HomeMy Public PortalAboutConstruction Projects with State of MO Funding_v1 (2)Construction with State of Missouri Funding
FY2018 V1 (08/31/2017) Page 1
METROPOLITAN ST. LOUIS SEWER DISTRICT
BUSINESS DIVERSITY
MWBE Utilization and Workforce Program
Construction Projects with State of
Missouri Funding
Effective September 1, 2017
PURPOSE
The Metropolitan St. Louis Sewer District (MSD or District) will provide opportunities for the meaningful
participation by Minority and Women Business Enterprises (MWBE) and for minority and women
workforce on Construction Projects performed for the District.
The Purpose of this procedure is to establish guidelines for compliance with the Diversity Program
for MWBE participation by applicable vendors, bidders, contractors, service providers and any person,
corporation, business, or other e ntity performing a Commercially Useful Function (CUF) while doing business
with the District on Construct ion Projects that are receiving State of Missouri Funding for which compliance
with Executive Order #15-06 is required; or projects that receive federal funding administered by the State of
Missouri for which compliance with Executive Order #15-06 and Title 40 CFR Part 33 are required. This
procedure also establishes the guidelines for workforce participation compliance.
MWBE UTILIZATI ON
Certified MWBE’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 MWBE’s listed for
performance on any contract to meet MWBE 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
MWBE firms that are ready, willing and able to p erform specific work for which they are qualified ,
certified and authorized to perform, according to the terms and conditions as set forth in the contract. Work
performed by an MWBE on MSD c ontracts must be consistent with industry practices and other relevant
conside rations and has a necessa ry 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 meet ing MWBE goal requirements). CUF
requirements also exist to preve nt, to the extent poss ible, MWBEs from being utilized as a “pass through” or
“front” for a prime contractor or another subcontractor. A commercially useful function occurs when the MWBE
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 f or its own materials, supplies, equipment and labor without requirements for two-party payments. If in
the District’s judg ment, the MWBE (even if certified) does not perform a commercially useful function in
performa nce of a the scope of work specified in the contract, the Prime credit towards meeting stated
MWBE goals will not be counted. When a MWBE firm is the manufacturer of materials provided for
performa nce on the contract, or the MWBE firm is providing labor in performance of a scope of services that is
a necessary requirement for the contract, the MWBE firm will genera lly be considered as CUF, however all labor
must be tied to a specific project scope identified on MSD Form A .
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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
MWBE 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 arrear status at any time within
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 notice signed by
the MWBE 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. MWBE Subcontracting Requirements
1. The Metropolita n St. Louis Sewer District (District) has established a MBE goal of 10.00% utilization for
construction contracts in the amount of $50,000 or more for which State of Missouri Funding is being
utilized and for which compliance with Executive Order #15-06 is required; or projects that receive federal
funding administered by the State of Missouri for which compliance with Executive Order #15 -06 and Title
40 CFR Part 33 are required. Exceptions will be noted in the contract documents, when required.
2. The Metropolitan St. Louis Sewer District (District) has established a WBE goal of 10.00% utilization for
construction contracts in the amount of $50,000 or more for which State of Missouri Funding is being
utilized and for which compliance with Executive Order #15-06 is required; or projects that receive federal
funding administered by the State of Missouri for which compliance with Executive Order #15 -06 and Title
40 CFR Part 33 are required. Exceptions will be noted in the contract documents, when required.
3. A bidder who has achieved the 10.00% participation for MBE utilization and 10.00% participation for WBE
utilization as defined herein will be in compliance with the requirements of this specification. A bidder who
cannot achieve the 10.00% MBE utilization goal and the 10.00% WBE utilization goal must provide all proof
via documenta tion, as prescribed in paragraph C.4. to demonstrate that good faith efforts were initiated
and performed prior to bid submittal consisting of efforts undertaken to achie ve 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.
