AGENDA BILL. Beaverton City Council Beaverton, Oregon BUDGET IMPACT AMOUNT BUDGETED $0
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1 AGENDA BILL Beaverton City Council Beaverton, Oregon SUBJECT: A Resolution Amending Beaverton Purchasing Code Section by Adding Service-Disabled Veteran Business Language to the City's Minority, Women, and Emerging Small Businesses Policy FOR AGENDA OF: BILL NO: Mayor's Approval: DEPARTMENT OF ORIGIN: ~ ij~ Finance 'J) f2tj DATE SUBMITTED: CLEARANCES: City Attorney~l)..._~\4- CAO Purchasing PROCEEDING: CONSENT AGENDA (Contract Review Board) EXHIBITS: 1. Resolution 2. Redline Version for Proposed Changes BUDGET IMPACT EXPENDITURE REQUIRED $0 AMOUNT BUDGETED $0 APPROPRIATION REQUIRED $0 RECOMMENDED ACTION: City Council adopts a resolution amending Beaverton Purchasing Code (BPC) Section by adding Service-Disabled Veteran Business (SDV) language to the City's Minority, Women, and Emerging Small Businesses (MWESB) Policy (attached Resolution- Exhibit 1). HISTORICAL PERSPECTIVE: On July 7, 2015, Council adopted Resolution No (Agenda Bill15142), which created a new section in the BPC relating to the City's MWESB policy. The policy becomes effective on January 1, The MWESB policy adopted at that time did not include SDV language because the State of Oregon was not yet certifying SDVs. Council requested that SDV language be included in the BPC as soon as the State begins implementing its SDV certification program. The State of Oregon has informed staff it will begin certifying SDVs on January 1, As a result, staff is returning to Council with proposed changes that includes SDV language in the City's MWESB policy. As the City's MWESB policy goes into effect on January 1, 2016, it will coincide with the State of Oregon's certification of SDVs. INFORMATION FOR CONSIDERATION: If Council adopts this resolution, the City's MWESB policy with SDV language will take effect on January 1, Exhibit 2 shows a red lined version of the proposed changes to Section Agenda Bill No: 15264
2 EXHIBIT 1 RESOLUTION NO A RESOLUTION AMENDING BEAVERTON PURCHASING CODE SECTION BY ADDING SERVICE-DISABLED VETERAN LANGUAGE IN THE CITY'S MWESB POLICY WHEREAS, pursuant to ORS 279A.050(1), the City must exercise its procurement authority in accordance with the provisions of the Oregon Public Contracting Code; and WHEREAS, pursuant to ORS 279A.065(5) the City may adopt its own rules of procedure for public contracts, thereby prescribing the rules of procedure it will use for public contracts; and, WHEREAS, under authority of ORS 279A.065(5), the City previously has adopted its own rules of procedure for public contracts, which are compiled in the Beaverton Purchasing Code and therein has stated that the model rules of the Attorney General do not apply to the City; and WHEREAS, the City wishes to revise Beaverton Purchasing Code Section to include Service-Disabled Veterans to its Minority, Women, Emerging Small Business (MWESB) Policy; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF BEAVERTON, OREGON: Section 1. The existing Beaverton Purchasing Code is hereby amended as set forth in Exhibit A of this Resolution. Section 2. The sections and subsections of this Resolution, which include sections and subsection~ in Exhibit A, are severable. If any part of the sections and subsections are held unconstitutional or otherwise invalid, the remaining parts shall remain in force unless: A. The remaining parts are so essentially and inseparably connected with and dependent upon the unconstitutional or invalid pa~ that it is apparent that the remaining parts would not have been enacted without the unconstitutional or invalid part; or B. The remaining parts, standing alone, are incomplete and incapable of being executed according to the legislative intent. Section 3. The amendment to Beaverton Purchasing Code Section as set forth in Exhibit A to this Resolution takes effect on January 1, 2016, and applies to contracts that the City first advertises or otherwise solicits on or after the effective date of this Resolution, or, if the City does not advertise or solicit the contract, to contracts that the City first enters into on or after the effective date of this Resolution. Adopted by the City Council this day of December, Approved by the Mayor this day of December, Ayes:_ Attest: Nays:_. Approved: Catherine Jansen, City Recorder Denny Doyle, Mayor Resolution No. 4_:3;...:.5_2-1- Agenda Bill No
