1

59798

REQUEST FOR PROPOSAL

For

Auditing Services

Owner:

Sports & Exhibition Authority of Pittsburgh & Allegheny County

171 10th Street, 2

nd Floor

Pittsburgh, PA 15222

(412) 393-0200

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TABLE OF CONTENTS

Introduction

A) General Information 3

B) Scope of Professional Services 3

C) Standard Consultant Engagement Letter 4

D) Special Conditions 4

E) Consultant Selection Process 4

F) Inquiries 5

G) Proposal Content and Requirements 5

H) Proposal Submittal 10

I) Estimated Time Frame 10

Exhibit A

A) Scope of Professional Services 12

Exhibit B

A) Minority and Women Business Enterprise Participation 18

Exhibit C

A) Workforce Diversity 26

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INTRODUCTION

A. GENERAL INFORMATION

The Sports & Exhibition Authority of Pittsburgh and Allegheny County (the Authority) was

incorporated on February 3, 1954 pursuant to the Public Auditorium Law Act of July 29,

1953 as a joint authority organized by the City of Pittsburgh (City) and Allegheny County

(County) with the mission to provide venues for sporting, educational, cultural, civic, and

social events for the benefit of the general public. The Authority currently owns PNC Park,

Heinz Field, the David L. Lawrence Convention Center (including the parking garage),

CONSOL Energy Center, North Shore Garage, North Shore Riverfront Park, the Benedum

Center, and the Heinz History Center. The Authority is currently working on the

development of the Lower Hill.

The Authority leases PNC Park, Heinz Field and CONSOL Energy Center to Pittsburgh

Associates (holder of the Pittsburgh Pirates Major League Baseball Franchise), PSSI Stadium

Corp. (a related entity to the holder of the Pittsburgh Steelers National Football League

Franchise) and the Lemieux Group LP, (the holder of the Pittsburgh Penguins National

Hockey League Franchise), which are each responsible for their stadia’s operations and

management. The Authority oversees management of the David L. Lawrence Convention

Center (SMG), Convention Center Garage (Alco), North Shore Garage (Alco Parking), and

North Shore Riverfront Park. The Authority’s ownership of the Benedum Center and the

Heinz History Center is for financing purposes only; the Authority has no significant

operating or management responsibility with respect to those facilities.

The Board of Directors (Board) of the Authority, a seven member group, is appointed by the

City and County. The Board is responsible for the overall activities and operations of the

Authority. The Authority receives financing from the City and County, however, the

Authority is not included in any other governmental reporting entity. The Board members

have decision making authority, the power to designate management, the responsibility to

significantly influence operations and primary accountability for fiscal matters.

B. SCOPE OF PROFESSIONAL SERVICES

The Authority is requesting proposals from qualified certified public accounting firms to

audit its financial statements for the fiscal year ended December 31, 2016. The Authority

contemplates a three-year contract, subject to an annual review. The Authority reserves the

right to extend the agreement for 2 additional one year terms and to negotiate rates, terms and

conditions based on changes of circumstances or as may be in the Authority’s best interests.

The Scope of Work is outlined in the attached Exhibit “A”. Said Exhibit will become a part

of the final contract. Auditors are encouraged to recommend changes to the Scope of Work

requirements to eliminate items they feel would be expensive and unnecessary based on

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current conditions, or to include items they feel would be beneficial to the Authority but not

listed in the scope of work. The Authority reserves the right to accept or reject any suggested

changes.

C. STANDARD CONSULTANT ENGAGEMENT LETTER

Auditors are asked to provide a copy of their form of engagement letter. The Authority will

review and comment on the engagement letter if necessary.

D. SPECIAL CONDITIONS

Reservations:

1) This RFP does not commit the Authority to award a contract, to defray any costs

incurred in the preparation of a proposal pursuant to this RFP, or to procure contract

for work.

2) Right to Cancel:

The Authority reserves the right to cancel this RFP in part or in its entirety. If the

Authority cancels or revises the RFP, the Authority will notify in writing all those

that have requested a copy of the RFP.

3) Right to Reject Proposals or Request Revisions:

The Authority reserves the right to reject any and all proposals in whole or in part

and/or to request revisions in order to enable the Authority to obtain the best service

at the best price. The Authority further reserves the right to retain all responses

submitted and to use any ideas in a proposal regardless of whether that proposal is

selected.

4) Additional Information:

The Authority reserves the right to request additional information and/or clarifications

with respect to any responses to this RFP.

5) Release of Public Information:

If a contract is awarded, it will be authorized at public Authority Board meeting.

