RESO 1981-15(B) - MBE ProgramRESOLUTION NO. 81 -15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
TEXAS, ADOPTING A MINORITY BUSINESS ENTERPRISE PROGRAM
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that:
Section 1: The Minority Business Enterprise Program of the City of Huntsville,
Texas, attached hereto as Exhibit "A ", and made a part hereof for all
intents and purposes, is hereby adopted and made policy of the City.
Section 2: The City Manager is hereby authorized to implement the Minority
Business Enterprise Program. The City Manager is directed to forward
this document to the Federal Aviation Administration to complete its
application for grant assistance.
Section 3: Council hereby finds that this action must be taken immediately
in order to qualify for federal funding of airport improvements.
Section 4: This resolution shall take effect immediatley upon its adoption
by City Council.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
on this the 1 st day of September, A.D. 1981.
THE CITY OF HUNTSVILLE, TEXAS
By
ATTEST:
APPROVED AS TO FORP1:
Sterti
Scott Bounds, City Attorney
William V. Nash, Mayor
CITY OF HUNTSVILLE, TEXAS, MBE PROGRAM
I. The Minority Business Enterprise (MBE) proaram to follow is being sub-
mitted to the U. S. Department of Transportation (DOT) by the City in
satisfaction of requirements set forth in the DOT MBE regulations (49
CFR Part 23).
II. Each DOT financial assistance agreement shall include the following:
"If as a condition of assistance the recipient has submitted and the
Department has approved a minority business enterprise affirmative
action program which the recipient agrees to carry out, this program
is incorporated into this financial assistance agreement by reference.
This program shall be treated as a legal obligation and failure to
carry out its terms shall be treated as a violation of this financial
assistance agreement. Upon notification to the recipient of its fail-
ure to carry out the approved program the Department shall impose such
sanctions as noted in 49 CFR Part 23, Subpart E, which sanctions may
include termination of the agreement or other measures that may affect
the ability of the recipient to obtain future DOT financial assistance."
III. LAISON OFFICER. The Director of Community Development (Robert W. Smith)
shall serve as the City's MBE Laison Officer. The Laison Officer may
be contacted at City Hall, 1212 Avenue M, Huntsville, Texas 77340,
(713)295 - 6471, Monday through Friday (except Holidays) between 8:00 A.M.
and 5:00 P.M. The MBE Laison Officer shall be responsible for coordin-
ation of financial, legal, engineering and purchasing functions per-
taining to MBE matters. The Laison Officer shall be responsible for
administration and implementation of the goals and objectives contained
in this MBE program.
IV. The City further agrees to adopt the following program elements and
reporting procedures:
MBE PROGRAM ELEMENTS
49 CFR Part 23 sets forth certain required MBE program elements in
§ 23.43 and § 23.45(e) -(i), to be applicable to activities carried out
by the City. The City agrees to include the following clauses in each
procurement initiated directly by it, and to adopt the following pro-
gram elements:
A. Required MBE contract clauses:
1. Policy. It is the policy of the Department of Transportation
that minority business enterprises as defined in 49 CFR Part 23
shall have the maximum opportunity to participate in the per-
formance of contracts financed in whole or in part with Federal
funds under this agreement. Consequently the MBE requirements
of 49 CFR Part 23 apply to this agreement.
2. MBE Obligation. The recipient or its contractor agrees to en-
sure that minority business enterprises as defined in 49 CFR
Part 23 have the maximum opportunity to participate in the
performance of contracts and subcontracts financed in whole or
in part with Federal funds provided under this agreement. In
this regard all recipients or contractors shall take all neces-
sary and reasonable steps in accordance with 49 CFR Part 23
to ensure that minority business enterprises have the maximum
opportunity to compete for and perform contracts. Recipients
and their contractors shall not discriminate on the basis of
race, color, national origin, or sex in the award and perform-
ance of DOT- assisted contracts.
B. MBE Director C§ 23.45(e)] : The City will develop a loose -leaf di-
rectory of minority businesses to identify MBEs with capabilities
relevant to construction of airport improvements. The information
contained in the MBE source list or directory shall be made available
to contractors, bidders, and proposers to facilitate their efforts
to meet the specific MBE program requirements if opportunities for
private sector contracting or purchasing exist.
C. Procedures to ascertain the eligibility of MBEs and joint ventures
involving MBEs C23.45(f)J:
1. The City will ensure that any benefits resulting from the goal -
oriented MBE program accrue only to firms owned and controlled
by minorities or women within the meaning of 49 CFR Part 23,
§ 23.5.
2. The City agrees to certify MBEs in accordance with the require-
ments of 49 CFR Part 23, Schedule(s) A & B upon receipt of noti-
fication by it that the Office of Management and Budget (OMB)
has approved the format under the provisions of OMB Circular
A -40. The City may accept certifications previously accepted
by other DOT operating elements.
3. The City will ensure that the certification systems are at least
as effective as procedures prescribed in 49 CFR Part 23, § 23.51.
