f
UNITED
STATES
EINVIRONMENTAL
PROTECTION
AGENC
WASHINGTON,
D.
C.
20460
OFFICE
OF
August
20,1998
ADMINISTRATOR
Memorandum
Subject:
FY
1999
MBENVBE
Fair
From:
Jeanette
L.
Brown,
Director,
Office
of
Small
and
Disadvantaged
Business
Utilization
I/

To:
MBE/
WBE
Coordinators,
Region
1­
1
0,
Headquarters
and
Cincinnati
As
a
follow
up
to
our
recent
July
20­
22
MBENVBE
Conference,
attached
is
an
insert
for
you
to
use
in
your
letters
initiating
FY
1999
fair
share
negotiations
with
States.
Please
refer
to
that
insert
for
applicable
requirements
to
States.
Again
as
was
the
case
in
FY
1998,
local
governments
and
interstate
agencies,
commissions,
compacts
and
the
like
may
use
the
applicable
State
agency
FY
1999
MBEfWBE
fair
share
goals
or
may
negotiate
their
own
goals
with
you.
If
they
negotiated
FY
1998
MBENVBE
goals
with
you
based
upon
the
results
of
a
disparity
study
or
an
availability
analys
for
FY
1999
the
MBE
and
W
E
goals
negotiated
for
FY
1998
"
based
on
that
study
or
.
However,
if
they
negotiated
FY
1998
MBE
and
WBE
fair
share
goals
based
on
histori
of
dollars
awarded
Es
and
WBEs,
they
will
need
to
negotiate
those
goals
bas
e
done
one,
or
based
on
an
availability
analysi
s,
i.
e.,
availability
analyses
hare
negotiations
to
be
ement
initiated
before
EPA
approves
their
FY
1999
licable
FY
1998
MBE/
WBE
goals.
Thereafter,
methodology
for
pr
aring
an
availability
analysis
ommissions,
co
acts
and
the
like
is
the
same
as
entities
the
insert
for
States
or
incorporate
the
letters
to
them.
the
new
goals
for
FY
1
for
local
governments
and
inter
that
for
States.
You
may
either
send
methodo
logy
language
The
insert
specifically
mentions
an
availability
analysis
which
was
accepted
by
EPA
Region
5
for
FY
1998
MBE/
WBE
fair
share
negotiation
purposes
prepared
by
the
Metropolitan
Water
Reclamation
District
of
Chicago
(
District).
You
are
free
to
send
a
copy
of
that
analysis
to
the
entities
with
which
you
will
negotiate
FY
1999
MBENIrBE
fair
share
goals.

Recycled/
Recyclable
Prlnled
wlth
Soy/
Canoia
Ink
on
paper
Ihi
contains
a!
least
50%
recycled
flber
Also
attached
is
an
"
Availability
Analysis
Check
Sheet"
which
can
be
used
to
assist
EPA
eet
was
extracted
fiom
the
availability
analysis
submitted
by
assistance
award
recipients
making
the
transition
fiom
using
historical
data
to
preparing
an
a1
EPA
infor&
ation
added
t
licants
that
opted
to
e
MBE/
WBE
goals.

ce
award
recipients
may
find
this
cc:
Howard
Corcoran,
OGC
Beth
Craig,
GAD
Richard
Kuhlrnan,
CWSRF
MBE/
WBE
Ridemaking
Workgroup
Participants
Office
of
Regional
Counsel
MBE/
WBE
Contacts
Attachments
Insert
For
FY
1999
MBENBE
Fair
Share
Nepotiations
With
States
If
you
negotiated
FY
1998
"
fair
share"
goals
for
MBEs
and
WBEs
based
on
a
disparity
study,
EPA
will
accept
for
FY
1999
the
MBE
and
WBE
goals
negotiated
for
FY
1998
based
on
the
results
of
that
study.

Similarly,
if
you
EPA
will
accept
for
FY
results
of
that
analysis.
iated
FY
1998
"
fair
share"
goals
based
on
an
availability
analysis,
the
MBE
and
WBE
goals
negotiated
for
FY
1998
based
on
the
However,
if
you
negotiated
FY
1998
MBE
and
WBE
"
fair
share"
goals
based
on
historical
data
of
dollars
awarded
to
MBEs
and
WBEs,
for
FY
1999,
you
will
need
to
negotiate
these
goals
based
on
a
disparity
study,
if
your
State
has
conducted
one,
or
based
on
an
availability
analysis.

