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METROPOLITAN ST. LOUIS SEWER DISTRICT
BUSINESS DIVERSITY
MBE Utilization and Workforce Program
Building Construction Projects
Effective September 1, 2017
PURPOSE
The Metropolitan S t. Louis Sewer District (MSD or District) will provide opport unities for the meaningful
participation by Minority Business Enterprises (MBE ) and for minority and women workforce on Building
Construction Pro jects performed for the District.
The Purpose of this procedure is to establish guidelines for compliance with the Diversity Program
for MBE participation by applicable vendors, bidders, contractors, service providers and any person,
corporation, business, or other e ntity performing a Commercially Useful Function (CUF) whi le doing business
with the District on Building Construction Projects. This procedure also establishes guidelines for workforce
participation compliance.
MBE UTILIZATION
Certified MBE’s participating on an MSD contract, regardless of the procurement type, are required to perform a
Commercially Useful Function (CUF) in fulfillment of a n awarded contract. Certified MBE’s listed for performance
on any contract to meet MBE goals are subject to all conditions of compliance monitoring throughout the duration
of the contract.
The purpose of CUF r equirements is t o ensure that Primes perform their due diligence to utilize MBE
firms that are ready, willing and able to perform specific work for which they are qualified , certified and
authorized to perform, a ccording to the terms a nd conditions as set forth in the contract. Work performed by
an MBE on MSD contracts must be consistent with industry practices and other relevant conside rations and has
a necessary and useful role in the transaction (i.e., the firm’s role cannot be a superfluous step added to a project
in a n attempt to obtain credit towards meeting MBE goa l requirements). CUF requirements also exist to prevent,
to the extent possible, MBEs from being utilized as a “pass through” or “front” for a prime contractor or
another subcontractor. A commercia lly useful function occurs when the MBE firm has the sole responsibility for
execution of the specified scope identified in their contract and performs responsibly by managing and
supervising all aspects of the work involved with respect to ordering all materials, equipment, supplies,
negotiating price, determining quality a nd quantity, installing (where applicable), and payment for its own
materials, supplies, equipment and labor without requirements for two-party payments. If in the District’s
judgment, the MBE (even if certified) does not perform a commercially useful function in performance of a the
scope of work specified in the contract, the Prime credit towards meeting stated MBE goals will not be
counted. When a MBE firm is the manufacturer of materials provided for performance on the contract, or the
MBE firm is provid ing labor in performance of a scope of services that is a necessary requirement for the
contract, the MBE firm will genera lly be considered as CUF, however all labor must be tied to a specific project
scope identified on MSD Form A .
Special Provision for Acceptance of Two-Party Checks (Only for Joint Check Payment of Fringe Benefits)
The following provision only allows for Primes to make joint payments (two-party check made payable to an MBE
firm and a third party benefit provider) for fringe benefits (pension, welfare, vacation, training, or other fringe
benefit) that are due to benefit providers while employees are performing work on an MSD contracted job if the
subcontractor is in an arrears status at the time of contract award, has been in an arre ar status at any time within
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the most recent 24 month period, or becomes in arrears prior to completion of their portion of the contract work
during the project with any of their payments of fringe benefits. The District must receive written n otice signed by
the MBE firm, Prime and third party benefit provider of the arrangement prior to the start of work or when such
agreement is made necessary by failure of subcontractor to pay benefits during the course of the subcontract . Prime
contractors would receive full credit for the two-party payments with submission of copies of the paid checks (front
and back) as verification of the payment and validation list of employees for which the payments are made with
final validation (via submitted certified payrolls) that these employees worked on the MSD project. The third party
benefit provider shall also agree not to seek garnishment of any payments owed by the contractor to the
subcontractor for this project.
A. MBE Subcontracting Requirements
1. The Metropolita n St. Louis Sewer District (District) has established a subcontracting MBE (African
American and/or Hispanic American ) goal of 30.00% utilization for Building Construction contracts in
the amount of $50,000 or more. Exceptions will be noted in the contract documents, when required.
2. A bidder who has achieved the 30.00 % participation for MBE utilization as d efined herein will be in
compliance with the re quirements of this specifica tion. A bidder who cannot achieve the 30.00% MBE
(African American and/or Hispanic American utilization goal must provide all proof via documentation,
as prescribed in para graph C.4. to demonstrate that good faith efforts were initiated and performed prior
to bid submittal consisting of efforts undertaken to achieve the MBE goal. If in the sole judgment
of the District, t he bidder does not demonstrate suff icient evidence that good faith efforts were
performed, the bid will be rejected as non- responsive.
