United States
Environmental Protection
Agency
Office of the Administrator
Office of Small and
Disadvantaged Business
Utilization
July 1997
EPA
Guidance for Utilization
of Small, Minority and
Women's Business
Enterprises in
Procurement
Under Assistance
Agreements - 6010
1997 Edition
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EPA GUIDANCE FOR UTILIZATION OF SMALL, MINORITY AND WOMEN'S BUSINESS
ENTERPRISES IN PROCUREMENT UNDER ASSISTANCE AGREEMENTS
THE OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION
OFFICE OF THE ADMINISTRATOR
WASHINGTON, D.C. 20460
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UNDER ASSISTANCE AGREEMENTS
NOTICE
This Guidance was prepared by the United States Environmental Protection Agency
for use by EPA personnel, State and local government officials, Tribal governments and
business persons interested in participating in EPA financial assistance programs. Hie
purpose of the Guidance is to provide information regarding the utilization of small,
minority and women-owned business entities in procurements under EPA's finanrlal
assistance programs.
In the event there are any conflicts between this Guidance and EPA regulations, the
regulations will govern.
PREPARED BY: Office of Small and Disadvantaged
Business Utilization (1230Q
Office of the Administrator
U.S. Environmental Protection Agency
Washington, D.C. 20460
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CONTENTS OF CHAPTERS
CHAPTER PAGE
1. GENERAL INFORMATION 1-1
1. General 1-1
2. Policy 1-1
3. Background 1-2
2. AUTHORITY 2-1
1. Public Law 99-499 2-1
2. Public Law 100-590 2-1
3. Public Law 101-507 2-1
4. Public Law 101-549 2-2
5. Public Law 102-389 2-2
6. Executive Order 12138 2-2
7. Executive Order 11625 2-2
8. Executive Order 12432 2-3
9. 40 CFR Part 30 2-3
10. 40 CFR Part 31 2-3
11. 40 CFR Part 35, Subpart O 2-3
12. 40 CFR Part 35, Subpart K 2-4
13. Drinking Water State Revolving Fund Program 2-4
3. DEFINITIONS 3-1
1. Delegated State 3-1
2. Fair Share or Fair Share Objective 3-1
3. Positive Efforts 3-2
4. Minority Business Enterprise (MBE) 3-2
5. Disabled American 3-6
6. Historically Black Colleges and Universities (HBCU's) 3-7
7. Hispanic Colleges and Universities 3-7
8. Minority Institution 3-7
9. Small Business Concern (SBE) 3-7
10. Small Business in a Rural Area 3-8
11. Labor Surplus Area 3-8
12. Labor Surplus Area Concern 3-9
13. Rural Areas 3-9
14. Financial Assistance 3-9
15. Women's Business Enterprise (WBE) 3-9
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CONTENTS OF CHAPTERS
CHAPTER PAGE
4. FAIR SHARE 4_1
1. Fair Share Policy 4-1
a. Wastewater Treatment Construction Grants Program 4-2
b. Superfund Program 4-2
c. Clean Water State Revolving Fund (SRF) Program 4-3
d. Drinking Water State Revolving Fund (SRF) Program 4-3
2. Developing Fair Share Objectives 4-3
a. Base for Negotiation Purposes 4-4
b. EPA Approval of Recipient Fair Share Objectives 4-4
c. Regional Fair Share Objective 4-4
d. Reporting of Fair Share Objectives 4-5
3. Good Faith Efforts 4-6
a. Outreach, Recruitment and Race/Gender Neutral Activities 4-6
b. Encouragement of Participation and Utilization of all MBEs and WBEs 4-7
c. MBE or WBE Prime Contractor 4-7
d. Race/Gender Conscious Efforts 4-7
e. Recordkeeping Requirements 4-7
f. Guidance for Outreach Recruitment and Race/Gender Neutral Activities 4-8
(1) Include SBEs, MBEs and WBEs on Solicitation Lists 4-8
(2) Assure SBEs, MBEs and WBEs are Solicited 4-8
(3) Divide Total Requirements into Small Tasks or Quantities to Permit Participation
of SBEs, MBEs, WBEs and SBRAs 4-9
(4) Establish Delivery Schedules to Encourage Participation by SBEs, MBEs, WBEs,
and SBRAs 4-9
(5) Use the Services of the SBA and DOC 4-10
4. Agreement Conditions 4-10
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CHAPTER PAGE
a. If Award Official or Designee has Negotiated a Fair Share 4-10
b. If Award Official or Designee has not Negotiated a Fair Share 4-11
c. If Award Official or Designee has Negotiated a Fair Share for
Capitalization Grants 4-11
d. If Award Official or Designee has not Negotiated a Fair Share for
Capitalization Grants 4-12
e. If Award Official or Designee has Negotiated a Fair Share for
Research Requirements of the Clean Air Act Amendments of 1990 4-13
f. If Award Official or Designee has not Negotiated a Fair Share for
Research Requirements of the Clean Air Act Amendments of 1990 4-13
5. RESPONSIBILITIES 5-1
1. Headquarters, Office of Small and Disadvantaged Business
Utilization (OSDBU) 5-1
2. Award Official 5-1
3. Regional Administrators 5-2
4. HQ/Regional SDBU Coordinator 5-2
5. Delegated States of EPA Financial Assistance 5-4
6. Clean Water State Revolving Fund (SRF) Recipients 5-4
7. Drinking Water State Revolving Fund (SRF) Recipients 5-5
8. Recipients of EPA Financial Assistance 5-5
6. CERTIFICATION OF SBE'S. MBE'S AND WBE'S 6-1
1. Certification of MBE's and WBE's 6-1
2. Acceptance of Certification 6-1
3. State, Local and Recipient Certification Processes 6-1
4. EPA's Reason to Question Certification 6-1
5. Challenging the Status of an MBE/WBE 6-2
7. REPORTING REQUIREMENTS 7-1
1. Reporting Requirements 7-1
a. EPA Form 5700-52A, "MBE/WBE" Utilization Under Federal Grants, Cooperative
Agreements and Interagency Agreements 7-1
b. EPA Form 6005-2, U.S. Environmental Protection Agency, Office of Small and
Disadvantaged Business Utilization, Minority and Women's Business Consolidated
Report 7-2
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CONTENTS OF CHAPTERS
CHAPTER PAGE
2. Reporting on Continuing Environmental Programs 7-2
3. Reporting on Indian Tribes/Nations and Trust Territories 7-3
8. COUNTING MBE/WBE PARTICIPATION 8-1
1. Calculating MBE/WBE Participation 8-1
2. MBE/WBE as a Prime Contractor 8-2
3. Questions on Calculating MBE/WBE Participation 8-2
4. MBE/WBE Brokers 8-2
5. Central Purchasing/Procurement Centers 8-3
9. BID PROTESTS 9-1
1. Challenge to MBE/WBE Status 9-1
2. MBE/WBE Compliance-Bidder Responsibility vs Bid Responsiveness 9-1
a. General Rule on Responsibility vs Responsiveness 9-1
b. Careful and Clear Drafting 9-2
c. Protest Examples 9-3
d. Reviewing Bidding Documents 9-4
e. Consequence of Responsiveness 9-4
f. Recipient Use of Responsibility Criteria 9-5
ATTACHMENTS ATTACHMENTS NUMBER
EPA Form 5700-52A 1
EPA Form 6005-2 2
Rural Area Continuum Code Classification 3*
EPA/MBDA Memorandum of Understanding 4
• Attachment 3 available npoa request from OSDBU.
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GENERAL INFORMATION
CHAPTER 1
TABLE OF CONTENTS
PAGE
1. General 1-1
2. Policy 1-1
3. Background 1-2
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CHAPTER 1
GENERAL INFORMATION
1. General.
The Office of Small and Disadvantaged Business Utilization (OSDBU) is responsible for
establishing policy and providing procedural guidance for the utilization of small, minority,
women-owned businesses and small businesses in rural areas under the Agency's financial
assistance programs. Some of this guidance, however, applies only to minority and women-
owned businesses. An example is the reporting requirement wherein minority and women's
business utilization are reportable items and small business utilization is not. This is because
no Federal statute or Executive Order has been established for the gathering of data for small
business, whereas Executive Orders and Federal statutes for minority and women's business
require the compilation and reporting of data relative to these business entities.
This Guidance does not constitute a regulation but rather guides and assists individuals
in their efforts to understand and implement the EPA policies published in 40 CFR Parts 30, 31,
and 35 and to ensure consistency with the Supreme Court's decision in Adarand Constructors.
Inc. v. Pena, 115 S. Ct. 2097 (1995).
2. Policy.
It is EPA policy that recipients of EPA financial assistance through grants, cooperative
agreements and loans award a fair share of contracts/procurements to small, minority and
women's businesses. Since each is a separate entity, the objective is to assure that each of these
three business entities is given the opportunity to participate in contract/procurement awards
under EPA financial assistance agreements. This policy applies to all contracts/procurements
for supplies, construction, equipment and services under any EPA grant or cooperative
agreement. It also applies to any Interagency Agreement where supplies, construction,
equipment and services are being contracted out. As used in this Guidance, recipients of EPA
financial assistance include subrecipients. In the case of minority business enterprises, it should
be noted that various EPA statutes reference different groups. For ease of reading, the term
"minority business" or "minority business enterprise (MBE)" is used throughout to encompass
these groups. For further details, see Chapter 3, Definitions.
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3. Background.
In 1978, the Environmental Protection Agency issued its MBE policy statement setting
forth goals for minority business utilization in the Wastewater Treatment Construction Grants
Program. This policy was established as a result of the President's National Urban Policy
Statement of March 27, 1978. The policy required Regional offices to establish goals lo achieve
a fair share of procurement dollars for minority businesses.
A policy directive was also instituted for women's business enterprises (WBE) and set
a national goal of two (2%) percent for women's business utilization in EPA's construction
giants program. This policy directive is no longer in effect due to the promulgation of 40 CFR
Part 33, which, subsequent to its issuance was deleted. However, EPA does include women's
business enterprise in the "fair share" considerations. Women-owned businesses are specifically
covered in P.L. 101-507 and P.L. 102-389 (the Agency's 8% goals) and P.L. 101-549 (the
Agency's 10% goal for research relating to the requirements of the Clean Air Act Amendments
of 1990).
On December 17, 1982, the President issued a statement regarding his commitment to
the goal of greater opportunity for economic progress and independence for all Americans. At
that time the President announced the Administration's program to promote an economic
environment in which minority entrepreneurs could achieve better lives for themselves and as
a result contribute to a stronger economic base for the country. This program is based on the
following principles:
1. A healthy, growing economy is fundamental to creating the opportunity for the
formation and growth of minority-owned businesses.
2. Greater economic independence for minority Americans will best be achieved through
increased opportunities for private employment and business ownership.
3. Creativity, private entrepreneurship, and individual initiative will ultimately determine
the success or failure of individual minority businesses.
4. Expanded involvement of the private sector is crucial to minority enterprise
developmental efforts.
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AUTHORITY
CHAPTER 2
TABLE OF CONTENTS
PAGE
1. Public Law 99-499 2-1
2. Public Law 100-590 2-1
3. Public Law 101-507 2-1
4. Public Law 101-549 2-2
5. Public Law 102-389 2-2
6. Executive Order 12138 2-2
7. Executive Order 11625 2-2
8. Executive Order 12432 2-3
9. 40 CFR Part 30 2-3
10. 40 CFR Part 31 2-3
11. 40 CFR Part 35, Subpart 0 2-3
12. 40 CFR Part 35, Subpart K 2-4
13. Drinking Water State Revolving Fund Program 2-4
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CHAPTER 2
AUTHORITY
EPA's authority to adopt and implement guidelines for the procurement of construction,
services and supplies from small, minority and women-owned businesses stems directly from
Executive Orders 11625, 12138 and 12432 and applicable Federal laws.
1. Public Law 99-499. the Superfund Amendments and Reauthorization Act of 1986
(SARA). Section 105(f) of the Amended Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA) signed into law on October 17, 1986, requires that
the availability of qualified minority contractors be considered when awarding contracts for any
projects being funded by Superfund monies. Section 105(f) also requires a report on what
actions were taken to encourage the utilization of minority contractors. Section 105(f) applies
to minority contractors only and does not include small business enterprises or women-owned
business enterprises unless such concerns are owned by minorities.
2. Public Law 100-590. the Small Business Administration Reauthorization and
Amendment Act of 1988 (SBARAA), was enacted on November 3, 1988. It requires Federal
agencies with substantial procurement or grant-making authority to establish rural area business
enterprise development plans. The Administrator of the Small Business Administration has
identified EPA as a Federal agency having substantial procurement and grant-making authority.
EPA has established a Rural Area Business Enterprise Development (RABED) Plan covering
both financial assistance and direct procurement.
3. Public Law 101-507. the 1991 Appropriations Act signed into law on November 5,
1990, contains the following language:
"The Administrator of the Environmental Protection Agency shall, to the fullest extent
possible, ensure that at least 8 per centum of Federal funding for prime and subcontracts
awarded in support of authorized programs, including grants, loans and contracts for wastewater
treatment and leaking underground storage tanks grants, be made available to business concerns
or other organizations owned or controlled by socially and economically disadvantaged
individuals (within the meaning of Section 8(a)(5) and (6) of the Small Business Act (15 U.S.C.
