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HomeMy Public PortalAboutProfessional Service Contracts 08/01/2023 Professional Services Page 1 of 15 rev 08/1/23 METROPOLITAN ST. LOUIS SEWER DISTRICT BUSINESS DIVERSITY Workforce and Utilization Program for Professional Services Effective August 1, 2023 PURPOSE The purpose of the Metropolitan St. Louis Sewer District’s (MSD) Business Diversity Programs is to ensure that contracts are awarded in a manner that promotes economic inclusion across all segments of its business and maximize opportunities for diverse participation. MSD will take all necessary and reasonable actions t o alleviate and address any documented disparities identified by the results from its 2022 Disparity Study Update , conducted by Mason Tillman Associates, LTD. MSD promotes fair and open competition for meaningful participation of M inority and Women Business Enterprises (MBE/WBE) and for minority and women workforce participation on P rofessi onal S ervi c e p rojects. Procedure Guidelines This procedure establishes guidelines for compliance with the Business Diversity Workforce and Utilization Program on Professional Service contracts . A. MBE/WBE Participation (Professional Services) 1. There are no established participation goals for contracted professional services. MSD encourages the participation of MBE’s and WBE’s in an effort to maintain and promote meaningful participation of diverse businesses and workforce across its enterprise. Therefore, all sub participation submitted on MSD Form A-2 for MBE’s and WBE’s to participate on a professional service contract is voluntary, however, commitments made to MBE’s and WBE’s during the proposal and/or negotiation process shall become a component of the final awarded contract. Confirmation of MBE and WBE Utilization: To confirm the commitment of an MBE’s or WBE’s participation on the contract, the MSD Consultant/Vendor Verification Form must be executed/signed by both the Prime and each MBE / WBE Firm scheduled to perform work on the contract in any capacity. The form identifies the Prime’s commitment to the MBE or WBE for capturing the voluntary participation on the contract. The form contains the name, address, certification type, description of work, and the dollar amount and percentage value of work to be performed on the contract. The MSD Verification Form serves as the Subs acknowledgement and notice of their intent to perform work on the contract and is a binding contract agreement with the Prime. Commitment participation is applicable throughout the term of the contract until fulfillment of the contracted amount and initially calculated based on the total negotiated proposed cost amounts and expressed as a percentage of the total cost amounts for each MBE and/or WBE listed on MSD Form A-2. Final contract commitment attainment is evaluated and based on the final contract amounts inclusive of amended amounts throughout the term of the contract unless MSD in its sole discretion determines otherwise. Professional Services Page 2 of 15 rev 08/1/23 2. A Minority Business Enterprise (MBE) is defined as a certified MBE b usiness that is at least 51% owned, operated, and controlled by one or more minorities who are citizens of the United States. “Controlled” means t hat the minority owner(s) must exercise actual day-to-day management of the business operations. The minority groups that will count towards meeting goals for MBE subconsultant utilization are certified African American (Black American), Hispanic American, Asian American, Pacific Islander, American Indian, or Alaskan Native. A Women Business Enterprise (WBE) is defined as a certified WBE business t hat is at least 51% owned, operated, and controlled by one or more women who are citizens of the United States. “Controlled” means that the woman/women owner(s) must exercise actual day-to-day management and control of the business operations. 3. Acceptable MBE and WBE Certifications MSD does not certify consultants or contractors. MSD accepts certifications issued by City of St. Louis Lambert Airport and the State of Missouri Office of Equal Opportunity. Participation of MBE/WBE’s must possess a current valid certification issued by one of these approved certifying agencies at the time of proposal submission or amendment. The MBE/WBE’s certification must identify all codes issued for areas of industry classifications that the MBE/WBE is certified to perform work under the North American Industry Classification System (NAICS) or all areas of industry Segment Codes by which the MBE/WBE is certified to perform work for the scope they are proposing to be utilized. MBE/WBE participation will only count for scopes covered by the MBE/WBE ’s current certification on file at the time of proposal and for the duration of the project . The approved certification agencies are: • City of St. Louis Lambert Airport https://flystl.diversitycompliance.com • Missouri State Office of Equal Opportunity https://apps1.mo.gov/MWBCertifiedFirms *Note: MSD does not accept reciprocity certifications issued by other certifying agencies. Both agencies maintain a directory of certified firms with name, address, phone number, email address, and the industry codes for the type of work the firm or company is certified to perform as an MBE or WBE. Any lapse in certified status during performance of a contract could result in a firm’s participation not counting towards commitment participation amounts if the firm is unable to regain certification within 180 days of becoming decertified. 