has been thwarted by one or more of the
listed causes or similar causes . As a general rule, the
more specific an explanation of how one has personally
suffered social disadvantage , the more persuasive it will
be . In assessing such facts , the City will place
substantial weight on prior administrative or judicial
findings of discrimination experienced by the individual .
Such findings , however , are not necessarily conclusive
evidence of an individual ' s social disadvantage, nor are
they a prerequisite for establishing social disadvantage.
(c) The individual ' s social disadvantage must be rooted in
treatment which he or she has experienced in American
society, not in other countries .
( d) The individual ' s social disadvantage must be chronic,
longstanding, and substantial , not fleeting or
insignificant . Typically, a number of incidents
illustrating a person ' s social disadvantage, occurring over
a substantial period of tinge , would be necessary to make a
successful claim. Usually, only by demonstrating a series
of obstacles which have imt>ed,ad one ' s progress in the
42
ATTACHMENT 7 , Page b of 7
d
business world can an individual demonstrate chronic,
longstanding, and substantial social disadvantage .
{e} The individual ' s social disadvantage must have negatively
affected his or her entry into, and advancement in, the
business world. The closer the individual can link social
disadvantage to impairment of business opportunities , the
stronger the case. For example, the City would place
little weight on annoying incidents experienced by an
individual which have had little or no impact on the
person ' s career or business development . On the other
hand, the City would place greater weight on concrete
occurrences which have tangibly disadvantaged an individual
in the business world.
2 . Evidence of Social Disadvantage. .
The City will entertain any relevant evidence in support of an
individual ' s claim of social disadvantage. In addition to a
personal statement from the individual claiming to be socially
disadvantaged, such evidence may include, but is not limited
to, third party statements ; copies of administrative or
judicial findings of discriminations , and other documentation
in support of matters discussed in the personal statement . The
City will particularly consider and place emphasis on the
following experiences of the individual , where relevant ;
education , employment and business history . However, the
individual may present evidence relating to other- matters as
well . Moreover , the attainment of a quality education or job
should not absolutely disqualify the individual from being
��� Q43
AACHMENT 7 , Page 6 of 7
found socially disadvantaged if sufficient other evidence of
social disadvantage is presented .
( a) Education . The City will consider, as evidence of an
individual ' s social disadvantage , denial of equal access to
business or professional schools , denial of equal access to
curricula, exclusion from social and professional
association with students and teachers , denial of
educational honors , social patterns or pressures which have
discouraged the individual from pursuing a professional or
business education , and other similar factors .
( b ) Employment . The City will consider , as evidence of an
individual ' s social disadvantage : discrimination in hiring ,
discrimination in promotions and other aspects of
professional advancement , discrimination in pay and fringe
benefits , discrimination in other terms and conditions of
employment , retaliatory behavior by an employer , social
patterns or pressures which have channelled the individual
into non-professional or non-business fields , and other
similar factors .
( c ) Business History, The City will consider, as evidence of
an individual ' s social disadvantage , unequal access to
credit or capital , acquisition of credit under unfavorable
circumstances , discrimination in receipt ( award and/or bi &
or government contracts , discrimination by potential
clients , exclusion from business or professional
4 il
ATTACHMENT 7 , Page 7 of 7
organizations , and other similar factors which have
retarded the individual ' s business development .
3 . Economic Disadvantage. The City will always make a
determination of social disadvantage before proceeding to make a
determination of economic disadvantage. If the City determines
that the individual is not socially disadvantaged, it is not
necessary to make the economic disadvantage determination .
As a general rule, economically disadvantaged individuals are
socially disadvantaged individuls whose ability to compete in
tlae free enterprise system has been impaired due to diminished
capital and credit opportunities , as compared to others in the
same or similar line of business and competitive market, area who
are not socially disadvantaged . In determining the degree of
diminished credit and capital opportunities of a socially
disadvantaged individual. , consideration will be given to both
the disadvantaged individual. and the applicant concern with
which he or she is affiliated .
It is the responsibility of applicant firms and their owners to
provide information to the City about their economic situation
when they seek eligibility as disadvantaged businesses .
TACHMENT 8, Page I of 3
CHALLEN. - PROCEDURE
A. To challenge the eligibility of a firm that the City has certified,
a third party may present evidence that the firm' s owners are not
truly socially and/or economically disadvantaged, even though they
are members of one of the presumptive groups .
