E ncouraging D iversity G rowth & E quity 123:2-16-09 Demonstration of Good Faith

1. Encouraging Diversity Growth & Equity 123:2-16-09 Demonstration of Good Faith Todd McGonigle EDGE Program Manager Phone (614) 466-8380 FAX (614) 728-5628 Todd.mcgonigle@das.state.oh.us

2. Encouraging Diversity Growth & EquityGood Faith Waiver What does the contractor have to prove to receive a GFE waiver? Utilized reasonable and available means to solicit all certified EDGE business enterprises that have the capability to perform the work of the contract. Selected portions of the contracted work to increase the likelihood of participation by EDGE certified business enterprises. Provided all appropriate certified EDGE business enterprises with adequate information about the plans, specifications and requirements of the contract. The information about the plans, specifications and requirements of the contract shall be provided in time for EDGE certified business enterprises to bid on the project. (See Handout)

3. Encouraging Diversity Growth & EquityGood Faith Waiver cont. Negotiated in good faith with interested certified EDGE business enterprises. To demonstrate good faith negotiations, the contractor shall provide the director with evidence of such negotiations, including but not limited to names, addresses, dates, and telephone numbers of the EDGE certified business enterprises considered. Properly rejected an interested certified EDGE business enterprise as being unqualified for the work of the contract. A contractor’s rejection of an EDGE certified business enterprise based on standing within an appropriate industry or membership or affiliation, in a business, social or political group is not a basis for a proper rejection.

4. Encouraging Diversity Growth & EquityGood Faith Waiver cont. Utilized the services of one of more organizations that provide contractor assistance in the identification and recruitment of EDGE certified business enterprises. Utilized the list of qualified EDGE certified business enterprises as provided by the equal employment opportunity division of the department of administrative services.

5. Encouraging Diversity Growth & EquityGood Faith Waiver O.A.C.123:2-16-09(C) Provides that whenever a contractor is unable to comply with the procurement goal for a contract for contracting with EDGE business enterprises and having made a good faith effort, the contractor may apply in writing, on a form prescribed by the department of administrative services, to the director of administrative services or to the contract letting state agency for a waiver or modification of the procurement goal.

6. Encouraging Diversity Growth & Equity Good Faith Waiver What is the contractor’s responsibility for documentation… Must make a formal request for EDGE waiver on company letterhead. Packet must include the following: Copy(ies) of the “Intent to Perform” form(s). (See handout) Dollar value and % of contract stated EDGE goal. Dollar value and % of waiver request. Print out of EDGE certified businesses search results from EOD website.

7. Encouraging Diversity Growth & EquityGood Faith Waiver cont. What is the contractor’s responsibility for documentation… Documentation that the contractor utilized reasonable and available means to solicit all certified EDGE business enterprises that have the capability to perform the work of the contract. Signed copy (ies) of each subcontract or purchase order agreement between the prime and EDGE subcontractor utilized in meeting the contract goal. Copy (ies) of dated written communication, fax confirmation, personal contact, follow up and negotiation with all solicited certified EDGE business enterprises that have the capability to perform the work of the contract.

8. Encouraging Diversity Growth & EquityGood Faith Waiver cont. What is the contractor’s responsibility for documentation… Proof that the bidder or contractor selected portions of the contracted work to increase the likelihood of participation by EDGE certified business enterprises Copy(ies) of dated written communication and/or fax/mail confirmation that EDGE bidders solicited were provided with adequate information about the plans, specifications and requirement’s of the contract in a timely manner to assist them in responding to a solicitation. Copy(ies) of dated written communication and/or fax confirmation of each EDGE vendor not awarded a contract that includes the dollar value of each reference item and work type.

9. Encouraging Diversity Growth & EquityGood Faith Waiver cont. What is the contractor’s responsibility for documentation… Documentation of all negotiating efforts and basis for rejecting bids to include names, addresses, dates, and telephone numbers of the EDGE certified business enterprises considered Copy(ies) of dated written communication and/or fax confirmation showing that the bidder or contractor utilized the services of one of more organizations that provide contractor assistance in the identification and recruitment of EDGE certified business enterprises.