For
FY
1999,
as
was
the
case
for
FY
1998,
EPA
is
not
mandating
a
particular
manner
in
which
a
State
needs
to
prepare
an
availability
analysis
supporting
its
proposed
"
fair
share"
objectives.
However,
the
analysis
must
address
the
availability
of
qualified
minority
and
women­
owned
businesses
to
do
the
work
in
the
relevant
market
for
construction,
equipment,
services
and
supplies.
If
the
State
has
more
than
one
agency
which
negotiates
MBE/
WBE
goals
with
EPA,
and
the
goals
are
not
uniform
among
the
Agencies,
then
each
agency
proposing
different
goals
will
need
to
prepare
an
availability
analysis,
Alternatively,
if
the
State's
goals
are
uniform
among
State
Agencies
and
are
based
on
an
availability
analysis
prepared
by
a
Lead
Agency,
the
other
agencies
may
rely
on
the
Lead
Agency's
Analysis.
States
may
use
the
following
methodology
in
preparing
an
availability
analysis
for
each
procurement
category,

i.

e.,

construction,
equipment,
services
and
supplies.
.
6
.
*

Minority­
Owned
Businesses
in
Relevant
=
MBE
Availability
Women­
Owned
Business
in
Relevant
=
WBE
Availability
Please
refer
to
Part
19
of
the
FAR
(
Federal
Acquisition
Regulations),
found
in
48
CFR
Part
19
for
a
listing
of
SIC
Codes.
You
are
also
free
to
utilize
another
method
so
long
as
it
is
based
on
the
availability
of
qualified
MBEslWBEs
to
perform
the
work
in
the
relevant
market
for
each
of
the
four
procurement
categories.

For
FY
1999,
as
was
the
case
for
FY
1998,
States
may
choose
to
propose
different
MBEIWBE
goals
for
different
types
of
EPA
programs,
(
a,
different
Superfund
goals,
Clean
Water
Revolving
Fund
goals,
etc.)
based
on
availability.
NOTE
­
EPA
is
not
requiring
States
to
do
this.
Rather,
the
Agency
is
offering
it
as
a
means
to
give
States
flexibility
in
implementing
the
requirements
for
FY
1999.
I
I
I
I
Among
the
sources
of
information
you
may
find
usehl
in
obtaining
data
concerning
the
availability
of
qualified
MBEs
/
W
E
s
to
perform
the
work
in
the
relevant
market
for
each
of
the
four
procurement
categories
are:
US.
Department
of
Commerce,
Bureau
of
the
Census
(
301)
457­
4608,
U.
S.
Small
Business
Administration's
PRO­
Net
Procurement
Marketing
and
Access
Network,
which
can
be
accessed
on
the
Internet
at
http://
www.
sba.
gov.
(
You
may
contact
Mr.
L.
T.
Leong
for
assitance
at
(
202)
205­
7312)
and
the
Minority
Business
Development
Agency's
Phoenix
dBASE
System
(
to
identify
available
MBE's
to
do
the
work),
which
can
be
accessed
on
the
internet
at
http://
www.
mbda.
gov
(
you
may
contact
Mr.
Keith
Flores
for
assistance
at
'

(
202)
482­
0404).

Enclosed
(
see
Enclosure
A)
is
a
copy
of
a
submission
which
was
accepted
by
EPA
Region
5
for
FY
1998
MBE/
WBE
fair
share
negotiation
purposes,
prepared
by
the
Metropolitan
Water
Reclamation
District
of
Chicago
(
District).
That
submission
is
based
upon
a
formal
affirmative
action
program
adopted
by
the
District
after
conducting
an
investigation
of
the
scope
of
discrimination
in
the
award
of
and
participation
in
the
District's
construction
contracts.
EPA
is
not
requiring
States
to
conduct
such
an
investigation.
.
Nonetheless,
the
methodology
specified
in
its
January
8,
1998
memorandum,
as
further
discussed
in
its
August
4,
1998
memorandum,
wherein
the
district
explains
how
it
establishes
annual
MBE
and
WBE
goals
based
on
availability
may
be
useful
to
you
in
preparing
your
own
availability
analysis.
Also
enclosed
(
see
Enclosure
B)
is
a
sample
checklist
based
on
that
submission
which
you
may
find
helpful
in
preparing
your
availability
analysis.
Please
bear
in
mind
as
you
review
the
District's
submission,
which
focuses
to
a
great
'
extent
on
construction,
that
the
District
is
not
a
State
Agency
and
therefore
does
not
receive
the
s
States
to
negotiate
/

