Small Underutilized Business Program (SUBP)
The Small and Underutilized Business Program (SUBP) ordinance, Chapter 423 of the City code is enforced by the Contract Compliance Division (CCD) of the Minneapolis Department of Civil Rights. The SUBP ordinance is intended to redress discrimination in the City’s Marketplace* and create opportunities for Minority-owned Business Enterprises (MBEs) and Women-owned Business Enterprises (WBEs). The CCD assists in leveling the playing field in contracting by placing participation goals on City contracts.
SUBP goals are set per contract based on project scope, subcontracting opportunities, and availability of qualified MBEs/WBEs. The goals are set before the project is published and are indicated in the call for bids or request for proposal documents.
Goals are set on the following:
- Goods, commodities, and supplies contracts over $50,000
- Construction or development contract over $100,000
- Professional or technical services contracts over $100,000
Goals are not set on the following:
- Goods or commodities and supplies contracts under $50,000
- Construction or development contract under $100,000
- Professional or technical services contracts under $100,000
Goals are set at 0% for the following situations:
- When there is limited or no MBEs/WBEs available to perform the scopes of work relevant to the project
- When there are no subcontracting opportunities available on the project
If goals have not been set for a project, the bidder or proposer shall take action to afford MBEs and WBEs full and fair opportunities to compete on the contract and resulting subcontracts.
Qualification of MBEs/WBEs
To count towards the SUBP goals, the MBE/WBE must meet the following criteria:
1. The business must be certified under the Minnesota Uniform Certification Program (MnUCP) at the time the contract is executed with the City. The availability of qualified businesses can be found in the Disadvantaged Business Enterprise directory: http://mnucp.metc.state.mn.us/.
2. The MBE/WBE must be located within the city’s marketplace which encompasses the following 11 Minnesota counties: Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright.
3. The MBE/WBE must be certified within the scope of work in which they will be performing. This can be determined by reviewing the NAISC Code(s) (North American Classification System) under which they are certified. Please visit http://www.census.gov/eos/www/naics/ for more information.
4. The MBE/WBE must perform a commercially useful function and therefore must be responsible for carrying out its responsibilities by actually performing, managing, and supervising the work involved. It must perform or exercise responsibility for at least 30 percent of its contract with its own workforce or can subcontract out work based on normal industry practices.
The MBE/WBE does not perform a commercially useful function if its role is limited to that of an extra participant in a transaction, contract or project through which funds are passed to obtain the appearance of MBE/WBE participation. The presumption of not performing a commercially useful function is rebuttable by the MBE/WBE.
Good Faith Efforts to Meet the SUBP Goals
Per the Minneapolis Code of Ordinances, Chapter 423.90(g), if a bidder or proposer has not fully met the SUBP project goals, then it shall demonstrate that it made a good faith effort to comply with the SUBP requirements. CCD will conduct a review to determine if the bidder or proposer solicited MBEs/WBEs in good faith. The review may consider the following list of actions:
1. Soliciting through all reasonable and available means (attendance at pre-bid meetings, advertising and/or written notices) the interest of all MBEs/WBEs certified in the scopes of work of the contract. The bidder or proposer must solicit MBEs/WBEs in sufficient time prior to bid opening or the proposal deadline to allow MBEs/WBEs to respond to solicitations. The bidder or proposer must determine with certainty if the MBEs/WBEs are interested by taking appropriate steps to follow up on initial solicitations.
2. Selecting portions of the work to be performed by MBEs/WBEs in order to increase the likelihood that the project goals will be achieved. This includes, where appropriate, breaking out contract work into smaller units to facilitate MBE/WBE participation, even when a contractor might otherwise prefer to perform these work items with its own forces.
3. Providing interested MBEs/WBEs with adequate information about the plans, specifications, and requirements of the contract in a timely manner to assist them in responding to a solicitation.
4. The bidder or proposer must negotiate in good faith with interested MBEs/WBEs and provide written documentation of such negotiation with each such business. In determining whether the bidder or proposer negotiated in good faith, the department may consider a number of factors including price, scheduling and capabilities as well as the contract goal.
5. The fact that there may be some additional costs involved in finding and using MBEs/WBEs is not itself sufficient reason for a bidder's or proposer's failure to meet the project goals as long as such costs are reasonable.
6. If requested by a solicited MBE/WBE, the bidder or proposer must make reasonable efforts to assist such MBEs/WBEs in obtaining bonding, lines of credit or insurance as required by the city or by the bidder or proposer, provided that the bidder or proposer need not provide financial assistance toward this effort.
7. Effectively using the services of minority/woman community organizations; minority/woman contractors' groups; local, state and federal business assistance offices; and other organizations as allowed on a case-by-case basis to provide assistance in the solicitation and placement of MBEs/WBEs. (2011-Or-020, § 1, 3-10-11)
Bidder or proposer must thoroughly document their efforts to solicit to and include MBE/WBE participation. CCD will monitor MBE/WBE participation throughout the contract. Compliance with the MBE/WBE participation and other SUBP requirements will be a material condition of the contract and failure to comply may be deemed a breach of contract.
Please review Minneapolis Code of Ordinances Chapter 423 for more information or the contact the City of Minneapolis Civil Rights Department at firstname.lastname@example.org.
Last updated Oct 30, 2014