Auditors desiring to release information to the public must receive prior approval

from the Authority.

6) Award of Contract:

The proposer acknowledges that the Authority is not bound to award the contract to

the lowest priced proposer.

E. CONSULTANT SELECTION PROCESS

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Upon review of the proposals and possible interviews, a selection for this assignment will

consider the following criteria:

1. Fee Proposal;

2. Experience record;

3. Technical Proposal;

4. Resources and capabilities;

5. Organization and management plan;

6. MBE/WBE utilization;

7. Workforce Diversity;

8. Such other criteria as the Authority shall deem prudent

Additional criteria the Authority will consider include:

1. The firm has no conflict of interest with regard to any other work performed for the

Authority;

2. The firm adheres to the instructions in this request for proposal on preparing and

submitting the proposal;

3. The firm’s past experience and performance on comparable engagements;

4. The quality of the firm’s professional personnel to be assigned to the engagement and

the quality of the firm’s management support personnel to be available for technical

consultation.

The consultant will be evaluated based on the experience and qualifications of their entire

team, therefore no changes in the team management will be allowed without prior written

approval of the Authority.

F. INQUIRIES

All inquiries concerning the request for proposals should be addressed in writing to Theresa

Bissell, Controller at TBissell@pgh-sea.com no later than August 26, 2016.

Submission of a proposal indicates acceptance by the firm of the conditions contained in this

request for proposals, unless the firm’s exceptions are clearly and specifically noted in the

proposal submitted and confirmed in the contract between the Authority and the firm

selected.

It is anticipated that the selection of a firm will be completed by October 13, 2016. Following

the notification of the selected firm it is expected an engagement letter will be executed

between both parties as soon as possible.

G. PROPOSAL CONTENT AND REQUIREMENTS

The consultant should submit a response that CONCISELY addresses the following issues.

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1. General Information:

a) Legal name and address of company

b) Legal form of company (corp., joint venture, etc.)

c) If company is wholly owned subsidiary of a “parent company”, identify the parent

company

d) Number of professionals who supervise or manage projects and the number of

total employees

e) Business license number; city tax number

f) Name, title, address, email, and telephone number of person to contact concerning

the proposal

g) Describe your relationship management approach. Identify the resources within

your firm currently available to apply to this project

h) Specify key people you would dedicate to this project and include an

organizational chart for the team that would be assigned to the account

i) Describe each key person’s title, qualifications, and their proposed role(s) and

responsibilities for this project

j) Brief resume of applicable experience for each person named

k) Indicate firms understanding of federal, state, and local laws, ordinances,

regulations, policies, requirements, permits, etc.

l) A list of similar projects, which contained requirements that demonstrate your

firm’s capabilities. Specific projects within the Pittsburgh area are of particular

interest

m) Provide a copy of the report on its most recent external quality control review,

with a statement whether that quality control review included a review of specific

government engagements.

n) Provide three (3) references for representative projects, including names, titles,

addresses, emails and telephone numbers for each individual within these client

companies who may be contacted to discuss your relationship and performance

2. Technical Proposal:

The purpose of the technical section of the proposal is to demonstrate the qualifications,

competence, and capacity of the firms seeking to undertake an independent audit of the

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Authority in conformity with the requirements of the request for proposals. As such, the

substance of the proposals will carry more weight than their form or manner of

presentation. The technical section should demonstrate the qualifications of the firm and

of particular staff to be assigned to this engagement. It should also specify an audit

approach that will meet the request for proposal requirements.

The technical section should address all points outlined in the request for proposals,

excluding any cost information, which should only be addressed in the Fee Proposal

section. The proposal should be prepared simply and economically, providing a

straightforward, concise description of the proposer’s capabilities to satisfy the

requirements of the request for proposals. While additional data may be presented, the

following subjects must be included, as they represent the criteria against which the

proposal will be evaluated:

a) The firm should provide an affirmative statement that it is independent of the

Sports & Exhibition Authority of Pittsburgh and Allegheny County as defined in

Government Auditing Standards.

b) The firm should provide an affirmative statement that the firm and all assigned

key professional staff are properly licensed to practice in the Commonwealth of

Pennsylvania, are members of the American Institute of Certified Public

Accountants, the Pennsylvania Institute of Certified Public Accountants, have

membership in professional organizations relevant to the performance of this

audit, and have a minimum of five years verifiable experience in performing

audits of government funds for organizations with an annual budget comparable

to or larger than that of the Authority.

