Texas Water Development Board Enhancements to the EPA’s Disadvantaged Business Enterprise Program

Texas Water Development Board

Enhancements to the EPA’s Disadvantaged Business Enterprise

Program

February 28, 2012

Rene Gonzalez (512) 463-2634DBE and Policy Coordinator

Agenda

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• What is the DBE Program?• New Fair Share Goals• Review Procedure• Rationale for Change• Program Enhancements in Detail• Locating the Enhancements• Finding DBE Firms• DBE Certification• Question and Answer Session

DBE Program Enhancements Training

What is the DBE Program?

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• A condition of federal grant awards.• Requires loan recipients (municipalities, towns, public water

authorities, etc.) and sub-recipients (prime contractors and sub-contractors) to make a "Good Faith Effort" whenever procuring construction, supplies, services and equipment.

• EPA regulations require evidence showing that loan recipients performed the "Six Affirmative Steps" during procurement situations.


New Fair Share Goals

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CATEGORY MBE WBE

Construction 12.94% 8.72%

Equipment 7.12% 5.39%

Supplies 9.68% 9.34%

Services 10.84% 5.72%

• Required by 40 CFR Part 33 Subpart D and are directly negotiated with EPA Region 6.

• The TWDB’s goals and may not be substituted with other agency or program goals.

• The TWDB does not require that recipients meet the fair share objectives, however the EPA may take remedial action under 40 CFR § 33.105 for failure to comply with the good faith efforts requirements.

Rationale for Change

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• Increased federal oversight of federal capitalization grants.• Renegotiated fair share goals provide opportunity to refresh

program.• Updated DBE federal regulations in May 2008.• Misconceptions on DBE and “Good Faith Effort” requirements.• Both SRF programs provide over $100 million in federal funds

annually (multiplier effect).


Enhancements in Detail

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• Comprehensive Guidance (TWDB-0210)• Contents include:

• Background on DBE Program/Fair Share Goals• When are DBE forms due?• Detailed Form Instructions• Good Faith Effort/Six Affirmative Steps Overview• Program Compliance/Contract Administration Requirements



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• TWDB-0215Step 1:



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• Step 2:


Step 3:


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Step 3:


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• DBE Compliance Policy (CW-099/DW-099)• Applicable to all entities receiving federal SRF funding.• Requires entities to be in compliance through all phases of the project.• Organized by Phases:

• Project Application Phase• Loan Commitment and Closing Phase• Planning/Design Phase• Construction Contract Phase



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• Project Application Phase ComplianceForm: TWDB-0215 (Entity)• Commitment loan/principal forgiveness amount• Signature of Applicant/Entity• Completed Participation Estimates



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• Loan Commitment and Closing Phase ComplianceForm: TWDB-0216 (Entity)• Commitment loan/principal forgiveness amount• Minimum of three businesses/firms solicited for each type of contract

sought (i.e. three engineering, financial advisor, and bond counsel firms).• A combination of two methods must be utilized for solicitation at a

minimum. • Signature of Applicant/Entity • Backup documentation to support the solicitation methods utilized

(newspaper advertisement/affidavit, RFQ, fax/email/letter correspondence, website postings, governmental/trade publications, etc.).



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• All methods of solicitation shall include the following language to meet “Good Faith Effort” requirements as stated below:

• Any loan award is contingent upon release of funds from the Texas Water Development Board (TWDB).• This contract is subject to the Environmental Protection Agency's (EPA) "fair share policy", which includes

EPA-approved "fair share goals" for Minority Business Enterprise (MBE) and Women Business Enterprise (WBE) firms in the Construction, Supplies, Equipment, and Services procurement categories. EPA's policy requires that applicants and prime contractors make a good faith effort to award a fair share of contracts, subcontracts, and procurements to Minority Business Enterprise and Women-Owned Business Enterprise firms. Although EPA's policy does not mandate that the fair share goals be achieved, it does require applicants and prime contractors to demonstrate use of the six affirmative steps. The current fair share goals for the State of Texas are as follows:


CATEGORY MBE WBE

Construction 12.94% 8.72%

Equipment 7.12% 5.39%

Supplies 9.68% 9.34%

Services 10.84% 5.72%


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• Special Note on Multi-Year Contracts- Entities seeking to utilize consultants contracted on a multi-year basis

must provide additional information to demonstrate DBE compliance including; original advertisement to validate the scope of services solicited, RFQ, and contract duration.

- If the contract is in the initial term and in compliance with DBE requirements, the procurement is acceptable. Multi-year contracts in the renewal term(s) will only be allowed if the provision was publicized in the original advertisement or RFQ.