637(a)(5) and (6)), including historically black colleges and universities. For purpose of this
section, economically and socially disadvantaged individuals shall be deemed to include
women...."
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The Order further requires the Secretary, with the participation of other Federal
departments and agencies, as appropriate, to develop comprehensive plans and specific program
goals; establish regular program monitoring and reporting systems; and evaluate the impact of
Federal support in achieving the objectives established by this Order.
The Order requires the head of each Federal department or agency to furnish information
and reports in a manner prescribed by the Secretary of Commerce. It further stipulates that
within the constraints of law and appropriations, Federal departments and agencies shall foster
and promote minority business enterprise.
8. Executive Order 12432 was issued on July 14, 1983. The Order directed all Federal
agencies to: (1) develop an MBE plan on an annual basis; (2) establish MBE objectives; (3)
identify methods for encouraging prime contractors and grantees to utilize MBEs; (4) build upon
programs administered by the Small Business Administration and Minority Business
Development Agency; (5) furnish an annual report regarding the accomplishments of their MBE
programs; and (6) establish programs to deliver management and technical assistance to MBEs.
9. 40 CFR Part 30. EPA implements its small business minority business and women-
owned business programs for institutions of higher education, hospitals, and other non-profit
organizations in 40 CFR Part §30.44(b).
10. 40 CFR Part 31. EPA implements its small business, minority business and
women-owned business programs for States, local governments and Indian Tribes through its
"Uniform Administrative Requirements for Grants and Cooperative Agreements to State and
local Governments", 40 CFR Part 31, in 40 CFR §31.36(e) and this Guidance, which
implements P.L. 101-507, P.L. 101-549 and P.L. 102-389.
11. 40 CFR Part 35. Subpart O. The MBE/WBE requirements for recipients of
Superfund Cooperative Agreements and Superfund State Contracts are contained in 40 CFR
§35.6580 entitled "Contracting with Minority and Women's Business Enterprises (MBE/WBE),
Small Businesses, and Labor Surplus Area Firms". If the recipient is awarded more than one
cooperative agreement during the year, it may negotiate an annual fair share covering all of them
for that year. It is not necessary to have a fair share objective for each cooperative agreement.
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12. 40 CFR Part 35. Subpart K. Under the Clean Water Act State Revolving Fund
Program, requirements for the participation of minority and women-owned businesses apply to
assistance in an amount equaling the grant. To attain compliance with MBE/WBE requirements,
the Regional Administrator or designee will negotiate an annual "fair share" objective with the
State for MBE/WBE participation on these SRF-fiinded activities. A fair share objective should
be based on the amount of the capitalization grant award or other State established goals. See
40 CFR §35.3145(d).
13. Drinking Water State Revolving Fund Program. Under the Drinking Water State
Revolving Fund Program, requirements for the participation of minority and women-owned
businesses apply to assistance in an amount equaling the grant. To attain compliance with
MBE/WBE requirements, the Regional Administrator or designee will negotiate an annual "fair
share" objective with the State for MBE/WBE participation on these SRF-funded activities. A
fair share objective should be based on the amount of the capitalization grant award or other
State established goals. See Drinking Water State Revolving Fund Program Guidelines,
February 1997, EPA 816-R-97-005, which provide that MBE/WBE requirements are to be
treated in the same manner as under the Clean Water State Revolving Fund Program.
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DEFINITIONS
CHAPTER 3
TABLE OF CONTENTS
PACT
1. Delegated State 3-1
2. Fair Share 3-1
3. Positive Efforts 3-2
4. Minority Business Enterprise (MBE) 3-2
5. Disabled American 3-6
6. Historically Black Colleges and Universities 3-7
7. Hispanic Colleges and Universities 3-7
8. Minority Institution 3-7
9. Small Business Concern (SBE) 3-7
10. Small Business in a Rural Area 3-8
11. Labor Surplus Area 3-8
12. Labor Surplus Area Concern 3-9
13. Rural Areas 3-9
14. Financial Assistance 3-9
15. Women's Business Enterprise (WBE) 3-9
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CHAPTER 3
DEFINITIONS
The following definitions are provided for your use when utilizing this guidance.
1. Delegated State. EPA's policy is to delegate management of the wastewater treatment
works construction grants program to the maximum extent possible consistent with the objectives
of the Clean Water Act, prudent fiscal management and EPA's overall national responsibility
for the program. The policy is premised on an on-going partnership between EPA and the States
that includes consultation with the States in formulation of policy and guidance by EPA. EPA
expects States to undertake full delegation of all project level activities. Program delegation is
accomplished through a formal delegation agreement between the Regional Administrator and
the State. The delegation agreement will list the functions delegated and to be delegated with
a schedule for their assumption by the State. For the purpose of this Guidance, whenever
reference is made to a delegated State it will mean that the MBE/WBE functions have been
delegated for wastewater treatment works construction grants and other types of assistance
agreements. For purposes of this Guidance, the concept of delegated States does not apply to
the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund programs,
since these programs were intended to be State designed and managed. Under these programs
States assume the MBE/WBE functions.
2. Fair Share or Fair Share Objective. A fair share or a fair share objective is an amount
of funds reasonably commensurate with the total project funding and the availability of qualified
minority business enterprises (MBEs), and women-owned businesses (WBEs), taking into
account experience on EPA-funded projects and other comparable projects in the area.
Availability is a measure of the approximate representation and capacity of MBEs and WBEs
in the relevant labor market and qualified to do the work in issue, adjusted, as appropriate, to
reflect the estimated representation and capacity of such MBEs and WBEs that would exist in
the absence of discrimination. A fair share objective does not constitute an absolute
requirement, but a commitment on the part of the recipient or prime contractor to make good
faith efforts as defined in Chapter 4, Section C, to use MBEs and WBEs to achieve the fair
share objective. If a recipient chooses to meet EPAs fair share objectives by relying on its own
local MBE and or WBE programs, it may do so. However, it should be made aware that it
would have to defend a legal challenge to the merits of its program based upon such merits,
independent of EPA's fair share objective.
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3. Positive Efforts. Positive efforts incorporates the good faith efforts discussed in Chapter
4, Section C, with one modification. Different steps, constituting the minimum race-neutral
efforts required, apply to recipients that are state, local governments or tribal entities versus
those that apply to educational institutions, hospitals and other non-profit institutions. The six
steps with respect to educational institutions, hospitals and other non-profit institutions are to:
a. Ensure that small businesses, minority-owned firms, and women's business enterprises
are used to the fullest extent practicable.
b. Make information on forthcoming opportunities available and arrange time frames for
purchases and contracts to encourage and facilitate participation by small businesses, minority-
owned firms, and women's business enterprises.
c. Consider in the contract process whether firms competing for large contracts intend
to subcontract with small businesses, minority-owned firms, and women's business enterprises.
d. Encourage contracting with consortiums of small businesses, minority-owned firms
and women's business enterprises when a contract is too large for one of these firms to handle
individually.
e. Use the services and assistance, as appropriate, of such organizations as the Small
Business Administration and the Department of Commerce's Minority Business Development
Agency in the solicitation and utilization of small businesses, minority-owned firms and women's
business enterprises.
f. If the prime contractor awards subcontracts, requiring the contractor to take steps in
paragraphs (a) through (e) of this section.
4. Minority Business Enterprise (MBE):
a. For purposes of complying with P.L. 101-507 and P.L. 102-389 (the 8% goal
statutes), an MBE is a business concern which is:
(1) Certified as socially and economically disadvantaged by the Small Business
Administration:
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(a) Socially disadvantaged individuals are those who have been subjected to
racial or ethnic prejudice or cultural bias because of their identity as a member of a group
without regard to their individual qualities.
(b) Economically disadvantaged individuals are those socially disadvantaged
individuals whose ability to compete in the free enterprise system is impaired due to diminished
capital and credit opportunities, as compared to others in the same business area who are not
socially disadvantaged. In determining the degree of diminished credit and capital opportunities,
the Small Business Administration shall consider, but not be limited to, the assets and net worth
of such socially disadvantaged individuals. In determining the economic disadvantage of an
Indian tribe, the Small Business Administration shall consider, where available, information such
as the following: The per capital income of members of the tribe excluding judgement awards,
the percentage of local Indian population below the poverty level, and the tribe's access to
capital markets. Individuals who certify that they are members of named groups (Black
Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Asian/Indian
Americans), are to be considered socially and economically disadvantaged. Economically and
socially disadvantaged individuals are deemed to include women.
(2) Certified as a minority business enterprise by a State or Federal agency;
(3) An independent business concern which is at least 51 percent owned and
controlled by minority group member(s):
(a) A minority group member is an individual who is a citizen of the United
States and is one of the following:
1 Black American:
2 Hispanic American (with origins from Puerto Rico, Mexico, Cuba,
South or Central America);
3 Native American (American Indian, Eskimo, Aleut, native Hawaiian);
or
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4 Asian-Pacific American (with origins from Japan, China, the
Philippines, Vietnam, Korea, Samoa, Guam, the U.S. Trust Territories
of the Pacific, Northern Marianas, Laos, Cambodia, Taiwan or the
Indian subcontinent).
(b) In order to satisfy the criterion of the MBE definition in a. (3) the minority
ownership's interest must be real, substantial and continuing. Such interest is characterized by:
1 Risk of loss/share of profit commensurate with the proportional ownership;
and
2 Receipt of the customary incidents of ownership, such as compensation (i.e.
salary and other personnel compensation).
(c) A minority owner must have and exercise control over the business decisions.
Characteristics of control include, but are not limited to:
1 Authority to sign bids and contracts;
2 Decisions in price negotiations;
3 Incurring liabilities for the firm;
4 Final staffing decisions;
5 Policy-making; and
6 General company management decisions.
(d) Only those firms performing a useful business function according to custom
and practice in the industry, are qualified as MBEs. Acting merely as a passive conduit of funds
to some other firm where such activity is unnecessary to accomplish the project does not
constitute a "useful business function according to custom and practice in the industry." The
purpose of this approach is to discourage the use of MBE "fronts" and limit the creation of an
artificial supplier and broker marketplace.
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(4) Historically Black Colleges and Universities (HBCUs).
b. For purposes of complying with with the 10% goal contained in P.L. 101-549 for
research relating to the requirements of the Clean Air Act Amendments of 1990, an MBE is a
disadvantaged business concern, i.e., a concern -
(1) which is at least 51 percent owned by one or more socially and economically
disadvantaged individuals or in the case of a publicly traded company, at least 51 percent of the
stock of which is owned by one or more socially and economically disadvantaged individuals;
and
(2) the management and daily business operations of which are controlled by such
individuals.
(3) A for-profit business concern is presumed to be a disadvantaged business concern
if it is at least 51 percent owned by or in the case of a concern which is a publicly traded
company at least 51 percent of the stock of the company is owned by, one or more individuals
who are members of the following groups:
(a)
Black Americans.
(b)
Hispanic Americans.
(c)
Native Americans.
(d)
Asian Americans.
(e)
Women.
(f)
Disabled Americans.
(4) The presumption established by subparagraph (3) may be rebutted with respect
to a particular business concern if it is reasonably established that the individual or individuals
referred to in subparagraph (3) with respect to that business concern are not experiencing
impediments to establishing or developing such concern as a result of the individual's
identification as a member of a group specified in subparagraph (3).
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(5) The following institutions are presumed to be disadvantaged business concerns-
(a) Historically black colleges and universities, and colleges and universities
having a student body in which 40 percent of the students are Hispanic.
(b) Minority institutions (as that term is defined by the Secretary of Education
pursuant to the General Education Provision act (20 U.S.C. §1221 et seq.).
(c) Private and voluntary organizations controlled by individuals who are socially
and economically disadvantaged.
(6) A joint venture may be considered to be a disadvantaged business concern under
subparagraph (3), notwithstanding the size of such joint venture if -
(a) a party to the joint venture is a disadvantaged business concern; and
(b) that party owns at least 51 percent of the joint venture.
A person who is not an economically disadvantaged individual or a
disadvantaged business concern, as a party to a joint venture, may not be a party to more than
2 awarded contracts in a fiscal year solely by reason of this subparagraph.
(7) Nothing in this paragraph shall prohibit any member of a racial or ethnic group
that is not listed in subparagraph (3) from establishing that they have been impeded in
establishing or developing a business concern as a result of racial or ethnic discrimination.
c. Pursuant to Section 105(f) of CERCLA, 42 U.S.C. §9605(f) (the Agency's Superfund
Program), EPA is required to consider the availability of qualified minority firms in awarding
Superfund contracts and to report annually to Congress on the participation of minority firms
in Superfund contracts. The term "minority firms" is not defined in the statute. The term
"Minority Business Enterprise" (MBE) is defined in the Agency's Cooperative Agreements and
Superfund State Contracts for Response Actions Regulations, 40 CFR Subpart O, at 40 CFR
§35.6015(26).
5. Disabled American. A disabled American means, with respect to an individual, a
permanent or temporary physical or mental impairment that substantially limits one or more of
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the major life activities of such an individual; a record of such an impairment; or being regarded
as having such an impairment.