4. Minority and Women Workforce Goals for Professional Service The Metropolitan St. Louis Sewer District (MSD) has established a Prime local office (or Prime Project Team if there is no local office) Minority workforce goal of 31.00% and Women workforce goal of 37.00% on Professional Service contracts in the amount of $500,000 or more. Minority categories includes male or female African American, Asian American, Hispanic American, Pacific Islander, American Indian, or Alaskan Native employed in the consultant’s local office. Women is defined as a female employed in the consultant’s local office. Professional Services Page 3 of 15 rev 08/1/23 5. Workforce Incentive Credits In an effort to promote more diverse Primes Firms and diverse workforce on all Professional Service contracts, Firms have the option to complete the attached Multiplier Calculation Worksheet form to gain up to 20% credit in the evaluation process. B. Diversity Program Administration Diversity Programs Division reports to the Office of the Executive Director and is responsible to manage and monitor all utilization of MBE/WBE’s participating on MSD projects. All Professional Service contracts with Diversity Program requirements will be monitored to ensure compliance. 1. Definitions for Professional Services Award shall mean that MSD has identified and selected a Firm, Consultant, or Contractor as the intended recipient for work to be performed under contract as the Prime. Amendment an enforceable agreement which incorporates a change to the current contract between MSD and the Award recipient typically under mutually agreed upon terms. Business shall mean any organization or enterprise engaged in commercial, private, industrial, construction or professional activities involving making, buying, and/or selling goods or services. Commercially Useful Function occurs when an MBE or WBE is solely responsible for every aspect of execution of a scope of work under their own contract with responsibilities for management, performance, supervision, negotiating, hiring, ordering, installing, invoicing, and making payments without assistance. Compliance refers to Firms, Consultants and/or Subconsultants conforming to the scope and requirements they have contracted to perform. Cone of Silence refers to the period of time when there is a restriction on communications between the proposer, consultant, contractor and MSD staff or designated officials regarding a particular solicitation and/or its related processes outside of the communications as defined in the RFQ or RFP. This period terminates upon the following: a contract resulting from the solicitation is executed or all proposals responses to the solicitation are rejected. Consultant (Firm) refers to the individual, partnership, joint venture, corporation, firm or other legal entity who performs the work under the terms of an executed MSD contract. Contract refers to the agreement between MSD and Award recipient that obligates the Consultant (Contractor/Firm) to provide a scope of work, including but not limited to contracted professional services and typically involves a promise of payment under mutually agreed upon terms. Good Faith Efforts (GFE) are actions taken to achieve pre and post contract requirements which, by their scope and intensity demonstrates responsiveness towards meeting or exceeding goals and/or requirements. Minority Business Enterprise (MBE) is defined as a certified MBE business that is at least 51% owned, operated, and cont rolled by one or more minorities who are citizens of the United States. “Controlled” means that the minority owner(s) must exercise actual day-to-day management of the business operations. Professional Services Page 4 of 15 rev 08/1/23 MSD or “District” refers to The Metropolitan St. Louis Sewer District. MSD Diversity Reporting (MDR) is the cloud based automated compliance and tracking software system that MSD’s Primes are required to use for reporting on M/WBE utilization, workforce utilization, payments, and other requested documentation. MDR tracks progress of MBE/WBE’s participation commitments, payment verifications, concurrence of payments, records site visits, etc. Non-Compliance refers to failure to adhere to the requirements as stipulated in MSD’s contract. Prime Firm or Consultant refers to the individual, partnership, joint venture, corporation, firm or other legal entity that will perform an agreed upon scope of services while under contract with MSD. Proposer shall mean any respondent, individual, company, or entity responding to any solicitation types (i.e. Request for Qualifications (RFQ), Request for Proposals (RFP), or other solicitation as determined by MSD). issued by MSD or its duly-authorized agent and that is for professional services to be provided to the District. Public Works refers to a broad category of infrastructure projects, financed and constructed by government entities for recreational, employment, health, and safety uses in the greater community. Responsive means the requirements for acceptance of a proposal for further consideration have been met inclusive of all required documents, acknowledgements, and signatures were submitted on or before the date and time specified, at the location specified and in the way that was requested along with any other criteria outlined by the solicitation. Subconsultant (Sub) refers to the individual, partnership, joint venture, corporation, firm or other legal entity to whom the Prime or another Subconsultant intends to contract with to perform a scope of work on an MSD project as a MBE, WBE or Non-MWBE. Women Business Enterprise (WBE) is defined as a certified WBE business that is at least 51% owned, operated, and controlled by one or more women who are citizens of the United States. “Controlled” means that the woman/women owner(s) must exercise actual day-to-day management and control of the business operations. 