10. Encouraging Diversity Growth & EquityGood Faith Waiver cont. What is the contractor’s responsibility for documentation… Copy(ies) of dated written communication and/or dated fax confirmation of EDGEs that were not interested in providing a quote or did not respond for the project. Documentation of good faith efforts (GFE) to meet the EDGE subcontract goal, by looking beyond the items typically subcontract or consideration of subcontracting items normally performed by the prime as a way to meet the EDGE goal.

11. Encouraging Diversity Growth & EquityGood Faith Waiver What is the agency's responsibility… Implement an outreach program to educate potential participants about the encouraging diversity, growth, and equity program. Establish a process for monitoring overall program compliance in which equal employment opportunity officers primarily are responsible for monitoring their respective agencies; To thoroughly review all submitted documentation.

12. Encouraging Diversity Growth & EquityGood Faith Waiver cont. What is the agency's responsibility… To perform follow up calls/letters/emails to verify contractor’s documentation. To determine if a waiver should or should not be granted. To retain all documentation for audit review. To issue on agency letterhead approval or disapproval of the EDGE waiver request.

13. Encouraging Diversity Growth & EquityGood Faith Waiver What is EOD’s responsibility… Establish a waiver mechanism to waive program goals or participation requirements for those companies that, despite their best-documented efforts, are unable to contract with certified EDGE business enterprises; Establish a process for monitoring overall program compliance. Report to the Director of Administrative Services, State Architect Office, and the auditted agency all audit findings and recommendations.

14. Encouraging Diversity Growth & EquityEDGE Agency Audit Why Perform An Audit? 123:2-16-16 - EDGE Audits Requires EOD to conduct audits of state agencies to determine whether the agency is in compliance with the requirements set forth in section 123.152 of the Ohio RevisedCode. When conducting an EDGE compliance audit, the division shall review the agency’s procedures in evaluating and granting waiver requests pursuant to section 123:2-16-09 of the Administrative Code, and may review any other areas of EDGE procedures of the state agency that the division deems necessary.

15. Encouraging Diversity Growth & EquityEDGE Agency Audit Cont. Who are EOD Requirements? Prepare a written report of each audit conducted and quarterly prepare an evaluation report for all audited agencies pursuant to this section, detailing the division’s findings and recommending what adjustments, if any, are necessary to achieve the participation goals established by the director of Department of administrative services. The division shall provide the audited state agency with a copy of the report.

16. Encouraging Diversity Growth & EquityEDGE Agency Audit Cont. Who Sees The Results? If the equal opportunity division of the Department of Administrative Services determines that the audited state agency is not in compliance with the requirements set forth in section 123.152 of the Revised Code and of this Chapter, the equal opportunity division shall provide a copy of the division’s findings and determinations to the audited state agency, director of the department of administrative services and the State Architect’s Office.

17. Encouraging Diversity Growth & EquityEDGE Agency Audit Cont. How is An Audit Preformed? EOD will select an agency to audit based on the following: Complaints Investigations Waivers issued Low EDGE Performance Any other reason EOD deems appropriate

18. Encouraging Diversity Growth & EquityEDGE Agency Audit Cont. What is the Process? EOD contacts the state agency by phone then letter EOD requests information on projects/contacts under review EOD sets up a time with the agency to conduct an on-site the review EOD conducts the audit EOD send results to the following: State Architect’s Office. Audited state agency director director of the department of administrative services

19. Encouraging Diversity Growth & EquityEDGE Agency Audit Cont. What can occur if agency fails audit? The director of the department of administrative services or designee shall request that the equal opportunity division provide a copy of any written reports prepared pursuant to this section on the requesting agency. Upon receiving a request by an agency for local administration of a construction project or contract, the director of the department of administrative services shall request the equal opportunity division provide a copy of any written reports prepared pursuant to this section on the requesting agency. The director or designee will consider a state agency’s non-compliance with the requirements set forth in section 123.152 of the Revised Code and of this Chapter, in the director’s evaluation of whether to grant the state agency’s request to locally administer a construction project.

20. Encouraging Diversity Growth & Equity Thank You Todd McGonigle EDGE Program Manager Phone (614) 466-8380 FAX (614) 728-5628 Todd.mcgonigle@das.state.oh.us