3. The term Minority Business Enterprises (MBE) refers to:
A Minor ity Business Ente rprise (MBE) is defined as a business that is at least 51% owned, operated and
controlled by a minority or minority group me mbers, who are citizens of the United States. “Controlled”
mea ns that the minority owner(s) must exercise actual day-to-day management of the business. For this
procedure t he only minority groups that will count towards meeting goals for MBE vendor utilization are
certified African American and/or Hispanic American .
4. As prospective MBE participants on this project, MSD will only accept those MBE firms possessing a current
valid certification issued by an approved certifying agency at the time of bid. The MBE ’s certification issued
by an approved certifying agency must iden tify the MBE’s certification with a valid North American Industry
Classification System (NAICS) code indicating the type of service and/or materials for which they are
proposing to be utilized as a subcontractor by at least one or more of the following agencies on or before the
date of the bid opening:
Missouri State Office of Equal Opportuni ty
City of St. Louis
St. Louis Minority Business Council *(Through December 31, 2017)
*Note: Effective January 1, 2018, MSD will no longer accept MBE certifications issued by the St. Louis
Minority Business Council (SLMBC). MSD does not accept reciprocity certifications issued by other
certifying agencies. For all bids advertised after January 1, 2018, in order for participation to be
counted towards Diversity Program requirements, the MBE must be certified by one of the acceptable
certifying agencies at the time the bid becomes due.
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5. MBE Subcontractor Advance Payments
An amount will be paid to the Prime contractor for the purpose of making advance payment to eligible
subcontractors in anticipation of the subcontractor’s mobilization to the jobsite. Payment to MBE
subcontractors shall only apply to subcontractors in the category of “Material/Supplies incl uding Labor or
Installation” and/or “Service Provider/Installer” as listed on MSD Form A at the time of Bid, and as
confirmed by the District. Please refer to the General Conditions or Project Technical Specifications for
additional Advance Payment informa tion.
B. Pre-Contract Award Obligations:
1. For bids that do not meet the MBE participation goal, a properly signed bid must certify that the bidder has
undertaken the good fait h efforts described in this MBE guideline procedure to achieve the stated goal for
M BE participa tion. For all other bidders, it is mandatory for each bidder to submit MSD Form A with their
bid for consideration of MBE subcontractors to be utilized to fulfill goal requirements. All other MBE
participation information including but not limited to attachments to For m A, Form B, and all attachments
and information required to demonstrate good fait h efforts (if needed) must also be submitted to MSD with
the original bid at the due date a nd time specified. Failure to submit any of the required information (on
MSD Form A, MSD Form B, or for “Good Faith Efforts”) will result in the bid being rejected as non-
responsive.
2. To establish a bid as responsive, the bidder must document on MSD Form A the proposed utilization
and tier level of participation of all MBE participants to be utilized for achievement of the stat ed goals,
and/or docume nt on MSD Form B the good faith efforts expended by the bidder to utilize MBE
participants. The documentation requirements are outlined in C.4, a-f below. For the purpose of determining
the degree of goal attainment through M BE subcontractor joint ventures, MBE subcontractors, MBE
ma nufacturers, MBE distributors, MBE suppliers, and MBE brokers, the following methodology will be
utilized:
a. Any Joint V enture S ubcontractor consisting of a certified MBE and majority non-certified business
enterprise, but functioning as a singular joint entity, w ill receive MBE participation credit only for the
MBE’s participation based upon a percentage of the dollar amount of the work performed by the MBE
entity. Only the verifiable dollar amount as defined in paragraphs c. thru h. below will be allowed to
count towards MBE participation goals.
b. MSD allows Mentor/Protégé relationships consisting of a certified MBE and majority non-certified
business enterprise; however, participation credit will be based solely on the Commercial Useful Function
activities performed by the MWBE subcontractor. Only the verifiable dollar amount as defined in
para graphs B.4 – B.6 below will be allowed to count towards MWBE participation goals.
c. All bidders including certified Prime M BE’s must achieve the required 30.00% MBE (African
American and/or Hispanic American) subcontract utilization goal by obtaining the additional
participation from certified MBE’s.
d. A contractor or subcontractor who has an ownership stake (at any level) in another business entity
(whether a s a parent or subsidiary) may not use that organization for purposes of meeting goal
requirements in a subcontracting capacity on a MSD project. MBE participation must be
obtained through utilization of a n independe nt, certified MBE (African American) contractor with no
ownership affiliation to the contractor or subcontractors in the hiring capacity.
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3. Bidders will be credited 100% for qualified MBE participation of the dollar amount for purchases made from
certified MBE (Africa n Ame rica n) subcontractors for work performed at the jobsite, but may include limited
situations where the sub-contracting activity relative to the work being performed on the contract is
performed at a n off-site location but meets the CUF needs of the project (i.e. reinforcing steel mats tied at a
yard and then shipped to the jobsite, painting of structural steel, etc.), subject to approval by MSD’s Diversity
Division.