2. General Procedure Guidelines a. Commercially Useful Function (CUF) - The purpose of CUF r equirements is to ensure that Primes perform their due diligence to utilize MBE/WBE firms that are ready, willing and able to perform the specific work for which they are qualifie d , certified, and authorized to perform in accordance with the terms and conditions as set forth in the contract at the time of award. Certified MBE/WBE’s participating on an MSD contract, regardless of the procurement type, are required to perform a Commercially Useful Function in fulfillment of meeting goal requirements and are subject to all conditions of Diversity Program’s requirements for compliance and throughout the duration of the contract. i. A certified MBE/WBE performs a C ommercially Useful Function when they possess the sole responsibility for execution of the full specified scope identified for the MBE/WBE at the time of the proposal , upon contract award and in performance of the contract. The MBE/WBE is responsible for but not limited to all levels of work performance, management, supervision of all aspects of the work specified , negotiating its own terms and conditions, negotiating its own pricing, determining quality, level of service, quantity, assignment of work, invoicing/billings, payment f or services , materials, supplies (equipment if applicable) and control of its own workforce . Professional Services Page 5 of 15 rev 08/1/23 ii . Work performed by an MBE/WBE must be consistent with industry practices and any other relevant considerations which demonstrate 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/WBE goal requirements.) CUF requirements also exist to prevent, to the exten t possible, M BE /WBE’s from being utilized as a “pass -through” or “front” for a Prime or another subconsultant. MBE/WBE ’s whose role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of MBE/WBE participation is not considered as performing a C ommercially U seful F unction. iii . MSD will evaluate whether the M BE /WBE presented to participate on the contract serves a CUF during pre -award, during performance of the contract/proj ect and upon completion of the project. Each evaluation will follow industry best practices in determining i f the MBE/WBE is performing a CUF by evaluat ing all relevant factors including but not limited to cost , valid certification (s ) supporting the MBE/WBE ’s qualifications for t he work being performed, work performance history , experience, relevant qualification s for the work being performed, assess ment if t he amount of work for goal participation credit is commensurate with the overall project requirements and in comparison to similar transactions of non -MBE/WBE ’s subconsultants or any other pertinent factors that would assist MSD to make a determination . I f in MSD’s judgment, the MBE/WBE (even if certified) does not meet the requirements of perform ing a CUF for the specified scope of work, the Prime’s credit towards the MBE/WBE ’s participation listed on MSD Form A of the contract and/or listed towards meeting the stated MBE/WBE goals during performance of the contract will not be counted. iv . When a MBE/WBE Firm is presumed not to be performing a CUF , the Prime or MBE/WBE may present documented evidence within 5 bus iness days of non -CUF notification to refute this presumption. MSD Diversity will then initiate an investigation for re consideration based on the evidence presented and make a final determination . b. Cone of Silence - Refers to the period of time when there is a restriction on communications between the proposer, consultant, subconsultants, contractor, etc. and MSD staff or its designated officials regarding a particular solicitation and/or its related processes outside of the communications as defined in the RFQ or RFP. This period terminates upon the following: 1) a contract resulting from the solicitation is executed, or 2) all proposals in response to the solicitation are rejected. c. Good Faith Efforts (GFE) –Post award GFE’s demonstrates the Prime responsibility to put forth measures to meet or exceed any contracted commitments on the contract. i. When the contract commitments are not met and the Prime fails to submit Good Faith Efforts documentation as provided for in this guideline, Prime will be found to be non -compliant with contract requirements. The efforts employed by the Consultant are those that one could reasonably expect a Prime to take if they were actively and aggressively attempting to obtain MBE/WBE participation sufficient to meet their commitments. Efforts taken that are mere formalitie s or perfunctory acts shall not be Professional Services Page 6 of 15 rev 08/1/23 considered Good Faith Efforts . d. Joint Ventures (JV) – A n y Jo int V enture (JV)functioning as a single business entity that will participate as a Prime MBE or WBE must be certified by one of the acceptable certifying agencie s . e. Mentor Protégé - MSD welcomes opportunities for mentoring of prospective M/WBE’s and may allow Mentor/Protégé agreements between certified M/WBE’s and non-certified business enterprises under the following provisions: 1. There must be a formal agreement in place between the parties which identifies the terms and conditions of the agreement. The agreement between the parties must be submitted with MSD Form A-2. 