6. Historically Black Colleges and Universities (HBCUs). The HBCUs are identified by
the Department of Education. See 34 CFR Part 608.
7. Hispanic Colleges and Universities. Those Colleges or Universities having a Student
Body in which 40% of the Students are Hispanic. A Hispanic Individual is an individual whose
origins are from Puerto Rico, Mexico, Cuba, Central and/or South America.
8. Minority Institution. A Minority Institution is an accredited college or university whose
enrollment of a single minority group or a combination of minority groups exceeds fifty (50%)
percent of the total enrollment. The Secretary of Education verifies this information from the
data on enrollment in the Higher Education general Information Surveys furnished by the
institution to the Office of Civil Rights, Department of Education.
9. Small Business Concern (SBE). Any business entity, including its affiliates, that is
independently owned and operated, not dominant in the field of operation in which it is bidding
on Government contracts, and qualified as a small business under the criteria and size standards
set forth in 13 CFR Part 121.
a. Concern. Any business entity located inside the United States that is organized for
profit (even if it is owned by a non-profit entity), pays U.S. taxes, and/or uses American
products, materials, and/or labor, etc. A "concern" may be an individual, a partnership, a
corporation, a joint venture, an association, or a cooperative.
b. Not dominant in the field of operation means not exercising a controlling or major
influence in an industry. A controlling or major influence can be derived from factors such as
business volume, number of employees, financial resources, competitiveness, ownership or
control of materials, processes, patent license agreements, facilities, sales territory, and nature
of business activity.
c. Affiliates. Business concerns are affiliates of each other if, directly or indirectly:
(1) Either one controls or has the power to control the other; or
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12. Labor Surplus Area Concern. Means a concern that together with its first-tier
subcontractors will perform work substantially (at least 50 percent of the costs for manufacturing
production or services) in labor surplus areas.
13. Rural Areas. The U.S. Department of Agriculture developed in 1980, a Rural-Urban
Continuum Code Classification. The classification code applies to every county in the
United States. The classification developed indicates whether a non-metropolitan county is
adjacent to a metropolitan county. Counties with a code of 4 through 9 are identified as non-
metropolitan counties. However, EPA has elected to use only codes 6 through 9 as rural
counties for purposes- of identifying counties qualified as rural. The Rural-Urban Continuum
Code Classification is available upon request from OSDBU.
14. Financial Assistance. The term financial assistance is synonymous with "grant-making"
in the Federal Grant and Cooperative Act of 1977, and is meant to include any recipient of
Federal support whenever the principal purpose of the relationship is the transfer of money,
property, service, or anything of value to a State or Local Government, or other recipient, in
order to accomplish a public purpose of support or stimulation authorized by Federal statute.
15. Women's Business Enterprise (WBE) is a business which is certified as such by a State
or Federal agency, or which meets the following definition:
"A women's business enterprise is an independent business concern which is at least 51
percent owned by a woman or women, who also controls and operates it. Determination of
whether a business is at least 51 percent owned by a woman or otherwise qualified WBE which
is 51 percent owned by a married woman in a community property State will not be disqualified
because her husband has a 50 percent interest in her share. Similarly, a business which is 51
percent owned by a married man or 49 percent owned by an unmarried woman will not become
a qualified WBE by virtue of his wife's 50 percent interest in his share of the business."
As in the case of an MBE, only United States citizens will be deemed to be WBEs. Similar
to the MBE criteria, WBE should meet the criteria cited in subparagraphs 4.a.(3)(b), c), and (d)
of this Chapter.
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FAIR SHARE
CHAPTER 4
TABLE OF CONTENTS
PAGE
1. Fair Share Policy 4-1
a. Wastewater Treatment Construction Grants Program 4-2
b. Superfund Program 4-2
c. Clean Water State Revolving Fund (SRF) Program 4-3
d. Drinking Water State Revolving Fund (SRF) Program 4-3
2. Developing Fair Share Objectives 4-3
a. Base for Negotiation Purposes 4-4
b. EPA Approval of Recipient Fair Share Objectives 4-4
c. Regional Fair Share Objective 4-4
d. Reporting of Fair Share Objectives 4-5
3. Good Faith EfTorts 4-6
a. Outreach, Recruitment and Race/Gender Neutral Activities 4-6
b. Encouragement of Participation and Utilization of All MBEs and WBEs 4-7
c. MBE or WBE Prime Contractor 4-7
d. Race/Gender Conscious Efforts 4-7
e. Recordkeeping Requirements 4-7
f. Guidance for Outreach Recruitment and Race/Gender Neutral Activities 4-8
(1) Include SBEs, MBEs and WBEs on Soliciation Lists 4-8
(2) Assure SBEs, MBEs and WBEs are Solicited 4-8
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FAIR SHARE
CHAPTER 4
TABLE OF CONTENTS
PAGE
(3) Divide Total Requirements into Small Tasks or Quantities to Permit Participation
of SBEs, MBEs, WBEs and SBRAs 4-9
(4) Establish Delivery Schedules to Encourage Participation by SBEs, MBEs, WBEs,
and SBRAs 4-9
(5) Use the Services of the SBA and DOC 4-10
4. Agreement Conditions 4-10
a. If Award Official or Designee has Negotiated a Fair Share 4-10
b. If Award Official or Desginee has not Negotiated a Fair Share 4-11
c. If Award Official or Designee has Negotiated a Fair Share for
Capitalization Grants 4-11
d. If Award Official or Designee has not Negotiated a Fair Share for
Capitalization Grants 4-12
e. If Award Official or Designee has Negotiated a Fair Share for
Research Requirements of the Clean Air Act Amendments of 1990 4-13
f. If Award Official or Designee has not Negotiated a Fair Share for
Research Requirements of the Clean Air Act Amendments of 1990 4-13
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CHAPTER 4
FAIR SHARE
1. Fair Share Policy.
It is EPA policy that small (SBEs), minority (MBEs), women's (WBEs) and small businesses
in rural areas (SBRAs) be afforded the maximum practicable opportunity to participate as
contractors, subcontractors, suppliers and otherwise in EPA awarded financial assistance
programs. This policy applies to all contracts, subcontracts and procurements for supplies,
construction, equipment and services under EPA grants, cooperative agreements, interagency
agreements, and loans. Pursuant to this policy, recipients of grants, agreements and loans, and
their prime contractors, shall make good faith efforts to award a fair share of contracts,
subcontracts and procurements to SBEs, MBEs, WBEs and SBRAs.
The policy also requires that fair share objectives for MBEs and WBEs be negotiated with
the States and/or recipients, but does not require that fair share objectives be established for
SBEs or SBRAs. Accordingly, while good faith efforts are required with respect to SBEs,
MBEs, WBEs and SBRAs, the numerical fair share objectives apply only to MBEs and WBEs.
A fair share objective does not constitute a quota or an absolute requirement. A fair share
objective imposes an obligation on the recipient or prime contractor to exercise good faith efforts
as set forth in Section C. A recipient or prime contractor is not required to meet a fair share
objective if it has made good faith efforts and has submitted documentation of such action.
Fiscal year fair share objectives are set based upon the negotiations which have taken place
between the regions and either the delegated States or the recipient as the case may warrant.
The minimum national fair share objective is 8%, except for research relating to the
requirements of the Clean Air Act Amendments of 1990, where the minimum national objective
is 10%. Notwithstanding this national minimum, fair share objectives with each state and/or
recipient are based on an assessment of the availability of qualified MBEs and WBEs in the
relevant market; thus, the overall national objective may vary from the specific objectives of
individual states and/or recipients. The Regional MBE/WBE Coordinator must report the
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negotiated fair share for delegated States and/or recipients and all program grants and
cooperative agreements to Headquarters, Office of Small and Disadvantaged Business Utilization
(OSDBU). Headquarters, OSDBU will use these objectives to assist in the establishment of the
national objective. The national objective is for EPA purposes only and is not imposed on
individual states and/or recipients or projects.
Fair share applies to EPA programs as follows:
a. Wastewater Treatment Construction Grants Program. The Regional Administrator
or designee will negotiate an overall fair share with delegated States, (i.e., States delegated by
EPA with MBE/WBE responsibilities).
(1) Delegated States. A state's fair share should be based upon the State project priority
list, cumulative grant awards and/or projected awards for the current fiscal year, or other State
or recipient established goals or standards. For programs that have state-wide application a
delegated state may apply a fair share objective on a State-wide basis. A delegated state is not
required to include the fair share objectives in every project award. A delegated state may
allocate the fair share objectives to particular projects in its discretion to reflect any variances
in MBE or WBE availability within the state. The absence of a fair share objective on a
particular grant does not relieve the recipient and their prime contractors from compliance with
40 CFR § 31.36(e). Recipients other than a State or local government and their prime
contractors must comply with 40 CFR §30.44(b).
(2) Non-Delegated States. For Wastewater Treatment Construction Grants which are
awarded in States not having been delegated the procurement activity, a fair share negotiation
shall take place between the Regional Administrator or his/her designee and each recipient.
(3) Non-Title II Grants. For non-Title II wastewater treatment construction grants, a
fair share negotiation shall take place between the Regional Administrator or his/her designee
and each recipient.
b. Superfund Program. The fair share objective on Superfund projects operates in much
the same way as it does on other forms of financial assistance. However, the recipient must
either agree to a specific dollar amount as a fair share objective and incorporate that amount into
the cooperative agreement or must negotiate a fair share objective with EPA prior to
procurement of supplies or services. If a cooperative agreement is awarded to a recipient
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with whom a fair share objective has not been negotiated, the recipient must not award any
contracts until the recipient has negotiated a fair share objective with EPA. If multiple
cooperative agreements are awarded to the same recipient during the year, a fair share objective
can be negotiated annually for all agreements rather than individually on each cooperative
agreement for that year. See 40 CFR § 35.6580.
c. Clean Water State Revolving Fund (SRF) Program. The Regional Administrator or
his designee will negotiate an overall fair share objective with States receiving capitalization
grants. Negotiations should be based upon the capitalization grant awards for the current fiscal
year or other State established goals or standards. A fair share objective will be established for
each capitalization grant awarded. The fair share objective will be based on the amount of
Federal capitalization grants awarded or other State established goals; not on State contributions
or leveraged funds deposited into the SRF. The State may accomplish its fair share objective
by requiring certain SRF projects to undertake the good faith efforts. These projects are those
identified by the State and which equal the amount of the capitalization grant. The State has
flexibility and responsibility in establishing fair share objectives for State contributions, including
leveraged funds.
Notwithstanding the "sunsetting" of October 1, 1995 of the equivalency requirement of CWA
§ 602(b)(6), the fair share objective continues to apply to SRF projects which equal the amount
of the capitalization grant, as a result of the enactment of Pub. L. No. 102-389.
d. Drinking Water State Revolving Fund (SRF) Program. The Regional Administrator
or his designee will negotiate an overall fair share objective with States receiving capitalization
grants. Negotiations should be based upon the capitalization grant awards for the current fiscal
year or other State established goals or standards. A fair share objective will be established for
each capitalization grant awarded. The fair share objective will be based on the amount of
Federal capitalization grants awarded or other State established goals; not on State contributions
or leveraged funds deposited into the SRF. The State may accomplish its fair share objective
by requiring certain SRF projects to undertake the good faith efforts. These projects are those
identified by the State and which equal the amount of the capitalization grant. The State has
flexibility and responsibility in establishing fair share objectives for State contributions, including
leveraged funds.
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2. Developing Fair Share Objectives.
Fair share objectives are to be established each fiscal year by the Headquarters and Regional
offices and submitted to the Office of Small and Disadvantaged Business Utilization no later than
October 15 of the current fiscal year. To accomplish this, consideration must be given to each
program activity which issues financial assistance through grants or cooperative agreements.
Procurements under these assistance agreements are subject to a current fiscal year fair share
objective. If a recipient chooses to meet EPA's fair share objective by relying on its own local
MBE, WBE or SBRA program(s), it may do so. However, it should be made aware that it
would have to defend a legal challenge to the merits of its program based upon such merits,
independent of EPA's fair share objectives.
a. Base for Negotiation Purposes. In developing a base for negotiation purposes, it should
be remembered that only the dollars associated with contract/procurement activity should be
considered. For example, if the Federal share is 50 percent, but the total procurement activity
is only 10 percent of the combined Federal and State and/or local funds, then the fair
proportionate share should be derived from the 10 percent level. A consolidation of all grants
and cooperative agreements awarded during the given fiscal year should establish a percentage
objective for both MBE and WBE participation.
b. EPA Approval of Recipient Fair Share Objectives. The EPA does not prescribe a
specific method by which the state and/or recipient must calculate MBE and WBE availability
and the fair share objectives. States and/or recipients must submit documentation to reflect the
data considered and the methods used to calculate the fair share objectives prior to EPA
approval. No specific format for this submission is imposed; however, a state and/or recipient
should provide sufficient data in order that EPA may understand the basis for the state and/or
recipient's findings and proposed objectives. The EPA will review documentation submitted by
the state and/or recipient to ensure that the method used to determine the proposed fair share is
reasonable. States and/or recipients shall comply with requests from EPA for additional data
regarding the method by which they calculated the fair share objectives.
c. Regional Fair Share Objective. A consolidation of all dollar amounts subsequently
negotiated or goals accepted with each State and local recipient within the respective Region will
be calculated against the total to establish the percentage for the Region's fair share.
