CITY AND COUNTY OF DENVER

DEPARTMENT OF GENERAL SERVICES WELLINGTON E. WEBB

MUNICIPAL OFFICE BUILDING
Purchasing Division 201 WEST COLFAX AVE.,
JOHN W. HICKENLOOPER
www.denvergov.org/purchasing DEPT. 304, 11TH FLOOR
MAYOR DENVER, CO 80202
PHONE: (720) 913-8100
FAX: (720) 913-8101

March 16, 2011

REQUEST FOR COMMENT

Request for Proposal No. 6681

Minority/Women Owned/Disadvantaged Business Enterprise Disparity Study and Registered

Apprenticeship Study

This Request for Comment (RFC) is related to a forthcoming Request for Proposal (RFP),

¾ The City encourages public input. Interested party’s who would like to send comments or questions
with reference to content contained herein may do so by emailing them to:

michael.romero@denvergov.org by Tuesday, March 29th, 2011 5:00 P.M.

o In the subject field of your email please indicate the following:

“Request for Comment 2011-RFP #6681”

o Prior to each comment, please reference the specific section below to which it applies.
For Example: “Per Section B.2.b.H Paragraph 3) - I would like the City to consider…”

¾ In addition, a Public Meeting will be held on Friday, March 25, 2011 from 11:00 A.M. to 1:00 P.M.
Location: Webb Building 201 West Colfax, 80202- Room 1.B.6 (Clerk and Recorder’s Office
Area)

City personnel will speak to this Request for Comment as it relates to the development of an RFP for the
Disparity/ Apprenticeship Utilization Study. In addition, they will also respond to public inquiries related
to this RFC.

Regards,

Michael Romero
Senior Buyer
G.S. Purchasing Division
City and County of Denver
www.denvergov.org/purchasing

-RFP Scope of Work and Evaluation Criteria follows-

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Request for Proposal No .6681
Minority/Women Owned/Disadvantaged Business Enterprise Disparity
And Registered Apprenticeship Study
SECTION B: SCOPE OF WORK AND TECHNICAL REQUIREMENTS

B.1 REQUIREMENTS:
The City & County of Denver is seeking a qualified consultant/firm to prepare and deliver two (2)
comprehensive studies concerning the following:

B.1.a One (1) Disparity Study which is a statistical analysis of the availability and utilization of Minority/
Women/ Disadvantaged Business Enterprises in the contracting areas set forth below.

B.1.b One (1) Study related to Registered Apprenticeship Utilization in the Denver Area.

B.2 MINORITY/ WOMEN/ DISADVANTAGED BUSINESS ENTERPRISE STUDY:

B.2.a BACKGROUND:

A. MBE/WBE Program. Since November 2006, approximately, the City, acting by and through the Division
of Small Business Opportunity (DSBO), Office of Economic Development (OED), has administered a
MBE/WBE program. This is a program of nondiscrimination in city contracts for construction, reconstruction,
and remodeling, and professional design and construction services. It is designed to prevent discrimination and
its effects against business enterprises, which have been certified as minority business enterprises ("MBEs")
and/or woman business enterprises ("WBEs"). A disparity study for this program was conducted in May 2006.
The findings of this study were used to narrowly tailor the City’s MBE/WBE nondiscrimination program
towards meeting the legal requirements established by relevant decisions of the United States Supreme Court,
Circuit Courts of Appeal, and District Courts. This program is codified at Den. Rev. Municipal Code Sec. 28-
31 through 28-90.

B. DBE/ACDBE Program. The City also administers a Disadvantaged Business Enterprise (“DBE”) Program
for the award of construction and construction related professional services contracts funded by the United
States Department of Transportation (USDOT), pursuant to 49 CFR Part 26, and Airport Concessions contracts,
pursuant to 49 CFR Part 26.

B.2.b SCOPE OF SERVICES/ DELIVERABLES:

A. General Requirements and Information: The Availability and Disparity study (the “Study”) will analyze
the following four categories of contracting opportunities in order to identify with particularity whether a
statistical disparity exists from which may be inferred the existence of past or present public or private
discrimination in the appropriate local market area:

1) The award and procurement of Construction and Construction-related Professional Services

contracts funded by the City and awarded by the City’s Department of Public Works, the Department of
General Services; Department of Aviation and other City user departments and agencies.

