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METROPOLITAN ST. LOUIS SEWER DISTRICT
BUSINESS DIVERSITY
MBE Utilization and Workforce Program
Building Construction Projects
Effective July 15, 2016
PURPOSE
The Metropolitan St. Louis Sewer District (MSD or District) will provide opportunities 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 MBE participation by applicable vendors,
bidders, contractors, service providers and a ny person, corporation, business, or other entity performing a
Commercially U seful Function (CUF) while doing business with the District on Building Construction
Projects. This pr ocedure also establishes guidelines for workforce participation compliance.
MBE UTILIZA TION
All certified MBE firms, interested in participating on an MSD contract, regardles s of the procurement type,
are required to perfor m a C ommerciall y Useful Function (CUF) in fulfillment of an awarded contract.
The purpose of the CUF r equirement is t o ens ure that MBE firms are ready, willing and able to per form
specific requirements for which they are certified and authorized to perform, according to t he terms and
conditions as set forth in t he contract. Work performed by an MBE on MSD contracts must be consistent
with industry practices and other relevant considera tions 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 an 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 is responsible for execution of their contract and
performs responsibly by managing and supervising the work involved with res pect to ordering materials,
equipment, supplies, negot iating 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 judgment, the MBE (even if certified) does not perform a commercially useful
function in performa nce of a contract, credit towards meeting stated MBE goal 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 For m A .
A. MBE Requirements.
1. The Metropolita n St. Louis Sewer District (Dis trict) has establi shed a MBE (African
American and/or Hispanic American) goal of 30.0% utilization for building
construction contracts in the amount of $50,000 or more. Exceptions will be noted in
the contract documents, when required.
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2. A bidder who has achieved the the 30.0% participation for MBE utilization as
defined herein will be in compliance with the requirements of this specification. A
bidder who cannot achieve the 30.0% MBE utilization goal must provide all
documentation, as prescribed in paragraph C.3 to demonstrate that good faith efforts
were initiated prior to submittal consisting of efforts undertaken to achieve the MBE
goals. If the bidder does not demonstrate sufficient good faith efforts, the bid will
be rejected as non- responsive.
3. The term Minority Business Enterprises (MBE) refers to:
A Minority Business Enterprise (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” 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 for MBE participation are African American and
Hispanic American.
4. The District will accept, a s prospective MBE participants for these projects, those MBE
firms which have been certified for the industry type of service and/or material for
which they are contracted by one or more of the following agencies on or before the
date of the bid opening:
Missouri State Office of Equal Opportunity
City of St. Louis
St. Louis Minority Business Council
Note: MSD does not acce pt reciprocity certifications from other certifying agencies.
B. Pre-Contract Award Obligations:
1. A properly signed bid will certify that the bidder has undertaken the good faith efforts
described in this MBE procedure to achieve the stated goal for MBE participation. It is
mandatory for ea ch bidder to submit MSD Form A with their bid for consideration of
MBE sub-contractors to be utilized to fulfill goal requirements. All other MBE
participation information i ncluding but not limited to attachments to For m A, Form B,
and all attachments and information required to demonstrate good faith efforts (if
needed) must a lso be submitted to MSD with the original bid at the due date and time
specified. Failure to submit any of the information as required (on MSD Form A
and/or MSD Form B) will result in the bid being rejected as non-responsive.
2. To establis h a bid as responsive, the bidder must document on MSD Form A the
proposed utilization and tier level of participation of MBE participants to be utilized
for achievement of the stated 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 i n C.3, a -e below. For the p urpose of determining the degree
of goal attainment through MBE sub-contractor joint ventures, MBE sub-contractors,
MBE ma nufacturers, MBE distributors, MBE suppliers, and MBE brokers, the following
methodology will be utilized:
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a. Any Joint V enture S ub-contractor consisting of a certified MBE and majority
non-certified business enterprise, but functioning as a singular joint entity, will
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. All bidders including certified MBE’s must achieve the required 30.0% MBE
(African America n and Hispanic American) utilization goal by obtaining the
additiona l participation from certified MBE’s.
c. A contractor or sub-contractor who has an ownership stake (at any level) in
another business entity (whether as a parent or subsidiary) may not use t hat
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 independent, certified MBE (African American and/or Hispanic
American) contractor with no ownership affiliation to the contractor or subcontractor
in the hiring capacity.