3 Minority, Women, Service-Disabled Veteran and Emerging Small Business A. Purpose To increase access to the city's procurement process so that the utilization of businesses in city contracting reflects the diversity of our business community. Exhibit A B. Policy The City of Beaverton is committed to a procurement strategy that provides opportunities to small businesses, is supportive of the regional economy, and is designed to achieve racial and gender equity in contracting. The purpose of this policy is to encourage utilization of state-certified firms that are Minority Owned, Women Owned or Service-Disabled Veteran Owned (MWSDV) or are Emerging Small Businesses (ESB). The city aspires to achieve a minimum of I 0% MWSDV and ESB participation in its overall dollar amount of contracting and purchasing activities, including goods and services, personal/professional services, architectural & engineering and related services, and construction of public improvements. C. General Criteria The city aspires to build upon and diversify its contractor base. The following general guidelines apply: I. The Purchasing Division is responsible for administering the MWSDV and ESB program. 2. All purchases will be made in accordance with the Beaverton Purchasing Code. 3. The city will rely on the State of Oregon's Certification Office for Business Inclusion and Diversity (COBID) in the Oregon Business Development Department to define MBE, WBE, SOY and ESB designations. State definitions are as follows: a. Minority Business Enterprise (MBE): means a business owned and operated by a minority who meets the eligibility standards set out in OAR et seq. b. Women Business Enterprise (WBE): means a business owned and operated by a woman who meets the eligibility standards set out in OAR et seq. c. Service-Disabled Veteran-Owned Business (SOY): a business owned by a veteran who possesses either a disability rating letter issued by the Department of Veteran Affairs, establishing a service-connected rating between 0 and 100 percent, or a disability determination by the Department of Defense and meets the eligibility requirements set out in OAR et seq. d. Emerging Small Business (ESB) means an independent business or firm that meets the requirements as defined under OAR The City will utilize the State of Oregon's Certification Office for Business Inclusion and Diversity Certification Directory. 5. The Purchasing Division will track annual MWSDV and ESB utilization. 6. The city will engage in outreach activities to encourage eligible businesses to obtain state MWSDV or ESB certification. 7. The city will join a variety of professional organizations to connect with a wider pool of potential suppliers. D. Definitions 1. ESB -A company certified by CO BID as an ESB pursuant to ORS Chapter 200 and OAR et seq. 2. Good Faith Effort Requirements - Requires prime contractors to make an effort to provide subcontracting opportunities to state-certified MWSDV or ESB firms and provide documentation of those efforts. -2- Page 1
4 Exhibit A 3. Goods- Includes supplies, equipment, materials, personal property, including any tangible, intangible and intellectual property and rights and licenses in relation thereto and combinations of any of the items identified herein. (ORS 279A.010 and BPC ) 4. "Goods and Services" or "Goods or Services"- Includes combinations of any of the items identified in the definitions of"goods" and "services." (ORS 279A.010) 5. MWSDY- A company certified by COBID as an MBE, WBE, or SOY pursuant to ORS Chapter 200 and OAR etseq. 6. Personal Services- Services designated under ORS 279A.055, including (1) those services described at BPC and (2) those architectural, engineering, land surveying and related services described at ORS 279C Public Improvements -Projects for construction, reconstruction or major renovation on real property by or for the city. "Public Improvement" does not include emergency work, minor alteration, ordinary repair or maintenance necessary to preserve a Public Improvement. 8. Services -Trade Services, Personal Services, or any combination thereof. E. Solicitation Guidelines All staff engaged in procurement in their departments are responsible for following the guidelines set forth in this section. Staff shall use standard reporting forms to document and submit a written record of the solicitation process to the Purchasing Agent or designee that includes 1) a record of suppliers that were contacted, 2) bids or proposals received, 3) a list of suppliers that did not respond, and 4) whether no certified MWSDY or ESB is available in the area of work. All documentation shall be reviewed by the Purchasing Agent or designee to ensure compliance. Where solicitation to MWSDY or ESB firms is required, only businesses with current state certification as MBE, WBE, SOY or ESB businesses will count toward requirements. 