February 28, 2012

1. Texas Water Development Board Enhancements to the EPA’s Disadvantaged Business Enterprise Program February 28, 2012 Rene Gonzalez (512) 463-2634 DBE and Policy Coordinator

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

3. What is the DBE Program? DBE Program Enhancements Training A condition of federal grant awards. Requires loan recipients (municipalities, towns, public water authorities, etc.) and sub-recipients (prime contractors and sub-contractors) to make a "Good Faith Effort" whenever procuring construction, supplies, services and equipment. EPA regulations require evidence showing that loan recipients performed the "Six Affirmative Steps" during procurement situations.

4. New Fair Share Goals DBE Program Enhancements Training • Required by 40 CFR Part 33 Subpart D and are directly negotiated with EPA Region 6. • The TWDB’s goals and may not be substituted with other agency or program goals. • The TWDB does not require that recipients meet the fair share objectives, however the EPA may take remedial action under 40 CFR § 33.105 for failure to comply with the good faith efforts requirements.

5. Rationale for Change DBE Program Enhancements Training • Increased federal oversight of federal capitalization grants. • Renegotiated fair share goals provide opportunity to refresh program. • Updated DBE federal regulations in May 2008. • Misconceptions on DBE and “Good Faith Effort” requirements. • Both SRF programs provide over $100 million in federal funds annually (multiplier effect).

6. Enhancements in Detail DBE Program Enhancements Training • Comprehensive Guidance (TWDB-0210) • Contents include: • Background on DBE Program/Fair Share Goals • When are DBE forms due? • Detailed Form Instructions • Good Faith Effort/Six Affirmative Steps Overview • Program Compliance/Contract Administration Requirements

7. Enhancements in Detail DBE Program Enhancements Training • TWDB-0215 Step 1:

8. Enhancements in Detail DBE Program Enhancements Training • TWDB-0215 Step 2:

9. Enhancements in Detail DBE Program Enhancements Training • TWDB-0215 Step 3:

10. Enhancements in Detail DBE Program Enhancements Training • TWDB-0216 Step 1:

11. Enhancements in Detail DBE Program Enhancements Training Step 3: • TWDB-0216 Step 2: • Step 2:

12. Enhancements in Detail DBE Program Enhancements Training • TWDB-0217 Step 1:

13. Enhancements in Detail DBE Program Enhancements Training • TWDB-0217 Step 2:

14. Enhancements in Detail DBE Program Enhancements Training • TWDB-0217 Step 3:

15. Enhancements in Detail DBE Program Enhancements Training • TWDB-0373 Step 1:

16. Enhancements in Detail DBE Program Enhancements Training Step 3: • TWDB-0373 Step 2:

17. Enhancements in Detail DBE Program Enhancements Training • DBE Compliance Policy (CW-099/DW-099) • Applicable to all entities receiving federal SRF funding. • Requires entities to be in compliance through all phases of the project. • Organized by Phases: • Project Application Phase • Loan Commitment and Closing Phase • Planning/Design Phase • Construction Contract Phase

18. Enhancements in Detail DBE Program Enhancements Training • Project Application Phase Compliance Form: TWDB-0215 (Entity) • Commitment loan/principal forgiveness amount • Signature of Applicant/Entity • Completed Participation Estimates

19. Enhancements in Detail DBE Program Enhancements Training • Loan Commitment and Closing Phase Compliance Form: TWDB-0216 (Entity) • Commitment loan/principal forgiveness amount • Minimum of three businesses/firms solicited for each type of contract sought (i.e. three engineering, financial advisor, and bond counsel firms). • A combination of two methods must be utilized for solicitation at a minimum. • Signature of Applicant/Entity • Backup documentation to support the solicitation methods utilized (newspaper advertisement/affidavit, RFQ, fax/email/letter correspondence, website postings, governmental/trade publications, etc.).