2. Mentor/Protégé agreements seeking M/WBE participation credit must clearly identify in detail the scopes and costs of the work to be performed by the certified M/WBE. 3. It is an acceptable practice that a Mentor provides coaching, oversight and guidance in performance of work to assist with progression of experience and qualifications. However, only scopes of work completed solely by the certified M/WBE which serves a Commercially Useful Function will count toward commitments to M/WBE’s. Therefore, scopes involving shared tasks with any non-certified firm will not be allowed to count as M/WBE participation. f. Tier Levels of Participation - Certified MBE and WBE s may be used at any tier. This is identified on the MSD Form A-2. Any non-certified firms at any tier level will not be counted towards MBE or WBE participation. C. Pre-Contract Award 1. In an effort to promote workforce diversity on all Professional Service contracts, firms have the option to complete the Multiplier Calculation Worksheet form where a multiplier will be applied to the RFP evaluation scoring process for purposes of giving credit for diverse minority and women workforce participation. For contracted Professional Services RFQ’s or RFP’s a diversity multiplier of up to 20% can be applied to the final score consisting of the following: Certified MBE and WBE Primes - 10%; ability of Prime to meet half of minority and women local office workforce goals – 5%; When Primes utilize a minimum of 25% sub-consultant participation, the local office workforce of subconsultants may be used to count towards obtaining the maximum 10% workforce multiplier that’s allowed. The total multiplier credit earned will be applied to the final score. 2. Voluntary M/WBE participation on RFQ’s or RFP’s – In the evaluation of proposals for contracted Professional Services, MSD Form A-2 is submitted to capture any voluntary participation intended to be performed on the contract. This form contains the names, proposed percentage of utilization and other pertinent information for MBE/WBE’s that the proposer plans to utilize in performance of the contract. Any participation listed on MSD Form A-2 shall become contractually binding commitments upon acceptance of contract award from MSD. A business that is certified as both MBE and WBE cannot count for participation in both categories, therefore the Prime must choose either MBE or WBE for each Firm listed. If the business is submitted Professional Services Page 7 of 15 rev 08/1/23 as both MBE and WBE and the proposer does not designate which certification status should be applied for the business, the Diversity Program shall credit participation in such a way that maximizes participation on the contract. 3. Professional Services MSD Form C- Subconsultant/Vendor Utilization Form. This form contains the names and other pertinent information for all other proposed Firms (excluding those on MSD Form A- 2) that the proposer plans to use in performance of the contract. MSD Form C is issued and collected after NOA. 4. Evaluation Procedures for Voluntary MBE/WBE Participation a. Diversity will initially verify if any of the following items are present: • MSD Form A-2 completed in its entirety and submitted with Proposal. o MSD will validate MBE’s and WBE’s are certified by an acceptable certification agency. o MSD will validate MBE’s and WBE’s have appropriate NAICS or Segment Certification Codes for their proposed scope(s) of work. • Multiplier Worksheet calculations are verified for appropriate evaluation credit (if applicable). b. For evaluation purposes , MSD reserves the right to request written clarifications, request additional documentation for any MBE/WBE firms listed on MSD Form A-2. When clarifications are requested, this is not an opportunity to add new information or update a proposal response. Clarifications will only apply to information submitted in the original proposal response. c. Any MBE/WBE participation submitted in response to MSD’s solicitation will be considered a component of the proposal, used in the evaluation process and shall become a contractual requirement of the final contract award that must be attained by the Prime. d. MSD reserves the right to exclude credit of proposed voluntary MBE/WBE participation presented. Examples of participation adjustments may include but is not limited to the following: 1) Proposer’s failure to validate that the MBE/WBE is certified at the time of proposal; or 2) Proposer’s failure to validate that the MBE/WBE possesses valid certification codes to perform the scope(s) identified for the MBE/WBE on MSD Form A-2. After any adjustments, the final total amount for MBE/WBE participation will be calculated as a percentage of final total cost and recorded for reporting purposes. D. Post-Award Compliance/Monitoring, and Reporting Upon award of a contract, the Prime is required to meet the commitment level of MBE and/or WBE participation according to the contract terms. Upon issuance of Notice of Award (NOA), the Prime will be notified of all required documentation or additional information to be submitted prior to issuance of a Notice To Proceed (NTP) and/or Purchase Order (PO). Failure to comply with submission requests can subject the C onsultant to rescinding of the