B . The City' s challenge procedure will be as follows :
1 . Any third party may challenge the socially and economically
disadvantaged status of any individual ( except an individual who
has current 8 ( a) certification from the Small Business
Administration ) presumed to be socially and economically
disadvantaged if that individual is an owner of a firm certifier!
by or seeking certification from the City as a disadvantaged
business . The challenge shall be made in writing to the City ,
2 , With its letter , the challenging party shall include all
information available to it relevant to a determination of
whether the challenged party is in fact socially and
economically disadvantaged .
� a) If the City determines that there is not reason to believe
that the challenged party is not socially and economically
disadvantaged, the City shall so inform the challenging
party in writing . This terminates the proceeding .
Tf the City determinev that t. here is reason t beii -ve thol
the ohallengmd party is not socially and eponomicqlly
disadvantaged, the City shall begin a proceeding as
provided in thn fnil owl ng payagrapbs 4 , 5 , and G .
I G1
ATTACHMENT 8, Page 2 of 3
< L
4 . The City shall notify the challenged party in writing that his
or her status as a socially and economically disadvantaged
individual has been challenged . The notice shall identify the
challenging party and summarize the grounds for the challenge.
The notice shall also require the challenged party to provide
the City, within a reasonable time, information sufficient to
permit the City to evaluate his or her status as a socially and
economically disadvantaged individual .
5 . The City shall evaluate the information available to it and make
a proposed determination of the social and economic disadvantage
of the challenged party . The City shall notify both parties of
this proposed determination in writing, setting forth the
reasons for its proposal . The City shall provide an opportunity
to the parties for an informal hearing , at which they can
respond to this proposed determination in writing and in person .
6 . Following the informal hearing, the City shall make a final
determination . The City shall inform the parties in writing of
the final determination , setting forth the reasons for its
decision .
7 . In making the determination called for in paragraphs 3 , 5 , and 6
of this procedure, the City shall use the standards set forth in
Attachment 6.
8. During the pendency of a challenge under this attachment. , the
presumption that the challenged party is a socially and
economically disadvantaged individual shall remain, ii, effect .
'Ooe—O 5=.,G`' 'G' 47
ATTACHMENT 8, Page 3 of
C . The final determination of the City may be appealed to the
Department of Transportation by the adversely affected party to the
proceeding under the procedures of 49 CFR 23 . 55 .
48
a ATTACHMENT 9, Page 1 of 2
APPEALS OF DENIAL OF CERTIFICATION AS A DBE OR WBE
A. Filin
Any firm which believes that it has been wrongly denied
certification as a DBE/WBE or joint venture by the City may file an
appeal in writing, signed and dated , with the Department of
Transportation . The appeal shall be filed no later than 180 days
after the date of denial of certificatton. The Secretary of
Transportation may extend the time for filing or waive the time
limit in the interest, of justice, specifying in writing the reasons
for so doing . Third parties who have reason to believe that another
firm has been wrongly denied or granted certification as a DBE , WBE
or joint venture may advise the Secretary . This information is not
considered an appeal pursuant to this section.
B . Decision to Invesligate
The Secretary insures that a prompt investigation is made pursuant
to prescribed DOT Title VI investigation procedures .
C . Status of Certification During the Investigation
The Secretary may at his/her discretion , deny the DBE , WBE or joint
venture in question eligibility to participate as a DBE/WBE in
DOT-assisted contracts let during the pendency of the investigation ,
after providing the DBE , WBE or joint venture in question an
opportunity to show cause by written statement to the Secretary why
this should not occur.
D . Cooperation in Investigation
All parties shall cooperate fully with the investigation . Failure
or refusal to furnish requested information or- other failure to
cooperate is a violations of this procedure .
,�`-- O —.•G
49
ATTACHMENT 9, Page 2 of 2
E . Determinations
The Secretary makes one of the following determinations and informs
the DBE , WBE or joint venture in writing of the reasons for the
determination:
( 1) The DBE , WBE or joint venture is certified; or
(2) The DBE , WBE or joint venture is not eligible to be certified
and is denied eligibility to participate as a DBE or WBE in any
direct or DOT-assisted contract until a new application for
certification is approved by the City.
50
ATTACHMENT 10 , Page I of 2
DECERTIFICATION PROCEDURE
A . Reasons for Decertification
The City reserves the right to decertify an existing DBE/WBE for any
of the following reasons .