4. Any bidder will be credited with MBE participation for 100% of the dollar amount of purchases made from:
MBE manufacturers who opera te or maintain a facility and/or establishment with a manufacturing
business that produces on site materials, supplies, items and/or equipment per specification
documents; or
MBE distributors/suppliers contracted with a manufacturer to distribute products and who
will in fact provide qualified installation services of the manufactured or distributed
supplies/materials for which they are authorized to sell or distribute.
The MBE distributor /supplier must be engaged in marketing, sales, warehousing, distribution, and
delivery for the manufacturing entity.
MBE participation propos ed under this category shall require the following attachments to Form A:
o Evidence that the MBE is certified within the identified manufacturing industry;
o Product specifications; MBE’s location of ma nufacturing operations;
o Address of MBE’s product marketing, sales, warehouse, distribution; and
o Evidence of MBE’s proposed installation services on the contract.
5. Any bidder will be credited with MBE participation of 20.0% of the dollar amount of purchases made from:
MBE distributors and/or suppliers possessing a manufacturer’s contract or agreement and
engaged in the sales, warehousing, and distribution of materials and/or supplies.
MBE participation pr oposed under this category shall require as an attachment to Form A
identification of the address where the sales, warehousing, and distribution activities occur.
6. Any bidder will be credited with MBE participation of 3.0% of the dollar amount of purchases made from:
MBE providers of material s and supplies who act as a broker or dealer and who do not satisfy the
requirements for a ny of the a bove categories must be certified as a broker or dealer in accordance
with the requirements of and by one of the acceptable agencies listed in paragraph A.4. above.
7. A MBE subcontractor may be used for participation at any tier provided the bidder identifies the
“tier” level of utilization for the subcontractor on MSD Form A. All MBE certifications are verified during bid
evaluation that the MBE listed on Form A is certified and is in good standing with an acceptable Certifying
Agency. For new MBE subcontractors that have not previously worked on MSD projects, or MBE’s proposing
to perform a new scope not previously performed on a MSD project, MSD requires MBE to have a valid
certification with the NAICS applicable to the proposed scope to be provided by the MBE subcontractor.
8. Any non-certified MBE subcontractor at any tier level will not count towards meeting a bidder’s MBE
participation goals. Therefore, all tiers of MBE subcontractors are required to “substitute or replace”
subcontractor participation onl y to other certified MBE subcontractors providing the same services in order
to be counted towards meeting the MBE participation goals. Any deviation from this requires immediate
notifica tion to and approval by the District.
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C. Evaluation of Goal Achieve ment
1. As a prerequisite, to demonstrate MBE goal achievement, the bidder must provide the following
documentation with their bid:
NOTE: MS D Form A must be used for this purpose. Failure to provide Form A with bid will result in a
“Non-Responsive” determination for that bid .
a. List the name of the Prime contractor;
b. List the name of the certified MBE, Certification Agency and Ethnicity of the MBE;
c. Indicate the tier level of participation for ea ch MBE;
d. Identification of MBE’s participation tier level and eligibility for Advance Payment by checking the
appropriate box indicating the percentage of participation for each MBE to be credited towards meeting
MBE participation goal and to establish the MBE has a Commercially Useful Function on the project;
e. Complete a description of materials/Service/Scope of Work for each MBE;
f. List the total amount for each MBE’s participation in each MBE’s section;
g. List the Subcontracting Total at the bottom of each Form A (use additional sheets if needed) to capture all
participation for the bid.
2. For evaluation of bids, MSD reserves the right to request clarifications, conduct on-site interviews and/or
inspections of the MBE’s listed on Form A at their place of business for purposes of verifying certification
information presented at the time of bid and to determine if the MBE’s business is in compliance
with MSD’s guidelines for MBE participation on the MSD project.
3. MSD reserves the right to not count dollar amounts presented on Form A to meet participation goals at the time
of bid, if a bidder, at the request of MSD during the evaluation of a bid: 1) fails to validate or provide evidence
that the MBE will perform a “Commercially Useful Function” on the project; or 2) fails to validate that the MBE is
certified at the time of bid to provide the scope identified for the MBE on Form A. Based on the results of the bid
evaluation, in the event there is a reduction or change in any dollar amounts for any MBE listed on Form A, the
amount used to calculate a bidder’s final total amount of participation will be reflected in the final dollar and
percentages and will determine if the goal was attained. Please note that reductions in the amounts listed on
Form A could result in a bidder falling short of attaining the goal rendering the bid as “non-responsive” if
acceptable “good faith efforts” as described in these guidelines are not successfully demonstrated.
