Getting Started: Saint Paul's MBE, WBE, and SBE contracting rules
Published on 08/13/2014
Many large municipalities in the United States administer programs designed to increase the inclusion of minority-owned, women-owned, and small businesses (MBE, WBE, and SBE) in public contracting. The City of Saint Paul, Minnesota is one of them.
Saint Paul's Vendor Outreach Program (VOP) is tasked with facilitating MBE, WBE, and SBE participation on city contracts, and their primary method for achieving this is by applying utilization goals to individual contracts. Companies bidding on opportunities with the city as prime contracts are required to make a good faith effort to achieve the goals. If a bidder does not act in good faith to include MBEs, WBEs, and/or SBEs on the project, they may not be awarded the contract - even if they submit the lowest bid.
For a bidder to demonstrate that they made a good faith effort to Saint Paul VOP, at minimum they must perform the following steps:
- Break up the prime contract and identify which SIC Codes are being made available to MBE, WBE, and SBE subcontractors and suppliers;
- Search the city's CERT Certified Vendor directory to identify MBEs, WBEs, and SBEs that can be notified of subcontractor and supplier opportunities;
- Contact minority and women contractor groups and other organizations that can assist in identifying MBEs, WBEs, and SBEs that can participate on the contract;
- Solicit bids from MBEs, WBEs, and SBEs by fax, email, telephone, and other methods at least ten days before the contract's bid date;
- Solicit bids from at least 5 MBEs, WBEs, and SBEs for each subcontracting opportunity made available;
- Assist MBEs, WBEs, and SBEs in obtaining plans and specifications, bonding, lines of credit, and insurance;
- Provide documentation of all correspondence with Saint Paul certified MBEs, WBEs, and SBEs, including rejected bids and the reason for their rejection.