4. The term Minority Business Enterprises (MBE) and Women Business Enterprises (WBE) refers to:
a. A Minor ity Business Ente rprise (MBE) is defined a s 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” means that the minority owner(s) must exercise actual day-to-day management of the
business. For this procedure the only minority groups that will count towards meeting goals for MBE
vendor utilization are certified African American, Hispanic American, Asian American, Pacific Islander,
American Indian or Alaskan Native.
b. A Women Business Enterprise (WBE), is defined as a business that is at least 51% owned, operated and
controlled by a woman or women, who are citizens of the United States. “Controlled” means that the
woman owner(s) must exercise actual day-to-day management of the business
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5. As prospective MWBE participants on this project, MSD will only accept those MWBE firms possessing a
current valid certification issued by an approved certifying agency at the time of bid. The MWBE’s
certification issued by an approved certifying agency must identify the MWBE’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.
6. MWBE 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 MWBE
subcontractors shall only apply to subcontractors in the category of “Material/Supplies including 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 information.
B. Pre-Contract Award Obligations:
1. For bids that do not meet the MWBE participation goal, a properly signed bid must certify that the bidder has
undertaken the good fait h efforts described in this MWBE guideline procedure to achieve the stated goal for
MWBE participa tion. For all other bidders, it is mandatory for each bidder to submit MSD Form A with their
bid for consideration of MWBE subcontractors to be utilized to fulfill goal requirements. All other MWBE
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 MWBE 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 MWBE
participants. The documentation requirements are outlined in C.4, a-f below. For the purpose of determining
the degree of goal attainment through MWBE subcontractor joint ventures, MWBE subcontractors, MWBE
ma nufacturers, MWBE distributors, MWBE suppliers, and MWBE brokers, the following methodology will be
utilized:
a. Any Joint V enture S ubcontractor consisting of a certified MWBE and majority non-certified business
enterprise, but functioning as a singular joint entity, w ill receive MWBE participation credit only for the
MWBE’s participation based upon a percentage of the dollar amount of the work perf ormed by the
MWBE entity. Only the verifiable dollar amount as defined in paragraphs c. thru h. below will be
allowed to count towards MWBE participation goals.
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b. MSD allows Mentor/Protégé relationships consisting of a certified MWBE 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 dol lar 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 MWBE ’s must achieve the required 1 0 .00% MBE and 10%
WBE subcontract utilization goal by obtaining the additional participation from certified MWBE’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. MWBE participation must be
obtained through utilization of a n independe nt, certified MWBE contractor with no ownership
affiliation to the Prime contractor or subcontractors in the hiring capacity.
3. Bidders will be credited 100% for qualified MWBE participation of the dollar amount for purchases made
from certified MWBE 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 c ontract is performed at an 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 structura l steel, etc.), subject to approval by MSD’s Diversity Division.
4. Any bidder will be credited with MWBE participation for 100% of the dollar amount of purchases made
from:
MWBE manufacturers who operate 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
MWBE distributors/suppliers contracted with a manufacturer to distrib ute 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 MWBE distributor /supplier must be engaged in marketing, sales, warehousing, distribution, and
delivery for the manufacturing entity.
MWBE participation proposed under this category shall require the following attachments to Form
A:
o Evidence that the MWBE is certified withi n the identified manufacturing industry;
o Product specifications; MWBE’s location of ma nufacturing operations;
o Address of MWBE’s product marketing, sales, warehouse, distribution; and
o Evidence of MWBE’s proposed installation services on the contract.
5. Any bidder will be credited with MWBE participation of 20.0% of the dollar amount of purchases made
from:
MWBE distributors and/or suppliers possessing a manufacturer’s contract or agreement and
engaged in the sales, warehousing, and distribution of materials and/or supplies.
MWBE participation proposed under this category shall require as an attachment to Form A
identification of the address where the sales, warehousing, and distribution activities occur.
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6. Any bidder will be credite d with MWBE participation of 3.0% of the dollar amount of purchases made from:
MWBE providers of materials and supplies who act as a broker or dealer and who do not satisfy
the re quirements for any 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 MWBE 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 MWBE certifications are verified during
bid evaluation that the MWBE listed on Form A is certified and is in good standing with an acceptable
Certifying Agency. For new MWBE subcontractors that have not previously worked on MSD projects, or
MWBE’s proposing to perform a new scope not previously performed on a MSD project, MSD requires MWBE
to have a valid certification with the NAICS applicable to the proposed scope to be provided by the MWBE
subcontractor.
