UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
" w A 5''' ' N G "''°'' ° c' 2° f> !i °
OFT-'IC E OF W <\ TE S
AND WASTE .'/ A N A G i: M r; N T
.Construction Grar.t.i
Program Require;ne:iI
Memorandum
PRM No. 30-7
Effective Date -
October i, 1930
SUBJECT: Grant Eligibility of Minority Business Enterprise
and Women's Business Entfero/ise Liaison Services
(s\\ '/ '
FROM: Henry -Longest , Deputy A/ss.Ca'i'ant Administrator
for J'/ater>^rt)gi>am Ope^yiA^ (WH-546)
1 x^J"/ K rj'wrT' Acting D i r e c t o r
Of fie/ of Civil Rights (A- 105)
TO: Regional Administrators, Regions I - X
ATTN: Water Division Directors
Office of Civii Rights Directors
I. PURPOSE
The purpose of this ineraorandu-i - is to define and set forth
guide 1 ines. for determining the grant eligibility of Minority
Businoc-s Enterprise (M3E) and Women's Business Enterprise
(VvBE) Liaison 'services performed during the process of
planning, designing and constructing a wastewater treatment
facility with Environmental Protection . Agency (EPA) construc-
tion grant funds.
II. DISCUSSION
The Agiiticy recognizes the need to immediately remedy the
under-u tilization of MBEs and WBEs in the Construction
Grants Program. In order to provide the opportunity for
increased MBE and WBE participation, EPA has determined that
a goal oriented system of MBH' and WBE participation must be a
clear-cut factor in the evaluation of procurements, bids or
proposals, as well as a condition for a grant award. One
method of affording the opportunity for increased MDE and WBE
participation is for grantee.? to establish or utilize M3E and
WBE liaison services. The costs to the grantees for such
services are eligible for1 EPA grant funding.
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Such services will assist applicants/grantees to effectively
implement the goal-oriented EPA "Policy for Increased Use of
Minority .Consultants and Construction Contractors", 43 Federal
Register 60221 (December '25, 1978), and the "Women's Business
Enterprise Policy for the Construction Grants Program," 45 Federal
Register 51490 (August 1, 1980). See also, 40 C.F.R. 35.936-7,
-40 C.F.K.§35.937-12 (b)(2), Appendix C-l (para. 14), and
Appendix C-2 (para. 9). These policies require grantees,
consultants and contractors to take affirmative steps to
utilize rainority-and women-owned businesses in providing
engineering and construction services and supplies.
Grantees may formally provide for such services by
selecting:
1. An MBE/WBE liaison officer from internal staff
(Additional staff may supplement internal staff
only if required by project size), or
2. A contractor to perform such services (Contract
services may be provided by either an MBE or WBE
specialist or by a capable consulting firm).
The MBE/WBE liaison officer/service would be responsible for
developing, implementing and managing the grantees MBE and WBE
programs as they relate to the specific EPA funded project.
Responsibilities include, but are not limited to: keeping
records, providing technical assistance to MBEs,'disseminating
information on available business opportunities related to EPA
grant projects to ensure that MBEs are provided an equal oppor-
tunity to participate in EPA's Construction Grants Program.
In order to effectively carry out t.he aforementioned
responsibilities, the MBE/WBE. liaison officer/service selected
should be:
a. Familiar with and capable of interpreting and
communicating the grantee's procurement procedures
and requirements as well as EPA's MBE/WBE policies,
b. Understanding of small, minority-, and women's
business problems,
c. Capable of communicating effectively with women-
minority-and majority-owned businesses and manage-
ment ,
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d. Able to maintain a good rapport with the minority
community,
f. Familiar with Federal, State and local resources
'available to aid'MBSs, WBEs and small business, and
e. 'Able to maintain a good rapport with the women's
business and community organizations.
III. POLICY
This PRM confirms EPA's policy that costs incurred by the
performance of appropriate and necessary MBE/WBE liaison
services, either by grantee staff or by contractor, which
are directly related to a particular EPA funded construction
project, are eligible for EPA grant participation.
IV, IMPLEMENTATION :
Only necessary liaison services rendered in direct connection
with an EPA Construction Grants Project by the MBE/WBE
liaison officer/ service are grant eligible costs. While
the provision of MBE and WBE liaison services is an eligible
cost, it must be borne in mind that EP'A will participate in
the costs for hiring additional staff only in municipalities
having ongoing and continuous EPA construction grants
projects, large enough to support the need for such staff.
Contracts for MBE/WBE liaison services which depart from
conventional industry practices and which constitute a
commercially unnecessary intermediate step- between a grantee,
liaison officer, consultant or contractor shall be considered
ineligible.
Measures to achieve. MBE and WBE program requirements should
be submitted as part of the Step 1, Step 2, Step 3, and Step
2+3 grant applications. State agencies and potential
grantees should be encouraged during the pre-plan-of-study
conferences' to integrate planning for use of MBEs and WBEs
into each phase of the construction grant process and to
achieve designated goals. This enables the Agency to judge
before awarding financial assistance whether EPA funds are
likely to be used to achieve the objective of increasing MBE
and WBE participation.
The grantee must maintain complete records of MBE/WBE liaison
services. Such records must include:
a, A brief narrative summary of activities conducted.
b. Certified time and attendance records clearly
establishing relationship to EPA's MBE and WBE
programs.
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c. Bills/.vouchers covering travel and other expenditures
incurred in fulfilling the grantee's responsibilities
under the HBE and WBE policies.
d. Documentation sufficient to constitute an 'audit trail
of all costs charged to a specific project.
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