notice of award or termination of the contract . a. Diversity Compliance Procedures: MSD Form A-2 contains the names and pertinent subconsultant information for all MBE’s and WBE’s scheduled to perform work on the project. A business that is certified as both MBE and WBE cannot count as participation in both categories and will be identified on the contract under the certification type in which they were initially counted on MSD Form A-2 during the proposal evaluation. Professional Services Page 8 of 15 rev 08/1/23 b. Confirmation of Subconsultant/Subcontractor Utilization: To confirm an MBE’s, WBE’s participation on the contract, MSD Consultant/Vendor Verification Form must be executed/signed by both the Prime and each MBE / WBE subconsultant scheduled to perform work on the contract in any capacity. The form identifies the Prime’s commitment to the MBE or WBE and for capturing participation, voluntary and otherwise on the contract. The form contains the name, address, certification type, description of work for each subconsultant/subcontractor, and the dollar amount and percentage value of work to be performed on the contract. The MSD Consultant Vendor Verification Form serves as the Sub’s acknowledgement and notice of their intent to perform initial and subsequent work on the contract and is considered to be a binding agreement made with the Prime. The Consultant/Vendor Verification Form also serves as the Prime’s notice to MSD of its intent to utilize the Consultant/Vendor and the agreed upon scope, initial amount and final utilization percentage based on the final contract amount. c. Commercially Useful Function (CUF): In order to record participation of MBE’s and WBE’s the certified firm must perform a Commercially Useful Function on the contract. CUF reviews will be performed as a component of compliance throughout the term of the contract and during the final evaluation and contract close out process. CUF office and site visits may be conducted at any time during performance of the contract. All participants, at any level on the contract, are required to cooperate with MSD Diversity staff and other authorized representatives of MSD conducting the CUF reviews, including but not limited to the following: • Office and/or site visits to review additional documents associated with the contract. Conduct examination of third-party arrangements on the contract or conduct onsite interviews of employees without interruption to the work in progress and record such interactions into the MDR reporting system. • Request routine documentation to verify participation of MBE’s and WBE’s. Such documentation may include, but is not limited to, invoices, proof of payments to MBE’s, WBE’s and/or third parties, etc. d. Prompt Payment: MSD is subject to compliance with Section 34.057 RSMo, Missouri’s Public Prompt Payment Act. As such, as work progresses, and in accordance with Section 34.057 RSMo, MSD remits payment due to Primes within thirty calendar days. Firms are also subject to the requirements of Section 34.057 RSMo. The Prime must pay its subconsultants, subcontractors, service providers and suppliers within 15 calendar days of receipt of payment from MSD in accordance with the Prompt Payment Act. e. Diversity Monitoring and Reporting: Throughout the contract, monthly and/or quarterly online utilization reports are required to be submitted to MSD using the online MSD Diversity Reporting System (MDR). It is mandatory that the Prime utilize MSD ’s Diversity R eporting System (MDR) located at the following website link: www.msddiversityreporting.com to report on all levels of subs regardless of certification status. Diversity will notify t he Prime via email of the reporting requirements at the o n set of the contract when applicable . MSD Diversity shall veri fy monthly that the Prime has reported on MBE, WBE and/or Non -M/WBE utilization participation no later than the next month in which payment was made until the final i nvoice is submitted for p ayment to close out the project. On months where there is no sub activity, the Prime must submit a report indicating that no work was performed for that month or period. For contracts exceeding $500,000 initially or which exceed $500,000 through amendments/change orders at any point in the contract, quarterly workforce utilization will be required through the end of the contract. Trends of non-compliance and/or consistent n on -compliance can affect Prime’s pre- qualification status with MSD including Prime’s ability to do future work with MSD up to and Professional Services Page 9 of 15 rev 08/1/23 including complete prohibition from performing work on MSD projects for a time period to be decided solely by MSD. f. Diversity Payment Audits and Payment Disputes: All payments to subs, service providers and suppliers are required to be submitted into MSD Diversity Reporting (MDR) Software System and are verified electronically by the payment recipient within five (5) days of submission of payment into the MDR System. The Prime must update MDR with payment information regarding amount and date of payments to all subs, service providers, and suppliers no later than one month (30 days) after payment is made. Failure to submit payment information constitutes non-compliance with the Diversity Program requirements. Upon request, invoices and canceled checks or other verifiable documented proof for the reported payment must be submitted into the MDR system. Late or non-payments to subs for valid billable work performed may