Common use of Capacity Building Incentives Clause in Contracts

Capacity Building Incentives. Developer acknowledges that a priority of the District of Columbia is to assist local businesses in developing greater capacity, technical capabilities and valuable experience, especially in areas of development and construction related services. To that end, the parties agree that Developer will have the right to earn and receive certain incentives for engaging in activities that are likely to create opportunities for CBEs (a) The parties shall mutually devise a list of professional services, trade specialties or other vocational areas in which CBEs either lack capacity, lack depth or in which such firms traditionally do not participate as prime contractors in construction projects of this nature and size (e.g., construction management; electrical contracting; mechanical contracting; structural steel erection; and specialty roofing) (each, a “Target Sector”), and such list shall be attached hereto as Attachment 2 and made a part of this Agreement. (1) For every dollar expended with a CBE that is not a DBE for services that fall within a Target Sector, Developer shall receive credit for $1.50 against the CBE Minimum Expenditure. For example, a $200,000 contract award paid to a CBE Construction Management firm would be counted as $300,000 by DSLBD when measuring Developer’s performance against the CBE Minimum Expenditure. In addition, for every dollar expended with a DBE for services that fall within a Target Sector Developer shall receive credit for $2.00 against the CBE Minimum Expenditure (collectively, the “Reporting Bonus”). (2) In order to encourage utilization of DBEs, for every dollar expended with a DBE for services not included in a Target Sector, Developer shall receive a credit for $1.25 against the CBE Minimum Expenditure. (b) Every contract, purchase or task order (as applicable) issued by Developer to CBE firms, either directly or indirectly, which Developer believes should qualify for the Reporting Bonus shall be subject to review and approval by the Director of DSLBD (the “Director”) to ensure that the scope of work is properly characterized within a Target Sector. The Reporting Bonus will not be credited to Developer unless the Director approves the specific contract or procurement, provided, however, that a negative determination will not preclude Developer from receiving credit (either 1:1 or 1.25:1, as applicable) for the expenditure. If the Director does not complete his/her review within 10 business days of receipt of the relevant information, the Reporting Bonus will be deemed approved. (c) The parties may mutually agree in writing to additional incentives that may be earned by Developer for instituting additional capacity building initiatives for CBEs (e.g., pay without delay programs; establishment of strategic partnerships or mentor-protégé initiatives). In particular, Developer is encouraged to work with its general contractors and/or construction managers to develop more flexible criteria for pre-qualifying CBEs for participation on the Project. The modified pre-qualification criteria should consider the size and economic wherewithal usually present in small contractors as well as insurance and bonding requirements. Developer is also highly encouraged to establish CBE set-asides for certain procurements that will restrict bidders to those bid packages.

Capacity Building Incentives. Developer acknowledges that a priority of the District of Columbia is to assist local businesses in developing greater capacity, technical capabilities and valuable experience, especially in areas of development and construction related services. To that end, the parties agree that Developer will have the right to earn and receive certain incentives for engaging in activities that are likely to create opportunities for CBEs (a) The parties shall mutually devise a list of professional services, trade specialties or other vocational areas in which CBEs either lack capacity, lack depth or in which such firms traditionally do not participate as prime contractors in construction projects of this nature and size (e.g., construction management; electrical contracting; mechanical contracting; structural steel erection; and specialty roofing) (each, a “Target Sector”), and such list shall be attached hereto as Attachment 2 and made a part of this Agreement. (1) For every dollar expended with a CBE that is not a DBE for services that fall within a Target Sector, Developer shall receive credit for $1.50 against the CBE Minimum Expenditure. For example, a $200,000 contract award paid to a CBE Construction Management firm would be counted as $300,000 by DSLBD when measuring Developer’s performance against the CBE Minimum Expenditure. In addition, for every dollar expended with a DBE for services that fall within a Target Sector Developer shall receive credit for $2.00 against the CBE Minimum Expenditure (collectively, the “Reporting Bonus”). (2) In order to encourage utilization of DBEs, for every dollar expended with a DBE for services not included in a Target Sector, Developer shall receive a credit for $1.25 against the CBE Minimum Expenditure. (b) Every contract, purchase or task order (as applicable) issued by Developer to CBE firms, either directly or indirectly, which Developer Xxxxxxxxx believes should qualify for the Reporting Bonus shall be subject to review and approval by the Director of DSLBD (the “Director”) to ensure that the scope of work is properly characterized within a Target Sector. The Reporting Bonus will not be credited to Developer unless the Director approves the specific contract or procurement, provided, however, that a negative determination will not preclude Developer from receiving credit (either 1:1 or 1.25:1, as applicable) for the expenditure. If the Director does not complete his/her review within 10 business days of receipt of the relevant information, the Reporting Bonus will be deemed approved. (c) The parties may mutually agree in writing to additional incentives that may be earned by Developer for instituting additional capacity building initiatives for CBEs (e.g., pay without delay programs; establishment of strategic partnerships or mentor-protégé initiatives). In particular, Developer is encouraged to work with its general contractors and/or construction managers to develop more flexible criteria for pre-qualifying CBEs for participation on the Project. The modified pre-qualification criteria should consider the size and economic wherewithal usually present in small contractors as well as insurance and bonding requirements. Developer is also highly encouraged to establish CBE set-asides for certain procurements that will restrict bidders to those bid packages.