c) The firm should state the size of their organization, size of the firm and the size of

the firm’s governmental audit staff, the location of the office from which the work

on this engagement is to be performed and the number and nature of the

professional staff to be employed on this engagement on a full-time basis and the

number and nature of the staff to be assigned on a part-time basis.

d) The firm shall also provide any information on the circumstances and status of

any disciplinary action taken or pending against the firm during the past three (3)

years with state regulatory bodies or professional organizations, or any known

incidence of restatement of financial statements by successor auditors for

correction of errors on which the proposer had previously opined.

e) The firm shall identify the principal supervisory and management staff, including

engagement partners, managers, other supervisors and specialists, who would be

assigned to the engagement. Provide information on the government auditing

experience and construction experience of each person, including information on

relevant continuing professional education for the past three (3) years and

membership in professional organizations relevant to the performance of this

audit. Please indicate how the quality and continuity of staff over the term of this

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engagement will be assured. Engagement partners, managers, other supervisory

staff and specialists may be changed if those personnel leave the firm, are

promoted or are assigned to another office or changed for other reasons.

However, the Authority retains the right to approve or reject replacements who

would be assigned to the engagement.

f) The firm’s office that will be assigned responsibility for the audit should list the

engagements, similar to this request for proposal. Please limit the number of

engagements listed to five (5). These engagements should be ranked on the basis

of total staff hours. Indicate the scope of work, date, engagement partners, total

hours, and the name and telephone number of the principal client contact.

g) The proposer should set forth a work plan to perform the services required in

previous sections of the request for proposals. Include an explanation of the audit

methodology to be followed. Proposers will be required to provide their proposed

segmentation of the engagement and the level of staff and number of hours to be

assigned to each proposed segment of the engagement.

h) The proposer should identify and describe any anticipated potential audit

problems, the firm’s approach to resolving these problems and any special

assistance that will be required from the Authority.

i) The proposer should include sample report formats for required reports. The

Authority realizes that certain changes in governmental reporting requirements

could result in changes in overall presentation compared to prior years.

3. MBE/WBE Participation and Workforce Diversity:

a) The Authority has adopted a goal of 25% minority participation and 10%

women’s participation in its contract work and the Authority wishes to achieve

this level of significant MBE/WBE participation in its professional services

contracts. The consultant will be required to follow the Authority’s Minority and

Women-Owned Business Enterprise Participation Policy. A copy of this policy is

attached as Exhibit “B”.

b) The Authority values a diverse workforce at its facilities and desires its

contractors to promote diversity in their workforces, particularly in regard to the

personnel assigned to perform under the proposed contract. Please provide

information describing diversity in your workforce and more specific information

regarding the workforce to provide the services described in this RFP. See

Exhibit “D”.

4. Insurance and Indemnification:

If given the engagement to perform the audit, the Auditor agrees to indemnify, protect,

defend and hold harmless the Authority, the City of Pittsburgh, the County of Allegheny,

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the Commonwealth of Pennsylvania and their successors, assigns, members, directors,

officers, attorneys, employees and agents from and against any and all claims,

counterclaims, demands, damages, losses, liabilities, actions and causes of action, costs

and expenses, whatsoever, including but not limited to attorney's fees ("Claims")

sustained by the indemnified persons or parties and resulting from or arising out of the

negligent acts, errors, or omissions of the Auditor in its performance of the services

rendered under this Agreement. Unless waived in writing by the Authority, the Auditor

will maintain liability insurance, including automobile liability insurance, related to its

activities under this Agreement in an amount not less than Two Million Dollars

($2,000,000) per occurrence and in the aggregate together with an umbrella policy in the

amount of Five Million Dollars ($5,000,000). The Auditor will further maintain workers’

compensation insurance, with respect to any employees of Consultant performing work

related to this Agreement. In addition, the Auditor shall obtain insurance covering claims

arising out of the performance of professional services under this agreement and caused

by errors, omissions, or negligent acts for which the Auditor is legally liable. Professional

liability insurance shall be maintained in force by the Auditor for three (3) years after the

date of substantial completion of the Work or issuance of the final report. Limit of

coverage shall be at least Two Million Dollar ($2,000,000) per claim and annual

aggregate limit. The Auditor will, upon the request of the Authority, deliver certificates

of insurance to the person(s) identified in Section 1F above, which certificates will

evidence required coverage, will further name the Authority, the City of Pittsburgh,

Allegheny County, the Commonwealth of Pennsylvania, and SMG or any other party

designated by the Authority, as an additional insured parties on general liability (but not

professional liability) coverage, and will provide that actual Notice of Cancellation

endorsements be provided for required coverages. The Authority requires at a minimum

AM Best rating requirement for insurers of “A” or higher. All insurance other than

professional liability insurance and employment practices liability insurance shall be

pursuant to an occurrence basis policy (rather than claims made policy).

