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GFE Info Session Presentation - July 2019Good Faith Effort Contractor Session (Construction Contracts) – July 10, 2019 AGENDA •Welcome •Pre-Award GFE •Post Award GFE •Workforce Utilization GFE •GFE and Final Evaluations •Q&A 2 Pre -Award Good Faith Efforts •Minimum requirements (Sections a – f in policy guidelines) to demonstrates all opportunities for inclusion of M/WBE participation have been exhausted. •All efforts undertaken must demonstrate specific targeting of M/WBE firms that are “ready, willing and able” to provide goods or services. •Any and all information submitted as validation of “good faith effort” activities will be subject to evaluation and verification. When Is GFE Needed? –“Good Faith Efforts” when bidder cannot fully meet M/WBE utilization goals. –“Good Faith Efforts” are documented and submitted at the time of bid. –MSD Form B is required to be submitted for GFE. Good Faith Efforts At Bid Time Guideline Minimum Requirements a.Minimum of 2 Advertisements b.Outreach c.Host Pre-Bid Meeting d.Written Correspondence/Notifications e.Contracting in Good Faith with M/WBE’s f.Justification Statement Pre -Award M/WBE GFE Section a A minimum of two (2) advertisements meeting the following requirements: •Bidder must provide documented proof of advertising; must be targeted within locally distributed media so as to reach certified M/WBE’s – Copies of the advertisement with verifiable publication date or publication affidavits •Advertisements must be published at least fourteen (14) days prior to the bid due date. –Advertising Examples: local or regional minority trade association publications or newsletters, minority-owned media specifically targeted to MSD’s service area, minority contractor associations, local community based publications located within the MSD service area, etc. •Must solicit for specific services and/or scopes that will serve a “commercial useful function” •Only one (1) advertisement can satisfy the requirement identified in section “c” for purposes of hosting a pre-bid meeting Pre -Award M/WBE GFE Section b Minimum outreach requirements to reach potential M/WBE’s for specific work being sought for the project: •MSD’s Supplier Diversity Website (www.stlmsd.com) provides direct links to the acceptable certifying agencies. –City of St Louis Lambert MBE/WBE –State of Missouri OEO •Provide proof contact with two (2) Professional or advocacy organizations each of which has capabilities to assist with the identification of potential certified M/WBE’s for subcontracting opportunities. Pre -Award M/WBE GFE Section c Host a Pre-Bid Meeting –Bidder must provide: –Pre-Bid Agenda with sign in sheets containing M/WBE’s contact information and signatures –Must be submitted with bidder’s “good faith effort” documentation –Required to Include available scopes/services, date and time of Pre-Bid in the advertisement for the Pre-Bid •Allows for local Construction Contractor Associations or the equivalent to advertise separately for a single Pre-Bid meeting location for multiple Bidders –Each Bidder is required to submit the following GFE documentation with their bid for Section c: –Sign in sheet showing their attendance –Sign in sheet must document attendance of M/WBE’s –Pre-Bid Agenda and scopes/services covered for the participation of M/WBE’s •This will only satisfy one (1) advertisement requirement for good faith efforts as stated in item a.6. in the policy guideline. Pre -Award M/WBE GFE Section d Written Correspondence and Notifications •Bidder to provide verifiable documented efforts to solicit bids and/or material quotes from qualified M/WBE’s with the following: –Valid confirmation receipt date or postmark a minimum of fourteen (14) calendar days prior to bid opening. Solicitations may be sent using the following methods with required proof submitted with good faith effort documentation: –Registered or certified mail with a returned receipt required (postmarked and signed) with a copy of the correspondence provided to the District; or –E-mailed notifications with acknowledgement by recipient or confirmation via returned “read” receipts, with a copy of the correspondence provided to the District; or –Faxed documentation with acknowledgement by recipient or confirmation receipts, with a copy of the correspondence provided to the District; or –Courier with proof of the M/WBE’s acceptance signature, with a copy of the correspondence provided to the District. •Verifiable proof of all such notifications must be submitted as confirmation of the bidder’s due diligence to secure qualified minority participants within MSD’s service area. Pre -Award M/WBE GFE Section d (continued) Bidder shall provide the source listing of M/WBE’s that was used to solicit bids. Bidder must attempt to contact an adequate number of certified