4. For bids that do not meet the District’s stated MBE goal, the bidder must present documented proof of all
“good faith efforts” under taken by the bidder to achieve the stated goal at the time of bid . For a bid to be
considered responsive, efforts underta ken shall be concentrated and aggressive so as to reach the intended
MBE targets for partic ipation throug h various means of outreach, personal contact, follow-up, and/or actual
negotiation consultation with qua lified certified MBE firms. The bidder is required to submit MSD Form B
with their bid along with their “good faith effort” documentation package.
MSD Form B – P r e -A w a r d “Good Faith Effort” Documentation Requirements
The following is a list of the minimum requirements (a thru f below) a bidder must complete in order to
demonstrate they have exhausted all opportunities for inclusion of MBE participation on the contract being
bid and are in compliance with meeting the minimum requirements for “Good Faith Efforts” in order to
be found responsive. All efforts must be underta ken with specific targeting of MBE firms having skills or
services releva nt to the project being bid and with “ready, willing and able” MBE’s to provide those
skills or services. Any and all information submitted as validation of “good faith effort” activities will be
subject to evaluation and verifica tion that the bidder actually performed the activities. Bidder must be able to
provide details of quantities and estimates for the specific scopes of work or materials that MBE’s are requested
to provide bids, proposals, or quotes for.
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a. A minimum of two (2) advertisements must meet the following requirements:
a. Bidder must provide documented proof of all a d v e r t i s i ng efforts undertaken to extend
opportunities to local certified MBE firms; advertisements must be targeted within locally distributed
media so as to reach MBE’s who are certified in MSD’s service area .
b. Advertisements must be published at least fourteen (14) days prior to the bid due date.
c. Advertising Example s: local or regional minority trade association publications or newsletter s,
minority-owned media specifically targeted to MSD’s service area, minority contractor associations,
local community based publications located within the MSD service area, etc.
d. MSD requires verifiable, documented p roof of advertisements to be submitted with good faith
effort documentation: i.e., copies of the advertisement containing verification of publication and dates
published or publication affidavits.
e. Advertisements must solicit for specific services and/or scopes identified for MBE’s participation on the
project that will serve a commercial useful function.
f. Only one (1) advertisement activity can satisfy the requirements identified in section “c” below for
purposes of hosting a pre-bid meeting.
b. Minimum outreach requirements to reach potential MBE’s for specific wor k being sought for the project:
As a resource and to assist b idders with locating certified MBE’s, MSD’s Supplier Diversity Website
(www.stlmsd.com) provides direct links to the acceptable certifying agencies with database s which provide
access to the direct contact information of certified MBE’s for purposes of making contact with MBE ’s t o
solicit for quotes, bids, etc. However, it is the responsibility of the bidder to verify the current certification
status, qualifications a nd experience of the MBE and the MBE’s ability to perform work or supply
ser vices or materia ls as a MBE subcontractor on the bid.
1. Bidder must provide proof of documented contact with a minimum of two (2) Professional or
advocacy organizations, each of which has capabilities to assist with the identification of potential
certified MBE’s for subcontracting opportunities. Evidence of contact with the orga nization must be
provided with good faith effort documentation.
c. Bidder must advertise and host a Pre-Bid meeting, prior to bid completion, to reach qualified MBE’s. A
Pre-Bid meeting agenda with sign i n sheets containing MBE’s contact information and signatures must be
submitted with bidder’s “good faith effort ” documentation. Announcement of pre-bid meetings,
including date and time, should be included in the bidder’s advertisement for the pre-bid.
As an alterna tive, l o c a l Construction C ontractor A ssociations or the equivalent may advertise
separa tely for a single location pre-bid meeting for numerous potential Prime Bidders and/or MBE
firms. The prime contractor shall submit sign in sheets showing their attendance and documenting the
attendance of MBE firms with good faith effort documentation. This will only satisfy one advertisements
requirement for good faith efforts as stated in item a.6. above.
d. Written Correspondence a nd Notifications: In order to provide verification of “good faith efforts”:
1. Bidder must provide copies of efforts to solicit bids and/or material quotes from qualified MBE’s
through timely notifications to solicit business via written correspondence or letters. Any solicited
materials must contain a valid confirmation receipt date or be postmarked a minimum of fourteen (14)
calendar days prior to b id opening. Solicitations may be sent using the following methods
with required proof submitted with good faith effort documentation:
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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 MBE’s acceptance signature, with a copy of the correspondence
provided to the District.