2) The award and procurement of concession related goods and services contracts at Denver
International Airport.

3) The procurement of services by the City’s Department of General Services Purchasing Division
specific to: General Business Services, Building Management and Maintenance Services, Parking Services,
Furniture, Fixtures, and Equipment (FF&E),Communication Equipment and Services, Security Services,
Maintenance and Repair Services including Landscaping, and Waste Management Services. For purposes
of this RFP, the services recited in the preceding sentence may, at times, be referred to as, “G.S.P.D.
Procured Services”.

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B. Additional Requirements/ Information:
1) The Study will contain, for each contracting area, all necessary findings of fact and legally
defensible methodologies sufficient to withstand legal challenge in accordance with published case law and
applicable statutory framework. In addition, with respect to the federal DBE and ACDBE programs, the
Final Availability and Disparity Study will be sufficient for the City to comply with any requirements of
USDOT concerning the receipt of federal funds pursuant to 49 CFR Part 23 and Part 26.

2) Accurate dollar figures, the number of vendors involved by category and the total number of
contracts involved for 2005-2009 have not been established. It is expected that this analysis and
compilation would be part of the work product of this study. For information only, an earlier study using
information from the City’s database produced the following information for the period of January 2003 –
December 2004 (millions) for procurement:

a. General Business Services- $14.0

b. Building Management and Maintenance Services- $56.5
c. Parking Services- $41.4
d. Communication Equipment and Services- $39.5
e. Security Services- $27.9
f. Maintenance & Repair, including Landscaping- $18.7
g. Waste Management Services- $14.7
h. FF&E- $8.7

3) For information only, an earlier study using information from the City’s database produced the
following information for the period of January 2000 – December 2004 (millions) for construction and
construction related contracts:

a. Construction- $1,439,914,142
b. Prime Contracts- 1,021,358,775
c. Subcontracts- $418,555,367
d. Construction-Related Professional Services- $239,158,064
e. Prime Contracts- $179,994,642
f. Subcontracts- $59,163,962

C. Project Requirements:
1) The selected consultant/firm will be required to work closely with the City’s Director of the
Division of Small Business Opportunity. The consultant/firm must, at a minimum:
a) identify key managers/stakeholders,
b) advise/assist in the creation of a task force,
c) determine data requirements,
d) schedule and facilitate required meetings,
e) review existing contracts and procurement methods,
f) create status reports as agreed upon/required,
g) upon agreement by the City, identify, schedule, survey, and interview outside resources of
anecdotal evidence, if required,
h) schedule and facilitate any public hearings recommended to gather information,

2) Periodic payments not to exceed fifty percent (50%) of the maximum contract amount will be
made upon completion and acceptance of the Availability Analysis of the Study. A final payment equal to
fifty percent of the maximum contract amount will be made upon completion and acceptance of the final
Disparity Study.

3) The City intends to receive a completed study by no later than June 1, 2012. Proposers will
provide a detailed description of the proposed timeline for completion of the project.

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D. Data Review, Collection:

1) The study will consider 5 years (2005 – 2009) for each contracting area indicated in B.2.B.a Data
Review will include data sources for contracts with and without M/W/DBE goals).

2) A sample of the data available from the City’s database is attached and titled “Disparity Study
Extract”. Please see Exhibit A attached.

E. Study Requirements:

1) The Study will determine whether there is a significant statistical disparity between the availability
of qualified, willing and able minority, woman owned, and disadvantaged businesses (in each of the four
contracting areas set forth in Section B.2.b.A above) and the utilization of such businesses by the City or by
the City’s prime contractors categorized by major racial/ethnic and gender categories.

2) For the purpose of the requested study, minority owned businesses are those that are at least 51%
owned and controlled by one or more citizens or lawful permanent residents of the United States who are
either African American, Hispanic American, Asian American, or Native American. A woman owned
business is one that is at least 51% owned and controlled by one or more citizens or lawful permanent
residents of the United States who are non-minority females. A disadvantaged business, for purposes of
this RFP, is defined by USDOT 49 CFR Part 26 or Part 23.

