MBE/WBE Utilization

Promote contracting and subcontracting opportunities for Disadvantaged Business (DB’s).

Provide assistance to minority and women owned businesses and to increase awareness of Commonwealth state contracting opportunities.

Meet Commonwealth goals for minority and women business participation in the procurement of goods, services and construction by the executive agencies of the Commonwealth.

Goal of Executive Order

To increase Minority and Women Business Enterprise (MBE/WBE) Utilization and Participation.

Outcome

MBE/WBE Utilization & Participation was increased. The percentage of MBE/WBE Utilization before 2003 was just shy of 2%. At the end of fiscal year 2011, participation of minority and women businesses in state contracting was 15%.

The Procurement Handbook references the Bureau of Contract Administration and Business Development (BCABD), the former name of BMWBO, and the Socially and Economically Restricted Business (SERB) program, which is now the Disadvantaged Business (DB) program. The use of the DB Program in the RFP process promotes the use of small disadvantaged businesses as defined by 62 PA C. S. § 2101 without establishing quotas.

Serve as a consultant and provide advice to the agency on issues relating to Disadvantaged Business (DB) participation;

Evaluate submitted proposals as they relate to DB Utilization and provide the agency with scores;

Evaluate best and final offers (BAFOs) as they relate to DB Utilization and provide the agency with revised scores;

Negotiate any changes in DB Utilization as a part of pre-selection and/or contract negotiations;

Monitor contractor’s adherence to DB commitments made as a part of proposal submissions and notify purchasing agency of any noncompliance issues.

BMWBO 611 North Office Building Harrisburg, PA 17125 (717)783-3119

Kathryn L. Waters, Director of BMWBO

Charles Poticher, Contract and Compliance Officer & Chief Investigator (717)346-8104

HOW TO KEEP A SOLID RELATIONSHIP WITH YOUR AWARDED SUBCONTRACT PARTNERS ON

COMMONWEALTH CONTRACTS

To: All Prime contract holders

From: The Bureau of Minority and Women Business Opportunities (BMWBO)/DGS

Here’s what our experience tells us about keeping subcontractor relationships vital and strong through the duration

of your contract:

1. OPEN AND CONTINUAL COMMUNICATION BETWEEN PARTIES. This includes providing your

partners with names and contacts of all important players from your team. Examples: Project Manager,

billing department contacts, Operations Managers, etc.

2. Setting benchmarks and reviewing/discussing expectations for all work assigned. This also includes

providing sensible due dates, quality control procedures, any forms needed for submitting billing or other

issues that fall under ‘account housekeeping’ procedures.

3. Put the official subcontractor agreement in writing and have it signed. This step is vital at the beginning of

the relationship. It short-circuits many problems 6-months down the road after all the politeness/newness

has gone.

4. Your assignments to subcontractors should be provided in writing wherever possible. Verbal instructions

should be kept to a minimum as they often get misunderstood or misinterpreted. Have the subcontractor

sign the written ‘work order’ to acknowledge that both of you are on the same level of understanding on

what is being requested and needed.

5. IF CRITICAL DIFFERENCES TRANSPIRE TAKE A PROACTIVE APPROACH TO SOLVING THEM

AS SOON AS POSSIBLE.

6. Be sure to fill out and submit your quarterly utilization report required by BMWBO. Sample included here.

7. Consider your subcontractors to be part of important planning and strategy sessions with your client. Good

ideas usually come from many sources.

8. State and review how rejected or job re-works will be handled before needed.

9. Use our BMWBO as a resource for help. Contact is (717)783-3119. Kathryn Waters-Perez,

Director/Gayle Nuppnau, Procurement Liaison/Charlie Poticher, Contract and Compliance/Oz Anderson,

Construction Liaison.

COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF GENERAL SERVICES CABD-17

CONSTRUCTION BUREAU OF MINORITY & WOMEN BUSINESS OPPORTUNITIES

PRIME CONTRACTOR’S QUARTERLY UTILIZATION REPORT (This form should be returned within 10 working days at the end of each quarter)

Prime Contractor’s Firm Name Reporting Period ALL ACTIVITY TO DATE

QUARTER ENDING

Address Contract Number

Telephone Number EIN No. Contract Amount

Contact Person Date Received (BMWBO Office Use Only)

Subcontractor/s from which you have purchased services and/or supplies in reference to this contract.

