Guidance on IAS TORFP MBE Goal Setting Process


The objective of this document is to help Independent Assessment Services (IAS) contract users set appropriate Minority Business Enterprise (MBE) goals for each IAS Task Order Request for Proposal (TORFP). The MBE goal setting process has three distinct parts:

  • Setting goals for MBE sub-contractor involvement
  • Setting goals for Veteran Small Business Enterprises (VSBE) sub-contractor involvement
  • Determining if the procurement should be a Small Business Reserve (SBR)

Setting Goals for MBE Sub-contractor Involvement

The IAS Master Contract requires a minimum overall MBE subcontractor participation goal of 15 % with no sub-goals for the aggregate of all task orders awarded. This does not mean that every IAS TORFP must set a 15% goal; some will be higher and some will be lower, depending upon the pertinent circumstances of each TORFP. MBE goals should be evaluated on an individual task order basis, with the objective being to establish a reasonable and attainable MBE goal, given the specifics of the IAS TORFP scope of work and other factors as discussed below. This document and accompanying worksheets have been developed to assist you in this effort.

Each Agency is required to submit the IAS MBE/VSBE/SBR Participation Worksheet with the IAS TORFP package, to provide the rationale behind their recommended MBE goal. The purpose of the Worksheet is to establish an appropriate MBE goal that is in compliance with the IAS Master Contract and consistent with the MBE Program. This worksheet has been updated so that it covers VSBE goals as well as MBE goals.

The Department of Information Technology (DoIT) will review the IAS MBE/VSBE/SBR Participation Worksheet to verify that guidelines are followed and the recommended MBE goal is substantiated.

Recommending MBE Goals

When recommending an MBE goal, an agency should consider knowledge of the industry, project history, elements of the IAS TORFP that can be segmented, and the potentially available MDOT-certified MBE pool.

Take into consideration any historical data from similar contracts when analyzing the goal for an IAS TORFP. Is this IAS TORFP replacing a current task order or contract? Based on that analysis, the following questions should be considered:

  • Is the MBE goal for the current IAS TORFP being met? If not, why not?
  • Were the subcontracting opportunities over / under estimated?
  • Are MBE firms unavailable during the task order term?
  • Was the dollar value of subcontracting opportunities over / under estimated?
  • Is the current MBE goal being exceeded?

Next, search the Maryland Department of Transportation (MDOT) MBE directory to determine the firms that are certified in the work areas that have been identified as susceptible to subcontracting. To access the most comprehensive list, conduct database searches by: 1) appropriate keyword(s) and, 2) specific SIC/NAICS code(s).

IAS Master Contractors are encouraged to use MBE/DBE firms to meet MBE goal established for the IAS TORFP.

The attached worksheets will serve as a record of your MBE goal setting analysis and also as a model for future reference whenever recommending IAS TORFP MBE goals.

EFFECTIVE June 9, 2014, GOMA has revised all MBE procedures, forms and reports

New MBE regulations for Agencies and Business Community:

In 2014, Maryland adopted new regulations as part of its Minority Business Enterprise (MBE) program concerning MBE primes. These new regulations which became effective June 9, 2014, provide that when a certified MBE firm participates as a prime contractor on a contract, an agency may count the distinct, clearly defined portion of the work of the contract that the certified MBE firm performs with its own forces toward fulfilling up to fifty-percent (50%) of the MBE participation goal (overall) and up to one hundred percent (100%) of not more than one of the MBE participation subgoals, if any, established for the contract.

Setting Goals for VSBE Sub-contractor Involvement

In general, the process used to establish VSBE goals is similar to that used for MBE sub-contractor goals. There is really only one difference in the process:

  1. To Search for available VSBE vendors, the process is similar in that it also uses SIC/NAICS codes, however the site that is searched is the FEDBIZOPS site.

The VSBE contractor is separate and distinct from any MBE sub-contractors.

Determining the SBR

A race-and gender-neutral program, minority status is not a criteria for participation in the SBR Program.

The SBR Program applies to 23 designated State agencies. Under the State Procurement Law, these agencies are required to spend at least 10% of their total fiscal year procurement expenditures with qualified small businesses. Md. Code Ann., State Fin. 7 Proc.Art. §14-501-14-505 (2011 Supp).

Click here for the designated agencies.

Designating the TORFP as an SBR restricts prime contractors to only those that are members of the SBR. In the case of IAS, two of the five Master Contractors are members of the SBR.

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