Capacity Building Incentives. Developer acknowledges that a priority of the District of Columbia is to assist local businesses in developing greater capacity, technical capabilities and valuable experience, especially in areas of development and construction related services. To that end, the parties agree that Developer will have the right to earn and receive certain incentives for engaging in activities that are likely to create opportunities for CBEs (a) The parties Developer shall mutually devise a list of professional services, trade specialties specialties, or other vocational areas in which CBEs either lack capacity, lack depth depth, or in which such firms traditionally do not participate as prime contractors in construction projects of this nature and size (e.g., construction management; electrical contracting; mechanical contracting; structural steel erection; and specialty roofing) (each, a “Target Sector”), and such submit the list to DSLBD for approval within thirty (30) days of signing this Agreement. CBEs identified on the list shall not be eligible for a bonus, as described in paragraphs (1), (2), and (3) below (“Reporting Bonus”), unless the list is approved by DLSBD. Such list shall be attached hereto as Attachment 2 and made a part of this Agreement. (1) For every dollar expended with a CBE that is not a DBE for services that fall within a Target Sector, Developer shall receive credit for $1.50 against the CBE Minimum Expenditure. For example, a $200,000 100,000 contract award paid to a CBE DBE Construction Management firm within the Target Sector would be counted as $300,000 150,000 by DSLBD when measuring Developer’s performance against the CBE Minimum Expenditure. In addition, for . (2) For every dollar expended with a CBE that is not a DBE for services that fall within a Target Sector Sector, Developer shall receive credit for $2.00 1.25 against the CBE Minimum Expenditure (collectivelyExpenditure. For example, a $100,000 contract award paid to a CBE Construction Management firm within the “Reporting Bonus”)Target Sector would be counted as $125,000 by DSLBD when measuring Developer’s performance against the CBE Minimum Expenditure. (23) In order to encourage utilization of DBEs, for For every dollar expended with a DBE for services not included in a Target Sector, Developer shall receive a credit for $1.25 against the CBE Minimum Expenditure. For example, a $100,000 contract award paid to a DBE Construction Management firm outside of the Target Sector would be counted as $125,000 by DSLBD when measuring Developer’s performance against the CBE Minimum Expenditure. (b) Every contract, purchase or task order (as applicable) issued by Developer to CBE firms, either directly or indirectly, which Developer believes should qualify for the Reporting Bonus shall be subject to review and approval by the Director of DSLBD (the “Director”) to ensure that the scope of work is properly characterized within a Target Sector. The Reporting Bonus will not be credited to Developer unless the Director approves the specific contract or procurement, provided, however, that a negative determination will not preclude Developer from receiving standard credit (either 1:1 or 1.25:1, as applicable) for the expenditure. If the Director does not complete his/her review within 10 business days of receipt of the relevant information, the Reporting Bonus will be deemed approvedexpenditure as set forth herein. (c) The parties may mutually agree in writing to additional incentives that may be earned by Developer for instituting additional capacity building initiatives for CBEs (e.g., pay without delay programs; establishment of strategic partnerships or mentor-protégé initiatives). In particular, Developer is encouraged to work with its general contractors and/or construction managers to develop more flexible criteria for pre-qualifying CBEs for participation on the Projectmixed- use projects. The modified pre-qualification criteria should consider the size and economic wherewithal usually present in small contractors as well as insurance and bonding requirements. Developer is also highly encouraged to establish CBE set-asides for certain procurements that will restrict bidders to those bid packages.