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State Revolving Fund Procurement Guidance

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Background

The Texas Water Development Board (TWDB) administers the Clean Water and Drinking Water State Revolving Fund (SRF) programs, which receive federal funding from the U.S. Environmental Protection Agency (EPA). These programs provide financial assistance for drinking water and wastewater infrastructure projects.

The SRF programs are committed to promoting equitable and nondiscriminatory procurement opportunities for contracts funded through the Clean Water and Drinking Water SRFs, specifically for Equivalency projects. This includes both construction and non-construction activities such as the purchase of supplies, equipment, and services.

Although the EPA has suspended certain Disadvantaged Business Enterprise (DBE) reporting requirements within the SRF programs, recipients are still obligated to carry out the six good faith efforts as specified in Title 40, Chapter 1, Subchapter B, Part 33, Subpart C of the EPA regulations.

Guidance

For detailed instructions on the Texas Water Development Board's (TWDB) review for DBE compliance, the Program Guidance (TWDB-0210) document is available for your convenience.

Six Good Faith Efforts

  1. Ensure DBEs are made aware of contracting opportunities to the fullest extent practicable through outreach and recruitment activities.  For Indian Tribal, state and local government recipients, this will include placing DBEs on solicitation lists and soliciting them whenever they are potential sources.
  2. Make information on forthcoming opportunities available to DBEs and arrange time frames for contracts and establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by DBEs in the competitive process.  This includes, whenever possible, posting solicitations for bids or proposals for a minimum of 30 calendar days before the bid or proposal closing date.
  3. Consider in the contracting process whether firms competing for large contracts could subcontract with DBEs.  For Indian Tribal, state and local government recipients, this will include dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by DBEs in the competitive process.
  4. Encourage contracting with a consortium of DBEs when a contract is too large for one of these firms to handle individually.
  5. Use the services and assistance of the Small Business Administration (SBE) and the Minority Business Development Agency of the Department of Commerce.
  6. If the prime contractor awards subcontracts, require the prime contractor to take the above steps.

Requirements and Recommendations

Solicitation Statement

To be compliant with the DBE Program, all solicitations, both publicly advertised and via direct contact, must address 1) good faith efforts; 2) the involvement of federal EPA funding; and 3) encouragement of all prime and subcontractor bidders.

To ensure compliance, the TWDB recommends including the following language in all solicitations:

This contract is subject to the Texas Water Development Board (TWDB) and the Environmental Protection Agency's (EPA) Disadvantaged Business Enterprise (DBE) Program, which includes and offers procurement opportunities to all businesses during solicitations. EPA rules require that applicants and prime contractors/consultants make a good faith effort to award a fair share of contracts, subcontracts, and procurements in a nondiscriminatory manner through demonstration of the six affirmative steps. For more details of the DBE Program, please visit www.twdb.texas.gov/DBE.

Required Forms

Submission Timing

Project Application Phase
Applicants requesting federal financial assistance through the State Revolving Fund (SRF) must include a TWDB-0215 form with the application.

Commitment and Closing Phase
After receiving a commitment, but 30 days prior to closing, applicants must provide a TWDB-0217 form for the project’s Prime Engineer, Financial Advisor, and Bond Counsel indicating availability of any subconsultant opportunities, or if the prime will be self-performing 100 percent of the contract. Failure to comply or include a contractor and/or contract may result in delayed or denied payment.

Planning and Designing Phase (PAD)
Some projects require additional procurements during the planning phase for geotechnical and materials testing, pilot testing, surveying, archeological surveys, etc. Projects requiring additional procurement during the PAD Phase will require submittal of the signed TWDB-0217 form once the service contract has been awarded.

Construction Contract Phase
For each Construction Contract, financial recipients or their representative must provide a TWDB-0217 form for the project’s Prime Contractor indicating availability of any subcontracting opportunities, or if the prime will self-perform 100 percent of the contract. Failure to comply or include a contractor and/or contract may result in delayed or denied payment.

External SRF Procurement Training

Highly recommended for financial recipients and their primes to assist in meeting solicitation/procurement requirements on "equivalency" funded projects.

Contact Us

For assistance related to the TWDB's SRF Procurement process, please email Jo Bradshaw or DBE@twdb.texas.gov or call (512) 463-4841.