FAQ for MBE/WBE Ordinance Revision

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On October 25, 2018, the City Council approved and adopted amendments to Chapter 3, Code of Ordinances, by repealing Section 3-421 through 3-500 that authorized updates to the Minority & Women Business Enterprise Program; Ordinance Number 180535. Most of the amendments to the Ordinance went into effect on November 5, 2018; however, some revisions will become effective at a later date.

  • I am a certified MBE/WBE. How do the revisions affect my certification?

    For most MBE/WBE firms, the revisions will not have any effect on their certifications. For firms owned and controlled by minority females; however, the firms can now be certified as both MBE and WBE if the firm qualifies for both certifications.

  • I am a certified MBE minority female (or as a WBE). Do I need to apply for certification as a WBE (or MBE) as a result of the revision of the Ordinance?

    No. If your business qualifies for both MBE and WBE certification, staff will mail you a new certificate listing both MBE and WBE certifications to you, and update the MWBE Directory with the appropriate certification. Your certification anniversary date will stay the same for all of your company’s certifications.

  • I heard that there will now be a Personal Net Worth (PNW) threshold for the minority or women owners. Is that correct?

    Yes, there will now be a Personal Net Worth (PNW) threshold for the minority or women owners. The PNW threshold will be the same as for the Federal DBE program (currently at $1.32 M). The calculation of the owner’s PNW excludes the individual’s ownership interest in the MBE/WBE firm and the individual’s equity in the individual’s place of residence. The PNW threshold will not become effective until October 1, 2019.

  • When will the revisions become effective?

    Most of the revisions will become effective as of November 5, 2018. The Personal Net Worth (PNW) revision will not become effective until October 1, 2019. Some of the other revisions will become effective at a later date.

  • I am a new applicant for MBE (WBE) certification, and I have been in business for less than one (1) year. How will the revisions in the Ordinance affect me?

    You will now qualify for application for MBE/WBE certification if your company has been in business within the Kansas City Metropolitan Area with the firm’s principal place of business within the Kansas City Metropolitan Area for at least six (6) months. Previously, the applicant firm had to be in business for at least one (1) year. The firm will still be required to meet all of the other requirements in the Ordinance for certification as an MBE/WBE.

  • I heard that the revisions included the elimination of the requirement that the MBE/WBE does not exceed the SBA business size standards for the scopes of work performed by the business? Is that correct?

    No, the business size standard requirement is still one of the requirements for certification as an MBE/WBE. The business size standards are revised from time to time by the SBA.

  • I am a prime contractor, and I have heard that there have been changes to how the City counts MBE/WBE participation for construction materials suppliers. Is that correct?

    There has been a change in how the City counts MBE/WBE participation for Suppliers (Merchant Wholesalers). The City counts construction materials provided by certified MBE/WBE Suppliers at 60% of the cost of the materials. If the certified MBE/WBE contractor is a broker or purchasing agent to supply construction materials, the City counts the MBE/WBE participation at 10% of the cost of the materials.

  • I am an MBE/WBE prime contractor, and I have heard that I can now count my company’s participation towards the goals established for a contract. Is that correct?

    Yes, MBE/WBE prime contractors are now able to count their participation on contracts towards the goals established on the contract. Only current certified scopes of work approved on the MBE/WBE prime contractor’s certification can count towards self-performing work on a contract. The MBE/WBE prime contractor will still be required to make Good Faith Efforts to meet both the MBE and WBE goals established for the contract.

  • I am a prime contractor, and I have heard that MBE/WBE firms owned by Minority Females may now qualify for certification as both MBE and WBE. If I use one of these firms on a contract, will I be able to use them for both MBE and WBE participation?

    No, you will not be able to use the MBE/WBE firm for both MBE and WBE participation on the same contract. The identified firm must be either an MBE or WBE on the Contractor Utilization Plan (CUP) approved by the Director, but not both certifications on the same contract.

  • I am a certified as an MBE and WBE prime contractor. Will I be able to claim work that I self-perform on a contract for credit towards both the MBE and the WBE goals on the project?

    No, you will not be able to take credit for both MBE and WBE participation on the contract. You will be able to take credit for work self-performed in scopes of work for which certification you currently have towards either the MBE or the WBE goal, but not both.

  • I am the prime contractor on a current contract. Will any of these changes affect the MBE/WBE participation I am achieving on the contract?

    No, the Ordinance revisions will not affect any current contracts. The participation listed on the approved Contractor Utilization Plan (CUP) is still applicable to the current contract.

  • The City awarded my firm a contract, but the notice to proceed has not yet been issued. Will the Ordinance revisions apply to the contract?

    No, the Ordinance revisions will not affect any current contracts. The participation listed on the approved Contractor Utilization Plan (CUP) is still applicable to the current contract.

  • I am a certified MBE/WBE business, and I would like to add a scope of work to my certification. Is there any time restriction on applying for the addition of scopes of work to my certification?

    If your firm recently received your certification, your firm would have to have been certified for at least six (6) months before you could apply for a Scope Update. If you have previously submitted a Scope Update, you would have to wait at least six (6) months before applying for another Scope Update. The requirements for adding scopes of work have not changed with the revisions to the Ordinance.

  • I have not yet applied for certification as an MBE/WBE. Where can I learn more about the application process?

    Human Relations Department holds the MWDBE pre-certification workshops on the last Tuesday of every month from 1:00 PM - 3:00 PM. HRD holds the SLBE pre-certification workshops on the first Tuesday of every month at City Hall, Human Relations Department, Training Room, 414 E. 12th St., 4th Floor East, Kansas City MO 64106.

    Pre-registration is suggested, but not required to attend the workshop. For more information or to register, please call (816) 513-1836.

    Effective Date: November 5, 2018