1. Goods and Services a. Small Procurements (less than or equal to $1 0,000)- Competitive solicitation is not required. Staff are strongly encouraged to review the COBID Certification Directory for firms in the category of work being solicited before deciding where to solicit bids. b. Intermediate Procurements (greater than $10,000 and less than or equal to $1 00,000)- Staff shall contact a minimum of three certified MWSDYs, ESBs, or a combination of both, among firms solicited (unless fewer than three certified MWSDY or ESBs are available in that area of work), and/or post the opportunity on Oregon's Procurement Information Network (ORPIN). c. Formal Procurements (greater than $100,000)- The competitive contract opportunity will be posted on the city's website and ORPIN and shall include criteria in the RFP that evaluates MWSDY and ESB participation. Evaluation criteria and scoring in all Request for Proposals (RFP) shall provide that between 10-20% of the total available points will be based on a minimum of the following criteria: i. Documented certification through the State of Oregon as MBE, WBE, SOY or ESB. ii. Inclusion of an effective utilization plan for usage of MWESB and SOY contractors and/or subcontractors across different phases of the project. iii. Demonstrated utilization of MWSDY and ESB firms on previous projects (evaluated based on percentage of contractor and/or subcontractor dollars spent with MWSDY and ESB firms). 2. Personal/Professional Services a. Small Procurements (less than or equal to $25,000)- Competitive solicitation is not required. Staff are strongly encouraged to review the COBID Certification Directory for firms in the category of work being solicited before deciding where to solicit bids. b. Intermediate Procurements (greater than $25,000 and less than or equal to $1 00,000)- Staff shall contact a minimum of three certified MWSDYs, ESBs, or a combination of both, among firms solicited (unless fewer than three certified MWSDY or ESBs are available in that area of work), and/or post the opportunity on ORPIN. c. Formal Procurements (greater than $1 00,000)- The competitive contract opportunity will be posted on the city's website and ORPIN and shall include criteria in the RFP that evaluates MWSDY and ESB participation. -3- Page 2
5 Exhibit A Evaluation criteria and scoring in all RFPs shall provide that between 10-20% of the total available points will be based on the following criteria: 1. Documented certification of all qualified firms through the State of Oregon as MBE, WBE, SDV, or ESB. 11. Inclusion of an effective utilization plan for usage of MWSDV and ESB contractors and/or subcontractors across different phases of the project. iii. Demonstrated utilization ofmwsdv and ESB firms on previous projects (evaluated based on percentage of contractor and/or subcontractor dollars spent with MWSDV and ESB firms). 3. Architectural & Engineering (A&E) Services, and Related A&E Services a. Direct Appointment Procurements (less than or equal to $1 00,000)- Competitive solicitation through a formal procurement is not required. Staff are strongly encouraged to review the CO BID Certification Directory for firms in the category of work being solicited before deciding where to solicit bids. b. Formal Procurements (greater than $1 00,000)- The competitive contract opportunity will be posted on the city's website and ORPIN and shall include criteria in the RFP that evaluates MWSDV and ESB participation. Evaluation criteria and scoring in all RFPs shall provide that between 10-20% of the total available points will be based on the following criteria: i. Documented certification through the State of Oregon as MBE, WBE, ESB, or SDV. ii. Inclusion of an effective utilization plan for usage of MWSDV or ESB contractors and/or subcontractors across different phases of the project Demonstrated utilization ofmwsdv and ESB firms on previous projects (evaluated based on percentage of contractor and/or subcontractor dollars spent with MWESB and SDV firms). 