5. Fee Proposal:

a. Total All-Inclusive Maximum Price

The first page of the fee section should include the firm’s name, certification

that the person signing the proposal is entitled to represent the firm,

empowered to submit the proposal, and authorized to sign a contract with the

Authority, as well as the total all-inclusive maximum price for each year of

the engagement.

The proposal should contain all pricing information relative to performing the

audit engagement as described in this request for proposals, including

assumptions with AND without any OMB Circular A-133 requirements. The

total all-inclusive maximum price to be proposed is to contain all direct and

indirect costs including all out-of-pocket expenses.

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The proposal should contain all pricing information relative to providing the

audit report for the Allegheny Regional Asset District as described in Exhibit

“A”. The total all-inclusive maximum price to be proposed is to contain all

direct and indirect costs including all out-of-pocket expenses.

The proposal should contain all pricing information relative to providing a

letter addressing compliance with the requirements of Pennsylvania Gaming

and Economic Development and Tourism Fund Section 3(2)(I)(C) of Act 53

of 2007. The total all-inclusive maximum price to be proposed is to contain all

direct and indirect costs including all out-of-pocket expenses.

b. The dollar cost section should also include rates by partner, manager, supervisory

and staff level and hours anticipated for each with a total dollar anticipated for

each year.

c. Out-of-pocket expenses for the firm should be presented within the dollar cost

section of the proposal. All expense reimbursements will be charged against the

total all-inclusive price submitted by the firm for each year of the engagement.

d. From time to time, the Authority requires some assistance from the auditor to

render additional services to either supplement the services requested in the

request for proposal or to perform additional work as a result of specific

recommendations included in any report issued on this engagement or at the

bequest of the Authority. Any such additional work shall be performed only if set

forth in an addendum to the contract between the Authority and the firm, or at a

minimum, a separate engagement letter specifying the work to be performed, the

staff performing the work, and anticipating billing rates and hours of that staff.

Any such additional work agreed to between the Authority and the firm shall be

performed at the same rates set forth in the schedule of fees and expenses

included in the audit proposal submitted, unless the parties should otherwise agree

upon a fixed separate project rate.

NO ‘ADDITIONAL’ WORK SHOULD BE PERFORMED WITHOUT SPECIFIC

WRITTEN CONSENT OF THE AUTHORITY.

e. Progress payments will be made on the basis of hours of work completed during

the course of the engagement and out-of-pocket expenses incurred in accordance

with the firm’s dollar cost section of their proposal. Interim billing shall cover a

period of not less than a calendar month.

H. PROPOSAL SUBMITTAL

1) Five (5) hard copies and an electronic copy of the proposal along with the name

and address of the individual submitting the proposal shall be submitted to SEA

by 4:30 pm, September 9, 2016.

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2) An individual or individuals authorized to execute legal documents on behalf of

the consultant shall sign Exhibit “B-1” and it shall be included as part of the

proposal.

3) Proposals should be directed to:

Theresa Bissel, Controller

171 Tenth Street, 2nd

Floor

Pittsburgh, PA 15222

4) Proposals will not be returned.

I. ESTIMATED TIME FRAME

1. Proposal available August 17, 2016

2. Final date for submission of Inquiries by Proposers to Theresa Bissell: (see above)

August 26, 2016

3. Posting of Final Addendum to RFP and answers to questions by Project Manager:

August 31, 2016

4. Final date for submission of Proposal: 4:30pm September 9, 2016

5. Review of proposals and developing short list of finalists: Week of September 12,

2016

6. Interviews if necessary: Week of September 19, 2016

7. Presentation for Board approval and award of contract: October 13, 2016

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EXHIBIT “A”

SCOPE OF PROFESSIONAL SERVICES

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EXHIBIT A

SCOPE OF PROFESSIONAL SERVICES

Scope of Work to be Performed

The Authority is soliciting the services of qualified firms of certified public accountants to audit

its financial statements for the fiscal year ending December 31, 2016. The Authority

contemplates a three-year contract, subject to an annual review. The Authority reserves the right

to extend the agreement for 2 additional one year terms and to negotiate rates, terms and

conditions based on changes of circumstances or as may be in the Authority’s best interests.