be considered a material breach of contract and constitutes non- compliance with the Diversity Program requirements. Once non-compliance has occurred, subsequent payments can and will be withheld until the issue of non-compliance has been resolved. Payment disputes occur when a sub reports a dispute directly to MSD or when a sub disputes a reported payment made into MDR. When this occurs, an investigation is opened to resolve the dispute. For disputes made directly to MSD, the Prime will be contacted directly and requested to submit a written response with appropriate documentation so that an investigation can be conducted to resolve the dispute. When a dispute occurs in MDR, the system will send an automated email to MSD Diversity Division to begin an investigation to resolve the dispute. g. Sub substitutions are only allowed with prior written consent from MSD via amendment or a written change directive issued on behalf of MSD by an authorized party. Proper written notification and documentation of the reason for the substitution must be provided to MSD by the Prime. Modifications to contracted MBE/WBE utilization on an MSD project will only be considered and approved by MSD for the following reasons: 1. The MBE/WBE subconsultant is dilatory in complying with the requirements of the contracted services/work identified in the contract. 2. The MBE/WBE becomes bankrupt or insolvent, or circumstances otherwise arise related to the failure of the business resulting in an inability to meet the requirements of the contract. 3. The MBE/WBE fails to perform work in a way consistent with acceptable industry standards and practices. 4. MSD determines that the MBE/WBE is not a responsible subconsultant or is no longer eligible to receive credit for participation as an MBE/WBE on the contract. 5. Work is eliminated which changes or affects the scope identified for an MBE/WBE by MSD via an Amendment to the contract or by a Work Order Change Directive on behalf of MSD. MSD does not allow for automatic replacement of commitments made to M/WBE’s even when commitments are voluntary. When under contract, MSD requires that the Prime promptly report to MSD, in writing, any proposed changes in the utilization of MBE/WBE participation and include the appropriate written justification documentation, signed by both the Prime and M/WBEsub affected. Primes cannot terminate participation for an MBE/WBE authorized to perform work on the contract without prior written consent from MSD. Written consent via Amendment is granted only if the Prime has demonstrated good cause to terminate the MBE/WBE. Good cause does not exist if the Prime: 1) seeks to terminate a MBE/WBE it relied upon to obtain the contract in order to self-perform work Professional Services Page 10 of 15 rev 08/1/23 allocated to an MBE/WBE that was accepted by MSD to perform on the contract; or 2) to allow replacement of the MBE/WBE with another, preferred firm. Good cause does not exist if the failure or refusal of the MBE/WBE to perform its work resulted from actions on the part of the Prime which constitute bad faith or discriminatory actions exhibited towards the MBE/WBE. When a MBE/WBE is terminated or fails to complete its scope of work on the contract for any reason, MSD requires the Prime to provide replacement of the participation for at least an equivalent amount of work and/or perform Good Faith Efforts to demonstrate intentions to find another equivalent MBE/WBE capable of performing at least the same amount of work on the contract that could not be performed by the intended MBE/WBE. h. Workforce Compliance and Reporting: Prime firms who fall under requirements for meeting workforce goals must first demonstrate their ability to meet the local office goal requirements of 31% Minority and 37% Women. The first workforce report is due to be submitted within 30 days after issuance of Notice Of Award (NOA) and prior to the Notice To Proceed (NTP) being issued. Thereafter, quarterly reports are due to demonstrate compliance with Diversity Program’s goal requirements. Prime s m ust utilize MSD ’s Diversity R eporting System (MDR) located at the following website link: www.msddiversityreporting.com to report on workforce. After the initial report is made into MDR, q uarterly workforce utilization reports are due by the 10th day following the end of the previous quarter (using quarters based on an annual twelve -month calendar period) as follows: • January 1st – March 30th ends quarter (report due April 10th) • April 1st – June 30th ends quarter (report due July 10th) • July 1st – September 30th ends quarter (report due October 10th) • October 1st – December 31st ends quarter (report due January 10th) In instances that there is no local office, workforce goals will be measured by the number of individuals specifically working on the MSD contract. This information must be identified at the onset of the contract with the first workforce report. When a Prime fall short of meeting the workforce goals, workforce GFE will be required. Workforce Good Faith Efforts (GFE) a. Prime will be required to submit a Workforce Plan for review and approval by MSD Diversity regarding efforts to be taken during the remainder of the contract or next annual contract period to increase and diversify the workforce make-up of the local office or on the project as applicable. These efforts should consist of but are not be limited to the following: 1. Submission of firm’s Equal Employment Opportunity (EEO) policy statement in all policy manuals, and publication of the policy on company’s website and newsletters, annual reports, etc. 2. Provide proof of activities performed to develop and/or implement targeted recruitment, outreach, and marketing strategies through collaboration with: • Local Colleges, Universities, etc. • Stem and Mentoring Programs • Minority and Women Internship Programs Professional Services Page 11 of 15 rev 08/1/23 • Business and Local Community Programs • Advocacy Group participation (ASCE, NSBE, etc.) • Underutilized Subconsultant Programming 3. Implementation of training needs assessment aimed at promoting diversity and inclusion, internal promotions, and retention programming. 