( 1 ) The firm' s structure has changed to the extent that the
business is no longer owned or controlled by aneligible
person ( s ) ;
( 2) The business is no longer active ;
( 3 ) The business is not financially responsible;
(4 ) The business is not competent to do the work for which it was
certified in accordance with generally accepted industry
standards ;
The firm has refused or failed without good cause to perform
the work for which it was certified; and
( 6) The business has failed to comply with the City' s request for
documents , including an annual Schedule A, and other documents
required for continuation of certification , or has failed or
refused to permit inquires of bonding companies , banking
institutions ; previous and/or existing contractors and clients,
to ascertain the history of the firm ' s financial responsibility
and contract performance . Faiilure to permit such inquires and
subM4ttal of necessary documents will be ground--, for
decertification .
51
'ACHMENT 10 , Page 2 of
B . The Decertification Processes is as Follows :
2 . Irregularities of any certified DBE/WBE business with regards
to ownership , control , financial responsibility or competency,
including refusal or failure to perform will be reported to the
liaison officer in writing. If the irregularity is verified,
the liaison officer will issue a written notice to the DBE/WBF
detailing the verified irregularities and stating why
decertification is being recommended . This notice will
indicate a specific date (within 30 working days ! for the
certified party to meet with the liaison office and/or any
other necessary designee involved in the decertification
process . This meeting will provide the DBE/WBF the opportunity
to defend or clarify the firm ' s irregularities . The liaison
officer reserves the right to the final decertification
decision . All written rebuttals must be submitted to the
liaison officer within ten working days of the decertification
meeting.
2 . Decertification firms may re-apply for certification one year
from the date of the final order .
5,1
CITY OF BEAUMONT schedule A
DISADVANT. :D BUSINESS/WOMEN-OWNCD BUSINES -NTERP?ISES
CERTIFICATION FORM
1 . Name of Firm
2. Address
3. Phone Number
4. Legal Structure:
Sole-Proprietorship [1 Joint Venture [�
Corporation [�
Partnership [�
Other, Specify [�
5. Nature of Business
6. Number of years in Business
*7. Ownership: Identify those who own 5% or more. Columns e and f need to be filled
out only if the firm is less than 100 percent minority owned.
(a) (b) (c) (d) (e) (f)
Years of Ownership Voting
Name Race Sex Ownership Percentage Percentage
With firms less than 100 percent minority owned, list the contributions of money,
equipment, real estate, or expertise of each of the owners:
Name Money Equipment Real Estate Expertise
*NOTE : Use the following codes for race information:
p B=Black; H=Hispanic; C=Caucasian ; and , O=Other
'5;;4) 53
Schedule A
Certification For:
CONTROL OF FIRM: Identify by name, race, sex, and title in the firm those
individuals (including owners and non-owners) who are responsible for day-to-day
management and policy decision-making, including, but not limited to, those with
prime responsibility for:
Name Race Sex Title
Financial
Decisions
Management Decisions ,
such as estimating,
marketing/sales,
hiring/firing of
management per-
sonnel , and pur-
chases of major
items/supplies
Supervision of Field
Operations
9. For each of those listed in question B, provide a brief summary of the person's
experience and number of years with the firm, indicating the person's qualification
for the responsibilities given him/her.
10. Describe or attach a copy of any stock options or other ownership options that are
outstanding, and any agreements between owners or between owners and third parties
which restrict ownership or control of DBE/WBE owners .
���� �
54
Schedule A
Identify any owner (see item 7) or management official (see item 8) of the named
firm who is or has been an employee of another firm that has an ownership interest
in or a present business relationship with the named firm. Present business re-
lationships include shared space, equipment, financing, or employees as well as both
firms having some of the same owners.
12. What are the gross receipts of the firm for each of the last two years?
Year ending $
Year ending $
13. Name of bonding company, if any:
Bonding Limit:
14. Are you authorized to do business in the state as well as locally?
Yes F-1 No 1— {
Licenses Held:
15. Indicate if this firm or other firms with any of the same officers have previously re-
ceived or been denied certification or participation as an MBE and describe the
circumstances
Certifying Authority
Date of Certification (or Denial )
55
Schedule A
AFFIDAVIT
CERTIFICATLQN OF ELIGIBILITY
"The undersigned swears that the foregoing statements are true and correct
and include all material information necessary to identify and explain the operations
of (name of firm) as well as the owner-
ship thereof. Further, the undersigned agrees to provide through the prime con-
tractor of, if no prime, directly to the grantee current, complete and accurate
information regarding actual work performed on the project, the payment therefor and
any proposed changes, if any, of the foregoing arrangements and to permit the audit
and examination of books, records and files of the named firm. Any material mis-
representation will be grounds for terminating any contract which may be awarded
and for initiating action under Federal or State laws concerning false statements."