2. Verifiable proof of a ll such notifications must be sub mitted as confirmation of the bidder’s due
dilige nce to secure qualified minority participants within MSD’s service area.
3. Bidder shall provide the source listing of MBE’s that was used to solicit bids. Bidder must attempt to
contact an adequate number of certified MBE’s, whether sourced through MSD’s website
(www.stlmsd.com) or an approved certifying agency’s database, must be contacted in relevant work
categories, a s designated in the following table:
Number of MBE’s in Relevant Work
Category
Minimum Number of MBE’s
Contacted Based on Sourced
Listing used to Solicit Bids
Five or Less All Available MBE’s
Six to 10 At Least Five MBE’s
11 or More At Least 50% of Available MBE’s
e. Contracting in Good Faith with MBEs
It is the bidder’s responsibility to s p e c i f i c a l l y identify sufficient portions of the project work that
would result in attainment of the goal based on the bid submitted to the District. It is also the bidder’s
responsibility to select and actually make available to MBE’s portions of wor k, materials, supplies, services,
etc. consistent with providing opportunities to MB E firms so as to facilitate commercially useful MBE
participation on the project. A Bidder who does not make sufficient participation available to MBE’s must
provide acceptable justification as to why a sufficient amount of participation could not be subcontracted to
MBE’s to attain the goals.
A bidder using good busine ss judgment would consid er a number of factors in deciding to contract with MBE
firms and would certainly take a firm’s price, capacity, past performance, experience and qualifications as well
as project goals into consideration. Good faith effort include those additional steps taken to d o business with
MBE’s such a s negotiations, one-on-one meetings, etc., the bidder takes beyond sending the initial request for
a quote to reach an acceptable agreement for participation with the MBE. The ability or desire of a bidder to
perfor m the work on a contract with its own organization does not relieve the bidder of the responsibility to
make good faith efforts. A bidder is not, however, required to accept higher quotes/bids from MBE’s if the
price is excessive or unreasona ble, however, MSD has the right to request additional clarification as to how
pricing was the determining factor for rejection of an MBE’s quote/bid.
f. Bidder must provide a justification statement specifically stating the reasons why the bidder could not attain the
goals. The justification statement must describe in detail why all efforts undertaken to comply did not result in
meeting the goal or substantiate in detail any other reasonable explanation to support the bidder’s position for
not meeting the goal.
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g. The District will make a final determination of whether or not a bidder met the minimum requirements to be
responsive based on bidder’s actions performed for items C.4., a-f and submission of verifiable documentation
for paragraphs a-f above. Any omission of any portions of paragraphs a-f for “Good Faith Effort” will result in
bidder being found non-responsive.
D. Post Contract Award Requirement:
1. Within fifteen (15) calendar days after notice of award of the contract , MBE Verification Forms signed by
all the MBE participants (and, if requested by the District, copies of all MBE related sub-agreements) signed
by both the contractor and MBE subcontractors must be submitted to the District. If a bidder fails to
submit the required information and documentation within fifteen (15) calendar days after notice of
award, the District may withdraw the notice of award and the bid security of that bidder will be forfeited
to the District.
2. When a Prime contractor is directed by Change Order to perform specific work exceeding $500,000 that is
outside the limits of the original scope of the project, the Prime contractor will be obligated to meet the
established 30.00% subcontracting utilization goal for Building construction contracts with MBE (African
American) participation and meet workforce participation goal requirements as outlined in “Workforce
Requirements” herein. This obligation shall be separate from the Prime contractor’s original obligation as
committed to at the time of bid and subject to meeting all other Diversity compliance requirements. Prime
contractor may propose the use of MBE subcontractors (as appropriate) who are already participating on
the contract or use new MBE subcontractors for the change order work. All Change Order utilization must
be submitted on MSD Form A.
3. MBE Utilization on Emergency Contracts: MSD has established “Guidelines for the Development and
Maintenance of an Emergency Contractor List” which states Contractor Requirements for providing the
District with a list of the MBE subcontractor/vendors that the Contractor is committed to utilizing to the
extent practical based on the emergency scope of work, the availability of the subcontractor(s) and the
reasonableness of the subcontractor’s cost proposal.
E. Contractual Compliance Requirements:
1. For the purpose of validating Diversity compliance on any MSD project, the District will perform one or
more of the following: on-site monitoring; require proper validation of payments reported as made to
participating MBE’s on the project; and conduct audits of records pertaining to the project in order to verify
the participation of MBE’s performing work on the contract. Failure to respond to request for validation of
payments in a timely manner can subject the Prime contractor to sanctioned withhold ing of project
payments including but not limited to doing future work with the District up to and including a
complete prohibition from performing work on any District project for a time period to be decided solely by
the District.
