TAB I.5 M/WBE Participation

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1 TAB I.5 M/WBE Participation A. The Offeror shall provide a completed M/WBE Utilization Form indicating the percentage of the Base Award Price and Total Proposal Price to be supplied by qualified M/WBEs under the Contract. For purposes of this requirement, the MBTA will only accept M/WBEs that are certified, at the time of proposal opening by the Massachusetts Supplier Diversity Office formerly known as the State Office of Minority and Women Business Assistance. We have placed the required form B-86, M/WBE Utilization Form to the page 8 in this document. B. The Offeror shall provide an M/WBE Participation Schedule identifying those qualified M/WBEs with whom the Oferor intends to contract for the performance of the portions of the work under the Contract, the work to be performed by each qualified M/WBE, a proposed timetable for the performance or delivery of the Contract item, and other information as required by the M/WBE Participation Schedule form annexed to this Section. No work shall be included in the Schedule that the Offeror has reason to believe the listed M/WBE will subcontract, at any tier, to other than another M/WBE. We have placed the required form B-87, M/WBE Participation Schedule to the page 9-10 in this document. C. The Offeror shall provide a completed M/WBE Letter of Intent from each M/WBE listed in the M/WBE Participation Schedule using the form annexed to this Section, and a copy of the most recent certification letter or other documentation establishing the M/WBE certification of each M/WBE listed on the M/WBE Participation Schedule, and an M/WBE Affidavit executed by each M/WBE listed in the M/WBE Participation Schedule stating that there has not been any change in its status since the date of its last certification. We have attached the required form B-88, M/WBE Letter of Intent and the required form B-89, M/WBE Affidavit in the Part B.4, Signed Certifications of Technical Proposal. TAB I.1 Page 1 of 10

2 D. The Offeror shall provide a narrative explaining how the Offeror intends to ensure overall compliance with the MBTA s policy of promoting equity and opportunity for M/WBEs and the good faith efforts it has made to obtain M/WBE participation. The Offeror shall include in the narrative the strategies it has and will use to obtain subcontractors and suppliers, including but not limited to documented communication with the Authority s Office of Diversity and Civil Rights, use of information concerning M/WBE subcontracting opportunities provided by the MBTA during the pre-proposal conference and/or through other means, the Offeror s solicitations to obtain M/WBE involvement in general circulation media, trade association publications, minority-focused media and other reasonable and available means within sufficient time to allow M/WBEs to respond to the solicitation, written notification to M/WBEs encouraging participation in the proposed Contract, and efforts made to identify specific portions of the work that might be peformed by M/WBEs. At a minimum, the Offerors should provide the names, addresses, telephone numbers of M/WBEs that were contacted, a description of the information provided to targeted M/WBEs regarding RFP s work requirements, and efforts made to assist M/WBEs contacted in obtaining bonding or insurance required by the Offeror or by the Auhtority. Offerors are referred to 49 CFR Part 26 for additional guidance concerning actions that are commonly considered good faith efforts to obtain M/WBE participation. Minority and Women Owned Business Enterprise Participation Program Hyundai Rotem has worked hard to engage with numerous M/WBE firms covering many aspects of the work that would be required to fulfill this contract. In recognition of the goals set forth in the program, we have developed a Minority and Women Owned Business Enterprise (M/WBE) Participation Program that is in full compliance with and shares the MBTA s policy of promoting equity and opportunity for M/WBE s in state contracting. We recognize the importance of this program and are prepared to support the goals of it by including the promotion of contracting with M/WBE s and the development of M/WBE s certified in the Commonwealth of Massachusetts. To support the MBTA s and Hyundai Rotem s policy to promote, create, and enhance M/WBE opportunities within the state, we will ensure the following policies: A. Nondiscrimination in the award and administration of all MBTA associated contracts B. Create a level of playing field on which MBE/WBE/DBEs can compete fairly for MBTA assisted contracts C. While widely promoting the Program, ensure that the MBE/WBE/DBE program is closely monitored in accordance with applicable law D. That only firms that fully meet applicable eligibility standards are permitted to participated as MBE/WBE/DBEs TAB I.1 Page 2 of 10