F. Analysis of M/W/DBE Availability in the Relevant Denver Market Area:

1) For each of the contracting areas set forth in Section B.2.b.A above, the Study will determine the
number of qualified, willing and able MBE, WBE and DBE businesses available to participate in the City’s
M/WBE and DBE programs categorized by industry and by major racial/ethnic and gender categories for
each contracting category.

2) The Study will determine the relevant local market area to establish an estimate of availability for
MBEs, DBEs, and WBEs each contracting area.

3) The Study will include an analysis of “capacity” as a component of being “able”. The analysis of
availability will include a detailed and comprehensive definition of the Study’s measure of availability and
will identify how such availability was calculated. Businesses that are ready, willing and able to perform
business are those that are capable of providing the required work or goods, and available to perform when
solicited.

4) Availability analysis will identify all methods to review available sources of data sufficient to
establish an estimate of percentage availability of qualified MBE, WBE, and DBE businesses categorized
by industry and major racial/ethnic and gender categories. Proposers will provide detailed narratives
describing its data collection and review methods including a review of available directories of certified
MBE, WBE, and DBE firms, bidders lists, if any, and other pertinent information, as appropriate, to
determine availability of qualified MBE, WBE, and DBE businesses categorized by industry and by major
racial/ethnic and gender categories.

5) The final Study will categorize availability statistical information and findings, for each of the four
contracting areas set forth in Section set forth in Section B.2.b.A above, based on all DBEs as a group and
by individual category and all MBEs as a group and by individual category including the following:
African American, Hispanic American, Asian American, or Native American, Women and White males
(non DBEs).

6) The Availability Analysis will include a determination of the availability of ready, willing and
able M/W/DBE firms and the availability and capacity of such firms that would reasonably be expected to
exist, absent any past discrimination (if found).

7) All Methodologies implemented in the Availability Analysis will be thoroughly researched,

reviewed, and documented to withstanding legal challenge.

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G. Disparity Analysis:

1) The successful proposer will determine whether a statistically significant disparity exists between
the availability of ready, willing and able M/W/DBE firms and the utilization of such firms in the City’s
respective contracting areas (whether as prime contractors, subcontractors or suppliers).

2) All study methodologies used to identify any disparity or disparities must be thoroughly
researched, reviewed, and documented in order to withstand legal challenge. Analysis will use appropriate
and relevant multivariate/regression analysis to determine the effect of any factors other than discrimination
that may account for statistical disparities between availability and utilization.

3) The Disparity Analysis will include but is not limited to:

a) Analysis of Statistical Disparities, if any, in M/W/DBE business formation and projected growth
rates. This may include the number of paid minorities and women in relevant companies and their
positions and areas of expertise, impediments to the movement of minorities and women from craft and
other positions into business ownership; and any barriers or problems related to the development and
expansion of minority and woman owned businesses;

b) Analysis of Statistical Disparities, if any, concerning the access by M/W/DBE firms to

commercial capital, credit, bonding, and business, family, and social networks, as compared to non-
M/W/DBE firms while holding balance sheet and creditworthiness information constant.

c) Analysis of Statistical Disparities, if any, of the percentage of all prime contract and subcontract
revenues earned by M/W/DBE firms under contracts awarded by the City or the local marketplace into
which the City infuses its tax dollars categorized by industry and by major racial/ethnic and gender
categories for each contracting category. This analysis may include disparity analysis of revenues per
employee;

d) A statistical comparison of public sector utilization (non-City) to availability categorized by

industry and by major racial/ethnic and gender categories to determine any public sector disparity ratios in
the relevant market area;

e) A statistical comparison of private sector utilization to availability categorized by industry and by

major racial/ethnic and gender categories to determine any private sector disparity ratios in the relevant
market area;

f) A detailed analysis of the effects, if any, of over- concentration of M/W/DBE firms and non
M/W/DBE firms in specific work categories or subcategories. This may include analysis of whether firm
size and experience have any effect on reported disparities;

g) An analysis of whether the City is a passive participant in racial, ethnic or gender discrimination.
The selected proposer must investigate, describe, and evaluate practices that may indicate discrimination in
the relevant market places that are the subjects of the Disparity Study. In addition, the study will identify
any links of the City’s expenditure of public finds to any discrimination occurring in, by or through the
appropriate marketplace;

h) Analysis that controls for the estimated past impacts of the implementation of M/W/DBE
programs on any overutilization or any underutilization.