2. During construction, for purposes of validating compliance for the utilization of hauling, trucking, or any
delivery of material supplies requiring any level of transportation services, contractors may be required to
submit Trucking Reports to validate participation amounts to be credited towards meeting goal
requirements through submission of monthly Trucking Reports and/or additional documentation if
requested. A contractor will be requested to provide Trucking Reports 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 monitoring and/or inspections of project. Failure to submit requested
monthly Trucking Reports in a timely manner can subject the Prime contractor to sanctioned
withholding of project payments including but not limited to doing future work with the District up to
and including a complete prohibition fro m performing work on any District project for a time period to be
decided solely by the District.
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3. During construction , the contractor must submit monthly online utilization reports to the District or
through the assigned project Construction Manager (CM) using the online MSD Diversity Reporting
System. MS D will verify that the contractor has reported their monthly MBE and /or Non -MBE
involvement participa tion upon r eceipt of each progress payment request until the Final Payment
Applicat ion for the project is submitted. On months where there is no MBE activity, Prime contractor
must still submit a report indicating no activity was performed for that month. Failure to submit monthly
involvement reports in a timely manner can subject the Prime contractor to sanctioned withhold ing of
project payments including but not limited to doing future work with the District up to and including a
complete prohibition from performing work on any District project for a time period to be decided solely by
the District. Monthly involvement reporting must be current in order for progress payments to be
approved for payment.
4. Changes to the P r i m e contra ctor’s original or previously approved MBE utilization (MSD Form A)
will only be considered by the District for one of the following reasons:
a. The named MBE subcontractor is unable to meet the delivery requirements of the contract schedule.
b. The named MBE subcontractor is dilatory in complying with the requirements of the contract
documents.
c. The named MBE subcontractor is prevented from performing due to bankruptcy, insolvency or
circumstances related to the failure of the business.
d. The type and amount of work to be performed by the MBE subcontractor is less than what the
contractor could have reasonably assumed at the time of the bid.
The Prime contractor must promptly report to the District, in writing, any proposed
changes in the utilization of MBE subcontractors, and include appropriate written
justification documentation, signed off by both the Prime contractor and the affected MBE.
All contract modificati ons to any MBE participation and/or MBE scope of work requires an
approved written District Change Order to the contract prior to final close out of a project .
5. Before final payment will be authorized by the District, , the Prime contractor must submit a MWBE
Payment Verifica tion Confirmation Form (signed by both the contractor and the MBE subcontractor) for
ea ch MBE subcontractor utilized on the project indicating the full amount paid to date. Prime
c ontractor must indicate on the Verification Form whether this amount repr esents full or partial
payment of all amounts owed to the MBE subcontractor. In a case where the total final payment to the
MBE subcontractor cannot be made until the District makes its final payment to the contract or, the
contractor sha ll also ind icate on the form the amount to be paid upon receipt of final payment from the
District. Upon receipt of final payment from the District, and subsequent payment of any outstand ing
pa yments owed to MBE subcontractor s, the contractor shall record final payment into Prism and submit
a new M WBE Payment Verification Confirmation Form for each MBE subcontractor receiving such
outstanding pa yment confirming their receipt of final payment.
6. In the event the contractor fails to conform to meeting its MBE obligations, the contractor must
furnish to the District, in writing, the reasons for failure. If, in the sole judgment of the District, there have
not been sufficient good faith efforts taken on the part of the contractor to meet its full contract MBE
participation obliga tions, the District will advise the contractor, in writing, of corrective actions to be
initiated. If the contractor fails to fully initiate the corrective actions in a timely manner, the District
may withhold the equivalent amount, which should have been paid to the M BE(s), from any
payments and /or institute appropriate actions pursuant to the provisions that have been incorporated
into the contract specif ications. An equivalent a mount shall be defined as that portion of the MBE goal
per party that was not met, as initially set forth o n MSD Form A or by an approved MSD contract change
order agreeme nt .
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F. Disclaimer
The District's implementati on of this MBE procedure and its requirements does not constitute any endorsement of
any M BE. By submitting a bid to the District, the bidder agrees to hold harmless the District, its officers and
employees, for all claims arising out of this bid or any contract connected thereto with regard to the diversity
guidelines.
WORKFORCE REQUIRE MENTS
Building Construction contracts in a n amount of $500,000 or greater require compliance with workforce
participation goals during project construction as follows:
A. Workforce Requirements
30.00% Minority wor kforce participation per trade;
7.00% Woman workforce participation per trade;
40.00% Total minority and woman apprentices (for any apprentices used).
Minority is defined as a ma le or fema le African Ame rican, Asian American, Hispanic
Ame rican or Nati ve American.