3. Bidders will be credited 100% for qualified MBE participation of the dollar amount for
purchases made from certified MBE (African American and/or Hispanic American)
sub-contractors 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 perfor med at an off-site location but meets the CFU 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 operate or maintain a facility and/or establishment
with a manufacturing business that produces on site materials, supplies, items
and/or equipment per spec ification documents; or
MBE distributors/suppliers contracted with a manufacturer to distribute
products and who will in fact provide qualified installation services on
MSD’s project which m eets a CUF for the M SD project. The MBE
distributor/supplier must be engaged in marketing, sales, warehousing,
distribution, and delivery for the manufacturing entity.
a. MBE participation proposed under this category shall require the following
attachments to Form A:
Evidence that the MBE is certified within the identified manufacturing
industry;
Product specifications;
MBE’s location of ma nufacturing operations;
Address of MBE’s product marketing, sales, warehouse, distribution; and
Evidence of MBE’s proposed installation services on the contract.
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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 proposed 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 materials, supplies or services acting as a broker or dealer
and who do not satisfy the requirements for any of the a bove categories must be
certified a s a broke r or dealer in accordance with the requirements of and by one of the
acceptable agencies listed in paragraph A.4. above.
7. A sub-contractor may be used for participation at any tier provided the bidder
identifies the “tier” level of utilization for the sub-contractor on MSD Form A and
submits verifica tion of their certification along with any applicable required
attachme nts at the time of bid submittal.
8. Any non-certified MBE sub-contractor at any tier level does not count towards meeting
a bidder’s MBE participat ion goals. Therefore, all tiers of MBE sub-contractors are
required to “substitute or replace” subcontractor participation onl y to other certified
MBE sub-contractors providing the same services in order to be counted towards
meeting the MBE participation goals. Any deviation from this requires immediate
notification to and approval by the District.
C. Evaluation of Goal Achievement.
1. As a prerequisite, to demonstrate MBE goal achievement, the bidder must provide the
following documentation with their bid:
NOTE: MSD Form A must be used for this purpose.
a. Name identification of the Certified MBE sub-contractor;
b. Identification of the type of services, materials and/or work of the particular sub-
contractor to establish the MBE’s Commercially Useful Function;
c. Total dollar amounts for the MBE’s participation. Each MBE must be listed
separately;
d. Proof of valid certificati on status for all MBE sub-contractors;
e. Check box of the intended percenta ge of participation for each MBE sub-contract or
that is to be credited towar ds meeting MBE participati on; and
f. Indicate the tier level of participation for each MBE sub -contractor.
2. MSD reserves the right to conduct on-site interviews and inspections of the MBE’s listed
on Form A at their place of business for purposes of verifying certification information
presented and to determine if the MBE’s business is in compliance with MSD’s
guidelines for MBE particip ation on its Diversity Program.
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3. For bids that do not meet the District’s stated MBE goal, the bidder must document and
provide all good faith efforts undertaken by the bidder to achieve the stated goal. For a
bid to be considered resp onsive, efforts undertaken shall be concentrated and aggressive
so as to reach the intended MBE targets for partic ipation through various means of
personal contact, follow-u p, and/or actual consultation with qualified certifi ed MBE
firms.