SUBCONTRACTOR/SUPPLIER

(Name, EIN No., Address)

TELEPHONE

NUMBER

MBE

WBE

COMMITMENT

AMOUNT

AMOUNT PAID

CURRENT QUARTER

DATE

PAID

TOTAL AMOUNT

PAID TO DATE

EIN#

EIN#

EIN#

EIN#

GRAND TOTALS

SIGNATURE OF PREPARER NAME OF PREPARER (TYPE OR PRINT) TITLE

PLEASE AFFIX COPIES OF MBE/WBE INVOICES TO YOUR COMPANY ALONG WITH COPIES OF YOUR COMPANY’S CANCELLED CHECKS REFLECTING PAYMENT OF THE MBE/WBE INVOICES.

BUREAU OF MINORITY AND

WOMEN BUSINESS OPPORTUNITIES

AT WORK FOR YOU

Do you own a small business?

Are you interested in learning how to do

business with the Commonwealth?

Have you wondered what Minority or Women

Business Enterprise Certification can do for

you?

The Bureau of Minority and Women Business

Opportunities (BMWBO) works for minority,

women, and socially disadvantaged businesses to

provide them with information and resources

on how to obtain Commonwealth contracting

opportunities in the fields of construction,

procurement, real estate, and Energy Savings.

DIVISIONS OF BMWBO

Certification

Supplier Diversity

Business Development

Contract Compliance

CONTACT BMWBO

Harrisburg (Main Office)

North Office Building

401 North Street, Room 611

Harrisburg, PA 17120-0500

Phone: (717) 783-3119

Fax: (717) 787-7052

Email: gs-bmwbo@pa.gov

Philadelphia

801 Market Street, 4th Floor

Philadelphia, PA 19107

Phone: (215) 965-1105

Fax: (215) 560-1908

Pittsburgh

Ste. 2800 Piatt Place

301 Fifth Avenue

Pittsburgh, PA 15222

Phone: (412) 442-5872

Fax: (412) 442-5873

www.dgs.state.pa.us Doing Business With The

Commonwealth

Bureau of Minority & Women

Opportunities

To promote and facilitate the

involvement of minority,

woman-owned, and

disadvantaged businesses,

including small businesses in

state contracting

Helping your small

business grow.

Bureau of

Minority and

Women Business

Opportunities

Tom Corbett

Governor

Sheri Phillips

Secretary

Kenneth A. Rapp

Deputy Secretary for Procurement

OUR PROGRAMS

Certification Division

The Bureau of Minority and Women Business

Opportunity’s (BMWBO) Certification Division

assists Minority Business Enterprises (MBE) and

Women Business Enterprises (WBE) in

obtaining certification. Certification of MBEs and

WBEs is at the heart of the Bureau’s mission.

MBEs and WBEs can more readily be identified,

used, and become a part of state contracting

opportunities available to businesses by

becoming certified.

Certification

The Minority and Women Business Enterprise

certification program acts as a tool to help

eligible businesses find their edge in state

contracting by becoming certified by DGS. The

comprehensive review process assures only

qualified businesses are approved. Qualification

criteria include:

At least 51% minority and/or woman

ownership by U.S. Citizens

100 or fewer employees

At least one year in business or a two

-year business plan

For-profit

The woman or minority owner must

hold the highest position in the

company.

Supplier Diversity Division

Monitors fulfillment of contractual

obligations of prime contractors to

disadvantaged subcontractors/suppliers.

Ensures bidders’ compliance with the

Commonwealth’s anti-discrimination

requirements as they relate to building

construction, and service purchase contracts.

Business Development Division

BMWBO’s Business Development Division uses

education and information to promote MBE and WBE

involvement in state contracting.

Whether a certified company, non-certified small

business, or an organization assisting small businesses,

the Business Development Division helps those

interested in learning how to increase their

opportunities to successfully compete and navigate

through the Commonwealth contracting system. This

division provides workshops and events.

Contract Compliance

The contract compliance program ensures

nondiscrimination after state contracts are awarded.

Full document audits

Onsite audits

Workshops

Workshops offer unique opportunities to those wanting

first-hand knowledge of BMWBO’s programs.