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d. Reporting of Fair Share Objectives. The following information must be submitted with
the Region's fair share objective to OSDBU/HQ. This information is required for the
establishment of the Minority Business Development Plan for the agency on a fiscal year period.
(1) Total amount of funds in the Region's grants and cooperative agreement it plans to
award during the current fiscal year;
(2) Total amount of procurement funds from the Region's grants and cooperative
agreements which should result in contracts/procurements during the current fiscal year. It
should be noted that funds to be expended in the form of contracts/procurements are not limited
to only those grants and cooperative agreements awarded during the current fiscal year, but
could include any previous grants or cooperative agreement which had not resulted in
contracts/procurements issued during the previous year(s);
(3) Total "Fair Share" objective for contemplated awards to minority business enterprises
(MBEs) during the current fiscal year in which the projection is being made. This amount is
to be expressed in dollar figures and also cited as a percentage of b. above;
(4) Total "Fair Share" objective for contemplated awards to women-owned businesses
(WBEs) during the current fiscal year in which the projection is being made. This amount is
to be expressed in dollar figures and also cited as a percentage of b. above;
(5) Total amount of awards to be made to minority Institutions of Higher Education,
Hospitals or other Non-Profit Organizations, if any; such operations may include the National
Urban League, NAACP and the Historical Black Colleges and Universities, Hispanic Association
of Colleges and Universities (HACUs) and other minority organizations.
(6) Total amount of R&D grants or cooperative agreements to be awarded during the
current fiscal year; and
(7) Total amount of grants or cooperative agreements from subparagraph (6) above
which may be contemplated for award to a minority concern, minority institution of higher
education or a minority individual.
The above information must be submitted to OSDBU/HQ by not later than the 15th
of October for each fiscal year.
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3. Good Faith Efforts.
Good faith efforts by a recipient or prime contractor mean efforts to attract and utilize SBEs,
MBEs, WBEs and SBRAs primarily through outreach, recruitment and race/gender neutral
activities; at a minimum, fulfillment of the six affirmative steps set forth below. EPA's
experience is that recipients and prime contractors have been and should be able to meet fair
share objectives through effective race/gender neutral outreach and recruitment of MBEs, and
EPA's primary emphasis will continue to be for recipients and prime contractors to expand
MBE/WBE participation primarily through race/gender neutral methods. When MBE/WBE
utilization falls significantly below the fair share objectives, despite the use of aggressive
race/gender neutral efforts, however, EPA may evaluate, in certain circumstances, whether the
recipient and/or prime contractor considered or used reasonable race/gender conscious efforts
to meet the objectives.
a. Outreach. Recruitment and Race/Gender Neutral Activities. A recipient and prime
contractor must engage in outreach, recruitment, or other race/gender neutral activities as part
of their good faith efforts to achieve the fair share objective. A recipient or prime contractor
may select various outreach, recruitment or other race/gender neutral activities for a particular
contract but, at a minimum, a recipient or prime contractor must take six steps. The six steps
differ depending on whether the recipient is a state, local government or Indian tribe, or an
educational institution, hospital, or other non-profit institution. The six steps for an educational
institution, hospital or other non-profit institution are set forth in Chapter 3. If the recipient is
a state or local government or Indian tribe, the six affirmative steps are to:
(1) Include qualified SBEs, MBEs, and WBEs on solicitation lists;
(2) Assure that SBEs, MBEs, and WBEs are solicited whenever they are potential
sources;
(3) Divide total requirements, when economically feasible, into small tasks or quantities
to permit maximum participation of SBEs, MBEs, and WBEs;
(4) Establish delivery schedules, where the requirements of the work permit, which will
encourage participation by SBEs, MBEs, and WBEs;
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(5) Use the services and assistance of the Small Business Administration and the
Minority Business Development Agency, U.S. Department of Commerce, as appropriate; and
(6) If the prime contractor awards contracts/procurements, require the contractor to take
the affirmative steps in paragraphs a.(l) through a.(5), of this section.
b. Encouragement of Participation and Utilization of all MBEs and WBEs. EPA's fair
share policy encourages the participation and utilization of all MBEs and WBEs, including new
and emerging MBEs and WBEs. Even though a prime contractor awards a subcontract to an
MBE or WBE, the prime contractor is still required to comply with the good faith efforts,
including the six affirmative steps.
c. MBE or WBE Prime Contractor. If an MBE or WBE prime contractor awards any
subcontracts or procurements, such prime also must engage in the good faith efforts to achieve
the fair share objectives.
d. Race/Gender Conscious Efforts. To the extent race and/or gender* neutral efforts
described in Section 3.a. prove to be inadequate to achieve a fair share objective for MBEs and
WBEs, a recipient or prime contractor is authorized to take reasonable race and/or gender
conscious action to the extent necessary to more closely achieve the fair share objective. Any
use of race and/or gender conscious efforts must not result in the selection of an unqualified
MBE or WBE.
e. Recordkeeping Requirements. Recipients must retain all records documenting their and
their prime contractor(s)' good faith efforts. In addition, recipients must submit EPA Form
5700-52A, "MBE/WBE Utilization Under Federal Grants, Cooperative Agreements, and
Interagency Agency Agreements," to the EPA award official beginning with the Federal fiscal
year quarter the recipient receives the award and continuing until the project is completed.
These reports must be submitted to the award official within 30 days of the end of the Federal
fiscal quarter (January 30, April 30, July 30 and October 30). EPA Form 5700-52A sets forth
MBE and WBE utilization during the prior contract/procurement award phases of the grant or
cooperative agreement.
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f. Guidance for Outreach. Recruitment and Race/Gender Neutral Activities. EPA
offers the following examples of activities to assist recipients and prime contractors in carrying
out the outreach, recruitment and race/gender neutral activities. EPA or delegated States should
encourage recipients to adopt these examples and use them to evaluate recipients and prime
contractors' compliance with the good faith efforts.
(1) Include qualified SBEs, MBEs, and WBEs on solicitation lists.
(a) Maintain and update a listing of qualified SBEs, MBEs, WBEs and SBRAs that
can be solicited for supplies, construction and/or services.
(b) Provide listings to all interested parties who requested copies of the bidding or
proposing documents.
(c) Contact appropriate sources within your geographic area and State to identify
qualified MBEs and WBEs for placement on your minority and women's business listings.
(d) Utilize other MBE/WBE listings such as those of the State's Minority Business
Office, the Small Business Administration, Minority Business Development Agency, U.S.
Environmental Protection Agency, Office of Small and Disadvantaged Business Utilization
(OSDBU), and the Department of Transportation.
(e) Have the State environmental agency personnel review this solicitation list.
(2) Assure that SBEs, MBEs, and WBEs are solicited.
(a) Conduct meetings, conferences, and follow-ups with SBEs, MBEs, WBEs and
SBRAs, small, minority and/or women's business associations, minority media, etc., to inform
these groups of opportunities to provide supplies, services, and construction.
(b) MBE utilization is facilitated if the recipient or prime contractor advertise
through the minority media. Such advertisements may include, but are not limited to,
contracting and subcontracting opportunities, hiring and employment, or any other matter related
to the project.
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(c) Conduct pre-bid, pre-solicitation, and post-award conferences to ensure that
consultants, suppliers, and builders solicit SBEs, MBEs, WBEs and SBRAs.
(d) Provide bidders and offerors with listings of qualified SBEs, MBEs, WBEs,
and SBRAs and establish that a fair share of contracts/procurements should be awarded to these
groups.
(e) Advertise in general circulation, trade publications, State agency publications
of identified source, minority or women's business focused media, etc., concerning contracting
opportunities on your projects. Maintain a list of minority or women's business-focused
publications that may be utilized to solicit MBEs or WBEs.
(f) Provide interested SBEs, MBEs, WBEs or SBRAs with adequate information
about plans, specifications, timing and other requirements of the proposed projects.
(g) Provide SBE, SBRA, MBE or WBE trade organizations with succinct
summaries of solicitations.
(h) Notify SBEs, MBEs, WBEs or SBRAs of future procurement opportunities so
that they may establish bidding solicitations and procurement plans.
(3) Divide total requirements when economically feasible, into small tasks or quantities
to permit maximum participation of SBEs, MBEs, WBEs and SBRAs.
(a) Perform an analysis to identify portions of work that can be divided and
performed by qualified SBEs, MBEs, WBEs and SBRAs.
(b) Scrutinize the elements of the total project to develop economically feasible
units of work that are within the bonding range of SBEs, MBEs, WBEs and SBRAs.
(c) Analyze bid packages for compliance with the good faith efforts to afford
SBEs, MBES, WBEs and SBRAs maximum participation.
(4) Establish delivery schedules, where requirements of the work permit, which will
encourage participation by SBEs, MBEs, WBEs, and SBRAs.
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(a) Consider lead times and scheduling requirements often needed by SBE, MBE,
WBE or SBRA participation.
(b) Develop realistic delivery schedules which may provide for greater SBE, MBE,
WBE or SBRA participation.
(5) Using the services and assistance of the Small Business Administration and the
Minority Business Development Agency of the U.S. Department of Commerce, as appropriate.
(a) Use the services of outreach programs sponsored by the Minority Business
Development Agency and/or the Small Business Administration to recruit bona fide firms for
placement on SBEs', MBEs', WBEs' or SBRAs' bidders lists to assist these firms in the
development of bid packaging.
(b) Seek out Minority Business Development Centers (MBDCs) to assist recipients
and prime contractors in identifying MBEs for potential work opportunities on your projects.
Use the Memorandum of Understanding (Attachment 4) between EPA and MBDA to assist in
providing management and technical assistance.
4. Agreement Conditions.
All EPA grants, cooperative and assistance agreements and loans must contain a condition
requiring recipients to comply with the Fair Share program. Set forth below is
language that must be included in the designated circumstance:
a. If the Award Official or his designee HAS NEGOTIATED a "Fair Share" objective with
the recipient, use the following model condition:
The recipient must ensure to the fullest extent possible that at least (insert the negotiated
fair share percentages) of Federal funds for prime contracts or subcontracts for supplies,
construction, equipment or services are made available to organizations owned or controlled
by socially and economically disadvantaged individuals, women and historically black
colleges and universities (fair share objective).
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The recipient agrees to include in its bid documents fair share objectives of
(insert the negotiated fair share percentage) and require all of its prime contractors to
include in their bid documents for subcontracts the (insert the negotiated fair share
percentage) fair share percentages.
To evaluate compliance with the Fair Share policy, the recipient also agrees to comply with
40 CFR §§ 30.44(b), 31.36(e), 35.3145(d) or 35.6580, as appropriate.
The State and/or recipient agrees to submit an EPA Form 5700-52A, "MBE/WBE Utilization
Under Federal Grants, Cooperative Agreements, and Interagency Agency Agreements," to
the EPA award official beginning with the Federal fiscal year quarter the recipient receives
the award and continuing until the project is completed. These reports must be submitted to
the award official within 30 days of the end of the Federal fiscal quarter (January 30, April
30, July 30 and October 30).
b. If the Award Official or his designee HAS NOT NEGOTIATED a "Fair Share" with the
recipient, use the following model condition:
The recipient agrees to negotiate a "Fair Share" percentage with EPA before the recipient
begins the process to award any contracts under this agreement.
The recipient must ensure to the fullest extent possible that at least the negotiated fair share
percentages of Federal funds for prime contracts or subcontracts for supplies, construction,
equipment or services are made available to organizations owned or controlled by socially
and economically disadvantaged individuals, women and historically black colleges and
universities (fair share objective).
The recipient agrees to include in its bid documents the negotiated fair share percentages and
require all of its prime contractors to include in their bid documents for subcontracts the
negotiated fair share percentages.
To evaluate compliance with the Fair Share policy, the recipient also agrees to comply with
40 CFR §§ 30.44(b), 31.36(e), 35.3145(d) or 35.6580, as appropriate.
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The State and/or recipient agrees to submit an EPA Form 5700-52A, "MBE/WBE Utilization
Under Federal Grants, Cooperative Agreements, and Interagency Agency Agreements," to
the EPA award official beginning with the Federal fiscal year quarter the recipient receives
the award and continuing until the project is completed. These reports must be submitted to
the award official within 30 days of the end of the Federal fiscal quarter (January 30, April
30, July 30 and October 30).
c. If the Award Official or his designee HAS NEGOTIATED a "Fair Share" with the
recipient for Clean Water or Drinking Water capitalization grants, use the following model
condition:
The recipient must ensure to the fullest extent possible that at least (insert the negotiated fair
share percentages) of capitalization grant funds for prime contracts or subcontracts for
supplies, construction, equipment or services are made available by the State and/or SRF
assistance recipient to organizations owned or controlled by socially and economically
disadvantaged individuals, women and historically black colleges and universities (fair share
objective).