MSD Form B – Good Faith Docume ntation Require ments
The following is a list of minimum requirements (a thru e below) a bidder must complete
in order to have demonstrated compliance with meeting the requirements for the
District’s “Good Faith Efforts”. All “Good Faith Efforts” must be undertaken with MBE
firms having skills or services relevant to the project being bid, and be “ready, willing
and able” to provide thos e skills or services. Information submitted as validation of
“Good Faith Effort” activities will be subject to verification.
a. Advertisements:
Bidder must provide document ed proof of all efforts undertaken to extend
opportunities t o local certified MBE firms through advertisements with locally
distributed media within the MSD service area . Advertisements must be
published a t least fourtee n (14) days prior to the bid due date. Examples
include: advertising in regional minority trade association newsletters,
minority-owned media spe cifically targeted to MSD’s service area, and written
notifications sent to minor ity contractor associations. Proof of advertisements
would include copies of the advertisement containing dates published or
publication affidavits. All other advertisements must be acknowledged by the
intended or targeted recipients.
b. Outreach to identify potentia l MBE’s for work being sought:
To assist bidders, a listing of certified firms is provided with solicitation
documents a nd a listing of certified MWBE contractors is also provided on
MSD’s supplier diversity website ( www.stlmsd.com) as a resource for bidders
to use for p urposes 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 a nd MBE sub-contractor’s qualifications and experience to
perform work or supply ser vices or materials as a MBE sub-contractor.
Any solicitation of letters, e-mails, or faxes sent by the primary bidder to reach
certified MBE’s must include the specific type of work being sought, or the
work delivery schedule conforming to the type of work that the MBE firm is
qualified to perform.
Bidder must provide documented contact with a minimum of two (2) MBE
professional or advocacy organizations, each of whic h has capabilities to assist
with identifica tion of potential certified MBE’s for subcontracting
opportunities. Evidence of contact with the organization must be provided.
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c. Bidder shall host a pre-bid meeting, prior to bid completion, to reach qualified
MBE’s. A Pre-bid meeting agenda with sign in sheets containing MBE’s contact
information and signatures must be submitted with bidder’s outreach
documentation. Announcement of pre -bid meetings, including date and time,
should be included i n the bidder’s advertisement, referenced in paragraph “a.”
above.
As an alterna tive, local construction contractor associations or the
equivalent ma y advertise separately for a single location pre -bid meeting
for numerous potential prime and MBE firms. The prime contractor shall
submit sign in sheets showing their attenda nce and documenting the
attendance of MBE firms with outreach documentation.
d. Written Correspondence a nd Notifications: In order to provide verification of
“good faith” efforts:
Bidder must provide copi es of efforts to solicit bids and/or material quotes
from qualified MBE’s through timely notifications to solicit business via letters.
Those solicitations should be dated or postmarked a minimum of fourteen (14)
calendar days prior to bid opening. Solicitations may be sent using the
following methods:
o Registered or certified mail with a returned receipt required, or
o E-mail notifications with acknowledgement by recipient or confirmation
via returned “read” receipts, or
o Faxed documentation with acknowledgement by recipient or confirmation
receipts, or
o Courier with proof of the MBE’s acceptance signature
Verifiable proof of all such notifications must be submitted as confirmation of
the bidder’s due diligence to secure qualified minority participants within
MSD’s service area.
Bidder shall provide the listing used to solicit bids and must attempt t o contact
a n adequate number of certified MBE’s, whether sourced from MSD’s website
listing (ww w.stlmsd.com) or other MSD approved certifying agencies, must
be contacted in relevant work categories, as designated in the following table:
Number of MBE’s in Relevant Work
Category
Minimum Number of MBE’s
Contacted Based on MSD ’s Website
List
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
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e. Contracting in Good Faith with Interested MBEs
It is the bidder’s responsibility to identify and make portions of the project
work available to qualified MBE firms and to select those portions of the wor k
or materia l needed consist ent with the available MB E firms, so as to facilitate
MBE participation. Evidence of such contracting outreach includes the names,
addresses, and telephone of MBE’s that were considered; a description of the
information provided regarding the plans and specifications for the work
selected; and evidence as to why additional agreements could not be reached
with the MBE’s to perform this work.
A bidder using good business judgment would consid er a number of factors in
deciding to contract with MBE firms and would take a firm’s price and
capabilities as well as project goals into consideration. Good faith effort include
those additional steps taken to d o business with MBE’s such as 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 perform the work of a contract with its own
organization does not relieve the bidder of the responsibility to make good
fa ith efforts. A bidder is not, however, required to accept higher quotes from
MBE’s if the price difference is excessive or unreasonable.
f. Bidder must provide a justification statement which provides the reasons why the
Bidder could not attain the required goals and describing in detail the efforts
undertaken to reach the goals.
