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Home My WebLink AboutCP 123 A Mm MIF, HIM MMVUEW LN J 11� , ■AM ;1 POLICY PROPOSAL DATE FILE NUMBER SUBJECT City-wide Minority/Women- PAGEIOF._ 7-08 -86 C.P. 123 owned Business Enterprise Policy PROPOSAL PROPOSED BY: Bagsby, CI NAGE 'S REVIE1Al Wetherby, Williams, �. Zapata RECOMMENDATION It is recommended that the City Council expand the current policy for minority business enterprise participation in federal grants by adopting the policy proposal instituting a City-wide minority business enterprise (MBE) and women business enterprise (WBE) program as outlined below. BACKGROUND In 1978, the City Council adopted a policy that was aimed at increasing the level of participation of minority business enterprises (MBEs) in contracts let by the City on projects funded by the Department of Transportaton (DOT) , primarily the Urban Mass Transportation Administration (UMTA) . This same policy has been used in the past to comply with MBE requirements of other grants, such as the U.S. Department of Housing and Urban Development, the Environmental Protection Agency and the Federal Aviation Administration. The policy was revised in 1980 to include women-owned businesses (WBEs) and again in 1983 to comply with UMTA' s requirement to change the reference from MBEs to disadvantaged business enterprises (DBEs) . When the policy was originally adopted and during the subsequent revisions, the overall goal was to make it applicable to all contracts let by the City, regardless of the funding source. Based on limited historical data, the level of MBE and WBE participation on City projects has been extremely low. With the formation of the Disadvantaged Business Office in 1985, monitoring efforts were begun to identify the total City dollars spent on purchases and the total City dollars awarded to MBEs and WBEs (see Attachments B, C, and D) . Since the formation of the Fort Worth Transportation Authority, the City has had minimal involvement with UMTA grants and contracts. Since most other federal, state and city programs refer to the firms that are the target of this policy as minority business enterprises, this program will use the same term. Any reference to MBEs in the text of this proposal is considered to be inclusive of WBEs. LEGALITY FISCAL NOTE CITY MANAGER'S COMMENTS 41 POLICY PROPOSAL (cont'd) PAGE 2 OF 4 PROPOSAL In order to have an effective City-wide MBE program, the Council needs to approve a policy that allows staff to include MBE requirements in bids and specifications. In addition, overall goals should be set for MBE participation in contracts let by the City. DECLARATION OF POLICY It is the policy of the City of Fort Worth to involve Minority Business Enterprises (MBEs) and Women-Owned Business Enterprises (WBEs) in all phases of its procurement practices and to provide 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. Upon request, the City will assist MBEs by providing them with information on 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 City contracts. The City will encourage joint ventures among MBEs and WBEs and between majority and minority firms bidding for City contracts. The City will seek and use its best efforts to insure that MBEs and WBEs are informed of current and future procurement activities through direct contact, coordination with assistance organizations and placing certified MBEs and WBEs on the City' s bid list. DEFINITION OF MBE AND WBE OJAI For purposes of this policy, a "Minority Business Enterprise" is: a. at least fifty-one percent ( 51%) owned by one or more minority persons, or, in the case of a publicly owned business, at least fifty-one percent ( 51%) of the stock is owned by one or more minority persons; and b. whose management and daily business operations are controlled by the minority persons who own it. A "minority person" means those individuals who are citizens or legal residents of the United States who are: a. Black Americans; persons having origins in the Black racial groups of Africa. b. Hispanic Americans; persons of Mexican, Puerto Rican, Central or South America or other Spanish culture or origin, regardless of race. CITY OF FORT WORTH _ POLICY PROPOSAL (cont'd) PAGE—LOF4 C. Native Americans; persons who are American Indians, Eskimos, Aleuts or Native Hawaiians. d. Asian-Pacific Americans; persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Phillipines, Samoa, Guam, the U.S. Trust Territories of the Pacific, and the Northern Marianas. e. Asian-Indian Americans; persons whose origins are from India, Pakistan, and Bangladesh A "Women-owned Business Enterprise" is: a. at least fifty-one percent ( 51%) owned by one or more women, or, in the case of a publicly owned business, at least fifty- one percent ( 51%) of the stock 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. CITY-WIDE GOALS Based on the availablity of MBE and WBE firms, the initial City-wide goals for the total dollar value of purchases for construction, professional services, equipment, supplies and service will be twelve percent ( 12%) for MBEs and three percent ( 3%) for WBEs. a. The above goals will generally apply to City procurements. In addition, in order to encourage subcontracting opportunities, all bids/proposals estimated to exceed $25 ,000 will include the MBE Policy. b. The City Manager' s Office will be responsible for managing the effectiveness of the program and may from time to time review the City' s performance and recommend new City-wide goals. c. Any change in goals will be approved by the City Council. IMPLEMENTATION OF POLICY The City' s Disadvantaged Business Enterprise (DBE) office will be responsible for monitoring the program, tracking statistical data and making recommendations to the City Manager's office on the need to establish new goals. Each of the major procurement departments, primarily Purchasing, Transportation and Public Works, Park and Recreation, Water and City Services, will appoint a departmental liaison to assure compliance with City-wide goals and to coordinate with the DBE office. a. Eligible contracts and purchase orders over $25 ,000 will be reviewed on an individual basis, and CITY OF FORT WORTH � d ® _ POLICY PROPOSAL (c®nt'd) PAGE-4-OF4 b. After monitoring the program and it is determined that the overall goals are not being met, it may be necessary to establish higher goals on specific contracts where there is a significant number of MBEs available. The MBE/WBE Policy (Attachment A) will be included in the specification documents for all eligible projects. The City will consider the contractor' s performance regarding its MBE program in the evaluation of bids. Failure to comply with City' s MBE Policy or failure to demonstrate a "good faith effort" to comply, may result in a bid being considered non-responsive to specifications. LEGALITY: The City Attorney has reviewed the proposed policy and there are no known legal impediments that would prohibit or limit the implementation of such a policy FISCAL NOTE: This will not require any additional City funds and may reflect a savings to the City through lower cost of purchases. CITY MANAGER' S COMMENTS: The City Manager concurs with this policy proposal and will assign responsibility for implementation and monitoring to the Disadvantaged Business Enterprise Office. unci James sby ounc' lma ou' apata istr ct 8 Distric Co ncilwo an Kathy Wether Mayor Pro-Tem Bert Williams District District 5 APPROVED BY CITY COUNCIL JUL R 1986 r_J_ U 4ao'-. City Seamwr of the MIT of Fort Worth,Texas CITY OF FORT WORTH