PURPOSE: This rule establishes a program to encourage and facilitate the growth and development of Minority Business Enterprises (MBEs) and Women Business Enterprises (WBEs) by assuring that they have the maximum opportunity to participate in procurements financed in whole or in part with state funds.

1. (1) The division will provide assistance to Minority Business Enterprises/Women Business Enterprises (MBE/WBEs). Services provided may include but are not necessarily limited to: workshops, bid history and pricing abstracts, minority vendor registration, exposure to state agency’s procurement staff and contracting opportunities, MBE/WBE directory and newsletter to promote increased participation.
2. (2) The division will encourage participation in the procurement process and fairness in consideration of bids/proposals submitted by MBE/WBEs. Programs/procedures designed to accomplish these objectives may include: providing diversity training for state procurement personnel, utilization of minority and women personnel on evaluation committees, closely reviewing the requirements for bonding, targeted notice of procurement opportunities, etc.
3. (3) The division will compile, maintain and make available a directory of MBE/WBEs. The directory shall be available, upon request, to all bidders and contractors. The directory shall specify the name of the MBE/WBE, the commodities or services it provides, its address, phone number and contact person.
4. (4) The division will establish MBE/WBE participation goals and programs in accordance with section 37.020, RSMo, any successor or similar statutes, or executive order based upon a study to determine the availability of qualified MBE/WBEs and any other pertinent information. MBE/WBE participation goals and programs shall be reviewed periodically to ascertain the need for continuance or revision of existing programs or the implementation of new programs.
5. (5) The division may establish MBE/WBE subcontracting goals and may require that bidders/offerors make a good faith effort to subcontract with MBE/WBEs. The division may designate those types of solicitations in which MBE/WBE subcontracting requirements would be appropriate.

6. (6) The following expenditures may be counted toward meeting established MBE/WBE goals:

   1. (A) The total dollar value of a contract awarded to an MBE/WBE;
   2. (B) The total dollars paid by a prime contractor to an MBE/WBE for supplies and materials provided to the state in fulfillment of the contract;
   3. (C) The total dollar value of work subcontracted to an MBE/WBE by a prime contractor;
   4. (D) That portion of the total dollar value subcontracted to a certified joint venture by a prime-contractor equal to the percentage of the ownership and control of the MBE/WBE partner in the joint venture; and
   5. (E) Only expenditures to MBE/WBEs that perform a commercially useful function related to the delivery of the supplies required by the contract.
7. (7) After the contract is established, the division may monitor the activity of the contractor to assure compliance with the MBE/WBE utilization stipulated in their contract. The division may require the submission of regular reports from contractors documenting their MBE/WBE utilization.
8. (8) Contractors that fail to comply with the MBE/WBE utilization stipulated in their contract, may be considered to be in breach of contract and may be subject to such remedies as stipulated in the contract.
9. (9) The division shall maintain statistics and issue periodic reports about MBE/WBE participation.

AUTHORITY: sections 34.050, RSMo Supp. 1997 and 37.020, RSMo 1994.* Original rule filed Oct. 20, 1997, effective May 30, 1998. *Original authority: 34.050, RSMo 1939, amended 1945, 1973, 1995; and 37.020, RSMo 1990.