These audits are to be performed in accordance with the provisions contained in this request for

proposals

The Authority desires the auditor to express an opinion on the fair presentation of its basic

financial statements in conformity with generally accepted accounting principles and the

standards applicable to financial audits contained in Government Auditing Standards issued by

the Comptroller General of the United States.

AUDITING STANDARDS TO BE FOLLOWED

To meet the requirements of this request for proposals, the audit shall be performed in

accordance with generally accepted auditing standards as set forth by the American Institute of

Certified Public Accountants and Government Auditing Standards as issued by the Comptroller

General of the United States. In addition, depending on funding each year, we may require an

audit in accordance with the Single Audit Act amendments of 1996 and the provisions of OMB

Circular A-133, Audits of States, Local Governments and Non-Profit Organizations.

REPORTS TO BE ISSUED

• A report on the fair presentation of the basic financial statements in conformity with the

generally accepted accounting principles.

• A letter to management identifying any reportable deficiencies in internal controls found

during the audit and any instances of noncompliance or other matters. Any significant

deficiencies that are material weaknesses shall also be identified in the report. Control

deficiencies discovered by the auditors or other internal control observations which may

need to be communicated to management, will be done so via an internal memo from the

auditors to the executive management.

• A debt compliance letter completed in accordance with our support agreements with the

Allegheny Regional Asset District (RAD) to assure compliance of Section 3 of the 2010

amended and restated cooperation and support agreement (2005 and 2010 Bonds) and

Section 4 of the 2014 Cooperation and Support Agreement (2014 Bonds) indicating

whether the Authority is in compliance with all the terms and conditions of the

agreement.

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• If applicable, a report on federal funding compliance applicable to each major program

and internal controls over compliance with U.S. Office of Management and Budget

(OMB) Circular A-133. The reporting package should include the financial statements,

Schedule of Expenditures of Federal Awards, Summary Schedule of Prior Audit Findings

(if any) and a Corrective Action Plan (if Appropriate).

• A condensed audit to be published in a newspaper of general circulation. (Submission of

report to the newspaper will be the responsibility of the Authority).

• A letter addressing compliance with the requirements of Pennsylvania Gaming and

Economic Development and Tourism Fund Section 3(2)(I)(C) of Act 53 of 2007.

• Supplemental reports as required or requested

Auditors shall be required to make an immediate written report to the Board of all irregularities

and illegal acts or any indication of illegal acts discovered during the course of the audit.

DATE AUDIT MAY COMMENCE:

The Authority will have all records ready for audit and all management personnel available to

meet with the firm’s personnel on or about February 27, 2017. This date is NOT intended to

preclude the auditor from performing planning and preliminary or interim work prior to this date.

1. Interim Work

The auditor is encouraged to propose a schedule that includes some interim work which is

designed to facilitate the timely completion of the audit.

2. Detailed Audit Plan

By January 31, 2017, the auditor shall provide the Authority a detailed audit plan and a list of

schedules to be prepared or provided by the Authority.

3. Fieldwork

The auditor shall complete all fieldwork and have final drafts of the audit report and

recommendations to management available for review by the Controller and the Chief

Financial Officer on or before March 31, 2017. The Authority is required to issue, and

present to the SEA’s board members, a final report no later than April 5, 2017. This date is

subject to some acceleration based on board meeting scheduling. The auditor may be

required to present the audit and any findings to the Board. Upon Board approval, Auditor

will be notified to release bound copies within a week.

4. Progress Meetings

The auditor shall be prepared to meet on a weekly basis after the commencement of

fieldwork to present the progress of the audit to the Controller and Chief Financial Officer.

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REPORTING TO THE BOARD OF DIRECTORS:

Auditors shall assure themselves that the Authority’s Board of Directors is informed of each

of the following:

1. The auditor’s responsibility under generally accepted auditing standards.

2. Significant accounting policies.

3. Any management judgments and accounting estimates.

4. Disagreements with management.

5. Major issues discussed with management prior to retention.

6. Difficulties encountered performing the audit.

In addition, the auditors should be prepared to present budgeted vs. actual hours expended by

category if requested. This information must be presented to management and be available

for the Board of Directors should they choose to view this information.

WORKING PAPER RETENTION AND ACCESS TO WORKING PAPERS

All working papers and reports must be retained, at the auditors’ expense, for a minimum of

three (3) years or any limits required by government agencies, unless the firm is notified in

writing by the Authority of a need to extend the retention period.

The auditor shall respond to the reasonable inquiries of successor auditors and allow

successor auditors to review working papers relating to matters of continuing accounting

significance within a reasonable time period from the date of request.