4. Public Improvement a. Small Procurements (less than or equal to $5,000)- Competitive solicitation is not required. Staff are strongly encouraged to review the COBID Certification Directory for firms in the category of work being solicited before deciding where to solicit bids. b. Intermediate Procurements (greater than $5,000 and less than or equal to $I 00,000)- Staff shall contact a minimum of three certified MWSDVs, ESBs, or a combination of both, among firms solicited (unless less than three certified MWSDVs or ESBs are available in that area of work), and/or post the opportunity on ORPIN. c. Formal Procurements (greater than$ I 00,000)- The competitive contract opportunity will be posted on the city's website and ORPIN. Contractors are required to demonstrate a Good Faith Effort to utilize MWSDVs or ESB firms on contracts, which will be demonstrated by submitting required program documents. A prospective contractor who fails to provide this information may be considered non-responsive and be removed from consideration for the procurement. F. Periodic Review of Policy The Purchasing Agent will conduct an annual audit of utilization of MWSDV and ESB firms during the previous fiscal year for report to City Council. The Purchasing Agent will bring together internal stakeholders to review performance on the policy one year after adoption and then at least every three years, but may be done on a more frequent basis as needed. This committee will make recommendations to City Council for updates to the policy and implementation procedures. -4- Page 3
6 Minority, Womenl Service-Disabled Veteran and Emerging Small Business Exhibit 2 - Redline Version A. Purpose To increase access to the city's procurement process so that the utilization of businesses in city contracting reflects the diversity of our business community. B. Policy The City of Beaverton is committed to a procurement strategy that provides opportunities to small businesses, is supportive of the regional economy, and is designed to achieve racial and gender equity in contracting. The purpose of this policy is to encourage utilization of state-certified Minerity Ov!Red, Wemen Owned and Emerging Small Business (MWESB).!!!!!! Service Disabled Veteran Owned (SDV) firms that are Minority Owned, Women Owned or Service-Disabled Veteran Owned (MWSDV) or are Emerging Small Businesses (ESB). The city aspires to achieve a minimum of 10% MWESBMinerity, Wemen, Seryice Disabled Veteran Owned and Emerging Small BusinessMWSDV and ESB participation in its overall dollar amount of contracting and purchasing activities, including goods and services, personavprofessional services, architectural & engineering and related services, and construction of public improvements. C. General Criteria The city aspires to build upon and diversity its MWESB Minerity, '.1/emen, SerYice Disabled Veteran Owned and Emerging Small Business contractor base. The following general guidelines apply: 1. The Purchasing Division is responsible for administering the MWESB and SDVMWSDV and ESB program. 2. All purchases will be made in accordance with the Beaverton Purchasing Code. 3. The city will rely on the State of Oregon~ Certification Office for Business Inclusion and Diversity (COBID) in the Oregon Business Development Department MWESB certificatien pregram to defme MWESBMBE, WBE, SOY and ESB designations. State defmitions are as follows: a. Emerging Small BusiBess (ESB) 1. Tier 1: less than er equal te 19 empleyees, less than er equal te $1.8 millien censtructien I less than: er equal te $738K nan: censtructien) e. Tier II: less than er eetual te 29 empleyees, less than er equal te $3.e millien censtructien I less than er equal te $1.2 millien nan censtructien)means an independent business er firm that meets the reauirements as defmed under efoar &.--fl., Minority Business Enterprise (MBE): 51% er mere awned and centre lied by a recegnized minority greup (Blacker African American, Hispanic American, }Jative American, Asian Pacific American, Subcontinent Asian American)means a business owned and operated by a minority who meets the eligibility standards set out in OAR et seq..!2.: Women Business Enterprise (WBE): 51% er more o n'fled and contrelled by,vemenmeans a business owned and operated by a woman who meets the eligibility standards set out in OAR et seq. c. Service-Disabled Veteran-Owned Business (SOY): a business owned by a veteran who possesses either a disability rating letter issued by the Department of Veteran Affairs, establishing a service-connected rating between 0 and I 00 percent, or a disability determination by the Department of Defense and meets the eligibility requirements set out in OAR et seq. d. Emerging Small Business (ESB) means an independent business or firm that meets the requirements as defined under OAR The City will utilize the State oforegon'sminority, Wemen:, and Emerging Small BusiBess (OMWESB) Certification Office for Business Inclusion and Diversity Certification Directory. 5. The Purchasing Division will track annual MWESB and SDV and ESB utilization. -5- Page 1