H. Additional Areas of analysis, at a minimum, will include:

1) An analysis of discriminatory patterns and practices, if any, of local trade associations, unions,
suppliers, lending institutions, and contractors that affect the success of M/W/DBE firms. For example,
these activities might include such practices as bid shopping, bid manipulation, price discrimination by
suppliers and discrimination in payments, bonding requirements, lending practices, capital requirements,
complicated bidding processes and commercial leasing;

2) A detailed description of any patterns of discrimination that adversely or disproportionately affect

the number of willing and capable M/W/DBE firms. The selected proposer shall specify the methodology
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 to be used in accomplishing the above tasks, taking care to assure that any allegations of discrimination
noted in the Final Report are focused, identified, and documented;

3) A qualitative narrative of anecdotal evidence of discrimination from M/W/DBE firms and non-
DBE firms concerning experiences doing business or attempting to do business in the relevant marketplace,
including experiences of institutionalized discrimination or individual instances of disparate treatment,
gathered through surveys, personal interviews, focus groups, public hearings, or other information
gathering techniques. Proposers will identify methods to memorialize anecdotal evidence including but not
limited to recording any beliefs that reported incidents of discrimination were motivated by race or gender
bias and any beliefs that majority owned firms were not subjected to the same behavior;

4) A detailed qualitative and/or quantitative analysis of the effectiveness of both race and gender
conscious and race-neutral/gender neutral measures to address any over-utilization or under utilization of
MBEs, WBEs, and DBEs in the City’s public contracting processes;

5) A detailed description of methods to ensure that any proposed M/W/DBE program will be capable
of withstanding legal challenge under federal equal protection analysis for MBEs, WBEs, and DBEs doing
business in each contracting area .

I. Program Recommendations: The successful proposer shall be required to:

1) Review the City’s existing and proposed Procurement/Contracting Policies and Procedures related
to M/W/DBE utilization and provide recommendations for changes/revisions designed to improve the
effectiveness and narrow tailoring of the M/W/DBE programs and to increase legal compliance;

2) Provide detailed recommendations to improve the City’s efforts to comply with legal requirements
concerning the M//W/DBE programs including but not limited to annual and specific project goal setting
processes, certification process, and other regulatory compliance issues.

J. Final Report:

1) The complete and final Disparity Study Report shall contain recommendations on how often a
study should be conducted in order to maintain the validity and integrity of the program and also
recommend efforts the City can complete (data collection, etc.), towards reduction of future study costs (i.e.
how to best implement an effective bidders list, etc.).

2) The Final Study Report shall include the following minimum elements:
a) Name and signature of the person(s) responsible for the preparation of the analyses and the report
including a description of their credentials supporting their expertise and qualifications to conduct the
Disparity Analysis;
b) Executive Summary of findings and conclusions;
c) Definition section, including a definition of all racial and ethnic groups considered in the report;
d) Background Section: Detailed descriptions of all-pertinent methodology, results, discussions,
conclusions, and recommendations;
e) Legal Analysis Section: Description of the legal framework for the analysis to include specific
note of any relevant federal and State of Colorado laws and court decisions;
f) Assumptions Section: Discussion of all assumptions that influenced the analysis. Discussion must
include:
(i) any approach(es) utilized and support for such approach(es);
(ii) the market area and regional breakdown and reasoning utilized for such breakdown;
(iii) any contracts or information included or not included in the Availability Analysis and the
reason(s) for their inclusion or exclusion;
(iv) limitation(s) on the use of any data/proxies;
(v) how each relevant term – qualified, willing and capable – should be measured; a calculation of the
projected growth of M/W/DBE firms over the next five (5) years in the relevant market areas consistent
with the overall general business growth in the study area, particularly, as it relates to the City’s
construction and construction related industry categories and for Airport Concessions.