FUND STRUCTURE

The Authority uses the following fund types in its financial reporting:

FUND TYPE/ACCOUNT GROUP Number of funds

Single Enterprise Fund 1

FEDERAL AND STATE FINANCIAL CONTRIBUTIONS

As part of the Authority’s function of developing and overseeing construction of venues and

infrastructure for sports, entertainment, and educational entities, the Authority receives

certain federal and state contributions. The state will send its own audit review staff to

perform periodic audits in relation to their funding contributions. However, the federal

contributions will require an audit in accordance with the Single Audit Act amendments of

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1996 and the provisions of OMB Circular A-133, Audits of States, Local Governments and

Non-Profit Organizations. At the time of this request, it is not known if the Authority will

require a Single Audit for the year ending 2016 and the Authority is not certain this will be

needed in future years. Proposals should present the audit fees under both circumstances (i.e.

with and without the A-133 audit).

PENSION PLAN

The Authority has a 401(a) Defined Contribution Plan and a 457 Retirement Savings Plan,

which do not require any external reporting or independent audit.

COMPUTER SYSTEMS/LOGISTICS

The Authority records the accounting transactions in MAS90 accounting software. The

Convention Center operations are recorded and tracked on a separate accounting system,

Solomon, by SMG. This system is available only at the Convention Center and not at the

SEA. Entries are recorded on MAS90 monthly in summary form to capture the Convention

Center operations. These locations are in the same building, but some coordination and

planning is required.

The Authority will provide the auditor with reasonable workspace, desks, chairs, etc. at each

location. The auditor must coordinate their work at the two locations with the Authority’s

Controller to verify working space is available on a particular day. The auditor will have

access to telephone, photocopy, fax and internet at each location.

AVAILABILITY OF PRIOR AUDIT REPORTS AND WORKING PAPERS

To obtain a copy of the Authority’s most recent fiscal year end audits, visit our website at

www.pgh-sea.com/financials.htm

ASSISTANCE TO BE PROVIDED TO THE AUDITOR

The Authority’s Finance Department and its Construction Project Managers will be available

during the audit to assist the firm by providing information, documentation and explanations.

The auditor must make every effort to use the Finance Department’s staff time as efficiently

as possible. The Authority requests that the auditor schedule meetings with the finance staff

and Controller to ask questions and solicit their requests. The Authority will make every

effort to accommodate requests and questions on a timely basis, but due to limited resources,

we request this process be formalized as much as possible.

In addition, the auditor will be given access to all supporting documentation, and copies can

be made at the auditors’ convenience. We do require that the auditor does not remove

original documents from the facility in which they are stored.

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The preparation of confirmations will be the responsibility of the auditors. However, the

Authority will provide reasonable clerical support for the completion of the confirmations

and other routine letters and memoranda.

The Authority does not have an Internal Audit Department to provide assistance. The

Authority does have a full-time Director of Information Systems, who will be available to

provide reasonable assistance to the auditor. Such assistance shall include documentation and

explanation of systems. The auditor is encouraged to make efficient use of the Authority’s

information technology resources.

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EXHIBIT “B”

MINORITY AND WOMEN BUSINESS ENTERPRISE

PARTICIPATION

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EXHIBIT B

Minority and Women Business Enterprise Participation

The Authority requires that all contractors and subcontractors1 shall demonstrate a good faith

effort to obtain the participation of Minority and Women Business Enterprises in work to be

performed for the Authority. It is the goal of the Authority that twenty-five percent (25%) of the

contract amount be expended for participation by Minority Business Enterprises and ten percent

(10%) of the contract amount be expended for participation by Women Business Enterprises.

The Minority and Women Business Enterprise participation of the contract shall be subject to the

review of the Equal Opportunity Review Commission of Pittsburgh.

“Minority Business Enterprise” (MBE) and “Women Business Enterprise” (WBE) means

businesses certified as such by Pennsylvania Unified Certification (including Allegheny

County, Port Authority of Allegheny County, Pennsylvania Department of Transportation) or the

U.S. Small Business Administration. The MBE/WBE must be certified for the specific type of

work it will be responsible for in connection with the contract. The certification must be current

throughout the time the MBE/WBE will be doing work under the contract.

The bidder/proposer must demonstrate to the Authority that it has made a diligent good faith

effort to meet the Authority’s goals for MBE and WBE participation in the contract work.