D. Post Contract Award Requirement:
1. Within fifteen (15) calendar days after notice of award of the contract , MBE verification
letters signed by all the M BE participants or copies of all MBE related sub-agreements
signed by both the contractor a nd MBE sub-contractors must be submit ted 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.
E. Contractual Compliance Requirements:
1. For the purpose of validating Diversity compliance on any MSD project, the District will
pe rform on-site monitoring; require 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 MWBE’s performing work on the contract.
2. During construction the contractor must submit monthly online subcontractor
utilization reports to the District or its assigned project Construction Manager (CM)
using the online Prism Reporting system. MSD will verify that the contractor has
reported their monthly MBE and Non -MBE involvement participation upon receipt of
each progress payment request until the Final Payment Application for the project
is submitted. On months where there is no MBE activity, contractor must still submit
a report indicating no activity was performed for that month.
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3. Changes to the 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 sub-contractor is unable to meet the delivery requirements of the
contract schedule.
b. The named MBE sub-contractor is dilatory in complying with the requirements of
the contract documents.
c. The named MBE sub-contr actor is prevented from performing due to bankruptcy,
insolvenc y or circumstance s related to the failure of the business.
d. The type and amount of work to be performed by the MBE sub-contractor is less
than what the contractor could have reasonably assumed at the time of the bid.
The contractor must pro mptly report to the District, in writing, any proposed
changes in the utilization of MBE sub-contractors, and include appropriate written
justification documentation, signed off by both the contractor and the affected MBE.
All contract modifications to any MBE participation and/or MBE scope of work
re quires a written District Change Order to the contract prior to final close out of a
project .
4. Before final payment will be authorized by the District, , the contractor must submit a
MWBE Payment Verification Confirmation Form (signed by both the contractor and
the MBE sub-contractor) for ea ch MBE sub-contractor utilized on the project indicating
the full amount paid to date. Contractor must indicate on the Verification Form
whether this amount represents full or partial payment of all amounts owed to the
MBE sub-contractor. In a case where the total final pa yment to the MBE sub-contractor
cannot be made until the District makes its final payment to the contractor, the
contractor sha ll also indica 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 a ny outstanding payment s owed to MBE sub -contractors, the
contractor shall record final payment into Prism and submit a new MWBE Payment
Verification Confirmation Form for each MBE sub-contractor receiving such
outstanding pa yment confirming their receipt of final payment.
5. In the event the contractor fails to conform to m eeting 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 obligations, the District
will advise the contractor, in writing, of corrective actions to be initiated. If the
contractor fails to fully ini tiate the corrective actions in a timely manner, the District
may withhold the equival ent amount, which should have been paid to the M BE(s),
from a ny 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 on MSD Form A or by an approved MSD cont ract change order agreement .
F. Disclaimer
The District's implementation of this MBE procedure and its requirements does not constitute
any endorseme nt 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.
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WORKF ORCE 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
30.0% Minority workforce participation per trade;
7.0 % Woman workforce pa rticipation per trade;
40.0% Total minority and woman apprentices (for any apprentices used).
Minority is defined as a ma le or fema le African American, Asian American,
Hispanic American or Native Ame rican.
B. Contractual Re quirements for Workforce
1. The contractor must compl y 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 fifteen (15) days prior to mobilization, contractor is required to submit a
60 Day Project Workforce Plan to the District forecasting the anticipated
workforce utiliza tion for the first 60 days of the project schedu le for the Prime
contractor and a l l sub-contractors providing 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 information is requ ired 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 sub-contractor
2. In the event a contractor is not meeting the workforce goal requirements at the onset of a
project, contractor must also complete and include a “Project Workforce Plan”
schedule (also found at the website link listed above) which identifies the contractor’s
plans for meeting the workforce goal requirements and in addition which
demonstra tes the “good faith efforts” undertaken by both the contractor and sub-
contractors to meet the workforce requirements. To meet “good faith effort” the
contractor must provide the following to the District:
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a. Documented proof of regular contact wit h the resources listed below requesting
ava ilability 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)
b. An A ction P la n to fulfill contract workforce obligations by the end of the
project must be provided with documentation.