The recipient agrees to select certain projects to achieve, to the fullest extent possible, the
State's fair share objective and to require those selected project participants to comply with
40 CFR §§ 30.44(b), 31.36(e), 35.3145(d), 35.6580 or the Drinking Water State Revolving
Fund Program Guidelines, as appropriate. The recipient agrees to require (and to assure that
the selected assistance recipients also require) that all prime contractors included in their bid
documents for subcontracts the fair share objectives of (insert the negotiated fair
share percentage).
The State and/or recipient agrees to submit an EPA Form 5700-52A, "MBE/WBE Utilization
Under Federal Grants, Cooperative Agreements, and Interagency Agency Agreements," to
the EPA award official beginning with the Federal fiscal year quarter the recipient receives
the award and continuing until the project is completed. These reports must be submitted to
the award official within 30 days of the end of the Federal fiscal quarter (January 30, April
30, July 30 and October 30).
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d. If the Award Official or his designee HAS NOT NEGOTIATED a "Fair Share" with the
recipient for Clean Water or Drinking Water capitalization grants, use the following model
condition:
The recipient agrees to negotiate a "Fair Share" percentage with EPA before the recipient
begins the process to award any contracts under this agreement.
The recipient must ensure to the fullest extent possible that at least the negotiated fair share
percentages of capitalization grant funds for prime contracts or subcontracts for supplies,
construction, equipment or services are made available by the State and/or SRF assistance
recipient to organizations owned or controlled by socially and economically disadvantaged
individuals, women and historically black colleges and universities (fair share objective).
The recipient agrees to select certain projects to achieve, to the fullest extent possible, the
State's fair share objective and to require those selected project participants to comply with
40 CFR §§ 30.44(b), 31.36(e), 35.3145(d), 35.6580 or the Drinking Water State Revolving
Fund Program Guidelines, as appropriate. The recipient agrees to require (and to assure that
the selected assistance recipients also require) that all prime contractors include in their bid
documents for subcontracts the negotiated fair share percentages.
The State and/or recipient agrees to submit an EPA Form 5700-52A, "MBE/WBE Utilization
Under Federal Grants, Cooperative Agreements, and Interagency Agency Agreements," to
the EPA award official beginning with the Federal fiscal year quarter the recipient receives
the award and continuing until the project is completed. These reports must be submitted to
the award official within 30 days of the end of the Federal fiscal quarter (January 30, April
30, July 30 and October 30).
e. If the Award Official or his designee HAS NEGOTIATED a "Fair Share" objective with
the recipient for any research relating to the requirements of the Clean Air Act Amendments of
1990, use the following model condition:
The recipient must ensure to the fullest extent possible that at least (insert the negotiated
"fair share" percentages) of Federal funds for prime contracts or subcontracts for supplies,
construction, equipment or services are made available to organizations owned or controlled
by socially and economically disadvantaged individuals, women, disabled Americans,
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historically black colleges and universities, colleges and universities having a student body
in which 40% or more of the students are Hispanic, minority institutions having a minority
student body of 50% or more, and private and voluntary organizations controlled by
individuals who are socially and economically disadvantaged. The recipient agrees to include
in its bid documents (insert the negotiated fair share percentages) "fair share" objectives and
require all of its prime contractors to include in their bid documents for subcontracts (insert
the negotiated fair share percentages) "fair share" objectives.
To evaluate compliance with the Fair Share policy, the recipient also agrees to comply with
40 CFR §§ 30.44(b) or 31.36(e), as appropriate.
f. If the award official HAS NOT NEGOTIATED a "Fair Share" with the recipient for any
research relating to the requirements of the Clean Air Act Amendments of 1990, use the
following model condition:
The recipient agrees to negotiate a fair share objective with EPA before the recipient begins
the process to award any contracts under this agreement". The recipient must ensure to the
fullest extent possible that at least the negotiated fair share objective of Federal funds for
prime contracts or subcontracts for supplies, construction, or services are made available to
organizations owned or controlled by socially and economically disadvantaged individuals,
women, disabled Americans, Historically Black Colleges and Universities, colleges and
Universities having a student body in which 40% or more of the students are Hispanic,
minority institutions having a minority student body of 50% or more, and private and
voluntary organizations controlled by individuals who are socially socially and
economically disadvantaged. The recipient agrees to include in its bid documents the
negotiated fair share percentages and require all of its prime contractors to include in their
bid documents for subcontracts the negotiated fair share percentages.
To evaluate compliance with the Fair Share policy, the recipient also agrees to comply
with 40 CFR §§ 30.44(b) or 31.36(e), as appropriate.
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RESPONSIBILITIES
CHAPTER 5
TABLE OF CONTENTS
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PAGE
1. Headquarters, Office of Small and Disadvantaged
Business Utilization 5-1
2. Award Official 5-1
3. Regional Administrators 5-2
4. HQ/Regional SDBU Coordinator 5-2
5. Delegated States of EPA Financial Assistance 5-4
6. Clean Water State Revolving Fund (SRF) Recipients 5-4
7. Drinking Water State Revolving Fund (SRF) Recipients 5-5
8. Recipients of EPA Financial Assistance 5-5
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CHAPTER 5
RESPONSIBILITIES
1. Headquarters. Office of Small and Disadvantaged Business Utilization. (OSDBU).
The Director, OSDBU has the principal responsibility for developing and promulgating the
Agency's policies to assure reasonable participation by small, small businesses in rural areas,
minority and women's businesses in performing activities under EPA financial assistance
agreements. OSDBU will perform the following:
a. Prepare an annual plan in consultation with the program and the Regional Offices for
submission to the Minority Business Development Agency, U.S. Department of Commerce. The
plan will encompass the projections for minority and women's businesses in activities assisted
by EPA grants and cooperative agreements;
b. Provide guidance and training to EPA Headquarters and Regional Staff, and to State
personnel performing activities under grants, cooperative agreements and Interagency
agreements;
c. Develop and provide guidelines suggesting ways and means of promoting fair share
activities and provide training in their use to Agency program and Regional officials as well as
State and local government officials;
d. Maintain records of MBE/WBE participation and prepare a quarterly report (MBDA
Form 91) which will be a composite of all reports from the Headquarters elements as well as
the Regions. The MBDA Form 91 will be prepared for the Office of Small and Disadvantaged
Business Utilization Director's signature and transmitted to the Minority Business Development
Agency, U.S. Department of Commerce;
e. Review Regional guidance, SBE/SBRA/MBE/WBE guidance to insure consistency
with Agency policies and guidance;
f. Establish and maintain a working relationship with the Minority Business Development
Agency (MBDA) and the U.S. Small Business Administration (SBA);
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2. Award Official. For other than grant awards to States administered by the EPA Regions,
the appropriate EPA Award Official or designee is responsible for negotiating a fair share and
for seeing that project officers, other staff, and recipients comply with EPA's policy of awarding
a fair share of contracts/procurements to SBEs, MBEs, WBEs and SBRAs.
3. Regional Administrators. The Regional Administrator or his designee is responsible for
ensuring the negotiation of an overall fair share objective with each delegated State receiving
financial assistance from EPA and with States that receive Clean Water and Drinking Water SRF
capitalization grants. For all other entities receiving financial assistance, fair share negotiations
will be conducted directly with the recipients. The Regional Administrator or designee is also
responsible for certifying the validity of the MBE/WBE data collected from the recipients.
4. HQ/Regional SDBU Coordinator. The HQ/Regional SDBU Coordinator is responsible
for all functional activities relating to small, small businesses in rural areas, minority and
women's business enterprises within the respective Region. In this capacity, the Regional SDBU
Coordinator is responsible to the Deputy Regional Administrator or his/her designated Regional
official to assure that all facets of this program are properly carried out. The SDBU
Coordinator will be responsible for the following activities:
a. Implements policy for ensuring participation of small, small businesses in rural areas,
minority and women's business enterprises in EPA's financial assistance programs;
b. Implements procedures for ensuring the effective execution of the Agency's regulations
and policy guidance governing small, small businesses in rural areas, minority and women's
business enterprises in the grants and cooperative agreements programs;
c. Provides technical oversight, guidance and assistance to Regional personnel, State and
local officials, and small businesses in rural areas, minority and women's business enterprises
on an as required basis;
d. Ensures that Regional personnel responsible for the awarding of grants and
cooperative agreements receive adequate training and information on utilization of small,
small businesses in rural areas, minority and women's business enterprises;
e. Maintains adequate records and monitors the preparation of reports concerning small,
small businesses in rural areas, minority and women's business participation in the Region's
grants and cooperative agreements programs;
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f. Reviews and reports accomplishments of the Region's activities with respect to
minority and women's business enterprises and assure that these reviews and reports are accurate
assessments of accomplishments. If shortfalls are encountered, the SDBU Coordinator is
responsible for promoting actions to improve the situation for future procurements. In the case
of delegated States, coordination will be made with the cognizant party in the State by the SDBU
Coordinator to establish what actions can be taken to promote greater utilization of small
businesses in rural areas, minority and women's businesses;
g. Establishes, maintains and disseminates information to small, small businesses in rural
areas, minority and women's business entrepreneurs on opportunities available under the
Agency's grants and cooperative agreements programs. Informs these business entities of
sources or contacts for contract/procurement considerations;
h. Participates and cooperates with all Federal programs and other programs designed
to provide financial, technical, management and other forms of technical support and assistance
to small, small businesses in rural areas, minority and women's business entrepreneurs interested
in opportunities which are available in the Region's grants and cooperative agreements programs;
i. Serves as the principal focal point between the Region and Headquarters, OSDBU on
matters pertaining to small, small businesses in rural areas, minority and women business
enterprise programs;
j. Coordinates activities, reports, reviews, etc., with other Regional personnel who have
been designated as SDBU liaisons for their respective grants and/or cooperative agreements
programs;
k. Serves as principal individual for the Region on matters pertaining to small, small
businesses in rural areas, minority and women' business enterprises dealing with sister agencies
involved in the same areas of work, i.e., Small Business Administration (SBA), Minority
Business Development Agency (MBDA) or any of its funded activities, e.g., Minority Business
Development Centers (MBDCs), State and local assistance grantees, etc., when such functions
relate to EPA-funded programs;
1. Serves as MBE/WBE Training official when providing such to State and local offices,
prime contractors or small, small businesses in rural areas, minority and women's business
entrepreneurs;
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m. Maintains lists of MBEs and WBEs that have participated in EPA-fiinded projects and
seeks out and identifies additional firms for inclusion on EPA listings, such as the Regional
SBE/SBRA/MBE/WBE listings or for placement on MBDA's Profile System;
n. Works in cooperation with the MBDA, MBDCs, the Minority Business Opportunity
Committees (MBOCs), the Small Business Administration (SBA) and other State or local
activities involved in similar efforts;
o. Provides assistance to Headquarters, OSDBU in the preparation of the annual work
plan as required by MBDA. Reports on Regional "Fair Share" objective which is established
at the beginning of each fiscal year. Develops other data as required, to meet the requirements
which MBDA may request; and
p. For those States that have not been delegated MBE/WBE responsibilities, the Regional
Offices are responsible for ensuring that recipients comply with 40 CFR §31.36(e). In these
non-delegated States, Regional Offices will negotiate the amount of contract awards that will be
made to MBEs and WBEs with each recipient prior to submitting their fair share projections to
Headquarters.
5. Delegated States of EPA Financial Assistance. States delegated the responsibility to
review recipient procurement procedures of EPA financial assistance are responsible for assuring
that the fair share principle is fully implemented.
a. In order to ensure that the delegated States perform all of their SBE, MBE, WBE and
SBRA responsibilities, the EPA Regional Offices should consider specifically incorporating these
responsibilities into the delegation agreements.
b. Delegated States and not EPA are responsible for allocating a MBE/WBE "fair share"
objective to a particular project or grant.
6. Clean Water State Revolving Fund (SRF) Recipients. States receiving Clean Water
SRF capitalization grants are responsible for ensuring that the fair share principle is carried out.
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a. States must comply with the requirements set forth in 40 CFR §31.36(e) and §35.3145
regarding MBE/WBE participation and reporting under the SRF program.
b. To ensure to the fullest extent possible that it attains its fair share objective, States will
designate and ensure that certain recipients of SRF assistance will comply with the requirements
set forth in 40 CFR §35.3145(d) and (e) regarding MBE/WBE participation and reporting under
the SRF program. States, and not EPA, are responsible for allocating a fair share objective to
a particular recipient of SRF assistance. It is the States' responsibility to determine the extent
of this fair share amount and to assign or negotiate the fair share objective with the SRF
assistance recipient.
7. Drinking Water State Revolving Fund (SRF) Recipients. Pursuant to the Drinking
Water State Revolving Fund Program Guidelines, the same requirements which apply to the
Clean Water SRF program apply to States receiving Drinking Water SRF capitalization grants.