4. Providing resources and efforts to enable the firm’s continuation of achieving diverse participation through: • Management commitment • Financial support • Recruitment b. For multiple year contracts, workforce plans are required to be updated and submitted annually by July 1st with documentation which provides proposed plans and updates. B. Post Award Good Faith Efforts (GFE) and Non-Compliance 1. Post Award GFE’s are performed to demonstrate the Prime’s efforts that are taken to meet or exceed their contractual commitments. At any time during performance of the contract when a Prime is notified of its failure to comply with the requirements of the Diversity Program, the Prime firm must furnish to the District, in writing, the reasons for non-compliance. With a notice of non-compliance, in addition to the written statement, a corrective action plan must be provided within five (5) business days. The plan must identify to MSD the steps to be taken to resolve the non-compliance and when the plan will be initiated as a means to cure the non-compliance. Thereafter, the Prime will be required to document all evidence of GFE’s taken to comply with the corrective action plan and submit the documentation on at least a monthly basis until the non-compliance is resolved. All GFE documentation submissions will undergo evaluation for acceptance by the Diversity Division. The Prime will be notified of acceptance. If, in the sole judgment of the District, there have not been sufficient Good Faith Efforts taken on the part of the Prime to meet the contractual obligations or if the Prime fails to provide a corrective action plan in a timely manner and/or fails to initiate the corrective action in a timely manner, MSD in its sole judgement may institute appropriate actions for dealing with non -compliance and subject the Prime to immediate withholding of project payments and/or implement sanctions on doing future work with MSD up to and including a complete prohibition from performing work on MSD projects for a time period to be determined solely by MSD. 2. Post Award Non-Compliance: The following are examples, but not limited to, non-compliance events which may lead to sanctions: (a) Failure to perform compliance reporting activities for subconsultant and/or workforce utilization. (b) Failure to respond or provide requested information or documentation to MSD Diversity in a timely manner (5 business days). (c) Failure to resolve issues involving MBE/WBEs participating on the contract. (d) Failure to perform post award GFE when required by the contract. (e) Submission of false or fraudulent documentation or information. Professional Services Page 12 of 15 rev 08/1/23 The submission of fraudulent information to MSD is considered to be a material breach of contract and strictly prohibited. Sanctions for non-compliance with the Diversity Program requirements are assessed based upon the shortfall of the MBE/WBE’s participation up to a maximum amount equal to the monetary value or percentage of the participation set by the contractual requirements. The shortfall amount equal to the calculated amounts will be withheld from the final amount owed to the Prime to cover the identified shortfall. An MBE/WBE who participates in fraudulent activities resulting in shortfalls will not be due any funds resulting from the material breach of contract and may be sanctioned on doing future work with MSD up to and including a complete prohibition from performing work on MSD projects for a time period to be determined solely by MSD. Any funds resulting from or relating to non-compliance and/or fraudulent activities shall be set aside in a separate account within the Business Enterprise Budgeting System to be used by the Bus iness Diversity Program for the purpose of providing business development, workforce development and enhanced services that assist with the economic empowerment of MBE’s and WBE’s. C. Contract Close-Out and Final Diversity Review MSD Business Diversity Programs ensures that all contracts containing MBE/WBE goal participation or commitments of race-neutral participation are monitored to confirm that program participants are conforming to the requirements as set forth in the contract. It is the responsi bility of MSD Diversity to: 1) validate that the work committed to MBE/WBE’s is performed by the intended MBE/WBE; 2) conduct and document monitoring activities to ensure adherence to Diversity Program requirements; 3) produce and provide written certifications of all monitoring activities to validate all efforts taken; and 4) provide full transparency of all Diversity Program activities. To close out any project with Diversity Program requirements, a final review of the contract must be performed by the Diversity Division to determine if the Prime has complied with Diversity Program requirements. If