Professional Documents
Culture Documents
Local, Minority and Women Business Enterprise Purchasing .: Prograin
Local, Minority and Women Business Enterprise Purchasing .: Prograin
Local, Minority and Women Business Enterprise Purchasing .: Prograin
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Q. Local, Minority and Women
Business Enterprise Purchasing .
PrograIn J
Exhibit Q
CJ:TY OF OAELAND
-DRAFT
AND
:REDEVELOPKEHT ASDel'
LOCAL, lC:NOIU~Y AND WOKEN BUSINESS EBTERPRISE 'PtJRcnsms
PROGRDI
!I!:AlJLE OF co~mr;rs
Page
Objective 1
Def.initions .l.
XII. Goals ..
IV. Program 5
v. certification 6
n. Joint ventures 7
x. KonitoriDg .14
n. Emergency Work ~4
Protest Procedure 14
nne SUbstitution .1S
CIn OF OAlCLAlm
AIm
R.EDEVELQPdNT AGENCY
.HINcm.ln! "DXP and LOcu. lJUSJ:NlSS ENTBRPlUSE
.' .' PmicWIJtG . PROGIW!, :
I O:biective
To establish goals for the participation of ~ocal business
enterprise minority business enterprises .and women business
enterprises in the City of Oakland and Redevelopment Agency
purchasing contracts and to establish a prt;:)qram for the
achievement of the goals for projects $l.00,000 . and over.
%I pefinitions
1. Hinori:y group member - a person whp ·is B1ack, Hispanic,
Asian or Pacific Islander, or American :tndian or Alaskan
Nrt~e. . .
a) Black - a:Li persons having origins.. ~n any of the
Black'~~c~al groups of Africa .
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Revised 10/23/95
page 2
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~.. A local business must possess and make available
for inspec;tiol').·· dO'cumentation . citin;.. the Oakl.and
business st;-~·e.t address· as· fQll.ows:
Revised 10/23/95
Page 3
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(b) The bidder/proposer has a current and valid
certification permit from the Director of City
Planni;ng, as required by Oakland Zoning
Regulations section 7304;
(c) The bidder/proposer owns at least 50% of the
right, title and interest in the subject
residence and resides therein;
(d) The bidder/proposer owns at least 50% of the
right, title and interest in the business; and
(e) The residence is the primary business location
of the business and contributes not less than
5~% of the gross receipts of said business.
For purchasing contracts $lOO, 000 and over the City of Oakland
and Redevelopment Agency has established a Local Minority and
Wo~en Business Enterprise Participation Purchasing Program.
Revised 10/23/95
Page "
The Hinor~ty and Women Business Enterprise Purchasing
Program: e~tab;L~shes
.... . .. :,'
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the· .foll~wing:.· goal~ :
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Revised 10/23/95
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The local, minority or women business enterprise must perform
work or provide services and/or supplies and not lU~ely act as
a passive conduit.
Where a minority or women business enter-prise acts as broker
or aqent, only the commission or fee earned may be counted
towards the vendor qoals. 'l'his commission or fee will not be
. counted if the minority or women business enterprise performs
no substantive service.
In the event the city has reason to question the ownership of
a local, minority or women business enterprise, the burden of
proof is on the claimant and/or vendor to provide document-
ation to sUbstantiate the local, minority or women ownership
of the business. .
V certification
Local, minority and women bu~inesses Nust be certified prior
to submittal of a bid or proposal in order to receive credit
towards the achievement of the local, minority and women
goals. Firms must be certified by the City or an agency
approved by the City. .
'l'he city will use 49CFR Part 23 as the procedure for the
certification of ~ocal, minority and women businesses.
FirlUS intentionally. falsifying their status as a local,
minority or woman business will be debarred from bidding on
future city work for a period of three (3) years.
Leverage Buyout: in the event an individual(s) purchases an
existing business by incurring debt from the prior business
owner (i.e.,) the prior business owner sells the business to
local, m.inority or womel) individuals, which pays less than 50%
down and agrees to pay the l\)alance in insta~1ments or another
similar credit arranc;rement), the ownership interest of the
individual(s) cannot be subject to control or exercise of
discretion of the prier business owner. The prior business
owner's relationship to the local, minority or women
individuals, must be that of creditor, only.