8. Any non-certified MWBE subcontractor at any tier level will not count towards meeting a bidder’s MWBE
participation goals. Therefore, all tiers of MWBE subcontractors are required to “substitute or replace”
subcontractor participation onl y to other certified MWBE subcontractors providing the same services in order
to be counted towards meeting the MWBE participation goals. Any deviation from this requires immediate
notifica tion to and approval by the District.
C. Evaluation of Goal Achieve ment
1. As a prerequisite, to demonstrate MWBE 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 MWBE, Certification Agency and Ethnicity of the MWBE;
c. Indicate the tier level of participation for ea ch MWBE;
d. Identification of MWBE’s participation tier level and eligibility for Advance Payment by checking the
appropriate box indicating the percentage of participation for each MWBE to be credited towards meeting
MWBE participation goal and to establish the MWBE has a Commercially Useful Function on the project;
e. Complete a description of materials/Service/Scope of Work for each MWBE;
f. List the total amount for each MWBE’s participation in each MWBE’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 clar ifications, conduct on-site interviews and/or
inspections of the MWBE’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 MWBE’s business is in
compliance with MSD’s guidelines for MWBE 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 MWBE will perform a “Commercially Useful Function” on the project; or 2) fails to validate that the
MWBE is certified at the time of bid to provide the scope identified for the MWBE 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 MWBE
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.
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4. For bids that do not meet the District’s stated MWBE goals, the bidder must present documented proof of
all “good faith effor ts” undertaken 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
MWBE targets for partic ipation through various means of outreach, personal contact, follow-up, and/or
actual negotiation consu ltation with qua lified certified MWBE 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 MWBE 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 undertaken with specific targeting of MWBE firms
having skills or services releva nt to the project being bid and with “ready, willing and able” MWBE ’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
MWBE’s are requested to provide bids, proposals, or quotes for.
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 certif ied MWBE firms; advertisements must be targeted within locally
distributed media so as to reach MWBE ’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 MWBE’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 MWBE’s for specific work being sought for the
project:
As a resource and to assist b idders with locating certified MWBE’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 MWBE’s for purposes of making contact with MWBE’s
to solicit for quotes, bids, etc. However, it is the responsibility of the bidder to verify the current
certification status, qualifications and experience of the MWBE and the MWBE ’s ability to perform
work or supply ser vices or materia ls as a MWBE 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 MWBE ’s for subcontracting opportunities. Evidence of contact with the organization must be
provided with good faith effort documentation.
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c. Bidder must advertise and host a Pre-Bid meeting, prior to bid completion, to reach qualified MWBE’s.
A Pre-Bid meeting agenda with sign in sheets containing MWBE’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 MWBE
firms. The prime contractor shall submit sign in sheets showing their attendance and documenting the
attendance of MWBE 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
MWBE’s through timely notifications to solicit business via written correspondence or letters. Any
solicited materials must contain a valid confirmation receipt d ate or be postmarked a minimum of
fourteen (14) calendar days prior to bid opening. Solicitations may be sent using the following
method s 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 MWBE’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 MWBE’s that was used to solicit bids. Bidder must attempt to
contact an adequate number of certified MWBE’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 MWBE’s in Relevant Work
Category
Minimum Number of MWBE’s
Contacted Based on Sourced
Listing used to Solicit Bids
Five or Less All Available MWBE’s
Six to 10 At Least Five MWBE’s
11 or More At Least 50% of Available MWBE’s
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e. Contracting in Good Faith with MWBEs
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 MWBE’s portions of work, materials, supplies, services,
etc. consistent with providing opportunities to MWBE firms so as to facilitate commercially useful MWBE
participation on the project. A Bidder who does not make sufficient participation available to MWBE’s must
provide acceptable justification as to why a sufficient amount of participation could not be subcontracted to
MWBE’s to attain the goals.