8. Recipients of EPA Financial Assistance. Recipients, including non-delegated States,
of EPA financial assistance are responsible for assuring the "fair share" objectives are fully
implemented by itself and prime contractors.
a. Recipients must comply with the small, minority and women's business enterprise-
related requirements in 40 CFR §31.36(e), 40 CFR §30.44(b), 40 CFR §35.3145, and 40 CFR
§35.6580, as applicable.
b. The recipient is responsible for ensuring that the prime contractor(s) awarding
contracts/procurements comply with the regulations specified in a. above.
c. Recipients must encourage the solicitation of SBEs, MBEs, WBEs and SBRAs,
whenever they are potential sources. Examples of activities used by some recipients include the
following:
(1) Holding pre-bid conferences, with interested SBEs, MBEs, WBEs and SBRAs in
attendance when possible, to highlight and explain the requirements of the SBE, MBE, WBE and
SBRA policies and procedures to prospective bidders;
(2) Including SBE, MBE, WBE and SBRA policies and procedures and project
objectives in Requests for Proposals (RFP) and Invitations for Bids (IFB);
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(3) Publishing announcements(s) of SBE, MBE, WBE and SBRA opportunities for
work on EPA-funded projects;
(4) Providing prospective bidders/offerers with SBE, MBE/WBE/SBRA source lists;
and
(5) Providing liaison services between SBEs, MBEs, WBEs, SBRAs and prospective
bidders/offerors. Liaison services should not be delegated to consultants where potential or
possible conflict of interest exists.
d. After bid opening or receipt of proposal(s), the recipient must evaluate bids to
determine whether they are responsive to all material terms of the bid solicitation.
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CERTIFICATION OF SBE'S, MBE'S AND WBE'S
CHAPTER 6
TABLE OF CONTENTS
pact:
1. Certification of MBE's and WBE's 6-1
2. Acceptance of Certification 6-1
3. State, Local or Recipient Certification Processes 6-1
4. EPA's Reason to Question Certification 6-1
5. Challenging the Status of an MBEAVBE 6-2
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CHAPTER 6
CERTIFICATION OF SBE'S. MBE'S AND WBE'S
1. Certification of MBE'S and WBE'S.
In order to be deemed a bona fide MBE or WBE, a firm must be:
a. Certified by the Small Business Administration, or
b. Certified by a State or Federal Agency, or
c. Be an independent business concern which is at least 51 percent owned and controlled
by minority group member(s) for MBE(s) or women WBE(s) who are citizens of the United
States. (The criteria concerning U.S. citizenship applies to all of the above).
2. Acceptance of Certification. EPA does not certify firms. EPA will accept as bona fide any
MBE/WBE which is certified by SBA, a State or another Federal agency and will not generally
require such MBEs/WBEs to submit answers to lengthy questionnaires or provide detailed
corporate information. However, where EPA has reasonable cause to believe that a firm doing
business is not a legitimate SBE, MBE, WBE or SBRA, EPA may require that firm to submit
appropriate data to prove ownership and control. (See Paragraph 4).
3. State. Local and Recipient Certification Processes. Recipients may decide to develop a
certification form for bidders or offerors, including first tier subcontractors and suppliers who
submit bids and offers to the recipients and/or prime contractors, stating whether or not the
bidder or offeror is a small, minority or women's business. If this certification is required to
be submitted prior to award of contracts/procurements, it may help ensure that only bona fide
minority and women's businesses are making bids/offers. By certifying, a bidder or offeror is
stating that it is (or is not) a bona fide small, minority, or women's business, and a false
certification carries with it the penalties for making a false statement as prescribed in State laws
and 18 U.S.C. Section 1001.
4. EPA's Reason to Question Certification. In the event EPA has reason to question the
certification of an MBE or WBE, EPA may request additional information including, but not
limited to:
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a. The certificate described above; and
b. Specific information concerning the firm, including:
(1) Name, address and telephone number;
(2) Type of business entity (e.g., partnership, corporation, sole proprietor);
(3) Date firm was established;
(4) Names and addresses of legal owners including the race, gender, percentage of
ownership, percentage of control and the date each owner became an owner in the firm;
(5) Financial, banking and credit information;
(6) Whether the firm has ever been denied certification as an MBE/WBE by SBA, a State
or Federal agency, and if so when and by whom; and
(7) Other information demonstrating ownership and control.
5. Challenging the Status of an MBE/WBE. A protest by a firm challenging another firm's
status as an SBE/MBE/WBE will not be entertained under EPA's bid protest procedures. In the
event that a firm has misrepresented its status as an MBE/WBE, the matter may, at the option
of EPA, be investigated by the Office of Inspector General and, where appropriate, turned over
to the Department of Justice for criminal and/or civil prosecution.
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CHAPTER 7
REPORTING REQUIREMENTS
1. Reporting Requirements.
EPA DOES NOT HAVE A THRESHOLD FOR SIZE OF PROCUREMENT UNDER
ASSISTANCE OR FOR THE SIZE OF THE PROCUREMENT ACTION IN ORDER FOR
REPORTING REQUIREMENTS TO APPLY.
The effectiveness of the fair share policy is measured through quarterly reports. These reports
measure progress in achieving MBE/WBE fair share objectives established under P.L. 101-507
and P.L. 102-389. In addition, E.O. 12432 requires each Federal agency to submit quarterly
and annual reports indicating the level of financial assistance provided and the amounts of such
funds which were subsequently awarded to minority business enterprises.
a. EPA Form 5700-52A. "MBE/WBE Utilization Under Federal Grants. Cooperative
Agreements and Interagency Agreements".
(1) The recipient must submit a properly executed EPA Form 5700-52A to the delegated
State or the Award official in every Federal fiscal quarter or year. Reports will continue until
project completion. Unless otherwise noted in this Guidance, recipients will follow the
instructions on EPA Form 5700-52A.
(2) EPA requires that the total contract/procurement dollars awarded to all firms
be reported for each quarter or year. This means not planned dollars, but actual dollars
awarded. The MBE and WBE dollars and percentages are to be calculated on this actual
quarterly or yearly total contract/procurement award amount to all firms.
(3) Applicants for a Step 2+3 construction grant must submit a completed EPA Form
5700-52A indicating the level of MBE/WBE participation during the planning phase of the
project. The form must be submitted before the applicant begins building the project. (See 40
CFR §35.2104(a)(4) of the Wastewater Treatment Construction Grants regulation).
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(4) Applicants for a Step 3 construction grant which includes an allowance for planning
and/or design must include with their application a completed EPA Form 5700-52A indicating
the level of MBEAVBE participation during the planning and design phases of the project.
b. EPA Form 6005-2. U.S. Environmental Protection Agency. Office of Small and
Disadvantaged Business Utilization. Minority and Women's Business Consolidated Report.
(1) The SDBU Coordinators designated by the Regional Administrators in the various
Regional offices will collect, collate and monitor the EPA Form 5700-52A reports
submitted by the recipients. After compiling and consolidating the data on an EPA Form 6005-
2, (See Attachment 2), the Regional SDBU Coordinator designees will submit the EPA Form
6005-2 to the Headquarters OSDBU Office. Headquarters and Cincinnati Office designees will
also forward the report to OSDBU. In both cases the "FORM 6005-2 MUST BE RECEIVED
BY OSDBU HEADQUARTERS NOT LATER THAN FEBRUARY 15. MAY 15. AUGUST
15. AND NOVEMBER 15. NO EXTENSIONS WILL BE AUTHORIZED BY OSDBU".
The Regional reporting process is being automated and should be fully implemented by
Fiscal Year 1998 in all Regions.
(2) The following information will be used in preparing the EPA Form 6005-2 for
submission to Headquarters, OSDBU:
(a) Late Data. Data received after report submission (late data received) can be
entered on succeeding reports, except for the 4th quarter. You cannot, however, change the
dollar figures or percentages covered in your previously reported quarter. The late data, as well
as the new quarterly data, is to be included in your new or succeeding quarterly report. Any
late data received after the 4th quarter report has been submitted cannot be submitted on a
revised report. The data would have to be reported in the 1st quarter of the new reporting
period.
(b) Percentages. Percentages should be rounded off to the nearest single decimal
place (tenth). Example: 6.51% =6.5%.
(c) Dollars. Dollars should be shown fully. Round cents to the nearest dollar.
Example: $10,120,821.25 = $10,120,821 or $42,176.62 = $42,177.
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(d) Total Contract/Procurement Dollars. Total contract/procurement dollars of
all the Agency's financial assistance programs being counted, e.g., Wastewater Treatment
Program, Superfiind, SRF, etc. (This is not the total amount of the grants or cooperative
agreements, it is only the contract/procurement dollar portion). USE EXACT DOLLARS, DO
NOT USE ESTIMATES.
(e) Negative Reports. If the recipient submits negative reports, i.e., no
contract/procurement dollars awarded in a particular program, the EPA Form 6005-2 will
state the reason for such on the respective program line. Such as, no report received or
"force accounts", etc.
(f) Regional Fair Share. In the first set of sections on the EPA Form 6005-2,
under the printed entry which states "Regional Fair Share", the Region must indicate the annual
fair share in both percentages and dollar amounts for MBEs and WBEs. Example: MBE =
10% - $73,458.0. This signifies that the negotiated MBE fair share is $7,345.80 (rounded to
$7,346.0), which would be equal to 10 percent of the total contract/procurement dollars available
for procurement.
2. Reporting on Continuing Environmental Programs.
Continuing Environmental Program Grants involve financial assistance to States, tribal or local
recipients for Continuing Environment programs. Examples of these grants include those
specified in 40 CFR Part 35, Subpart A, as well as performance partnership grants. These
programs do not include the Wastewater Treatment Construction Program, the Superfund
Program, the Clean Water and Drinking Water State Revolving Fund (SRF) Programs, the
Asbestos (ASHAA) Program, or the Leaking Underground Storage Tank (LUST) Program.
Reports for continuing environmental programs will be required to be submitted on all programs
on an annual basis.
3. Reporting on Indian Tribes/Nations and Trust Territories.
a. Assistance awards to Indian Tribes/Nations and Trust Territories are to be reported by
the Regional offices as follows:
(1) Identify by name.
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(2) Location, including State.
(3) Total dollar amount of award.
(4) Date of award.
(5) Program, e.g., SRF, Superfund, etc.
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UNDER ASSISTANCE AGREEMENTS
REPORTING REQUIREMENTS
CHAPTER 8
TABLE OF CONTENTS
PAGE
1. Calculating MBE/WBE Participation 8-1
2. MBEAVBE as a Prime Contractor 8-2
3. Questions on Calculating MBE/WBE Participation 8-2
4. MBE/WBE Brokers 8-2
5. Central Purchasing/Procurement Centers 8-3
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UNDER ASSISTANCE AGREEMENTS
CHAPTER 8
COUNTING MBE/WBE PARTICIPATION
1. Calculating MBE/WBE Participation. For purposes of reporting, the following is the
approach EPA will use in calculating MBE/WBE participation.
a. Credit for MBE/WBE participation under these policies shall be granted for MBEs/WBEs
performing a useful business function according to custom and practice in the industry. No
credit will accrue for an MBE/WBE acting merely as a passive conduit of funds to some other,
non-minority firm. However, an MBE or WBE may further subcontract a portion of the work
to SBEs provided that such further subcontracting is in accordance with this Guidance and that
the majority of work is being performed by the MBE or WBE having the contract. MBE/WBE
participation will not be counted when the MBE or WBE subcontracts back to the prime
contractor.
b. Objectives for MBE/WBE participation shall be calculated as a percentage of total
eligible contract/procurement costs.
c. Credit for MBE/WBE project-related work that is not eligible for EPA assistance may
be included in the calculation of MBE/WBE participation.
d. Joint ventures shall be credited towards the recipient's percentage of MBE/WBE
participation by crediting the MBE/WBE portion of the dollar amount of the joint venture.
Where the MBE's/WBE's risk of loss, control or management responsibilities are not
commensurate with the share of profit, the Regional Administrator or designee may direct an
adjustment in the percentage of participation. In the case of a joint venture, which includes an
MBE/WBE, credit will be calculated proportionately towards their respective objective.
e. Supplier is defined as follows: A supplier is a business which acts as a distributor of
materials or equipment, and which provides a commercially useful function when such activity
is traditional in the industry manufacturing the material or equipment supplied. Suppliers will
receive 25% credit for providing supplies and receive 100% for manufacturing or fabrication
of supply items. Haulers will receive 100% credit if they provide the material that is hauled.
Commercially useful function will normally include:
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EPA GUIDANCE FOR UTILIZATION OF S/M/WBE IN PROCUREMENT
UNDER ASSISTANCE AGREEMENTS
(1) Providing technical assistance to the purchaser prior to the purchase, during
installation and after the supplies or equipment are placed in service;
(2) Manufacturing or being first tier below manufacturer of the supplies or equipment
supplied;
(3) Providing functions other than just accepting and referring request for supplies or
equipment to another party for direct shipment to a contractor.
2. MBE/WBE as a prime contractor. How is MBE/WBE participation counted if a prime
contractor is an MBE or WBE and awards subcontracts to other MBEs, WBEs or non
MBEs/WBEs? When reporting its accomplishments, EPA is attempting to measure the amount
of overall MBE/WBE participation in the program. We are measuring the number of
MBE/WBE firms participating in the program. We only count the total number of dollars
awarded to every MBE or WBE firm. Our assumption is that all MBE/WBE firms awarded
contract dollars under EPA's grant programs benefit to that extent from the fair share policy.