As a creditor I the prior business. owner and the local,
minority or women individuals must enter into an agreement
whereby the local, minority or women individual makes an
unconditional, fixed and certain obligation to pay the prior
business on extended credit.
Revised 10/23/95
page 6
~h~ 'prior ~usiness owner must:
.~. Have 'noequitl" intere~·t. in' th~ new bus~ness othEir than
that of a creditor;
. 2. Sha11'have ne·rights to share in the profits ana losses
.of' the, newly. ~ormed bu.sines~;" . ,
3. . Shari have····no right;" to exer~ise' 'control .. of the newly
formed business; and
Shall not. eXtend any other service or item of value to
" the neWly formed' 'busin~ssr' ~less th~ m~nority' or women
individual(s}- compensat~s ,·the prior oWner Ior the fair
market . va'·lue· of such service. or .i t~m extended. For
example: . .
a) No sharing of eq~ipment or employees.
b) No rentinq of space or equipment.· at below fair
market value. ·
VI Joint veptures
When~ver a joint venture involves a business owned by local,
.......) ~Qrities or 'women, the vendor shall provide the City with a'
ful.l account of the' nature of ~e local, nnority or women
~wnersh~p interest, the basis for the creation of the joint
ventur$, . ~a the particular financial. participation and
administrative responsibi.lit;1es of the in~erested p·arties.
Such' joint· ·venture partnership o~, '. other mUlti-entity
relationship shall ensure that the participating business
owned by lQcal, minorities or women has a commensurate share
o.~ the prcfi~ o~. lOE?s' to be. ·realized from the joint venture.
Revised 10/23/95
page 7
l.. Purpose and length of the j oint venture i
2. Location of the joint venture office;
3. License of the joint venture (if required) ;
4. Name, ethnic and gender qroup of aJ.l joint venture
partnersj
5. Actual work to be performed by the joint venture
partners;
6. Management and control of the joint venture partners;
.
7. Responsibilities of the joint venture partners;
8. Capitalization of the joint venture partners;
9. Financial participation of the joint venture partners;
10. Profit and loss of the joint venture partners;
~l.. Compensation to the joint venture partners;
~2. Rental of equipment or space agreements for the joint
venture;
13. Bonding and insurance for the joint venture; and
~4. Dissolution of the joint venture.
Revised 10/23/95
Page 8
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a) , A, LBE/MBE/WBE is considered to be provicii.ng a
commercially useful function w~en it i~ responsible
• for execution 'of a distinct element of the work and
carries'· out 'it's responsibil~ti~s ,by actually
,perfopning, manaqing and/or supervisinq the work
'involved.' To determine whether.a ,~E/MBE/WBE is
.pe;rforminq ~ c~ercially useful function, 'the City
shall' evaluate 'the amount of, 'work ~~bcontracted.,
industry practices, and other rel~v~nt factors.
b) Consistent withnormal, industry. practices, a
LBE/MBE/WBE may enter into subcontr.acts. J:f a
LB:e:/~E/WBE subcontracts a significantly greater
portion 'or the work, of the contJ;'act., ~an, would be
expected o~ t~e b~sis of normal industry practices,
the LBE/MBE./WBE' shall, ,be, preswne~' not to be
providing a commerc~ally useful function. The LBE/
ImE/WEE may present' eviden.ce ~ t~, "reput this pre-
sumption tp the City. The City's decision on th~
rebuttal of this presumption is fin~l.
2. Payments to and women' 'owner operator of
minority
equ~pment ~i~l be credited 100% towards the achievement
of the MBE or WB~ goal but not both. 'rhe local, minority
or w~en owner-operator of equipment must own or be
purchasihg the equipment. Rental of equipment will not
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b~ considered as being owner-operated.