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• Special Note on Solicitations without DBE Language- If the required DBE language is not included in an open (active)

advertisement/solicitation, the entity has the option to: (1) republish (newspaper or electronic posting) or (2) re-issue (if direct contact) the solicitation including the required DBE language and subsequently notify all previously contacted vendors. The notice should run for the duration in accordance with state procurement law.



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• Loan Commitment and Closing Phase ComplianceForm: TWDB-0217 (Consultants)• Commitment loan/principal forgiveness amount• Contract amount• Signature of Prime Contractor• If self-performing 100% of the contract, then the Exception box should be

checked.• Completed MBE/WBE Participation Estimates, if not self-performing 100%

of the contract.



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• Loan Commitment and Closing Phase ComplianceForm: TWDB-0373 (Entity)• Commitment loan/principal forgiveness amount • Completed list of actual contracts/procurements including: business

name/address, procurement category, MBE/WBE status, actual contract amount, contract execution date, and proof of MBE/WBE certification (if applicable).

• Signature of Applicant/Entity



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• Planning/Design Phase Compliance– TWDB-0216 Requirements (Prime Contractor)– TWDB-0373 Requirements (Prime Contractor)

• Construction Contract Phase Compliance– TWDB-0216 Requirements (Entity)– TWDB-0217 Requirements (Prime Contractor)– TWDB-0373 Requirements (Entity)– TWDB-0216 Requirements (Prime Contractor)– TWDB-0373 Requirements (Prime Contractor)


Locating the Enhancements

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• DBE Program info webpagehttp://www.twdb.texas.gov/financial/programs/DBE/dbe.asp • Program Guidance and Forms webpagehttp://www.twdb.texas.gov/financial/instructions/


CWSRF DWSRF

Guidance TWDB-0100 TWDB-0115

Forms TWDB-0101 TWDB-0116

Supplemental Contract Provisions

TWDB-0550

http://www.twdb.texas.gov/financial/programs/DBE/dbe.asp

http://www.twdb.texas.gov/financial/instructions/

Finding DBE Firms

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• Links to Find DBEsSmall Business Administration http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm Texas Department of Transportation http://www.dot.state.tx.us/business/tucp/tucp-cat.htm City of Austinhttp://www.ci.austin.tx.us/smbr/vendors/CertVendor.cfm City of Houston https://houston.mwdbe.com/FrontEnd/VendorSearchPublic.asp Texas Comptroller of Public Accounts http://www.cpa.state.tx.us/procurement/cmbl/cmblhub.html

http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm

http://www.dot.state.tx.us/business/tucp/tucp-cat.htm

http://www.ci.austin.tx.us/smbr/vendors/CertVendor.cfm

https://houston.mwdbe.com/FrontEnd/VendorSearchPublic.asp

http://www.cpa.state.tx.us/procurement/cmbl/cmblhub.html

DBE Certification

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Texas Unified Certification Program• http://txdot.gov/business/business_outreach/dbe.htm• Fifty-one percent owned, managed and controlled by an

economically and socially disadvantaged individual.Presumed Groups:• Asian-American; African-American; Native American;

Hispanic; Women• Must be a small business as defined by Small Business

Administration (SBA)• Personal Net Worth Limit: $1,320,000• Firm must be organized as a for-profit business


http://txdot.gov/business/business_outreach/dbe.htm

DBE Certification

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TUCP Certification Agencies• City of Austin – Small and Minority Business Resources Departmenthttp://www.austintexas.gov/department/certification-disadvantaged-business-enterprise-dbe

• City of Houston – Office of Affirmative Action and Contract Compliancehttp://www.houstontx.gov/obo/certification.html

• Corpus Christi – Regional Transportation Authorityhttp://ccrta.org/about/dbe/dbe-certification-application/ In case of a broken link, please contact Mr. Jorge Cruz-Adeo at (361) 289-2712

• North Central Texas Regional Certification Agencyhttp://www.nctrca.org/certification.html

• South Central Texas Regional Certification Agencyhttp://www.sctrca.org/AboutCertification.asp

**Map on page 8 of the TUCP application shows respective coverage for each county.


http://www.austintexas.gov/department/certification-disadvantaged-business-enterprise-dbe

http://www.houstontx.gov/obo/certification.html

http://ccrta.org/about/dbe/dbe-certification-application/

http://ccrta.org/about/dbe/dbe-certification-application/

http://www.nctrca.org/certification.html

http://www.sctrca.org/AboutCertification.asp

Question and Answer Session

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Questions, Comments, Concerns?


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Thank you for your participation!

Contact Information:

Rene Gonzalez (512) 463-2634DBE and Policy Coordinator

[email protected]


mailto:[email protected]

Texas Water Development Board Enhancements to the EPA’s Disadvantaged Business Enterprise Program

Documents

changeprogram enhancements

dbe forms

program goals

federal funds

fair share objectives

renegotiated fair share

good faith effort requirements

federal srf funding