I. STATEMENT OF POLICY FOR LOCAL, SMALL, DISADVANTAGED BUSINESS ENTERPRISES

DCWASA shall employ every reasonable effort to ensure full and equitable opportunities for Local, Small and Disadvantaged Business Enterprises (LSDBE's) to participate as prime contractors, subcontractors, and joint venture partners in contracts awarded by the Authority. Utilizing such efforts to achieve this mission will promote the economy of the District of Columbia and the region served by DCWASA.

Each year the Board of Directors will set goals designed to promote the participation of LSDBE's in procurements funded by Discretionary Spending.

A. Specific Percentage Goals

DCWASA will utilize preference mechanisms to:

1. Allocate its Discretionary Spending on construction and architectural and engineering contracts in order to reach the goal by the Board of Directors. Generally this goal will be expressed with reference to the total dollar volume of all construction contracts and architectural and engineering contracts.
2. Allocate its Discretionary Spending on procurement of goods and services, other than construction and architectural and engineering contracts, in order to reach the goal set by the Board of Directors. Generally this goal will be expressed with reference to the total dollar volume of all goods and services contracts.

II. IMPLEMENTATION

A. Preference Mechanism

A preference mechanism applicable to proposals and bids received from LSDBE's shall be utilized to facilitate the participation of LSDBE's in the procurement process. This preference mechanism shall be used to evaluate bids and proposals received from LSDBE's without regard to the service or commodity that is the subject of the procurement.

The bid preference mechanism will also be applicable to joint ventures between local businesses and LSDBE's and non-local or non-disadvantaged businesses. "Set Aside" advertising of solicitations may be used to achieve the goals established by the Board of Directors, but shall not be the exclusive method employed.

The following bid preference mechanism for Local Business Enterprises, Disadvantaged Business Enterprises and Small Business Enterprises shall be utilized. Bids and proposals shall be evaluated utilizing a preference point system in the form of points (in the case of proposals) or a percentage reduction in price (in the case of bids) as follows:

Five Points or 5%	For Local Business Enterprises
Five Points or 5%	For Disadvantaged Business Enterprises
Two Points or 2%	For Enterprise Zone

A bid or proposal shall be entitled to all of the preferences for which it is qualified. However, the above described preference points will not be used in procurements that have been advertised in the Set-Aside Market.

Prime contractors that are not eligible for the above stated preference shall be encouraged to utilize LSDBE's as sub-contractors, partners and joint-venturers to the maximum extent possible.

C. Set-Aside Advertising

A determination of vendor availability in the Set-Aside Market must be established prior to advertising a solicitation. If there are at least three vendors available in the Set-Aside Market, the solicitation may be advertised as such. If there are less than three vendors available in the Set-Aside Market, the solicitation will be advertised in the Open Market with preference points applied to qualified LSDBE's that respond to the solicitation.

D. Waivers

The General Manager shall have authority to determine when it is in the best interest of DCWASA to waive bonding and insurance requirements if the General Manager determines: 1) a waiver will assist small, local and disadvantaged businesses to remove obstacles to participation in DCWASA contracts; and 2) the interests of WASA are not adversely affected.

III. POLICY FOR FEDERALLY FUNDED PROJECTS

The United States Environmental Protection Agency (EPA) participates in the funding of DCWASA capital projects by providing grants under the Safe Drinking Water Act and the Clean Water Act. EPA establishes a Minority Business Enterprise/Woman Business Enterprise (MBE/WBE) "fair share" utilization objective in accordance with the publication "Guidance for Utilization of Small, Minority and Women's Business Enterprises in Procurement Under Assistance Agreements 6010." (1997 Edition). EPA requires the recipient to negotiate a "Fair Share" objective for A/E design, construction and other A/E services related to capital projects.

The objective is defined as "an amount of funds reasonably commensurate with the total project funding and the availability of qualified Minority Business Enterprises (MBE's) and Women Owned Business Enterprises (WBE's) taking into account experience on EPA funded projects and other comparable projects in the area." This objective is derived based on historical contracting records of the Authority over a four year period.

DCWASA shall employ reasonable efforts to ensure full and equitable opportunities for minority and women owned business enterprises when federal funds require MBE/WBE "Fair Share" utilization. Solicitations that do not utilize any federal assistance will follow the policy set forth in this document to promote Local, Small and Disadvantaged Business Enterprises.