MBE and WBE participation may be achieved by any combination of the following:

a. Direct (prime) contract with MBE or WBE. If the direct (prime) contractor is an MBE or

WBE, participation shall be the full amount of the contract.

b. Subcontract for work on the project. If work is subcontracted to Minority and/or Women

Business Enterprises, participation for this element shall be the total amount of

subcontracts with MBE/WBEs for work on the project.

c. It is the intent of the SEA, for all qualified MBE/WBE companies to have an opportunity

on this project in some capacity. Subcontractors who “sub out” more than 50% of the

work assigned will only receive credit for the amount of work self-performed.

d. Supply contracts for the project. If materials are purchased from Minority and/or Women

Business Enterprises, participation for this element shall be 2% of the amount of the

purchase order unless evidence acceptable to the Authority is submitted that the broker or

supplier is acting as a “full service supplier” on this job and in such case the credit shall

be 60% of the dollar value of the purchase order. Evidence to be submitted to qualify as a

“full service supplier” should include warehouse or storage capacity, inventory records,

agreements with manufacturers, ownership of material handling or delivery equipment

and demonstration of fiscal responsibility on previous sales.

1 “Contractor” refers to the contractor under a construction contract or service contract.

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Whether the contractor undertook the following actions, among others, will be considered in

determining if a good faith effort to obtain participation has been made:

i) attended pre-bid/pre-proposal meetings to inform MBE/WBE’s of subcontracting

opportunities,

ii) advertised in general, trade, and minority focused media,

iii) provided timely written notice to a reasonable number of MBE/WBE’s,

iv) followed up the initial solicitations by contracting MBE/WBE’s to determine

interest,

v) selected or reduced the size of specific contract parts to facilitate MBE/WBE

participation,

vi) provided interested MBE/WBE’s with plans, specifications, and contract

requirements,

vii) negotiated in good faith with interested MBE/WBE’s,

viii) made efforts to provide bonding, line of credit, or insurance assistance to

interested MBE/WBE’s,

ix) utilized the services of available minority community organizations and other

organizations that provide assistance in the recruitment and placement of

MBE/WBE’s,

x) utilized the services of the office of the Equal Opportunity Review Commission

of Pittsburgh to provide assistance in the recruitment and placement of

MBE/WBE’s.

Documentation in the form of letters, meeting notes, copies of advertisements, etc. will be

required to confirm these efforts.

Attention is directed to the following:

a. The bidder/proposer must submit with the bid/proposal the “Certificate of Minority and

Women’s Business Enterprise Participation” form attached hereto as Attachment A

(including Schedule A), properly filled out and signed in ink. Failure to submit this

signed certification as part of the bid/proposal is grounds for rejection of the bid/proposal.

b. Prior to award of the contract but within 24 hours of being notified that it is the apparent

successful bidder/proposer, the chosen contractor shall submit to the Authority its

participation plan (the Minority and Women’s Participation Plan), in the form of

21

Attachment B hereto. The chosen contractor shall meet with the Authority to discuss the

implementation of the plan. The chosen contractor’s Minority and Women’s Participation

Plan must be approved by the Authority before the contract is awarded. Implementation

of the approved plan shall be a contract obligation.

c. During the course of construction (or performance of services under a service contract),

the contractor shall submit monthly reports on the form attached hereto as Attachment C

detailing MBE/WBE participation in the contract compared with the approved plan.

Prior approval by the Authority will be required for any change in the Minority and

Women’s Participation Plan. The contractor’s compliance with the approved Minority

and Women’s Participation Plan shall be monitored by the Authority. The Authority may

consider failure of the contractor to make a good faith effort to fulfill its obligations with

respect to its Minority and Women’s Participation Plan during the term of the contract as

a material breach of the contract.

22

ATTACHMENT A

Certificate of Minority and Women Business Enterprise Participation

The undersigned bidder/proposer certifies that it understands and agrees to actively solicit the

participation of Minority and Women Business Enterprises in all work to be performed

(including the purchasing of goods or equipment) under this contract, and to make a diligent

good faith effort to achieve the minority and women’s participation goals of the Authority.

The bidder/proposer further certifies that the attached Schedule A - “MBE/WBE Solicitation

Statement” details its efforts regarding the solicitation and utilization of Minorities and Women

Business in the work to be performed under this contract.

The bidder/proposer further certifies that it understands that prior to award of this contract a

written Minority and Women’s Participation Plan, using Attachment B - “MBE/WBE

Participation Plan,” must be submitted by bidder/proposer and approved by the Authority.

Failure of the bidder/proposer to comply with these conditions or failure to sign and submit this

Certificate and Schedule A with the bid/proposal is grounds for disqualification of the

bid/proposal.