Therefore, the counting of MBE/WBE dollar amounts under a particular prime contract will
result in a total that is no more that 100 percent of the value of the contract. For example, if
an MBE firm is awarded a prime contract and then subcontracts 30 percent to another MBE
firm, the total number of dollars awarded would remain at the 100% level. This would also
remain true, if the prime contractor awarded a subcontract to a non MBE/WBE. The percentage
of award being placed with a non MBE/WBE has no bearing on the total amount being reported
unless such percentage exceeds the 49 percent level. If a minority or women-owned prime
contractor awards more than 49 percent to a non MBE/WBE, no dollars will be reported for
either.
3. Questions on calculating MBE/WBE participation. Should a recipient or contractor have
any questions on calculating MBE/WBE participation, they should contact their appropriate State
agency, or the EPA Regional SDBU Coordinator.
4. MBE/WBE brokers. Recipients may not count expenditures to MBEs or WBEs that act as
a broker in a transaction. A broker is a firm that does not, itself, perform, manage or supervise
the work of its contract or subcontract in a manner consistent with the normal business practices
for contractors or subcontractors in its line of business. An MBE or WBE will also be
considered a broker if it subcontracts more than 49 percent of the work. The MBE or WBE
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contractor may correct this presumption by demonstrating that the greater percentage of
subcontracting that it is doing is consistent with normal practices for contractors or
subcontractors in its line of business and that it will actively perform, manage and supervise the
work of its contract.
5. Central Purchasing/Procurement Centers. Recipients must verify procurement dollars for
MBE/WBE firms received from central purchasing/procurement centers and develop a tracking
system for these Federal dollars.
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UNDER ASSISTANCE AGREEMENTS
BID PROTESTS
CHAPTER 9
TABLE OF CONTENTS
PAGE
1. Challenge to MBEAVBE Status 9-1
2. MBEAVBE Compliance-Bidder Responsibility vs Responsiveness 9-1
a. General Rule on Responsibility vs Responsiveness 9-1
b. Careful and Clear Drafting 9-2
c. Protest Examples 9-3
d. Reviewing Bidding Documents 9-4
e. Consequence of Responsiveness 9-4
f. Recipient Use of Responsibility Criteria 9-5
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EPA GUIDANCE FDR UTILIZATION OF S/M/WBE IN PROCUREMENT
UNDER ASSISTANCE AGREEMENTS
CHAPTER 9
BID PROTEST
1. Challenges to MBE/WBE Status.
Complaints by firms challenging another firm's status as an MBE/WBE will not be
entertained under EPA's bid protest procedures. Any firm or individual that files a false
statement may be prosecuted under 18 U.S.C. 1001. Because of the interest of bona fide
MBEs/WBEs in obtaining contracts/procurements, it is reasonable to conclude that such bona
fide firms will help EPA and appropriate Federal authorities identity "bogus" or "front"
MBEs/WBEs. In the event that allegations are made that a firm misrepresented its status as an
MBE/WBE, the matter may be investigated by the Office of the Inspector General and, where
appropriate, turned over to the Department of Justice for criminal and/or civil prosecution.
Such firms can also be excluded from further participation in Federal programs by
debarment or suspension action. Actions for exclusion from all Federal Acquisition activities
are taken under the Federal Acquisition Regulations, 48 CFR Subpart 9.4; actions for exclusion
from EPA assistance programs are taken under 40 CFR Part 32.
2. MBE/WBE Compliance — Bidder Responsibility vs Bid Responsiveness.
a. General Rule on Responsibility vs Responsiveness. As a general rule, MBE/WBE
documentation (i.e., documentation demonstrating compliance with grantee MBE/WBE
requirements) is a matter of bidder "responsibility".
(1) Responsibility. The term responsibility means the apparent ability of the bidder to
successfully carry out the requirements of a contract. Aspects of responsibility include such
things as financial resources, technical qualifications, experience, organization and facilities
adequate to carry out the project, ability to meet the completion schedule, satisfactory contract
performance record and compliance with or willingness to comply with civil rights laws and
other legal requirements. See 40 CFR § 31.36(b) (8), (d) (2) (ii) (D), and (d) (3) (iv) [which
are applicable to local and Indian tribal governments] and 40 CFR §30.44(d). The determination
of bidder responsibility focuses upon the bidder's apparent ability to perform in the required
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manner on the date performance is required. Where a bidder has failed to submit information
required to demonstrate its responsibility, such information may be submitted after bid opening,
but prior to contract award. Consequently, a bidder who is not responsible when bids are
submitted may still qualify for contract award if it can establish its responsibility before the
contract award date.
MBE/WBE compliance documentation serves the principal purpose of assisting the
recipient in determining whether the bidder is responsible, i.e., has the ability to meet, or make
good faith efforts to meet, the recipient's MBE/WBE goals and satisfy the EPA fair share
policy. Therefore, if a bidder fails to complete all the MBE/WBE forms with its bid or fails
to make good faith efforts prior to submitting the bid, these shortcomings may be corrected after
bid opening. The exception to this rule occurs when the recipient has specifically made
MBE/WBE requirements and demonstration of positive efforts matters of bid "responsiveness"
to be determined at the time of bid opening.
(2) Responsiveness. A "responsive" bid is one which on its face meets the
specifications and the material terms of the Invitation for Bid (IFB). Material terms are those
terms affecting price, quantity, quality or delivery and any other terms which are clearly
identified by the bid solicitation documents as requirements that must be complied with at the
time of bid in order for the bid to be accepted as "responsive".
A failure of a bid to meet a material term of the IFB cannot be cured after bid
opening. This is the most significant difference between matters of responsiveness and
responsibility.
b. Careful and Clear Drafting. Recipients may make compliance with MBE/WBE
requirements a matter of responsiveness instead of responsibility. However, because such
requirements are normally matters of responsibility, they will have to be treated as such unless
the recipient clearly and unequivocally states in the bid solicitation documents that failure to
meet the MBE/WBE requirements will cause the bid to be rejected as nonresponsive. In
deciding to make these requirements matters of responsiveness, the recipient must exercise
extreme care in drafting the IFB and all bid solicitation documents. If there is any ambiguity
in these documents concerning whether a bid failing to comply with the requirements will be
automatically rejected as nonresponsive, the requirement will be considered to be a matter of
responsibility which can be cured by the bidder after bid opening. Consequently, where there
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UNDER ASSISTANCE AGREEMENTS
is such ambiguity in the bid solicitation documents the recipient must not reject a nonconforming
bid as nonresponsive.
c. Protest Examples. EPA has reviewed numerous recipient procurement actions involving
the issue of whether MBE/WBE requirements were made matters of responsiveness or
responsibility. The rule which is consistently followed by EPA is that in order for a recipient
to reject a bid as nonresponsive due to a failure to do something which is generally a matter of
responsibility (such as listing subcontractors and submitting positive efforts information), the
solicitation for bids must have clearly and unequivocally stated that such failure would cause the
bid to be rejected as nonresponsive. Many of the bid protest appeals considered by EPA involve
bid solicitations which were ambiguous as to when the MBE/WBE requirements had to be met
by the bidder.
(1) Examples of language which failed to make it sufficiently clear and mandatory that
MBE/WBE documentation and requirements must be submitted with the bid include provisions
in the bid solicitation stating that:
(a) Failure to submit such information "may be cause to reject the bid," City of Mt.
Pleasant. Michigan. (Region V, June 25, 1979) (Protest of Collavinc Const., Inc.);
(b) "Failure to list... will render the bid nonresponsive and may cause it rejection."
Sand Point. Idaho (Region X, March 3, 1983) (Protest of Ludig Const., Inc.); and
(c) "Failure to complete the equipment manufacturers form shall be grounds for
rejection of his bid as nonresponsive" New Hampshire Water Supply and Pollution Control
Commission (Region I, March 16, 1984) (Protest of Cattamount Const., Inc.).
(2) In each of these examples the language failed to provide for the automatic,
mandatory rejection of non-conforming bids. The statement that failure to do something may
result in the rejection of the bid is ambiguous. The action verb "may" is equivocal and non-
mandatory because of its permissive nature. The fact that it may be rejected implies the
possibility that it "may not" be rejected. Where such language is used in the bid solicitation,
the recipient cannot reject as nonresponsive a bid which fails to provide documentation of a
requirement which is generally considered to be a matter of responsibility. Where an IFB
clearly and unequivocally states that failure to submit a subcontractor list or MBE documentation
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will make a bid nonresponsive, but the IFB does not state what action will be taken regarding
such a nonresponsive bid (e.g., rejection), it is nevertheless correct to reject the bid, since an
award can only be made to responsive bids. See Monterey. California (EPA Region IX,
September 12, 1985) (Protest of Mortenson/Natkin).
d. Reviewing Bidding Documents. In reviewing bid solicitations to determine whether
MBE/WBE matters have been made matters of responsiveness, EPA looks beyond the specific
language in the bid form or IFB and examines all areas of the bid solicitation documents to
determine whether they are clear and unequivocal. For example, if the language in one portion
of the bid documents clearly states that documentation is a matter of responsiveness but the
language which appears elsewhere in the document gives a different meaning, the requirement
cannot be considered a matter of responsiveness. See. New Hampshire Water Supply and
Pollution Control Commission, supra. If the recipient chooses to make certain items, such as
commitment to a fair share percentage, a matter of responsiveness, and other items, such as
submission of data sheets, a matter of responsibility, the recipient should clearly separate these
items and make it clear to bidders which items are matters of responsiveness and which are
matters of responsibility.
e. Consequence of Responsiveness. If the recipient makes MBE/WBE documentation and
requirements matters of responsiveness, it must then reject any bid which fails to satisfy the
requirements of the solicitation as of the time of bid opening. The recipient has no real
discretion in making this decision because a nonresponsive bid cannot be cured and made
responsive after bid opening. Consequently, a bid which is not responsive to the MBE/WBE
requirements must be rejected even if the recipient believes that accepting the bid is in its best
interests and the best interests of the MBE/WBE program. For example, it would be necessary
to reject a bidder that did not submit documentation (if it were a matter of responsiveness) even
though after bid opening that bidder demonstrates it satisfies the affirmative steps and attained
or promised to attain MBE/WBE participation exceeding the grantee's goals and/or exceeded the
MBE/WBE participation offered by the next low bidder. See, Village of Palatine. Illinois (EPA
Region V, July 19, 1983) (Protest of Di Paolo-Rossetti). However, in Toronto. Ohio (EPA
Region V, February 2, 1984) (Protest of Cavanaugh Co.), a bid that failed to submit
documentation required by the IFB was nevertheless responsive because it specifically committed
to meeting the grantee's MBE goals. Since the bidder was contractually committed to the goal,
the documentation was only relevant to evaluating the bidder's responsibility, that is, its ability
to meet the goal.
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UNDER ASSISTANCE AGREEMENTS
f. Recipient Use of Responsibility Criteria. Assistance recipients can effectively use
definitive responsibility criteria to assure that bidders exercise the required affirmative steps.
For example, the Invitation For Bids (IFB) may require that bidders advertise in various
newspapers and trade journals, solicit subcontractors by using lists of MBEs/WBEs provided by
federal, state or local agencies, and take other specific action to demonstrate that the affirmative
steps were taken. The recipient can then determine after bid opening (before contract award)
whether the low bidder satisfied the required definitive responsibility criteria and reject any
bidder that failed to meet the criteria. See. San Bernardino. Ca. (EPA, Region 9, January 15,
1986) (Protest of MCI Constructors, Inc.).
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EPA GUIDANCE FOR UTILIZATION OF S/MAVBE IN PROCUREMENT
UNDER ASSISTANCE AGREEMENTS
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ATTACHMENTS
EPA Form 5700-52A 1
EPA Form 6005-2 2
Rural Area Continuum Code Classification 3*
EPA/MBDA Memorandum of Understanding 4
'Attachment 3 available upon request from OSDBU.
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OMB CONTHOLNO. 20MIM
AOTOVED: M2/K
AITBOVAL EXratES;
U.S. ENVIRONMENTAL PROTECTION AGENCY
MBE/WBE UTILIZATION UNDER FEDERAL GRANTS, COOPERATIVE
AGREEMENTS, AND INTERAGENCY AGREEMENTS
PARTI. (NEGATIVE REPORTS ARE REQUIRED)
LA. FEDERAL FISCAL YEAR
IB. REPORTING QUARTER (Cbeck appropriate box)
^lst(Oct-Dec) 0 2nd(Jan-Mar) D 3rd(Apr-Jun) 1—14th(Jul-Sep) C Annual
2. FEDERAL FINANCIAL ASSISTANCE AGENCY
(EPA- Office, Address)
3. REPORTING RECIPIENT (Name and Addi
ress)
2A. REPORTING CONTACT
PHONE:
3A. REPORTING CONTACT
PHONE:
4A. FINANCIAL ASSISTANCE AGREEMENT ID NUMBER
4B. FEDERAL FINANCIAL ASSISTANCE PROGRAM
TOTAL GRANT AMOUNT
$
SB. TOTAL CONTRACT/PROCUREMENT AMOUNT THIS QUARTER
$
SC. RECIPIENTS MBE/WBE GOALS
MBE % WBE %
5D. ACTUAL MBE/WBE PROCUREMENT ACCOMPLISHED THIS REPORTING PERIOD
MBE$ WBE$
SE. NEGATIVE REPORT (Check)
— SEE INSTRUCTIONS
6. COMMENTS:
NAME OF AUTHORIZED REPRESENTATIVE
TITLE
SIGNATURE OF AUTHORIZED REPRESENTATIVE
DATE
KPA FORM 5700-52A - (5/96)
Attachment #1
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MBE/WBE PROCUREMENTS MADE DURING QUARTER
PARTH.