IV. CERTIFICATE OF REGISTRATION REQUIRED

No enterprise shall be permitted to participate in the program established herein unless it has been issued a certificate of registration by the District of Columbia Department of Human Rights and Local Business Development or its successor, or other equivalent certification by an agency of the State of Maryland, the State of Virginia, the United States, or any User Jurisdiction.

V. COMPLIANCE AND REPORTING REQUIREMENTS

The General Manager shall:

1. Encourage contractor compliance with federal standards, affirmative action and equal opportunity programs including but not limited to those administered by the Department of Labor Office of Contract Compliance.
2. Ensure that successful bidders fully comply with all elements of MBE, WBE and LSDBE participation plans offered by such bidders in response to DCWASA solicitations. Contracting officers shall accomplish this requirement by enforcing contract language requiring vendor performance reporting no less frequently than quarterly.
3. Provide an annual report to the Board of Directors no later than 30 days after the end of a fiscal year that sets forth on a quarterly basis:

(a) The percentage by dollar amount of contracts and subcontracts awarded to LSDBE's, MBE's and WBE's.

(b) The percentage by volume of contracts and subcontracts awarded to LSDBE's, MBE's and WBE's.

(c) A description of past and current activities.

4. Implement Outreach Programs designed to promote participation by eligible enterprises as contractors and sub-contractors.
5. Consistent with applicable regulations, divide tasks into segments that will promote participation by eligible enterprises.

V. DEFINITIONS

The following terms shall mean:

Board of Directors:

The Board of Directors of the District of Columbia Water and Sewer Authority.

Certifying Agency:

The District of Columbia Department of Human Rights and Local Business Development or its successor or other equivalent certifying agency of the State of Maryland, the State of Virginia, the United States or any User Jurisdiction.

Disadvantaged Business Enterprise:

A local business enterprise that is owned, operated and controlled by economically disadvantaged individuals and meets the certification requirements of a Certifying Agency.

Discretionary Spending:

Money spent on the procurement of goods and services of such a nature that competition is possible from a variety of vendors . Discretionary spending is spending that is not made subject to special conditions imposed by an entity or entities other than DCWASA. Examples of procurements that involve non-discretionary spending include procurements of electrical power, local telephone services or specialty parts and components. Procurements under federal programs that prohibit a particular preference (i.e. local business or set-aside programs or which set standards that restrict competition as a condition of participation in the program are non-discretionary procurements).

Economically Disadvantaged Individual:

An individual determined to be economically disadvantaged by a Certifying Agency.

Enterprise Zone:

An area determined as such by a Certifying Agency or authorized governmental unit.

Joint Venture:

A combination of the property, capital, efforts, skills, or knowledge or two or more persons or businesses to carry out a single project.

Local Business Enterprise:

Means a business enterprise with a principal office located physically within a User Jurisdiction.

Local Resident:

A resident of one of the User Jurisdictions.

Local Owned, Operated   Controlled:

A business enterprise that is certified as such by a Certifying Agency or authorized governmental body.

Local, Small, Disadvantaged Business Enterprises (LSDBE):

A business enterprise that has meet the certification requirements of a Certifying Agency or which has a principal office within the boundaries of a User Jurisdiction and meets the requirements of a small business enterprise.

Minority Business Enterprise (MBE):

For the purpose of federally mandated objectives, a business which is:

1. Certified as socially and economically disadvantaged by the Small Business Administration.
2. Certified as a minority business enterprise by a state or federal agency; or
3. An independent business concern which is at least 51% owned and controlled by minority group member(s).

User Jurisdiction:

Means the jurisdictions represented on the Board of Directors of DCWASA:

(a) District of Columbia

(b) Fairfax County, Virginia

(c) Montgomery County, Maryland

(d) Prince George's County, Maryland

Small Business Enterprise:

A business enterprise that has satisfied applicable certification requirements as an independently owned, operated, and controlled business enterprise with average annualized gross receipts set by a Certifying Agency or authorized governmental body.

DCWASA

The District of Columbia Water and Sewer Authority.

Women Business Enterprise (WBE):

1. For purposes of federally mandated objectives, is a business which is certified as such by a state, or federal agency, or
2. A business which is at least 51% owned by one or more females who are citizens of, or lawful permanent residents of, the United States, or, in the case of a publicly-owned corporation, with at least 51% of all classes of stock owned by one or more such females. In addition, WBE firms' management and daily business operations must be controlled by women.

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