B. Contractual Re quireme nts for Workforce
1. The Prime c ontractor must comply with all applicable workforce contractual requirements at the onset of
all MSD projects. All “boots on the ground” workforce activity on a MS D project must be reported. This
includes the workforces of both certified and non-certified subcontractors.
a. At least fiftee n (15) days prior to mobilization Prime contractor is required to submit a
60 Day Project Workforce Plan to the District forecasting the anticipated workforce utilization for the first
60 days of the project schedule for the Prime contractor and a l l subcontractors providing any labor
as a component of their scope of work who will ha ve workers on the project in the first 60 days of the
project schedule. Contractor is required to use the appropriate “60 Day Workforce Plan Template”
provided by MSD’s Diversity Department and located at the following website link:
http://www.stlmsd.com/our -organization/diversity -msd/diversity-policies -and-forms
The following fields of information is required to be included in the plan:
Project Information
Name of ea ch worker
Trade/Craft of each worker
Gender of ea ch worker
Ethnicity of ea ch worker
Employment Status of each worker, i.e., New Hire, Union Hall Hire, etc.
Length of empl oyment with the Prime contractor or subcontractor
2. In the event a project does not meet the workforce goal requirements at the onset of a project, the Prime
c ontractor must also complete and provide a “Project Workforce Plan” schedule (also found at the
website link listed above ) which identifies to the District plans for meeting the workforce goal
requirements and in addition which demonstra tes the “good faith efforts” undertaken by both the
Prime c ontractor and s ubcontractors to m eet the workforce requirements by the end of the project.
To successfully demonstrate “good faith effort,” the following must be provided to the
District:
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FY2018 V1 (08/31/2017) Page 11
a. Monthly documented proof of contact with the resources listed below requesting availability of
qualified workers must be provided to the District along with responses received to the request for
diverse workforce from the following:
MSD’s Bud Training Program (SLATE);
MSD’s First Source Hiring Program (SLATE);
Documented contact with union affiliates (if applicable);
Documented contact with an affiliated labor provider for trades utilized in performance of the MSD
project.
b. If a Prime contractor initially meets workforce goal s then begins to fall short of meeting goals during the
course of a project and does not have an active workforce plan on file, the Prime contractor may then be
requested to submit an A ction P lan w hich includes the ir intent to fulfill the contract workforce
goals by the end of the project. When requested, the Action Plan must be provided with the Prime
contractor’s next monthly workforce report submission. At a minimum, all good faith effort documentation
submissions must include the following in order to be considered acceptable:
1. Initial requests to union affiliates (if applicable) for diverse applicant;
2. Initial requests to SLATE (First Source Hiring and/or BUD) for diverse applicant;
3. Response from initial request of 1 and 2;
4. Results of applicant referrals from 1 and 2;
5. Any other good faith efforts completed by the Prime contractor to fulfill workforce goals.
3. All actions of good fa ith must include the steps listed in 2. a-b above. Failure to meet these minimum
obliga tions can subject the P r i me contra ctor to sanctions on doing future work wit h the District up
to and including a complete prohibition from performin g work on any District projects for a time period to
be decided solely b y the District.
4. Upon receipt of Prime contractor’s 60 Day Project Workforce Plan by the District, Prime contractor
will receive acknowle dge ment via email that the Plan has been received and is under review. Within 5
business days of acknowledgement, contractor will receive a notice of acceptance or request for
additiona l information. This process will continue until an acceptable plan is on file. The Prime
contractor is prohibited from proceeding with any portion of the work having a workforce component
until the Plan has been deemed acceptable by the District.
5. Monthly Wor kforce Repor ting Requirements: To be in compliance with MSD’s labor and workforce
reporting requirements contractor m ust utilize M SD Diversity Reporting, Diversity’s online
reporting system located at the following website link: www.msddiversityreporting.com. Prime
c ontractor shall submit monthly workforce utiliza tion reports online by the 10th of each month for
the previous month. Certified Payrolls detailing actual util ization for the past month for the Prime
contractor and all subcontractors performing work in the month being reported on. If the workforce
goals have not been met, the report sha ll also include d ocumentation of specific “good faith
efforts” performed in the past month as well as the planned actions to be taken by the contractor and the
subcontractors to fulfill workforce contractual requirements. All workforce documentation can be
submitted online through the MSD Diversity Reporting System.
a. As part of its monthly workforce reporting, documented proof of “good faith effort” activities
including initial contact documentation for requests of minority and women and ongoing contact
with the programs listed above (2a) must be provided along with documented responses from each
e ntity contacted for the request of diverse workers and shall include all follow up request for information
pertaining to applicant referrals which indicates the outcome of the referral(s).