',Revised ~O/23/95
page 9
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b. For purposes of this section, a regular dealer is a
firm that owns, operates, or maintains a store,
warehouse or other establishment in which the
materials or supplies required for the performance
of the contract are bought, kept in stock, and
regularly sold to the public in the usual course of
business. To be a regular dealer, the firm must
engage in, as its principal business, and in its
own na~e, the purchase and sale of the products in
question. A regular dealer in such bulk items as
steel, cement, gravel, stone and petroleum products
need not keep such products in stock, if it owns or
operates distribution equipment. Brokers and
packages shall not be regarded as manufacturers or
regular dealers within the meaning of this section.
5. Ten percent (10%) of the amount paid to LBE/MBE/WBE
brokers as commission, may be counted towards the goals.
6. One hundred percent (~OO%) of the amount paid to
LBE/MBE/WBE trucking brokers will be counted towards the
goals if the broker has:
a) Signed agreements that all trucking wi~l be
performed by LBE/MBE/WEE truckers;
b) a licertified roster" showing that all truckers are
certified LBE/MBE/WBEi and
c) a' signed statement on a "certified roster" that
indicates that 100% of revenue paid by the broker
will be paid to LBE/iMBE/WSE truckers listed on the
II certified roster".
Revised 10/23/95
Page 10
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contractors must maint.ain the LBE/MBE/WBE percentages
indicated at time of contract award throughout the term of the
contract. This includes any increase of the contra.ct by
amenament or', change order.
Should . th~ vendor (s) 'fail to ,~aint.ain the·. do~lar amount for
LBE/MBE/WBE participation, the city may impose a penalty equal
to the·amcunt that should have been awarded to maintain the
part:i.cipat~6n' 'stated' in the ·bid. J:f the participation ~evel
stated.in the ~id is' less than the city qoals,. the vendor must
achieve the goals a's to the change' order 'or amenc1ments or·
demonstrat.e .a good f!1ith effort.
zx· .'Bid tt.ocess
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Revised ~O/23/95
Page 1·1 ~
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prefabricators an opportunity to participate in the work,
vendors shall notify local, minority ana women suppl.ier
associations or clearinghouses of their supply or
prefabrication needs at least two (2) weeks prior to the bid
opening. Such notification shall be by registered or
certified mail.
1. Bid Opening - Vendors must submit with their bid a
listing of all LBE/MBE/WBEs that will be utilized on the
project. Vend-ors must list the respective doll.ar amounts
for LBE/MBE/WBEs. LBE/MBE/WBBs must be certified prior
to submittal of the bid in order for credit to be applied
towards the goals. In addition to any other documents
required by the bid specifications, the vendor shall
submit the List of vendors (Exhibit B).
2. Vendors must submit with their bid an Affidavit of Non-
Disciplinary or Investigatory Action form attesting that
no adverse action has been taken against them by Equal
Employment opportunity commission (EEOC), state of
California Department of Fair Employment and Housing
(DFEH) or the u.s. Department of Labor Contract
Compliance Program (OFCCP) or to provide an explanation
for any such actions, except where legal action is
pending (Exhibit C).
3. Pre-award Meeting - The City will review the three lowest
bidders to determine whether or not the goals have been
achieved or documentation of a good faith effort has been
made by the bidders. The three apparent low bidders will
be required to attend a pre~award meeting to determine
compliance with the Local, Minority and Women Business
Enterprise Purchasing Program. The bidders shall provide
the city with the bid doc~ents or price quotes received
from the three lowest bids received from vendors,
suppliers, truckers, and owner-operator of equipment to
be used on the project. This list should include name,
address, telephone number, trade, contact person(s) and
the total dollar amount of the subcontract.. The vendor
shall also indicate the businesses claiming to be owned
by local, minorities or women.·
If the vendor bas not achieved the goals for local, minority
and women business enterprise participation, the city shall
determine whether the vendor made a good faith effort to
achieve the goals. This will be done by reviewing the
docu~entation sub.mi~ted by the vendor.
Revised 10/23/95
Page 1.2
The vendor shall. nQtify LBE/MBE/WBE :Qusinesses of thei.r intent '
.to solicit participat~on from the~e qroups.~t ~east two (2)
week~:.prior :to the suDmittal··of a bid. . , ' '.' ....