1
AVAILABILITY
ANALYSIS
CHECK
SHEET
"
WHAT
MAKES
A
GOOD
AVAILABILITY
ANALYSIS'
FROM
THE
METROPOLITAN
WATER
RECLAMATION
DISTRICT
OF
GREATER
CHICAGO
.
t­

What
is
an
Availability
Analysis?

availability
study
is
an
analysis
of
the
market
of
qualified
MBErWBE
businesses
that
are
given
geographical
location
to
do
the
work
involved.
The
analysis
should
be
e
qualified
MBE/'
WBE
firms
that
are
available
to
do
the
work
in
the
given
arena
or
field
that
you
need
for
your
project.

How
may
MBEMBE
goals
be
supported
by
an
availability
analysis?

Such
goals
may
be
supported
through
a
number
of
data
bases,
including
a
Vendor's
List.
For
our
purposes,
a
vendor's
list
can
be
defined
as
a
list
of
Minority
and
Women­
owned
firms
that
provide
a
service
in
a
specific
field
that
is
consistent
with
th'e
needs
of
a
given
entity.
These
firms
are
often
limited
to
a
specific
geographical
radius.
This
list
can
be
a
basis
for
establishing
MBE/
WBE
fair
share
procurement
goals
for
construction,
equipment,
services
and
supplies.

How
do
I
keep
my
Vendor's
List
current?

The
list
may
be
updated
quarterly,
semi­
annually
or
annually.
Firms
that
have
not
responded
to
bids
more
than
three
times
consecutively
may
be
contacted.
If
the
business
no
longer
exists
or
does
not
want
to
remain
on
a
vendor's
list,
the
firm
can
be
deleted
from
the
list.

What
criterion
do
Minority
and
Women
Ownedfirms
have
to
meet
in
order
to
be
recognized
as
an
eligible
entity
to
be
included
in
one's
availability
analysis?

1)
The
Metropolitan
Water
Reclamation
District
of
Greater
Chicago
District
requires
that
MBE/
WBE
firms
must
be
certified
as
a
MBE
or
WBE
either
by
the
City
of
Chicago
or
by
it.
The
District
places
certified
MBEs
and
WBEs
on
its
vendor
list
(
NOTE­
EPA
allows
for
self
certification
by
MBEs
and
WBEs).

2)
The
MBE/
WBE
firms
need
to
be
qualified
and
need
to
be
available
to
perform
the
work
in
the
relevant
geographic
market.

3)
You
may
wish
to
consider
whether
the
MBE/
WBE
bid
or
sought
to
work
in
the
past
or
may
have
been
on
a
previously
existing
Vendor's
list.
A
I
*
,
L
What
are
MBEMBE
Goals?

P
construction,
equipment,

What
is
the
rationale
for
developing
Utilization
Goals?

An
entity's
rationale
for
developing
its
goals
is
as
important
as
the
goal
itself.
Your
analysis
should
cont
your
goals.

How
can
I
construct
my
Availabilidy
Analysis?

An
Availability
Analysis
may
be
constructed
in
many
different
styles
or
formats.
USEPA
at
this
time
is
not
mandating
a
particular
manner
in
which
a
State
and/
or
recipient
needs
to
prepare
an
availability
analysis
supporting
its
proposed
M
B
W
E
goals
so
long
as
the
analysis
addresses
the
availability
of
qualified
minority
and
women­
owned
businesses
to
do
the
work
in
the
relevant
market
for
construction,
equipment,
services
and
supplies.
However,
the
following
is
a
breakdown
of
how
an
Availability
Study
may
be
structured:

I.
Data
Research
Method
A.
Vendor's
List
B.
Contractor's
List
C.
Census
Data
D.
SB
A
Information,
including
SBA's
PRO­
Net
Procurement
Marketing
and
Access
Network
E.
MBDA
Information,
including
MBDA's
Phoenix
Base
System
(
to
identify
MBEs
available
to
do
the
work).
11.
Discussion
111.
Proposed
Goals