7 Exhibit 2 - Redline Version 6. The city will engage in outreach activities to encourage eligible businesses to obtain state MWESB andor SDV or ESB certification. 7. The city will join a variety of professional organizations to connect with a wider pool of potential suppliers. D. Definitions 1. ESB- A company certified by COBID as an ESB pursuant to ORS Chapter 200 and OAR et seq. -l-:-2.,_ Good Faith Effort Requirements - Requires prime contractors to make an effort to provide subcontracting opportunities to state-certified MWESBMWSDV or ESB fmns and provide documentation of those efforts. 2-:.1._ Goods - Includes supplies, equipment, materials, personal property, including any tangible, intangible and intellectual property and rights and licenses in relation thereto and combinations of any of the items identified herein. (ORS 279A.010 and BPC ) M-'-"Goods and Services" or "Goods or Services" - Includes combinations of any of the items identified in the defmitions of"goods" and "services." (ORS 279A.010) 4:-5. MWES8 A company certified by the Oregon Office of Minority, Women, and Emerging Small 81:1siness as a Minority Bl:lsiness Enterprise, a 'Nomen Business Enterprise, and/or an Emerging Small 8Hsiness pmshant to ORS Chapter 200 and OAR MWSDV A company certified by CO BID as an MBE. WBE, or SDV pursuant to ORS Chapter 200 and OAR et seq. ~.,_Personal Services- Services designated under ORS 279A.055, including (1) those services described at BPC and (2) those architectural, engineering, land surveying and related services described at ORS 279C Public Imorovements - Projects for construction. reconstruction or major renovation on real propertv by or for the citv. "Public Improvement" does not include emergency work. minor alteration. ordinary repair or maintenance necessary to preserve a Public Imorovement. 8. Services- Trade Services, Personal Services, or any combination thereof. 7. PMI'l lie lmf!revemel'lts Prejeets fur eerstfuetiel'l, reserstfetetien 81' maj8r rel'levetier 81'1 reel f! F8 f!e~ sy er fer tke ei~y. "Pull lie IFI'lf!F8VBFI'l81'1t" s ees Ret ireimse efl'lsrgerey werlc, mirsr eltsretier, er8 inefy I'Bf!ei r sr fl'leirtbr!ll'l BB Reeess e ~ry ts f!feserve e Pull li e ll'l~ f!rsve J'I'l il l'l t. E. Solicitation Guidelines All staff engaged in procurement in their departments are responsible for following the guidelines set forth in this section. Staff shall use standard reporting forms to document and submit a written record of the solicitation process to the Purchasing Agent or designee that includes 1) a record of suppliers that were contacted, 2) bids or proposals received, 3) a list of suppliers that did not respond, and 4) if-whether no certified MWESB or SDV or ESB is available in the area of work. All documentation shall be reviewed by the Purchasing Agent or designee to ensure compliance. Where solicitation to MW-ESB aooef-sdv or ESB fmns is required, only businesses with current state certification as.esb,mbe._ and/or WBE, SDV -E8B an41or W -ESB businesses will count toward requirements. 1. Goods and Services a. Small Procurements (less than or equal to $1 0,000) - Competitive solicitation is not required. Staff are strongly encouraged to review the OMWESBCOBID Certification Directory for firms in the category of work being solicited before deciding where to solicit bids. b. Intermediate Procurements (greater than $10,000 and less than or equal to $1 00,000) - Staff shall contact a minimum of three certified MWESBsMWSDV s, and SDVESBs, or a combination of both, among fmns solicited (unless fewer than three certified MW-ESBSDVs atltlor WV:ESBs are available in that area of work), and/or post the opportunity on Oregon's Procurement Information Network (ORPIN). -6- Page 2