4. The City will when possible replace a MBE subcontractor that is
unable to perform successfully with another MBE. The City will
approve all substitutions of MBE subcontractors before bid open-
ing and during contract performance, to ensure the substitution
of bona fide MBEs.
D. Percentage goals for the dollar value of work to be awarded to MBEs
L§ 23.45(g )] :
1. Each fiscal year, the City will review its various Programs so
as to identify those proposed contracts having potential for
MBE participation and set an overall goal for MBE participation
within the generated activities to be carried out and goods to
be purchased. The overall MBE goal shall include a separate goal
for firms owned and controlled by minorities, and a goal for firms
owned and controlled by women. The City's overall goal for minority -
owned and women -owned firms for FY 1981 is 14 %. These percentages
are based upon the total dollar value of contracts with, and goods
purchased from, the private sector.
2. Contract goals will be negotiated where MBE subcontracting oppor-
tunities have been identified. The goal(s) will be expressed as
a percent of the total dollar amount of the contract. The City
will meet or exceed the goal(s) or be prepared to demonstrate
that best efforts were expended so as to accomplish the MBE
obligation.
3. The overall goal will be based on a review of the availability
of MBEs located within at least the usual market area for con-
tractors and vendors. The overall goal will reflect the results
that reasonably could be expected as a consequence of aggressive
efforts to implement the MBE program.
4. The OMB Circular A -95 Clearinghouse review shall suffice as the
goal- related 45 -day comment period required by § 23.45(g).
E. Procedures to re•ui
re that •articisatin• MBEs are identified
y competitors for contracts. - 7
The City will require prime contractors to submit the names of any
MBE subcontractor(s), their respective scope of work, and the dollar
value of the proposed MBE subcontract(s) within a reasonable time
within the circumstances of each solicitation after bid opening(s)
and prior to the actual contract award.
V. Selection criteria to ensure that prime contracts are awarded to competitors
that meet MBE goals C§ 23.45(i))
A. The City contracting activities incorporate procedures whereby bids
will be reviewed to determine whether the lowest bidder meeting the
MBE contract goal is within the zone of competition as to price for
the contract.
If the City determines that this competitor has offered a reasonable
price, the firm shall be awarded the contract. If the bidder's
price is not reasonable, the competitor with the next highest per-
centage of MBE participation shall be considered and so on, in order
of their percentage of MBE participation until one with a reasonable
b name
price is selected. In the event no bidder with MBE participation
has offered a reasonable price, then the City may elect to award
the contract to any bidder or offeror that demonstrated a reason-
able effort to meet the MBE contract goal.
C. The City will consider steps, including but not limited to the
following, as to determining whether reasonable efforts were made
to meet MBE contract goals:
1. Attendance at a pre -bid meeting, if any, scheduled by the re-
cipient to inform MBEs of subcontracting opportunities under
solicitation;
2. Advertisement in general circulation media, trade association
publications, and minority -focus media for 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 MBEs that their interest in the contract
is solicited;
4. Efforts made to select portions of the work proposed to be per-
formed by MBEs in order to increase the likelihood of achieving
the stated goal;
5. Efforts to negotiate with MBEs for specific bids for subcontracts
including at a minimum:
a. The names, addresses, and telephone numbers of MBEs that
were contacted;
b. A description of the information provided to MBEs regarding
the plans and specifications for portions of the work to
be performed; and
c. A statement of why additional agreements with MBEs were
not reached;
6. Concerning each MBE the competitor contacted but rejected as
unqualified, the reasons for the competitor's conclusion; and
7. Effort made to assist the MBEs contacted that needed assistance
in obtaining bonding or insurance required by the contractor
or recipient.
D. Bidders, proposers, offerors, that fail to meet the foregoing "reason-
able efforts" test, will not be certified as eligible to be awarded
the federally- assisted contract.
E. The City will ensure that all obligations under MBE contracts are
met, by reviewing the contractor's MBE involvement efforts during
the life of the contract.
VI. Reporting Procedures
A. The City will maintain records on specific contract awards to MBEs
in a format and frequency to be prescribed by DOT.
B. The minimum MBE data elements to be maintained are as follows:
1. The number of contracts awarded by MBE;
2. A description of the contract(s) awarded to MBEs;
3. The dollar value of MBE contract awards;
4. The percentage of the dollar value of all contracts awarded
to the private sector that were awarded to MBEs; and
5. An appraisal of the extent to which the MBE awards met or ex-
ceeded the MBE goal.
VII. This program is offered in consideration of and for the purpose of ob-
taining any and all Federal grants, loans, contracts, property, discounts
or other Federal financial assistance extended after the date hereof to
the City by the Department of Transportation and is binding on it, other
recipients, subgrantees, contractors, subcontractors, transferees, suc-
cessors in interest and other participants.
Attachments:
Department of Transportation Regulations
ty Manager, City of Huntsville