3 E. Help remove barriers to the participation of MBE/WBE/DBEs in all MBTA assisted contracts F. To assist successful, certified MBE/WBE/DBE firms to compete for work outside the program for greater work opportunities Rotem has made good faith efforts to obtain the services of qualified M/WBE consultants, contractors, sub consultants, subcontractors and suppliers with the guidance of 49 CFR Part 26 and the Supplier Diversity Office OSD Construction Reform Program, Attachment C (Municipal Contracts State-Assisted Building Projects), Section A, Said good faith efforts and strategies to obtain M/WBE participation are listed and described below. I. Current M/WBE Suppliers - Rotem has been operating in the North American market for over 10 years and has developed partnerships with a mix of MBE/WBE/DBE suppliers, service providers, contractors and consultants for support towards M/WBE and DBE goals on all projects awarded to Rotem in the North American market. Through these relationships, which are strong and well tested, Rotem has requested and received proposals for participation in the Red and Orange line project (ref M/WBE Participation Schedule) II. Sub System Supplier Participation Rotem has been supplying passenger railcars around the world for over 50 years. We have a long history and strong partnerships with major system suppliers, service providers, and consultants for the design and manufacture of said passenger rail cars. Rotem has requested all of our partners/suppliers to make the same good faith efforts Rotem has made to obtain the services of qualified M/WBE sub consultants, subcontractors and suppliers with the guidance of 49 CFR Part 26 and the Supplier Diversity Office OSD Construction Reform Program, Attachment C (Municipal Contracts State-Assisted Building Projects), Section A, (ref M/WBE Participation Schedule) III. Third Party Consultant Rotem has hired a consultant group to assist with our project development and management of the program after award. They are located in the Commonwealth of Massachusetts and have supported our efforts in researching potential MBE/WBE suppliers, service providers, contractors and consultants, certified by the Commonwealth, for support towards M/WBE our overall goal. Potential suppliers or service providers range from project management, security and cleaning services, office supply distributors to public outreach consultants. (ref M/WBE Participation Schedule) IV. Solicitations in minority focused and general circulation media TAB I.1 Page 3 of 10

4 Rotem published a request for any qualified MBE/WBE/DBE firms with capabilities to supply products for our contracts in the classified section pertaining to business opportunities in a minority focused circulation media. The contact information (address, phone number, address, etc.) for the liaison officer of Hyundai Rotem USA was listed accordingly. (ref attached advertisement) V. Opportunities gained during MBTA s pre-proposal Several MBE/WBE suppliers and service providers were in attendance of the MBTA preproposal meeting conducted on Tuesday, December 3, Introductions and contact with said suppliers and service providers (Office and cleaning product suppliers, public outreach service providers, production service providers, signage/decal suppliers, etc.) was made to further develop potential partnerships and working relationships for the Orange and Red Line project as well as any other future projects with Hyundai Rotem. (ref M/WBE Participation Schedule) Furthermore, Hyundai Rotem will never exclude any persons, and or company, from participation in, deny any person the benefits, or otherwise discriminate against anyone in connection with the award and performance of any contracts funded and executed by the Commonwealth of Massachusetts on the basis of race, color, sex, or national origin. Lastly, it is important to note that while our stated W/MBE participation goal is not as robust as planned, and certainly does not reflect the good faith efforts we invested, we plan to work hard to increase the overall percentage before the project begins. We requested proposals from a number of W/MBE firms that we still plan to utilize that unfortunately were not able to get Massachusetts W/MBE certifications in time. They include: The Solis Group Contract Administration Estimated contract value - $2.9M Walker International Transport Warehousing/transportation - $17M Kustom Seating seats - $78K Had these firms been able to get its certifications, we would have included them in this diversity plan and our participation goals would have been considerably larger, approximately 6%. However, as previously stated, we still intend to contract with these firms to perform the work outlined and expect that any necessary paperwork that may have delayed the certification process will be addressed by then. TAB I.1 Page 4 of 10