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K. Presentation of Final Report:

1) Present the results of the Final Study Report to the task force and key managers/stakeholders in a
downtown meeting,
2) Present the results of the Final Study Report to the management of Denver International Airport,
3) Participate in any required Public Hearing(s) with the Denver City Council.

B.3 APPRENTICESHIP STUDY:

B.3.a BACKGROUND:

A. The City has been approached about implementing an apprenticeship utilization program that would require
a certain amount of labor hours dedicated to apprentices. This study will examine and compare the historical
utilization of Certified and Registered apprentices used in publicly-funded City projects versus private industry
projects.

B.3.b SCOPE OF SERVICES/ DELIVERABLES:

A. General Requirements and Information:

1) This study will focus on ‘Registered’ Construction and Trades Apprentices enrolled in ‘Certified
Apprenticeship Program’ recognized and approved by the U.S. Department- Labor Office of
Apprenticeship (O.A.T).
http://www.doleta.gov/oa/

2) The Study will contain, as a whole and for each segment, findings of fact and legally defensible
methodologies sufficient to withstand legal challenge.

3) The study timeframe will consider data from the following years: 2007, 2008, and 2009.

B. Project Requirements:
1) The selected consultant/firm will be required to work closely with the City’s Director of the
Division of Small Business Opportunity. The consultant/firm must, at a minimum:
a) identify key managers/stakeholders,
b) advise/assist in the creation of a task force,
c) determine data requirements,
d) schedule and facilitate required meetings,
e) review existing contracts and procurement methods,
f) create status reports as agreed upon/required,
g) upon agreement by the City, identify, schedule, survey, and interview outside resources of
anecdotal evidence, if required,

h) schedule and facilitate any public hearings recommended to gather information,

2) The City intends to receive a completed study by no later than June 1, 2012. Proposers will
provide a detailed description of the proposed timeline for completion of the project.

C. Study Requirements:

1) The Study will identify the Construction Trades that have certified Apprenticeship Programs
Registered with U.S. Department- Labor Office of Apprenticeship located in the relevant local trades
markets.

2) The successful proposer shall then provide statistical data indicating the average and maximum
number (over the course of three years) of ‘Registered’ apprentices in the each of the trades identified
above in line 1.

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 3) The successful proposer will determine the actual utilization of the apprentices in line two above
for both public (City and County of Denver) and private construction projects during the three year
timeline.

D. Final Report:

1) The Study Final Report shall include the following minimum elements:
a) Name and signature of the person(s) responsible for the preparation of the analyses and the report
including a description of their credentials supporting their expertise and qualifications to conduct the
Apprentice Study;
b) Executive Summary of findings and conclusions;
c) Definition section, including a description of ‘Registered’ trades in the report;
d) Background Section: Detailed descriptions of all-pertinent methodology, results, discussions,
conclusions, and recommendations;
e) Legal Analysis Section: Description of the legal framework for the analysis to include specific
note of any relevant federal and State of Colorado laws and court decisions;
f) Assumptions Section: Discussion of all assumptions that influenced the analysis. Discussion must
include:
(i) any approach(es) utilized and support for such approach(es);
(ii) the market area and regional breakdown and reasoning utilized for such breakdown;
(iii) any contracts or information included or not included in the Apprenticeship Study and the
reason(s) for their inclusion or exclusion;
(iv) limitation(s) on the use of any data/proxies;

E. Presentation of Final Report:

1) Present the results of the Final Study Report to the task force and key managers/stakeholders in a
downtown meeting,
2) Participate in any required Public Hearing(s) with the Denver City Council.

EVALUATION CRITERIA

a. The following is an overview of criteria the City will evaluate in regards to each proposal; this list is a
general outline and is not inclusive. (The following will be reviewed in regards to both studies)
• Price
• Technical Merit
-Contractor’s experience
-Methodology(s) and approach
-Proposed project timelines
-Previous disparity studies
-Project team/ credentials
-Previous experience defending studies/ legal review
-Quality control procedures

-END-

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