Procurement
Made By
Business
Enterprise
$ Value of
Procurement
Date of
Award
T^pe of Product
or Service1
Name/Address of MBEAVBE Contractor or
1
Recipient J Other
Minority
Women
MM/DD/YY
(Filter Code)
Vendor
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
t
1
"Type of product or service codes:
1 = Agriculture
2 = Mining
3 = Construction
4 = Manufacturing
l.PA FORM V700-52A - (5/96)
5 = Transportation 9 = Services 10 ¦= Other
6 = Wholesale Trade a ¦= Badness Services
7 = Retail Trade b = Professional Saikjes
8 = Finance, Insurance, Real Estate c = Repair Semites
d = Personal'Services
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INSTRUCTIONS
MBE/WBE UTILIZATION UNDER FEDERAL GRANTS, COOPERATIVE
AGREEMENTS,
AND INTERAGENCY AGREEMENTS
EPA FORM 5700-52A
A. General Instructions:
MBE/WBE utilization is based on Executive
Orders 11625, 12138, 12432, P.L. 102-389 and
EPA Regulations Part 30 and 31. EPA Form
5700-52A must be completed by recipients of
Federal grants, cooperative agreements, or other
Federal financial assistance which involve
procurement of supplies, equipment, construction
or services to accomplish Federal
programs.
Recipients are required to report to EPA within
one month following the end of each Federal fiscal
year quarter or annually as in the agreement.
B. Definitions:
Procurement is the acquisition through order,
purchase, lease or barter of supplies, equipment,
construction or services needed to accomplish
Federal assistance programs.
A contract is a written agreement between an EPA
recipient and another party (other than another
public agency) and any lower tier agreement for
equipment, services, supplies, or construction
necessary to complete the project. Includes
personal and professional services, agreements
with consultants, and purchase orders.
A minority business enterprise (MBE) is a business
concern that is (1) at least 51 percent owned by
one or more minority individuals, or, in the case
of a publicly owned business, at least 51 percent of
the stock is owned by one or more minority
individuals; and (2) whose daily business
operations are managed and directed by one or
more of the minority owners.
U.S. citizenship is required. Recipients shall
presume that minority individuals include Black
Americans, Hispanic Americans, Native
Americans, Asian Pacific Americans, or other
groups whose members are found to be
disadvantaged by the Small Business Act or by the
Secretary of Commerce under section 5 of
Executive order 11625. The reporting contact at
EPA can provide additional information.
A woman business enterprise (WBE) is a business
concern that is, (1) at least 51 percent owned by
one or more women, or, in the case of a publicly
owned business, at least 51 percent of the stock is
owned by one or more women and (2) whose daily
business operations are managed and directed by
one or more of the women owners.
Business firms which are 51 percent owned by
minorities or women, but are in fact managpH and
operated by non-minority individuals do not
qualify for meeting MBE/WBE procurement goals.
The following affirmative steps for utilizing MBEs
and WBEs are required to be documented:
1. Inclusion of MBEs/WBEs on solicitation lists.
2. Assure MBEs/WBEs are solicited once they
are identified.
3. Where feasible, divide total requirements
into smaller tasks to permit maximum
MBE/WBE participation.
4. Where feasible, establish delivery
schedules which will encourage MBE/WBE
participation.
5. Encourage use of the services of the U.S.
Department of Commerce's Minority
Business Development Agency (MBDA) and
the U.S. Small Business Administration to
identify MBEs/WBEs.
6. Require that each party to a subgrant,
subagreement, or contract award take the
affirmative steps outlined here.
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C. Instructions for But I:
D. Instructions for Put H:
1. Complete Federal fiscal year and check
applicable reporting box quarterly or annually.
(Federal fiscal year runs from October 1
through September 30.)
2. "Will be provided by EPA."
3. Identify the agency, state authority, university
or other organization which is the recipient of
the Federal financial assistance and the person
to contact concerning this report.
4a. Grant/cooperative agreement or Interagency
Agreement number assigned by EPA.
4b. Refer back to grant document for this
information.
5a. Total grant amount which includes Federal
funds plus recipient matching funds and funds
from other sources.
5b. Total contracts/procurements awarded this
quarter. For example: Actual dollars for
procurement from the procuring office; actual
contracts let from the contracts office; actual
goods, services, supplies, etc., from other
sources including the central purchasing/
procurement centers).
5c. Portion of total procurement dollars recipient
plans to spend with MBEs or WBEs this fiscal
year. With the concurrence of EPA, a fair
share goal shall be determined by each
recipient
5d. Dollar amount of all MBE/WBE procurement
amounts awarded under this reporting period.
(These amounts include the Federal, State and
local shares in the procurement awards).
5e. Check only if no procurements were made this
reporting period. (If dollar amounts are shown
in 5b. indicate reason in 6. Comments
Section).
6. Additional comments or explanations. Please
refer to specific item number(s) if appropriate.
7. Name and title of official administrator or
designated reporting official.
8. Signature and month, day year report
submitted.
For each MBE/WBE procurement made under
this assistance agreement during the reporting
period, provide the following information:
1. Check whether this is a first tier
procurement made directly by Federal
financial assistance recipient or other second
Her procurement made by recipient's
subgrantee or prime contractor. Include all
qualifying second tier purchases executed this
quarter regardless of when the first tier
procurement occurred.
2. Check MBE or WBE.
3. Dollar value of procurement
4. Date of award, shown as month, day, year.
5. Using codes at the bottom of the form,
identify type of product or service acquired
through this procurement (eg., enter 1 if
agriculture, 2 if mining, etc).
6. Name and address of MBE/WBE firm.
This data a requested to comply with provisions mandated by:
statute or regulations (40 CFR EM 30 and 31); OMB Circulars; or
added by EPA to ensure sound and effective assistance management.
Accurate, complete data are required to obtain funding, while no
pledge of confidentiality is provided.
The public reporting and recording harden for this collection of
information b estimated to average 1 hour per response annually.
Borden means the total time, effort, or financial resources expended
by persons to generate, retain, or disclosure or provide
Information to or for a Federal agency. This in chides the time needed
to review instructions; develop, acquire, install, and utilize technology
and systems for the pruposes of collecting, validating, and verifying
information, processing and maintaining information, and disclosing
and providing information; adjust the existing ways to comply with
any previously applicable instructions and requirements; train
personnel to be able to respond to a collection of information, search
data sources; complete and review the collection of information; and
transmit or otherwise disclose the information. An agency may not
conduct or sponsor, and a person b not required to respond to, a
collection of information unless it displays a currently valid OMB
control number.
Send comments on the Agency's need for this information, the
accuracy of the provided burden estimates, and any suggested methods
for mmiminng respondent burden, including through the use of
automated collection techniques to the Director, OPTO Regulatory
Information Division, U S. Environmental Protection Agency (2136),
401 M St., S W, Washington, D.C. 20460. Include the OMB Control
number in any correspondence Do not send the completed form to
this address.
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&EPA
US ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION
WASHINGTON. DC 20460
QUARTERLY MBE/WBE CONSOLIDATION REPORT
FISCAL YEAR
REGION
REGIONAL FAIR
SHARE
PREPARED BY
DATE
1st Federal
FY Quarter
2d Federal
FY Quarter
3d Federal
FY Quarter
4th Federal
FY Quarter
'Quarterly
Cumulative
Total Grant or Cooperative Agreement
Subagreement Dollars Awarded
Total Subagreement Dollars
Awarded to MBEs
%
%
%
%
Total Subagreement Dollars
Awarded to WBEs
%
%
%
GRANT/COOPERATIVE AGREEMENT ACTIVITY
FISCAL YEAR QUARTER
MBE
STATEISH
WBE
STATE(S)3
Air (Section 105)
Water (Section 106)
Drinking Water (PWSSI
Operator Training
Underground Infection Control (UIC)
- Hazardous Waste
Pesticides Enforcement
Pesticides Certification and Training
Rural Water Association
Clean Lakes
Research and Development
Superlund (State)
WWT Construction Grants
Allowance (Applies to step 2*3 and step 3P
Other
'This figure reflects the accumulation of fiscal year cumulative reporting (e.g., quarterly cumulative will
be a cumulation of quarters 1 and 2. etc.).
J and 1 — See reverse side for explanation.
EPA Form 6006-2 (Rev. 6-84) Previous edition is obsolete
Attachment #2
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2Use this line to report the allowance portion of Step 2+3 and Step 3 A/E subagreement
awards.
3Use this line to break out minority and women's business participation by State for i
particular grant/cooperative agreement activity If additional space is required, indicate
"See Reverse." then show the overall figure on the front side of the form.
EXAMPLE
MBE STATE(s) WBE STATE(s)
WWT Construction Grants
$310,000
See Reverse
$67,000
See Reverse
Allowance (applies to Step 2+3 and Step 3)
65,000
See Reverse
18,600
See Reverse
On this side, show the breakout by State in the space below or attach a separate sheet.
CONSTRUCTION ALLOWANCE
MBE WBE MBE WBE
$100,000 $22,000 $21,000 $6,600
10,000 0 2.000 0
50,000 10.000 10.000 3,000
150,000 35,000 32,000 9.000
$310,000 $67,000 $65,000 $18,600
Entries to be made for any of the other grant/cooperative agreement activities should be
handled accordingly.
EXAMPLE
STATES
NJ
VI
PR
NY
EPA Form 600B-2 (R«v 6-84) Raverse
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CONTINUATION SHEET
ftEPA QUA
US ENVIRONMENTAL PROTECTION AC.ENry
OFFICE OF SMALL AND DISADVANTAGED HUSINESS U1II i/a Ihjn PAG]
WASHINGTON. DC 20460
RTERLY MBE/WBE CONSOLIDATION REPORT
i of
PAGES
riSCAL VEAfl
region
REGIONAL FAIR
SHARE
PREPARE
D BY
)A1F
GRANT/COOPERATIVE AGREEMENT ACTIVITY
FISCAL YEAH OUA
niEn
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MEMORANDUM OF UNDERSTANDING
BETWEEN THE
U.S. ENVIRONMENTAL PROTECTION AGENCY
AND THE
MINORITY BUSINESS DEVELOPMENT AGENCY
INTRODUCTION
This Memorandum of Understanding (MOU) provides the details of a working
relationship between the U.:S. Environmental Protection Agtency [hereinafter,
EPA] and the Minority Business Development Agency [hereinafter, MBDA], EPA
and MBDA will enter Into a joint arrangement tfrich will be known as the
"EPA/MBDA Minority Assistance Program."
The EPA/MBDA program will combine the resources of both agencies in a manner
designed to assist minority business to enhance their participation 1n
contracts under EPA grants and cooperative agreements. This program 1s
designed to enhance EPA responsibilities under Executive Order (EO)>12432
and MBDA's objective to provide assistance to minority business.
WHEREAS, the MBDA, U.S. Department of Commerce, has specific authority to
establish policies and programs for the development of minority business
enterprises; and,
WHEREAS, the ffiDA, U.S. Department of Commerce, has been designated by the
Cabinet Council on Commerce and Trade to assist the Council 1n its
implementation of EO 12432; and,
WHEREAS, 11 1s the policy of EPA to encourage and assist Its grantees to
Implement effective programs of minority subcontracting that will meet
requirements of EO 12432 and President Reagan's minority business objectives
announced December 17, 1982; 1n accordance with the Secretary of Commerce's
uniform program guidance Issued to EPA, November 22, 1983;
Now, Therefore, EPA and MBDA agree as follows:
A. MBDA Responsibilities
1. MBDA agrees to coordinate use of Its electronic mail system for
the purposes of receiving EPA notices of potential grant awards
as well as notices of minority subcontracting opportunities
under EPA grants and cooperative agreements.
2. MBDA, as appropriate, will encourage its Minority Business
Development Centers (MBDCs) to identify minority firms
Interested 1n and capable of participating 1n procurements under
EPA grants and cooperative agreements, and to the extent
feasible, will provide business management and technical
information to those minority businesses Identified.
Attachment 94
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3.
C. Moni tori ng
The MBDA and EPA will participate in the monitoring of this
agreement. EPA will have primary responsibility for evaluating the
results of this agreement as part of EO 12432 reporting procedure.
0. Duration
This agreement is effective when signed by both agencies. Either party
may terminate this agreement provided that a thi rty-day advance notice in
writing is provided to the other party.
E. Effective
Signed 1n Washington, District of Columbia this 13th day
of Aug. 1985.
JaiKe^-Hr'Richardson Gonzales
A. James Barnes
Deputy Administrator
U.S. Environmental Protection Agency
Di rector
Minority Business Development Agency
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