the Prime does not achieve the full amount of participation required per the contract and was not able to provide sufficient post-award Good Faith Efforts documentation justifying its shortfall, the amount of any shortfall may be deducted from the remaining contract balance owed on the final invoice in an amount equal to the value of the goal that was not attained. To substantiate the final evaluation review, the record of Diversity’s evaluation will become part of the contract record to certify that the Prime was either compliant or non-compliant with the terms of the contract with MSD. Professional Services Page 13 of 15 rev 08/1/23 ATTACHMENT A PROFESSIONAL SERVICES DIVERSITY MULTIPLIER CALCULATION SHEET A. Prime Credit: Primes who are certified MBE or WBE can receive up to a ten percent (10%) evaluation multiplier credit. If a Prime is certified as both Minority and Women only one category will be allowed for the 10% credit, not both. ENTER MULTIPLIER CREDIT AMOUNT Prime Diversity Credit (All certified* MBE/WBE receive 10% Credit) Is prime firm a certified MBE or WBE? If yes, enter .10 ________ PLEASE RECORD THE ABOVE VALUE ON LINE “1” UNDER FINAL MULTIPLIER TABULATION B. Prime Workforce Credit: Prime can receive up to five percent (5%) evaluation multiplier credits for meeting or exceeding workforce thresholds that support and enhance interim workforce participation goals. For this calculation, please only include full-time personnel working in the local office* of the MSD service area. Full time personnel shall have worked for the company for no less than 90 days and averaged 30+ hours of work per week to be considered full time. PRIME WORKFORCE MULTIPLIER CREDITS: a. Total Local Office Workforce: _____ b. Women in Local Office Workforce: _____ c. Minorities in Local Office Workforce: _____ d. “b” divided by “a” (drop all decimals/fractions) _____% e. “c” divided by “a” (drop all decimals/fractions): _____% f. If “d” is 37% or greater, ENTER 0.0125 ON LINES 2 OF LAST SHEET g. If “d” is 18% or greater, ENTER 0.0125 ON LINE 3 OF LAST SHEET h. If “e” is 31% or greater, ENTER 0.0125 ON LINES 4 OF LAST SHEET i. If “e” is 15% or greater, ENTER 0.0125 ON LINE 5 OF LAST SHEET PLEASE ENTER APPROPRIATE VALUES UNDER FINAL MULTIPLIER TABULATION Professional Services Page 14 of 15 rev 08/1/23 C. Sub’s Workforce Credit: Complete only if a minimum of 25% of work is sub-contracted to receive up to five percent (5%) evaluation multiplier credits. For this calculation, all subs workforce must be included regardless of certification status. Please only include full-time personnel working in the local office* of the MSD service area. Full time personnel shall have worked for the company for no less than 90 days and averaged 30+ hours of work per week to be considered full time. Certified** Authorized Signature of Sub Name of Sub Firm MBE/WBE 1. _________________________________ _________ ________________________________ 2._________________________________ _________ ________________________________ 3. _________________________________ _________ ________________________________ 4. _________________________________ _________ ________________________________ 5._________________________________ _________ ________________________________ 6. _________________________________ _________ ________________________________ 7. _________________________________ _________ ________________________________ 8. _________________________________ _________ ________________________________ SUBS WORKFORCE MULTIPLIER CREDITS: a. Total Local Office Workforce: _____ b. Women in Local Office Workforce: _____ c. Minorities in Local Office Workforce: _____ d. “b” divided by “a” (drop all decimals/fractions) _____% e. “c” divided by “a” (drop all decimals/fractions): _____% f. If “d” is 37% or greater, ENTER 0.0125 ON LINES 6 OF LAST SHEET g. If “d” is 18% or greater, ENTER 0.0125 ON LINE 7 OF LAST SHEET h. If “e” is 31% or greater, ENTER 0.0125 ON LINES 8 OF LAST SHEET i. If “e” is 15% or greater, ENTER 0.0125 ON LINE 9 OF LAST SHEET PLEASE ENTER APPROPRIATE VALUES UNDER FINAL MULTIPLIER TABULATION Professional Services Page 15 of 15 rev 08/1/23 FINAL MULTIPLIER TABULATION ENTER MULTIPLIER CREDIT AMOUNTS 1. PRIME CONTRACTOR VENDOR MULTIPLIER 1. ______ 2. PRIME WOMAN WORKFORCE 37% OR GREATER 2. ______ 3. PRIME WOMAN WORKFORCE 18% OR GREATER 3. ______ 4. PRIME MINORITY WORKFORCE 31% 0R GREATER 4. ______ 5. PRIME MINORITY WORKFORCE 15% OR GREATER 5. ______ 6. SUBS WOMAN WORKFORCE 37% OR GREATER 6. ______ 7. SUBS WOMAN WORKFORCE 18% OR GREATER 7. ______ 8. SUBS MINORITY WORKFORCE 31% 0R GREATER 8. ______ 9. SUBS MINORITY WORKFORCE 15% OR GREATER 9. ______ ADD LINES 1-9 AND ENTER TOTAL ON LINE 10 10. FINAL MULTIPLIER CREDITS TOTAL: 10. ______ The undersigned certifies on behalf of the entity submitting this Report that the above information is true and accurate as of the date set forth below: __________________________________ ________________________________ Prime Name Date __________________________________ ________________________________ Authorized Representative Name Representative Title __________________________________ Authorized Representative Signature * Local Office shall mean the Prime’s or Sub’s office location which is located within the MSD service area or if there is no local office, shall mean the members of the Project Team identified as working on the contract. ** Certified shall only apply to those firms certified with one of the approved certification agencies acceptable to MSD.