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6. During the life of the Community Benefits A greement (“CBA”), MSD shall ensure that the First Source
Hiring Program and Training Programs are material terms on all new MSD CIRP contracts; all amended
or renewed CIRP projects and voluntary extensions of existing CIRP projects. Under these CIRP projects
the requirements for use of these progra ms shall commence as of the effective date of the contract.
MSD sha ll actively monitor performance of the BUD and First Source Hiring Programs, shall enforce the
requireme nts for use of the BUD and First S ource Hiring Programs and shall take appropriate
enforce ment actions to address noncompliance.
The BUD and First Source Hiring Programs provide access to targeted Minority and Women applicants
for M SD projects. Contractors shall receive prompt, cost-free eligibility lists of available qualified and
trained applicants whe n requested for MS D Projects. MSD requires contractor participation in the BUD
a nd First Source Hiring Progra ms with regard to all job vacancies on MSD projects by:
a. Prime Contractors and their subcontractors;
b. Contractors and subcontra ctors entering int o or receiving an extension in the scope of an existing project
contract, an a mendment or renewal of an existing project in which the CBA was in effect at the time of
the original contract.
Nothing contained in the CBA or MSD guidelines shall re quire contractors who are subject to
collective bargaining agreements with union affiliates to comply with utilization of SLATE
Programs which violates any component of bargaini ng agreement terms. Conflicts regarding the use of
these programs with collective barga ining agreements must be provided to the District along with good
faith effort documentation.
c. Contact Information for BU D Training and First Source Hiring Programs:
St. Louis Agency on Training and Employment (SLATE)
First Source Hiring / BUD Program Administrator
1520 Market Street, Suite 3050
St. Louis, MO 63103
(314) 657-3599 / Fax: (314) 589-8027
www.stlworks.com
Applicant Intake Referrals Email: Constructionintake@stlworks.com
7. For the purposes of validating workforce compliance on any MSD project, the District will perf orm on-
site monitoring in order to confirm workforce compliance as described in paragraph A above.
Failure to meet the “Good Fa ith E ffort” requirements listed above will subject the Prime contractor
to sanctions on doing future work with the District up to and including a complete prohibition from
performing work on any District project for a time period to be decided solely by the District.
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DIVERSITY CONTRACT COMPLIANCE, DIVERSITY FINAL EVALUATIONS AND PRE-QUALIFICATION
EVALUATIONS
A. Approval of Prime contractor’s monthly payment application is based on the contractor’s compliance
with submission of their monthly utilization reports until Diversity has conducted a final evaluation
of Diversity contract compliance. Contractors who are delinquent with submission of any utilization
reports will not receive payment until they have met all reporting requirements.
B. Upon submission of a final payment request, MSD’s Diversity Division will conduct a final evaluation of
both vendor and workforce (if applicable) goal attainment on all contracts with vendor and/or
workf orce goals prior to release of contractors final contract payment. A contractor is considered to be in
compliance wit h MSD’s Diversity Program guidelines upon successful utilization of the MBE
subcontractors proposed on Prime contractor’s originally submitted MSD Form A and satisfaction of
a p p l i c a b l e workforce utilization goal requirements. Any deviation from Prime contractor’s originally
approved M BE’s, requires contractor to have a n approved change order with appropriate
j u s t i f i c a t i o n d o c u m e n t a t i o n . Final contract payments will not be approved without all of the
required d ocumentation.
C. For Building contracts exceeding $500,000, to be in c ompliance with meeting workforce requirements,
an Initial 60 Day Workforce Plan and Project Plan (if required) must be on file, all required monthly Workforce
Utilization Reports for Prime and all Subcontractors must be on file, all required certified payrolls for Prime
and all Subcontractors for all hours worked must be on file, and any additional required workforce
compliance documentation such as G ood F aith E ffort documents must be on file if any portions of
workforce goals were not met on the project. Fa ilure to meet the workforce compliance requirements can
subject the contractor to sanctions on doing future work with the District up to and including a complete
prohibition from performing work on any District project for a time period to be decided solely by the District.
D. Diversity participates with Engineering to evaluate each pre-qualified contractor requesting to continue as
an approved pre -qualified contractor. Diversity evaluates each pre-qualified contractor on their performance
and compliance with the Diversity Program with regards to meeting their vendor and workforce goals as well
as their compliance with all Diversity Program requirements . Failure to meet vendor and workforce
compliance r equirements or remain in compliance with the Diversity Program can subject the contractor to
sa nctions on doing future work with the District up to and including a complete prohibition from
perfor ming work on any District project for a time period to be decided solely by the District.