HomeMy WebLinkAboutIR 6937 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 6937
N,,PT I.,O May 29, 1984
`oE IORT. To the Mayor and Members of the City Council
O
i u � s
YrFxAy. Subject: MINORITY BUSINESS ENTERPRISE (MBE) PROGRAM
.
Background
On November 30, 1978 (M&C G-3999), the City Council adopted a Policy
Statement in support of providing maximum opportunity for minority busi-
ness enterprises (MBEs) to participate in all aspects of the City's pro-
curement activities. This action was primarily in response to one of
the requirements for grant applications to the Department of Transporta-
tion's Urban Mass Transportation Ackainistration.
In March of 1979, UMTA notified the City that a MBE program needed to be
submitted to their office for approval. On May 8, 1979 (M&C G-4164),
the City Council adopted a MBE program which basically implemented the
Policy Statement which had been adopted earlier.
In March of 1980, the Department of Transportation issued new regula-
tions on MBE participation requirements. One of the major changes from
the old program was the inclusion of women in the definition of minori-
ties. The City was required to set percentage goals for participation
in DOT-assisted projects for both warren business enterprises (WBEs) and
MBEs. On October 14, 1980 (M&C G-4725), the City Council adopted a
revised MBE program which established 10% as the overall goal for MBE
participation and 2% for WBE participation.
In 1983, UMI'A regulations changed again by substituting the term dis-
advantaged business enterprise (DBE) for MBE and changing the definition
slightly to eliminate certain large businesses that might be minority-
owned but not disadvantaged. In addition, a minimum goal of 10% was set
for DBE participation. These changes were mandated by Congress.
Program Performance
Since the adoption of the DBE program, the City has never managed to
achieve its goal for DBE participation in DOT-assisted contracts. More
success has been made on reaching the WBE goal. DBE participation for
the 1982-83 fiscal year was about 2%. WBE participation was 6%. Since
the DBE percentage was so low, the UMI'A Regional Civil Rights Officer
requested the City to set its DBE goal at 12% for the 1983-84 fiscal
year in order to conpensate for previous failures to meet the approved
goals. The WBE goal remained at 2%.
J
ISSUED BY THE CITY MANAGER --- FORT WORTH, TEXAS
S
INFORMAL REPORT TO CITY COUNCIL MEMBERS No.
6937- Page 2
T I,,, May 29, 1984
��f fORT� To the Mayor and Members of the City Council
0
~rfxay� Subject: MINORITY BUSINESS ENTERPRISE (MBE) PROGRAM
leis
During the first two quarters of the 1983-84 fiscal year the City has
once again experienced difficulty in meeting its DBE goal. Although the
WBE goal has been exceeded with 3% participation, the percentage of con-
tracts to DBEs has been 1/2 of 1%, far below the goal of 12%. As a
result, the UMTA Regional Administrator sent a letter to the City
Manager dated April 16, 1984, pointing out the need for the City to take
"intense remedial action" to increase the level of DBE participation.
Failure to do so could place future grants in jeopardy.
In an effort to address the problems the program has experienced, the
required DBE statement which is included in bid solicitations involving
UMTA funds was simplified so that there would be little doubt about what
is required. Basically, the bidder has to have DBE participation or
document that a "good faith effort" has been made to do so. The bid
solicitation also contains the following statement:
"Failure to comply with the City's DBE program may result in a
bid being considered non-responsive to specifications.
Companies that complete the attached compliance statement and
supply the required supplemental information will have
complied in the bidding process with the City of Fort worth's
DBE program. The lowest responsive bidder meeting the DBE/ME
requirements will be awarded this bid."
During the City Council meeting on May 29, 1984, M&C P-1661 for the pur-
chase of diesel fuel for CITRAN will be considered. Based on ccmpliance
with the DBE requirements that were included in the bid solicitation,
the lowest responsive bidder is Allied Petro, Inc., a DBE firm.
Although there were lower bidders, they failed to make the assurances or
demonstrate the good faith effort required by the DOT and the City's DBE
policy. The UMTA Regional Administrator has been apprised of the City's
intention to recommend the contract award to Allied Petro, Inc. He
stated that this was the proper action to take and that the only other
choice available was to rebid the contract.
The City and CITRAN plan to continue to taking positive steps to
increase the level of DBE participation in DOT-assisted projects.
If additional information is needed, it will be supplied upon request.
( Robert L. Herchert
4 City Manager
RLH:jc
ISSUED BY THE CITY MANAGER — FORT WORTH, TEXAS