20. Enhancements in Detail DBE Program Enhancements Training All methods of solicitation shall include the following language to meet “Good Faith Effort” requirements as stated below: Any loan award is contingent upon release of funds from the Texas Water Development Board (TWDB). This contract is subject to the Environmental Protection Agency's (EPA) "fair share policy", which includes EPA-approved "fair share goals" for Minority Business Enterprise (MBE) and Women Business Enterprise (WBE) firms in the Construction, Supplies, Equipment, and Services procurement categories.  EPA's policy requires that applicants and prime contractors make a good faith effort to award a fair share of contracts, subcontracts, and procurements to Minority Business Enterprise and Women-Owned Business Enterprise firms.  Although EPA's policy does not mandate that the fair share goals be achieved, it does require applicants and prime contractors to demonstrate use of the six affirmative steps.  The current fair share goals for the State of Texas are as follows:

21. Enhancements in Detail DBE Program Enhancements Training Special Note on Multi-Year Contracts - Entities seeking to utilize consultants contracted on a multi-year basis must provide additional information to demonstrate DBE compliance including; original advertisement to validate the scope of services solicited, RFQ, and contract duration. - If the contract is in the initial term and in compliance with DBE requirements, the procurement is acceptable. Multi-year contracts in the renewal term(s) will only be allowed if the provision was publicized in the original advertisement or RFQ.

22. Enhancements in Detail DBE Program Enhancements Training Special Note on Solicitations without DBE Language - If the required DBE language is not included in an open (active) advertisement/solicitation, the entity has the option to: (1) republish (newspaper or electronic posting) or (2) re-issue (if direct contact) the solicitation including the required DBE language and subsequently notify all previously contacted vendors. The notice should run for the duration in accordance with state procurement law.

23. Enhancements in Detail DBE Program Enhancements Training • Loan Commitment and Closing Phase Compliance Form: TWDB-0217 (Consultants) • Commitment loan/principal forgiveness amount • Contract amount • Signature of Prime Contractor • If self-performing 100% of the contract, then the Exception box should be checked. • Completed MBE/WBE Participation Estimates, if not self-performing 100% of the contract.

24. Enhancements in Detail DBE Program Enhancements Training • Loan Commitment and Closing Phase Compliance Form: TWDB-0373 (Entity) • Commitment loan/principal forgiveness amount • Completed list of actual contracts/procurements including: business name/address, procurement category, MBE/WBE status, actual contract amount, contract execution date, and proof of MBE/WBE certification (if applicable). • Signature of Applicant/Entity

25. Enhancements in Detail DBE Program Enhancements Training • Planning/Design Phase Compliance • TWDB-0216 Requirements (Prime Contractor) • TWDB-0373 Requirements (Prime Contractor) • Construction Contract Phase Compliance • TWDB-0216 Requirements (Entity) • TWDB-0217 Requirements (Prime Contractor) • TWDB-0373 Requirements (Entity) • TWDB-0216 Requirements (Prime Contractor) • TWDB-0373 Requirements (Prime Contractor)

26. Locating the Enhancements DBE Program Enhancements Training • DBE Program info webpage http://www.twdb.texas.gov/financial/programs/DBE/dbe.asp • Program Guidance and Forms webpage http://www.twdb.texas.gov/financial/instructions/

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

28. DBE Certification DBE Program Enhancements Training Texas Unified Certification Program http://txdot.gov/business/business_outreach/dbe.htm Fifty-one percent owned, managed and controlled by an economically and socially disadvantaged individual. Presumed Groups: Asian-American; African-American; Native American; Hispanic; Women Must be a small business as defined by Small Business Administration (SBA) Personal Net Worth Limit: $1,320,000 Firm must be organized as a for-profit business

29. DBE Certification DBE Program Enhancements Training TUCP Certification Agencies City of Austin – Small and Minority Business Resources Department http://www.austintexas.gov/department/certification-disadvantaged-business-enterprise-dbe City of Houston – Office of Affirmative Action and Contract Compliance http://www.houstontx.gov/obo/certification.html Corpus Christi – Regional Transportation Authority http://ccrta.org/about/dbe/dbe-certification-application/ In case of a broken link, please contact Mr. Jorge Cruz-Adeo at (361) 289-2712 North Central Texas Regional Certification Agency http://www.nctrca.org/certification.html South Central Texas Regional Certification Agency http://www.sctrca.org/AboutCertification.asp **Map on page 8 of the TUCP application shows respective coverage for each county.

30. Question and Answer Session DBE Program Enhancements Training Questions, Comments, Concerns?

31. DBE Program Enhancements Training Thank you for your participation! Contact Information: Rene Gonzalez (512) 463-2634 DBE and Policy Coordinator Rene.gonzalez@twdb.texas.gov