8 Exhibit 2 - Redline Version c. Formal Procurements (greater than $100,000) - The competitive contract opportunity will be posted on the city's website and ORPIN and shall include criteria in the RFP that evaluates MWESB MWSDV and WV:ESB participation. Evaluation criteria and scoring in all Request for Proposals (RFP) shall provide that between 10-20% of the total available points will be based on a minimum of the following criteria: i. Documented certification through the State of Oregon as MBE, WBE, or an ESBSDV orwv:esb. 11. Inclusion of an effective utilization plan for usage of MWESB and SDV contractors and/or subcontractors across different phases of the project. m. Demonstrated utilization ofmwesb MWSDV and SDV-ESB firms on previous projects (evaluated based on percentage of contractor and/or subcontractor dollars spent with MWESB MWSDV and SDV-ESB firms). 2. Personal/Professional Services a. Small Procurements (less than or equal to $25,000) - Competitive solicitation is not required. Staff are strongly encouraged to review the OM\lfESBCOBID Certification Directory for firms in the category of work being solicited before deciding where to solicit bids. b. Intermediate Procurements (greater than $25,000 and less than or equal to $1 00,000) - Staff shall contact a minimum of three certified MWESBMWSDVs, and SDVESBs, or a combination of both, among firms solicited (unless fewer than three certified MWESB MWSDV am:lor SDV-ESBs are available in that area of work), and/or post the opportunity on ORPIN. c. Formal Procurements (greater than $1 00,000) - The competitive contract opportunity will be posted on the city's website and ORPIN and shall include criteria in the RFP that evaluates MWESB MWSDV and WV:ESB participation. Evaluation criteria and scoring in all RFPs shall provide that between 10-20% of the total available points will be based on the following criteria: 1. Documented certification of all qualified firms through the State of Oregon as MBE, WBE, or an ESBSDV, orsdv-esb. 11. Inclusion of an effective utilization plan for usage ofmwesb MWSDV and WV:ESB contractors and/or subcontractors across different phases of the project Demonstrated utilization ofmwesb MWSDV and WV:ESB firms on previous projects (evaluated based on percentage of contractor and/or subcontractor dollars spent with M\VESB MWSDV and wv:esb firms). 3. Architectural & Engineering (A&E) Services, and Related A&E Services a. Direct Appointment Procurements (less than or equal to $100,000) - Competitive solicitation through a formal procurement is not required. Staff are strongly encouraged to review the OMWESBCOBID Certification Directory for firms in the category of work being solicited before deciding where to solicit bids. b. Formal Procurements (greater than $100,000)- The competitive contract opportunity will be posted on the city's website and ORPIN and shall include criteria in the RFP that evaluates M'NESB MWSDV and W ESB participation. Evaluation criteria and scoring in all RFPs shall provide that between 10-20% of the total available points will be based on the following criteria: 1. Documented certification through the State of Oregon as MBE, WBE, ef-an-esb, or SDV. 11. Inclusion of an effective utilization plan for usage of MWESB MWSDV or ESB contractors and/or subcontractors across different phases of the project. m. Demonstrated utilization ofmv/esb MWSDV and WV:ESB firms on previous projects (evaluated based on percentage of contractor and/or subcontractor dollars spent with MWESB and SDV firms). 4. Public Improvement a. Small Procurements (less than or equal to $5,000) - Competitive solicitation is not required. Staff are strongly encouraged to review the OMWES BCOBID Certification Directory for firms in the category of work being solicited before deciding where to solicit bids. b. Intermediate Procurements (greater than $5,000 and less than or equal to $1 00,000) - Staff shall contact a minimum of three certified MWESBMWSDVs, ~ESB s, or a combination of both, among firms solicited (unless less than three certified M'.VESB MWSDVs or SDV-ESBs are available in that area of work), and/or post the opportunity on ORPIN. -7- Page 3
9 Exhibit 2 - Redline Version c. Formal Procurements (greater than $100,000) - The competitive contract opportunity will be posted on the city's website and ORPIN. Contractors are required to demonstrate a Good Faith Effort to utilize MWESB MWSDVs aoo/orw\!esb firms on contracts, which will be demonstrated by submitting required program documents. A prospective contractor who fails to provide this information may be considered non-responsive and be removed from consideration for the procurement. F. Periodic Review of Policy The Purchasing Agent will conduct an annual audit of utilization ofm\vesb MWSDV and W ESB firms during the previous fiscal year for report to City Council. The Purchasing Agent will bring together internal stakeholders to review performance on the policy one year after adoption and then at least every three years, but may be done on a more frequent basis as needed. This committee will make recommendations to City Council for updates to the policy and implementation procedures. -8- Page 4
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