Revised 10/23/95
Paqe 13
Revised 10/23/95
Page .14
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5. When the MBE/WBE/LBE fails or refuses to met contract
insurance requirements; or
6. When the city or the duly authorized officer determines
that the work performed by the MBE/WBE/LBE is substant-
ially unsatisfactory,. or not in accordance with the
contract agreement, or that the MBE/WBE/LBE is
substantially unsatisfactory, for not in accordance with
the contract agreement, or that the MBE/WBE/LBE
substantially aelaying or disrupting the progress of the
work.
Prior to the approval of the prime consultant's request for a
substitution,the city shall give notice in writing, to the
MBE/WBE/LBE of the prime consultants's request for a
substitution and/or the reason for such request. Such notice
shall be served by certified or registered mail to the last
known address of the MBE/WB~/LBE. The listed MBE/WBE/LBE who
has been so notified shall have five working days in which to
submit written objections to the substitu~ion to the City.
Failure to file such written objections shall constitute the
MBE/WBE/LBE consent to the substitution.
If written objections are filed, the City shall give notice in
writing of at least five working days to the MBE/WBE/LBE of
the hearing by the city on the prime vendor request of the
substitution.
xrv Non-compliance
Should the prime vendor fail to maintain the stated dollar
amounts of award of any listed vendor, the city may impose a
penalty equal to the dollar amount of the vendor's ~mount.
In addition, failure to comply with these provisions will
result in a monetary penalty of ~% or $1,000 per day of the
contract, which ever is less and shall be deemed a material
breach of the contract of which termination of contract may
result. In addition, the prime vendor or subvendor may be
debarred from participating on future City and Redevelopment
Agency contracts for ~ period of up to one (1) year.
xv program Review
The Local, Minority and Women Business Enterprise Purchasing
Program will be periodically reviewed by the Ci ty Manager.
Changes in the program which are required to effectively
administer the program may be made by the City Manager. A
quarterly review of all Local, Minority and Women Business
Enterprise Purchasing Program contracts will be provided to
the city Council.
Revised lO/23/95
Page 1.6
t.X1I1 U I L n
SMALL IlUSIN llZE sTAtlDARDS DE soA
Small II lis avarage annual ocalpls lor lhe 1051 3 yoeredo nof e,coed $1 T million.
Small·II lis average annual recolpla lor precoedlng 3 IIscel yeine"do nol a,ceed $1"4 minion.
I
;;~;;:~~II:;rada Conlraclors Nol Elsewhare Class iliad
Sla.1 "Eracllon .
Laundry SelvlClle (lncluda. Unan eupply, dlap,,"r .arvlces,
Industrial laundaring) " '
Ilia. Marbla & MosalcWork Molorcar Renlal .\ Laaslng 'Sarvlces (Includ.s; huck
Well D'"l1ng' - & leasing servlCtlG) -:
IW',""kln,n & Dam 0111 on WOlk Ssrvl"". - GanGral(any sarvle.. nol spacilically donned
SBA ragulaUons. '
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t-
Sub llstlr nnlVendor
\
Revll tOIl 8196
Exhibit C
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I certi£y that the' rioe, DFEH or the OFCCP has not -taken aqa.j.nst
disciplinary or investiqatcry .action aqainst ~B - Fil:m. tt ~ such
action nas- been taken, attached hereto is a detalled. exp1anatiam ot,
the reason for 'such a-cticn, the part:y institutiilq- such action and'
the status- or outc,ome of such acticn. , -
I dec~are under penalty of perjurY that the foreqoinq is true and
ca~ect to the best of my knowleaqe.
signature Date
(Name of Firm)"
(street Ad.dress)
~ctary Public
My cammission expires
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PROGRESS PAYMENT FORM
FOR
Exhibit 0
SUS-VENDORS
Phone Numbar
Compliance Offtcer _ _ _ _ _ _ _ __
Vendor
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Under penalty of perjury the undersigned agr8~s tha1 the foregoing information Is true and correct.