Doing Business With The Commonwealth, takes

business owners on a tour through the state

procurement process.

Certification Made Simple, guides minority and woman

business owners step-by-step through the MBE/WBE

certification application.

How To Effectively Respond To Commonwealth

Solicitations assists MBEs and WBEs in learning how

to write more effective responses to technical

portions of Commonwealth solicitations.

These and our other workshops create an ideal

occasion to ask questions and learn.

Events

BMWBO conducts networking events to

promote new business prospects for

minority, women, and disadvantaged

business owners to come in direct contact

with potential partners and prime

contractors.

Disadvantaged Business Program

The Disadvantaged Business Program, part

of the procurement process, promotes MBE/

WBE and disadvantaged business

participation in state contracting. Two types

of companies may qualify:

Small Disadvantaged Business

Certified as an MBE or WBE through

BMWBO

OR

Certified as an 8(a) business concern

through the U.S. Small Business

Administration

Socially Disadvantaged Businesses

Prime contractor

Experienced chronic and substantial

prejudice due to the business owner’s

color, ethnic origin, or gender

Suffered in establishment and growth

due to prejudice

This publication is provided by the

Bureau of

Minority & Women Business Opportunities

for the PA Department of General Services

Looking for state- certified MBEs and WBEs? Go to www.dgsweb.state.pa.us/mbewbe/VendorSearch.aspx.

Finding PA State Certified Minority-Owned and Women-Owned Businesses

(MBEs and WBEs)

You can create lists of certified Minority Business Enterprises (MBEs)

and Women Business Enterprises (WBEs) on the Bureau of Minority

and Women Business Opportunities (BMWBO) website by going to

www.dgsweb.state.pa.us/mbewbe/VendorSearch.aspx.

Basic Instructions

1. To see a list of all certified firms (over 2000) leave all fields blank and click on “Search”.

To limit your search (and make it much easier) enter the commodity code number for the particular supply or service you are seeking.

2. For a list of companies certified under a specific commodity code, type the code number in the “Business Classification Code” field, leaving other fields blank, then click on “Search”. This produces a list of all firms certified to provide that supply or service.

3. If you don’t know the code number for those supplies or services you are seeking, click on the button labeled “Code Look Up” to the right of the “Business Classification Code” field (leave all fields blank). At the Business Classification Code Search page, you can generate a list of all codes by leaving the field blank and clicking on “Search”, but the list will be very long and hard to use. To limit the search, enter a word (or partial word) describing the supply or service in the Classification Codes Description field (see above). This will generate a list of all codes that have that word anywhere in their descriptions.

If you generate too many pages to search, you have used too general a word (i.e. it appears in the descriptions of too many codes). Try again, using a less common word to describe what you are seeking.

If you cannot find any codes for the description you’ve entered, try another word or part of a word. (For example, entering “surveyor” will not produce any results if the descriptive word is “surveying.” By just entering “survey” you will cover all possibilities.)

When you find the code description(s) you are seeking, simply click on the code number preceding the description. You will automatically return to the vendor search screen and the code number will be entered in the appropriate field. Click on “Search” and a list of all MBE/WBE vendors certified under that code will be generated.

Make your search even easier by using the tips

on the back of this handout (over). Make your search even easier by using the tips on the back of this handout.

Looking for state- certified MBEs and WBEs? Go to www.dgsweb.state.pa. us/mbewbe/VendorSearch.aspx.

State Purchasing Requirements

Regarding MBEs and WBEs

The Commonwealth of Pennsylvania is committed to promoting the involvement of minority-owned and women-owned businesses in the state contracting process.

Various types and levels of state purchasing have different requirements. The primary forms of purchasing are briefly described below. For more detailed information, contact the Bureau of Minority & Women Business Opportunities (BMWBO) at gs-bmwbo@pa.gov or 717-787-7052. To reach BMWBO’s office in Western Pennsylvania, call 412-442-5872.

CONTRACTS OVER $10,000

Bidding on contracts that are expected to be over $10,000 must, in most cases, be handled through formal procurement procedures. The two most common formal procedures are the Invitation for Bid (IFB) and the Request for Proposal (RFP). Construction projects, which are a third type of procurement, may use either method depending on the project’s size or complexity.

