Economic Impact Program: Construction Manager/ Subcontractor
Participation and Employment Opportunities
The University of Chicago has a strong commitment to the consideration and use of certified
Minority Business Enterprises and Women-Owned Business Enterprises (M/WBE) to the greatest
extent possible, consistent with University procedures and guidelines in the performance of this
contract. Therefore, during the performance of this Contract, the M/WBE goals and related
procedures regarding the Project are as follows:
There are established goals of 25% certified MBE participation and 5% certified WBE
participation (“Participation Goals”). The Contractor shall apply these percentage goals to all
subcontracting tiers, Suppliers, and Consultants hired or retained by Contractor in performance of
any portion of the Work for the University.
The Employment Opportunity initiative pertains to the on-site workforce hours: There are goals of
30% Chicago residence (“Residency Goals”) and workforce Equal Employment Opportunity
(EEO) diversity goals of 30% minority journeyworkers, apprentices, and minority laborers, 5%
women journeyworkers and apprentices, and 5% women laborers (“Workforce Goals”) based on
total hours generated.
Contractor will demonstrate strongest efforts to achieve the levels of participation identified in its
proposal throughout the life of, and for the full value of, the Contract, including any Alternates,
Allowances, or Change Orders.
A more detailed strategy will be developed by the Contractor and the University. This strategy
will be the guiding road map to assist the team in achieving the economic impact for both M/WBE
participation and job opportunities.
The University of Chicago’s Economic Impact Program identifies all business entities. It also
operates its program under the guidelines established by the National Minority Supplier
Development Council (NMSDC).
For purposes of this exhibit, the following terms shall be defined as shown below:
A. Minority - The following groups are identified as minorities:
1. African-Americans or Blacks (persons having origins in any of the Black racial
groups of Africa)
2. Hispanics (persons of Spanish culture and origins in Mexico, South or Central
America, or the Caribbean Islands, regardless of race)
3. Native Americans or Indians (persons having recognized status with the indigenous
tribes of North America, including Aleuts and Eskimos)
4. Asian-Americans (persons having origins in any of the original peoples of East Asia,
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Southeast Asia, the India subcontinent, or the Pacific Islands)
B. Caucasian (persons of European culture, also a group commonly known as White
C. Small Disadvantaged Business means a small business owned by 1) one or more
individuals, with net worth of less that $750,000, who are both socially and economically
disadvantaged, or 2) a publicly owned business that has at least 51 percent of its stock
unconditionally owned by one or more historically underutilized (socially and economically
disadvantaged) individuals, each with net worth of less than $750,000, and has its
management and daily business controlled by one or more such individuals, or 3) a small
business that is at least 51 percent unconditionally owned by an economically disadvantaged
Indian Tribe or Native Hawaiian Organization, or 4) a publicly owned business that has at
least 51 percent of its stock unconditionally owned by one of these entities, that has its
management and daily business controlled by members of a historically underutilized
(economically disadvantaged) Indian Tribe or Native Hawaiian Organization, and that meets
the Small Business Administration regulations. All of these entities must be certified and
issued a National AICS (SIC) Code for their primary business activity by the Small Business
Administration’s 8(a) Business Development Program.
D. Socially and Economically Disadvantaged Individuals means Individuals who are Black
Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, and
Subcontinent-Asian Americans are considered historically underutilized (socially and
economically disadvantaged) by the Small Business Administration.
Note: In the University of Chicago’s Economic Impact Program, expenditures with Small
Disadvantaged Businesses are considered MBE expenditures.
E. Minority Business Enterprise (MBE) and Women-Owned Business Enterprise (WBE)
means a for-profit enterprise, regardless of size, physically located in the United States or its
trust territories, which is at least 51-percent owned, operated, and controlled by members of a
minority group or women.
F. Owned means holding at least 51% or more interest in the capital assets and profits of a
business. The following types of business ownership may meet the conditions required for
1. A Sole Proprietorship legitimately owned by a minority person or woman
2. A Partnership or Joint Venture in which at least 51-percent of the beneficial ownership
interests are legitimately owned by minority persons or women.
1. A “Joint venture” means an association of two or more businesses
formed to carry out a single business enterprise for profit, and for which
purpose they combine their expertise, property, capital, efforts, skills and
3. A Corporation or Other Entity in which at least 51-percent of the beneficial ownership
interests are owned by minority persons or women
G. Business Classification refers to the business entity, business ownership, and
race/ethnicity ownership. Codes have been assigned to each group as follows:
LARGE BUSINESS SMALL BUSINESS OTHER
Female Male Female Male
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Native American K A P F U Corporation (Publicly Held)
Asian Pacific/Indian L B Q G W Not-for-Profit
African American M C R H X Partnership
Caucasian N D S I Y Government Agency/Public Institution
Hispanic O E T J
H. Operated and Controlled means the degree to which minority group members or women
participate in the management and daily operation of the partnership, corporation, joint
venture or other entity, and their proportionate interest in the capital, assets and profits of the
I. Contractor/Prime Contractor or Supplier means any person or entity that is awarded or
has a direct non-employment contract or purchase order or agreement with the University to
provide labor, services, equipment, materials, products or professional consulting services
and has responsibility for the management, implementation, and completion of the entire
A first-tier Contractor or Supplier is a Contractor/Supplier that works directly for the University
and is paid by the University and a second-tier Contractor or Supplier is a subcontractor or
supplier of a first-tier Contractor or Supplier that (is used by) provides products/services to
the prime contract who in turn provides products/services to the University as specified in a
J. Subcontractor means any person or entity that has a direct contract with a Contractor to
provide labor, services, equipment, materials or products as specified by a University
K. Work means the services required by the contract documents, whether completed or partially
completed, and includes all labor, services, equipment, and materials to be provided by the
Contractor as required by a contract to fulfill the Contractor’s obligations.