M/WBE’s. MSD’s website (www.stlmsd.com) provides links to approved certifying agency’s database. The below example provides an example of relevant number of work categories, as designated in the following table: Number of M/WBE’s in Relevant Work Category Minimum Number of M/WBE’s Contacted Based on Sourced Listing used to Solicit Bids Five or Less All Available M/WBE’s Six to 10 At Least Five M/WBE’s 11 or More At Least 50% of Available M/WBE’s 50 8 5 5 5 25 Table Example Pre -Award M/WBE GFE Section e Contracting in Good Faith with M/WBEs •Bidder’s responsibility to specifically identify sufficient portions of the project work that would result in attainment of the goal. •Bidder responsible to make portions of work consistent with providing commercially useful M/WBE participation. •When sufficient participation is unavailable, acceptable justification must be provided. Bidder should use good business judgment •Good faith efforts include all efforts taken to do business with M/WBE’s i.e., negotiations, one-on-one meetings, etc. •Self performing work does not relieve the bidder of the responsibility to comply with Diversity Programs. •MSD has the right to request additional clarifications as to the determining factors for not utilizing MWBE’s. Pre -Award M/WBE GFE Section f Requires Justification Statement specifically stating all details of why the bidder could not attain the goals. •The District makes a final determination of whether or not a bidder met the requirements to be responsive based on: 1.Bidder’s actions performed for items C.4., a-f 2.Submission of verifiable documentation for paragraphs a-f Post Award GFE When is Good Faith Efforts Required after contract award? •Non utilization of M/WBE subcontractor listed on MSD Form A •Shortfalls of meeting commitments to M/WBE subcontractors listed on form A •Non-Compliance •Failure to meet workforce goals Acceptable Changed Conditions Changes to the Prime Contractor’s original or previously approved M/WBE utilization (MSD Form A) will only be considered by the District for one of the following reasons: 1.The M/WBE subcontractor is unable to meet the delivery requirements of the contract schedule. 2.The named M/WBE subcontractor is negligent in complying with the requirements of the contract documents. 3.The named M/WBE subcontractor is prevented from performing due to bankruptcy, insolvency or circumstances related to the failure of the business. 4.The type and amount of work to be performed by the M/WBE subcontractor is less than what the contractor could have reasonably assumed at the time of the bid. Post Award GFE The Prime contractor must promptly report and provide written justification/documentation to MSD Minimum Good Faith Effort documentation includes the following: •Written statement from M/WBE subcontractor regarding shortfall •Notification of alternate M/WBE subcontractor to be utilized •Completed Add New Subcontractor form (if applicable) •If unable to secure alternative M/WBE subcontractor , documented proof of all “good faith efforts” undertaken to replace the M/WBE participation Post Award (Trucking GFE) Compliance Validation for the utilization of hauling, trucking, or any delivery of material •Contractors may be required to submit Trucking Reports to validate participation amounts to be credited towards meeting goal for the following: 1)Subcontractor lacks capacity to solely fulfill the full scope of contracted participation for the project; 2)Non-compliance activities observed during project compliance field monitoring •Non-certified subcontractors at any tier level will not count towards meeting goals •All tiers of M/WBE subcontractors are required to “substitute or replace” participation only to other certified M/WBE subcontractors providing the same services Workforce Utilization GFE Document proof of contact with the identified and other resources is required when workforce goals are not being met –MSD’s Bud Training Program (SLATE); –MSD’s First Source Hiring Program; –Union affiliates (if applicable); –Affiliated labor providers of trades utilized on MSD projects Compliance With Diversity Programs •Successful utilization of the M/WBE subcontractors proposed on Form A; •Satisfaction of applicable workforce utilization goal requirements; •Any deviations from contractor’s originally approved M/WBEs, requires the Prime to have an approved change order and/or appropriate justification documentation; •Final contract payments will not be approved without all of the required documentation. The Role GFE Play in Final Evaluation of Contracts Sequence of Events for Final Evaluation of Goal Attainment •Final Payment Request Submitted •Diversity Performs Final Evaluation –Assess attainment of Vendor and Workforce (if applicable) Goals –Any shortfalls or Non Utilization unaccounted for? If yes… •Review GFE’s Thank You! Questions MSD