3. All actions of good fa ith must include the steps listed in 2. a-b. Failure to meet these
minimum contract obliga tions will subject the contra ctor to sanctions on doing future
work wit h the District up to and including a complete prohibition from performing work
on any District projects for a time period to be decided solely by the District.
4. Upon receipt of contractor’s 60 Day Project Workforce Plan by the District, contractor
will receive acknowledgement 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 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 Re quirements: To be in compliance with MSD’s labor
and workforce reporting requirements contractor must utilize MSD’s Diversity
online Workforce R eporting System located at the following website link:
www.msddiversityreporting.com. Contractor shall submit monthly workforce
utiliza tion reports online by the 10th of each month for the previous month. Certified
Payrolls detailing actual utilization for the past month for the Prime contractor and
all sub-contractors performing work in the month being reported. If the workforce
goals have not been met, the report shall also include documentation of specific
“good faith efforts” performed in the past month as well as the planned actions to be
taken by the contractor and the sub-contractors to fulfill workforce contractual
requirements.
a. As part of its monthly reporting, documented proof of “good faith effort”
activities including initial and ongoing contact with the programs listed above
must be provided along w ith documented responses from each entity contacted to
request diverse workers.
6. During the life of the Community Benefits Agreement (“CBA”), MSD shall ensure that
the First S ource Hiring Pr ogram 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 shall actively
monitor performance of the BUD and First Source Hiring Programs, shall enforce the
requirements for use of the BUD a nd First S ource Hiring Programs and shall take
appropria te enforcement actions to address noncompli ance.
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The BUD and First Sourc e Hiring Programs provid e access to targeted Minority and
Women applicants for M SD projects. Contractors shall receive from the Programs
prompt, cost-free eligibility lists of available qualified and trained applicants when
requested for MSD Projects. MSD requires contractor participation in the BUD and First
Source Hiring Progra ms with regard to all job vacancie s 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 amendment 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 require contractors
who are subject to collective bargaining agreements with union affiliates to
comply with utilization of SLATE Programs which violates any component of
bargaining agreement terms. Conflicts regarding the use of these programs with
collective bargaining agreements must be provided to the District along with good
faith effort documentation.
c. Contact Information for BU D Training and First Source Hiring
Progra ms: St. Louis Agency on Training and Employment (SLATE)
Program Administrator: CJ Neu
1520 Market Street, Suite 3050
St. Louis, MO 63103
(314) 657-3551,
Phone (314) 641-8440,
https://www.stlouis-mo.gov/government/departments/slate/construction-
intake-center.cfm
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 monit oring in order to confirm workforce compliance as described
in paragraph A above.
8. Failure to meet the “Good Faith” effort requirements listed above will 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.
FINAL CONTRACT AND ANNUAL DIVERSITY CO MPLIANCE EVALUATIONS
A. Upon submission of contra ctor’s final paymen t request, MSD’s Diversit y Division will
conduct a final evaluation of both vendor and workforce 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 contractor’s originally
submitted M SD Form A and satisfaction of workforce utilization goal requirements. Any
deviation from contractor’s originally approved M BE’s, requires contractor to have an
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 the required documentation.
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B. For contracts exceeding $500,000, to meet workforce requirements, contractor must have on
file a n Initial 60 Da y Workforce Plan, all required monthly Workforce Utilization Reports for
Prime and Subs, all required certified payrolls for Prime and Subs, and any additional
required workforce compliance documentation suc h as good faith effort documentation in
the event contractor did not meet workforce requirements. Failure to meet workforce
compliance requirements c an subject the contractor to sanctions on doing futur e 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.
C. On a n annual ba sis, each pre-qualified contractor requesting to continue as an approved pre-
qualified contractor will be evaluated and scored on performance compliance with meeting
vendor and workforce goals. Failure to meet vendor and workforce compliance requirements
can subject the contractor to sa nctions 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.