A bidder using good busine ss judgment would consid er a number of factors in deciding to contract with
MWBE 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 do business
with MWBE’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 MWBE. The ability or desire
of a bidder to perform 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 MWBE’s if the price is excessive or unreasonable, however, MSD has the right to request additional
clarification as to how pricing was the determining factor for rejection of an MWBE’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.
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 , MWBE Verification Forms signed
by all the MWBE participants (and, if requested by the District, copies of all MWBE related sub-
agreements) signed by both the contractor a nd MWBE 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 MWBE (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 MWBE subcontractors (as appropriate) who are already participating on
the contract or use new MWBE subcontractors for the change order work. All Change Order utilization
must be submitted on MSD Form A.
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3. MWBE 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 MWBE subcontractor/vendors that the Contractor is committed to utilizing to the
extent practical based on the emergency scope of work, the availability of the subcontracto r(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 MWBE’s on the project; and conduct audits of records pertaining to the project in order to
verify the participation of MWBE’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.
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 MWBE and /or Non -MWBE
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 MWBE 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 MWBE utilization (MSD Form A)
will only be considered by the District for one of the following reasons:
a. The named MWBE subcontractor is unable to meet the delivery requirements of the contract schedule.
b. The named MWBE subcontractor is dilatory in complying with the requirements of the contract
documents.
c. The named MWBE 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 MWBE subcontractor is less than what the
contractor could have reasonably assumed at the time of the bid.
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The Prime contracto r must promptly report to the District, in writing, any
proposed changes in the utilization of MWBE subcontractors, and include
appropriate written justification documentation, signed off by both the Prime
contractor and the affected MWBE. All contract modifications to any MWBE
participation and/or MWBE 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 Verification Conf irmation Form (signed by both the contractor and the MWBE subcontractor) for
each MWBE subcontractor utilized on the project indicating the full amount paid to date. Prime
c ontractor must indicate on the Verifica tion Form whether this amount represents full or partial
payment of all amounts owed to the MWBE subcontractor. In a case where the total final pa yment to the
MWBE subcontractor cannot be made until the District makes its final payment to the contractor, the
contractor shall also ind ica te 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 outstanding
payments owed to MWBE subcontractors, the contractor shall record final payment into Prism and submit
a new MWBE Payment Verification Confirmation Form for each MWBE subcontractor receiving such
outstandi ng payment confirming their receipt of final payment.
6. In the event the contractor fails to conform to meeting its MWBE obligations, the contractor must
furnish to the District, in writing, the rea sons for failure. If, in the sole judgment of the District, there have
not been sufficient good fa ith efforts taken on the part of the contractor to meet its full contract MWBE
participation obligations, 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 MWBE (s), from any payments and/or
institute appropria te 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 MWBE goal per party that was
not met, as initially set forth on MSD Form A or by an approved MSD contract change order agreement.
F. Disclaimer
The District's implementati on of this MWBE procedure and its requirements does not constitute any endorsement
of any MWBE . By submitting a bid to the District, the bidder agrees to hold harmless the District, its of ficers
and employees, for all claims arising out of this bid or any contract connected thereto with regard to the diversity
guidelines.
WORKFORCE REQUIRE MENTS
Construction projects with State of Missouri Funding in an amount of $10,000 or greater, require compliance with
workforce participation goa ls during project construction as follows:
A. Workforce Requirements
14.7% Minority workforce participation per trade;
6.9% Woman workforce pa rticipation per trade;
Minority is defined as a ma le or fema le African Ame rican, Asian American, Hispanic American
Pacific Islander, American Indian or Native Ame rican.
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FY2018 V1 (08/31/2017) Page 11
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 MSD 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:
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 may be requested to submit an
A ction P lan w hich includes the intent to fulfill 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.
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FY2018 V1 (08/31/2017) Page 12
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).
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.
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FY2018 V1 (08/31/2017) Page 13
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.
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 d elinquent 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 MWBE
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 MWBE ’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 compliance 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.