5 E. The Offeror shall provide a narrative explaining how during performance of the Contract it will maintain continued efforts to preserve and enhance M/WBE participation. Included within this narrative should be a description as to how the Offeror will interface with MBTA for outreach and assistance generally and with respect to the specific issues below. The narrative should describe how the Offeror will abide by the monitoring and reporting requirements in Section C7.16 of the Contract. Moreover, the narrative should describe dispute resolution procedures the Offeror will institute under its subcontracts with M/WBEs to encourage amicable resolution of disputes and continued performance by the M/WBEs. Finally, the narrative should describe procedures and guidelines for the termination of M/WBEs as well as for the identification and selection of substitutes. Minority and Women Owned Business Enterprise Maintenance and Preservation Plan Hyundai Rotem has set forth a plan to continually improve and enhance our M/WBE Participation Program by annually publishing requests for qualified M/WBE firms with capabilities to supply products or perform services for our contracts in the classified section in minority focused circulation media. Additionally, Hyundai-Rotem will work with the MBTA Office of Diversity and Civil Rights (ODCR) to identify other opportunities to meet with and discuss contracting opportunities to interact with M/WBE firms, such as participation in Diversity Outreach Events. In accordance with interfacing with and reporting to MBTA and the ODCR, Rotem has set forth the following administrative requirements, participants and descriptions below: I. Finalized Program G. The names and addresses of M/WBE firms that will participate in the contract H. A description of the work that each M/WBE will perform I. The dollar amount of the participation of each M/WBE firm participating J. Written and signed documentation of commitment to use a M/WBE subcontractor whose participation it submits to meet a contract goal K. Written and signed confirmation from the M/WBE that is participating in the contract as provided in the prime contractors commitment and II. Program Updates In order to ensure the prompt, accurate and transparent flow of information and collaboration between the MBTA and Hyundai Rotem, the following is proposed to provide regular program updates to the Authority. First, upon execution of the contract, the Designated M/WBE Liaison Officer (see below) will meet with MBTA s designee from the ODCR to review the final M/WBE plan. After that meeting, the Liaison Officer will provide a written M/WBE Utilization Plan Report to the ODCR designee for review and approval. The Liaison Officer would then TAB I.1 Page 5 of 10

6 meet with the ODCR designee either in person or by phone each quarter and, subsequent to those meetings, Rotem will provide the Authority quarterly written reports through the life of the contract that summarize the following: A. total M/WBE value B. define M/WBE utilization established for the Contract (list of suppliers and contact information C. define the total value of expenditures with M/WBE firms for the quarter D. define the total value of expenditures with M/WBE firms from inception of the contract. III. Designated M/WBE Liaison Officer We have designated the following individual as our M/WBE Liaison Officer: Mr. Andy Hyer, Marketing & Business Development Hyundai Rotem USA Corporation Tel: Fax: Liaison duties are as follows: 1. Reviews third party contracts and purchase requisitions for compliance with this program. 2. Works with all departments to set overall goals. 3. Ensures that bid notices and requests for proposals are available to MBE/WBE/DBEs in a timely manner. 4. Identifies contracts and procurements so that MBE/WBE/DBE goals are included in solicitations (both race-neutral methods and contract specific goals attainment and identifies ways to improve progress). 5. Analyzes Hyundai Rotem USA Corporation s progress toward attainment and identifies ways to improve progress. 6. Plans and participates in DBE training seminars. 7. Provides outreach to DBEs and community organizations to advise them of opportunities. 8. Serves as the point-person for to answer any questions/issues raised or provide followup information to the MBTA In assistance of M/WBE Liaison Officer, we have designated the following individual as our M/WBE Administrator: Mr. Alex Demarais, Assistant Manager of Project Operation (Project Management) Hyundai Rotem USA Corporation Tel: (Ext. 297) Fax: TAB I.1 Page 6 of 10

7 IV. Good Faith Efforts when a M/WBE is replaced Hyundai Rotem will first report within 5 days any issues that may cause a change in M/WBE suppliers directly to the ODCR and MBTA and then make good faith efforts to replace said M/WBE that is terminated or is otherwise unable to complete its work on a contract with another certified M/WBE, to the extent needed to meet the contract goal. The same condition will be requested of any prime contractors utilizing a M/WBE program. We will require the prime contractor to notify the M/WBE Liaison Officer immediately of the MWBE s inability or unwillingness to perform and provide reasonable documentation. In this situation, we will require the prime contractor to obtain our prior approval of the substitute MWBE and to provide copies of new or amended subcontracts, or documentation of good faith efforts. Hyundai Rotem is looking for the best-qualified M/WBEs to support the program and provide a quality, reliable product to MBTA. We are prepared for technology sharing under proper non-disclosure agreements to ensure seamless transfer and maximum value add services and or manufacturing from said M/WBE firms. V. Dispute Resolution: Hyundai Rotem will require a dispute resolution process to address any contractual issues that arise with M/WBEs during this project. The final process will be reviewed and approved by ODCR as part of the M/WBE Utilization Plan Report noted above. The framework for the process would allow for 1. an informal review of the issues between the M/WBE representative and the Liaison Officer to vet and handle issues; 2. A Second informal level that would involve the Hyundai-Rotem Project Manager and M/WBE representative (Hyundai-Rotem will notify ODCR if issues are raised to this level; and 3. A third level that would involve the Project Manager, representatives from the MBTA and the M/WBE representatives. This process would be in addition to any formal legal rights of the parties. It is Hyundai-Rotem s intention to address any and all issues during the earliest phase TAB I.1 Page 7 of 10

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