Name of Bidder/Proposer

By (signed)

Title

Date

(Exhibit B) Schedule A to Attachment A

MBE/WBE SOLICITATION STATEMENT Failure to complete this form and submit it proposal shall be sufficient cause for rejection of proposal

NAME OF PROPOSER:

ADDRESS:

TELEPHONE:

CONTACT PERSON:

PROPOSAL PACKAGE/CONTRACT:

List Certified MBE/WBE Companies that you have solicited in reference to this contract.

Company Name

Certification Agency and Certification

Number

MB

E

WB

E

Contact Person Address Phone

Date Contacted Type of Supply

Contract Type of

Subcontract

Potential MBE/WBE Amount ($) by Mail

by Phone

Prepared by: Title: Phone:

IM 50449

(Exhibit B) Attachment B

CONTRACTOR MBE/WBE PARTICIPATION PLAN

PROJECT:

PROPOSAL PACKAGE/CONTRACT:

PRIME CONSULTANT:

PRIME CONTRACT AMOUNT*: $

* Changes to amount of prime contract require amendments to MBE/WBE Participation Plan

Form of Participation

MBE/WBE Company Name and Address

Certification Agency and

Number

Specific Description of

Work to be Provided

MB

E (√

)

WB

E (√

)

MBE/WBE Contract

Amount ($) Prime

(√) Sub (√)

Full Service Supplie

r (√)

Broker Supplie

r (√)

Eligible %

Amount

MBE Credit Amount ($)

WBE Credit Amount ($)

Total Amount ($) $ $ $

Total Percentage (%) % %

IM 50449

(Exhibit B) Attachment C

MONTHLY MBE/WBE UTILIZATION REPORT

PROJECT:

PROPOSAL PACKAGE/CONTRACT:

PRIME CONSULTANT:

AMOUNT OF PRIME CONTRACT COMPLETE TO DATE:

PRIME CONTRACT AMOUNT: ORIGINAL $ $

CHANGES* $ PERCENT OF PRIME CONTRACT COMPLETE TO DATE:

TOTAL $ %

* Changes to original contract amount require amendments to MBE/WBE Participation Plan

MBE/WBE Participation

Form of Participation Paid to Date ($) Contract Amount ($) Completed to Date

Percent (%) of Contract

Completed to Date

MBE/WBE Company Name with Certification

MB

E (

√)

WB

E (

√)

MBE/WBE Contract

Amount ($)

Pri

me (

√)

Su

b (

√)

Fu

ll S

erv

ice

Su

pp

lier

(√)

Bro

ker

Su

pp

lier

(√)

Elig

ible

Am

ou

nt

(%)

MBE WBE MBE WBE MBE WBE

Plan

Actual*

Plan

Actual

Plan

Actual

Plan

Actual

Plan

Actual

TOTALS** $ $ $ $ $ % %

* If actual is less than planned, provide an adequate explanation and detail good faith efforts to meet the plan. ** If more space is needed, use a second page and carry totals forward

Prepared by: Title: Information in this report is as of the above date:

EXHIBIT “C”

WORKFORCE DIVERSITY

Name of Proposer/Bidder:

Report for Payroll Period 20___:

ClassificationTotal

Minority

Total

Female

Total All

Employee % Minority % Female

Male Female Male Female Male Female Male Female Male Female

Executive/Sr. Officials & Managers

First/Mid Officials & Managers

Professionals

Technicians

Sales Workers

Administrative Support

Other:

Other:

Other:

Other:

Other:

Other:

TOTAL

ClassificationTotal

Minority

Total

Female

Total All

Employee % Minority % Female

Male Female Male Female Male Female Male Female Male Female

Executive/Sr. Officials & Managers

First/Mid Officials & Managers

Professionals

Technicians

Sales Workers

Administrative Support

Other:

Other:

Other:

Other:

Other:

Other:

TOTAL

Report dated _____________________ prepared by ____________________ on behalf of _______________________.

__________________________________________________

Signature

Completed form to be returned with response to RFP or submission of Bid. When completing the form, please add additional categories or strike categories as appropriate for your business.

As of 7/27/16 IM#60027

Native American or

Alaskan Native

Workforce Performing SEA or SA Audit

All EmployeesAsian or Pacific

Islander

Native American or

Alaskan NativeHispanicBlack (Non-Hispanic)

Diversity Information

Asian or Pacific

Islander

Total Workforce

All Employees Black (Non-Hispanic) Hispanic