Minority and Women-Owned Businesses (MBE/WBE)

The State of Nebraska is required by Federal statute to conduct outreach to MBE/WBE for activities conducted under the CDBG-DR Program. “MBE/WBE Utilization” is the percentage of project funds spent on MBE/WBE firms. The State of Nebraska does not use specific percentage targets or requirements but encourages the use of MBE/WBE firms as appropriate. To be an eligible MBE or WBE, a firm must be at least 51 percent owned, controlled, and managed by individual(s) who are minorities and/or women.

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Refer to Chapter 15: MBE WBE of the CDBG-DR Manual for further guidance related to this cross-cutting requirement. See also the following HUD resource:

• Guidance on Minority Business Enterprise and Women’s Business Enterprise Outreach

Nebraska Department of Economic Development

DED is committed to making a good faith effort to utilize MBE/WBEs in contracts for construction, services (including professional and consulting services), and commodities purchases. HUD’s minimum standards[1] require that MBE/WBE outreach efforts be:

• Supported by a statement of public policy and commitment published in the print media of widest local circulation;
• Supported by an office and/or a key, ranking staff person with oversight responsibilities and access to the chief elected official; and
• Designed to utilize all available and appropriate public and private sector resources.

Subrecipients and Successful Applicants

Per this statutory requirement, all Subrecipients and Successful Applicants must develop an MBE/WBE plan that demonstrates marketing and solicitation of MBE/WBE businesses and contractors, including a process to complete the above-described activities. DED will review all MBE/WBE plans after signature of the Subrecipient Agreement or Funding Agreement, and before the first payment of the project. For purposes of the Infrastructure Match Program, projects completed prior to the HUD/DED grant agreement date (July 7, 2021) do not require a MBE/WBE plan. For any questions, please contact DED. Unless otherwise specified, all requirements are applicable for any entity conducting local implementation under the CDBG-DR program.

[1] HUD provides guidance regarding this requirement via the HUD Exchange website. See  https://files.hudexchange.info/resources/documents/MBE-WBE_Outreach.pdf.

Subrecipients and Successful Applicants must maintain compliance with these policies and procedures to be considered eligible for CDBG-DR funding.  The Nebraska Department of Administrative Services, Materiel Division, State Purchasing Bureau maintains MBE/WBE designation forms and an “Application for Inclusion on Bid List” form. Section 281 of the National Affordable Housing Act encourages the program Grantee (i.e., DED), Subrecipients, and Successful Applicants, among others:

• Develop a systematic method for identifying and maintaining an inventory of certified MBE/WBEs, their capabilities, services, supplies, and/or products;
• Utilize the local media, electronic and print, to market and promote contract and business opportunities for MBEs and WBEs;
• Develop informational and documentary materials (fact sheets, program guides, procurement forecasts, etc.) on contract/subcontract opportunities for MBEs and WBEs;
• Develop procurement procedures that facilitate opportunities for MBEs and WBEs to participate as vendors and supplies of goods and services;
• Sponsor business opportunity-related meetings, conferences, seminars, etc., with minority and women business organizations; and
• Maintain centralized records with statistical data on the utilization and participation of MBEs and WBEs as contractors/subcontractors in all HUD-assisted program contracting activities.

The plan to carry out these activities must be articulated in a MBE/WBE outreach plan that is approved by DED, with clear demonstration of a good faith effort to complete planned activities via reporting in quarterly reports to DED. The MBE/WBE outreach plan should be approved by DED as soon as possible after the Subrecipient or Funding Agreement signature, or before a new contract is put out for bid. Failure to comply with the above requirements may result in the following non-compliance actions by DED.

[1] See also the Chapter 16: Monitoring and Compliance Plan.

DED requires that Subrecipients and Successful Applicants develop their MBE/WBE Plan using the Plan template provided by DED (see MBE/WBE Outreach Plan).

Efforts are characterized under two main categories:

• Efforts to award contracts to MBE/WBEs; and
• MBE/WBE outreach.

DED, Subrecipients and Contractors should adopt and implement affirmative steps for implementing MBE/WBEs Utilization. See Chapter 15: MBE WBE of the CDBG-DR Manual for further guidance.

Subrecipients and Successful Applicants must complete quarterly reports as a part of regular program activities (see also Chapter 16: Monitoring and Compliance Plan).

DED, Subrecipients, and Successful Applicants are also required to complete HUD Form 2516 for reporting contract and subcontract activities of $10,000 or more under CDBG-DR. Contracts and subcontracts of less than $10,000 need to be reported only if such contracts represent a significant portion of the total contracting activity.

The information from HUD Form 2516 is used by HUD to monitor and evaluate MBE/WBE activities against the total program activity and the designated MBE/WBE goals. DED requires the information to provide guidance and oversight for programs for the development of MBE/WBEs. If the information is not collected, HUD would not be able to establish meaningful MBE/WBE goals nor evaluate performance against these goals.

At a minimum, DED will use Subrecipient and Successful Applicant reporting to maintain the following records:

• MBE/WBE Outreach Plan;
• Quarterly Reporting;
• Documentation of Efforts; and
• Other Supporting certifications needed on file, as identified by DED.

 Documentation of efforts should capture the number and dollar value of all contracts awarded to businesses and, in particular, MBE/WBEs during the fiscal year, a description of the best efforts made to award contracts to MBE/WBEs; and the mechanisms by which contractors and subcontractors complied with the MBE/WBE preferences for training, employment, and contract awarding. For further information related to recordkeeping and data management, refer to Chapter 17: Recordkeeping and Data Management.