NOTE: If, after filing this Schedule A and before the work of this firm is
completed on the contract covered by this regulation, there is any significant change
in this information submitted, you must inform the City of Beaumont of the change
through the prime contractor or, if no prime contractor, inform the City directly.
Signature
Name
Title
Date
Corporate Seal (where appropriate)
Date
State of
County of
������ 56
Schedule A
9 e
On this day of , 19__, before me appeared
to me personally known, who being duly sworn , did execute the foregoing affidavit, and did
state that he/she was properly authorized by (name of firm)
to execute the affidavit and did so as his/her free act and deed.
Notary Public
Commission Expires
SCHEDULE B
CITY OF BEAUMONT
DISADVANTAGED BUSINESS/WOMEN-OWNED BUSINESS ENTERPRISE
JOINT VENTURE ELIGIBILITY
(This form need not be filled in if all joint venture firms are are DBE/WBE owned) .
1 . Name of Joint Venture
2. Address
3. Phone Number
4. Identify the firms which comprise the joint venture. (The MBE partner must
complete Schedule A. )
(a) Describe the role of the DBE/WBE firm in the joint venture.
(b) Describe very briefly the experience and business qualifications of
each DBE/WBE joint venture.
5. Naure of the joint venture's business
6. Provide a copy of the joint venture aareement.
JEDULE B
7. What is the claimed percentage of DBE/WBE ownership?
8. Ownership of joint venture: (This need not be filled in if described in the
joint venture agreement, provided by question 6. )
(a) Profit and loss sharing.
(b) Capital contributions , including equipment.
(c) Other applicable ownership interests .
5. Control of and participation in this contract. Identify by name, race, sex,
and "firm" those individuals (and their titles) who are responsible for day-
to-day management and policy decisionmaking, including, but not limited to,
those with prime responsibility for:
(a) Financial decisions
(b) Management decisions, such as :
(1 ) Estimating
(2) Marketing and sales
(3) Hiring/Firing of management personnel
(4) Purchasing of major item/supplies
(5) Supervision of field operations
Note: If, after filing this Schedule B and before the completion of the joint
venture's work on the contract covered by this regulation, there is any
significant change in the information submitted, the joint venture must
inform the City, either directly or through the prime contractor if the
joint venture is a subcontractor.
59
Schedule C
JOINT VENTURE
The undersigned swear that the foregoing statements are correct and include all
material information necessary to identify and explain the terms and operation of our
. joint venture and the intended participation by each joint venturer in the undertaking.
Further, the undersigned covenant and agree to provide to the City current, complete
and accurate information regarding actual joint venture work and the payment therefor
and any proposed changes in any of the joint venture arrangements and to permit the
audit and examination of the books, records and files of the joint venture, by
authorized representatives of the City or the Federal funding agency,. Any material
misrepresentation will be grounds for terminating any contract which may be awarded
and for initiating action under Federal or State law concerning false statements ."
Name of Firm Name of Firm
Signature Signature
Name Name
Title Title
Date Date
ate
State of
County of
On this day of 19__, before me appeared
to me personally known, who, being duly sworn, did execute the
foregoing affidavit, and did state that he/she was properly authorized by
(firm) to execute the affidavit and did so as his/her free act
and deed.
Notary Public
Commission xpire
Schedule C
e
(Seal )
Date
State of
County of
On this day of , 19—, before me appeared
to me personally known, who , being duly sworn, did execute the
foregoing affidavit, and did state that he/she was properly authorized by
to execute the affidavit and did so as his/her act and deed .
Notary Public
Commission Expires
r,
Schedule C
Schedule of DBE/WBE Participation
Date of Report
�+ NAME OF PRIME CONTRACTOR Total Contract Amount $ Department
tU Project No.
Location T
TYPE OF WORK ELECTRICAL, PAVING PROJECTED
NAME OF MINORITY ADDRESS ETC. ) AND CONTRACT ITEMS OR PARTS COMMENCEMENT & AGREED
CONTRACTOR THEREOF TO BE PERFORMED COMPLETION PRICE
The undersigned will enter into a formal agreement with DBE/VIBE Contractors for work listed in this sche ule con itioned
upon execution of a contract of a contract with the City of Beaumont.
NOTE: 1 . Any business listed above must have Schedule A on file with the City.
2. Schedule C is due no later than working days after bid opening.
Title