Contracts for bid over $10,000 are advertised on the DGS website at www.emarketplace.state.pa.us. The list is updated daily and can be searched by type of contract.

State purchasing staff are required to seek out and solicit bids from minority-owned and women-owned businesses (MBEs and WBEs) on purchases of any size, if MBEs/WBEs are available.

Invitations for Bid (IFBs) and Construction Bids over $50,000

Under the IFB process, the Bureau of Minority & Women Business Opportunities (BMWBO) establishes Minimum Participation Levels (MPLs) for the involvement of minority-owned and women-owned businesses (MBEs/WBEs) as subcontractors/suppliers on projects and purchases over $50,000.

The bid is awarded to the lowest “responsive and responsible” prime bidder. To be responsive, a prime bidder must provide information on the companies that it solicited for subcontracting and supplies, and identify those that are certified as MBEs and WBEs by the PA Department of General Services (DGS).

Prime bidders are provided with forms on which to record and submit this information. There are two versions of the form: GSMWBE-16 for construction projects and STD-168 for IFBs. The forms must be completed by the bidder, not by state purchasing staff.

Only MBE/WBE subcontractors and suppliers, not prime contractors, count toward meeting the MPLs.

(over)

To assist prime bidders in identifying MBEs and WBEs, the BMWBO database of certified vendors can be searched using classification codes (see other side).

Requests for Proposals (RFPs) over $10,000

Under the RFP process, bids are awarded according to a point system. Points are awarded for the technical portion of a proposal, the cost, participation in the Disadvantaged Business Program (DB), and possible other factors. The proposal that scores the highest number of points wins the contract, even if it is not the lowest bid.

DB applies to most RFPs, regardless of size. Exceptions are projects or purchases funded through Federal monies.

There are two types of Disadvantaged Businesses: 1) Small Disadvantaged Businesses and 2) Socially Disadvantaged Businesses. Both types must be for-profit businesses and must be owned by U.S. citizens.

To qualify as a Small Disadvantaged Business, a small business must be certified as an MBE or WBE by the PA Department of General Services (DGS), an 8(a) by the U.S. Small Business Administration, or it must meet the SBA’s criteria for designation as a small disadvantaged business (this was formerly a certification). In all three cases, the company must have 100 or fewer employees and do less than $20 million in gross annual revenues ($25 million for businesses in the information technology field) to qualify as a DB.

To qualify as a Socially Disadvantaged Business, the business must be bidding as a prime contractor on an RFP and must have suffered chronic and substantial racial or ethnic prejudice or cultural bias in the United States due to the businessperson’s color, ethnic origin, or gender. The prejudice or cultural bias must have negatively impacted the business’ establishment or growth.

DB credit can be earned if the prime contractor, joint venture partner, or subcontractor qualifies as DB.

PURCHASES BETWEEN $5,000 AND $10,000

When state purchasing staff spend between $5,000 and $10,000 on a single purchase or contract, they are required to obtain at least three telephone bids, one of which must be an MBE or WBE certified by DGS. Most state departments maintain vendors’ or bidders’ lists of companies to contact when purchasing opportunities arise.

PURCHASES UNDER $5,000

On purchases of under $5,000, state purchasing staff are encouraged, but not required, to include MBEs and WBEs when soliciting bids. Many purchases under $3,000 are done using a credit card.

IDENTIFYING MBEs AND WBEs FOR STATE PURCHASING

BMWBO maintains a database of all certified MBEs and WBEs. Each company is coded according to the goods and/or services it can supply. Anyone with Internet access can obtain lists of certified MBEs and WBEs through BMWBO’s website at www.dgsweb.state.pa.us/mbewbe/VendorSearch.aspx.

For more information on state contracting for small businesses and becoming certified as an MBE/WBE, attend a BMWBO workshop. A schedule of free workshops throughout Pennsylvania can be obtained on the BMWBO website or by calling BMWBO.

This publication is provided by the PA Bureau of Minority and Women Business Opportunities

401 North Street, Room 611, North Office Bldg, Harrisburg, PA 17120-0500 Email: gs-bmwbo@pa.gov

717-783-3119 or FAX: 717-787-7052 Philadelphia 215-965-1105 Pittsburgh 412-442-5872

4/2010