L. Eligible MBE or WBE includes any qualified subcontractor or Contractor providing labor,
services, equipment, materials or products to the University, who is currently certified by one
of the agencies or programs listed below and who maintains certification with the agency
throughout the duration of the contract.
M. Letter of Certification refers to the official correspondence from one of the designated
agencies identified under U that provides MBE or WBE certification.
N. Joint Venture is an association between two or more business entities that combine their
expertise, property, capital, efforts, skills and knowledge for the purpose of generating profits.
A joint venture may be credited by the University for MWBE reporting if the joint venture
includes at least one or more M/WBEs.
O. Direct Purchases are products/services provided by a second tier Contractor or Supplier
which CAN be identified in support of the Prime contract requirements because expenditures
can be discreetly tracked through the prime Contractors invoices, PO’s, etc.
P. Indirect Purchases are second-tier Contractor or Supplier products/services which CANNOT
be identified in support of the Prime’s contract requirements. For these purposes indirect
purchases are not eligible for MWBE credit.
Q. Project means the organization of or physical structure of the total construction for which
individual contracts or Contractors may only perform a portion of the scope of Work, which is
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documented by a specific contract. Some portion of the Work may be performed by the
R. Economic Impact refers to a proactive business initiative at the University that facilitates for
these purposes advocacy for the inclusion of MBEs and WBEs in the participation of
supplying labor, equipment, materials, product and professional services for the University.
S. Community refers to an individual or firm having principal residence in the City of Chicago
within the following zip codes: 60609, 60615, 60619, 60621, 60637, 60649, and 60653.
T. Certification is written confirmation of a Contractor’s status as a minority- or women-owned
business enterprise (M/WBE) as determined by a certifying agency. Certification is required
to qualify as a minority or woman owned vendor or for consideration as sub- Contractor. Re-
certification is based on the firm’s ability to continue to meet the established criteria for
M/WBE certification. The University accepts certification provided by the following agencies:
1. National Minority Supplier Development Council (NMSDC) or any of its Affiliate
2. Women Business Enterprise National Council (WBENC) or any of its Affiliate
3. Women’s Business Development Council (WBDC) or any of its Affiliate Councils;
4. Chicago Minority Business Development Council (CMBDC) or any of its Affiliate
5. Federal Agencies including but not limited to the Small Business Administration,
Department of Transportation, and the Department of Energy. The SBA’s certified
8(a) firms can be identified in the Central Contractor Registration (CCR) system;
6. State of Illinois and/or its Agencies including but not limited to Department of
Central Management Services (CMS);
7. County of Cook; and
8. City of Chicago
CONSTRUCTION MANAGER/SUBCONTRACTOR PARTICIPATION
A. Contractor must have and continue to be responsive to the demographics with regard to its
employees, and its choice in all subcontracting tiers, Suppliers, and Consultants. The
Contractor must also take advantage of any opportunity to utilize businesses within this
community, either directly or indirectly, related to the Work.
B. The Contractor may request the assistance of the University’s Representative to identify
certified M/WBE and local firms for contracts, subcontracts, and purchases. It is expected
that the Contractor will participate in pre-bid and/or networking events to meet with potential
M/WBE and local firm bidders.
C. Each Contractor is responsible for ensuring that all subcontracting tiers, Suppliers, and
Consultants who perform work or provide services or materials for the Project complies with
each of the requirements set forth herein.
D. After contract award, Contractor will meet with the University Representative to discuss their
subcontracting strategy for trade work and M/WBE capacity in the marketplace. Judging the
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qualifications of the M/WBE or local Contractor and all subcontracting tiers utilized to perform
the work is solely the responsibility of the Contractor. As a result of this meeting the required
form(s) will be approved. Subsequent meetings will be held at the discretion of the University
Representative to ensure adherence to M/WBE goals. The Contractor will submit a written
plan for identifying all subcontractor participation which meets the economic impact goals.
This Plan will be reviewed and revised as needed throughout the project. This strategy will
be the guiding road map to assist the Contractor in achieving the Economic Impact Goals set
forth in this document.
E. Contractor will work with the University to establish guidelines and procedures for all aspects
of contracting, including, but not limited to bid packages, solicitations, bids, and selection of
awards. These procedures will be developed in and incorporated into a written document
that will be reviewed, approved, and followed throughout the project.
Contractor shall not discriminate against employees or applicants for employment because of
race, color, religion, sex, age, sexual orientation, marital status, national origin or ancestry,
disability or veteran status. Contractor shall take action to ensure that applicants are employed
and that employees are treated during employment without regard to their race, color, religion,
sex, age, sexual orientation, marital status, national origin or ancestry, disability or veteran status.
Such action shall include, but not be limited to, the following: employment, job classification,
upgrading, promotion, demotion or transfer, recruitment advertising, layoff or termination, rates of
pay or other forms of compensation and selection for and quality of training, including
Contractor agrees that, in all solicitations or advertisements for employees placed by or on behalf
of the Contractor, it will state that all qualified applicants will receive consideration for employment
without regard to race, color, religion, sex, age, sexual orientation, marital status, national origin
or ancestry, disability or veteran status.
A. Contractor Responsibilities:
1. Maximize employment of community residents throughout the duration of the Project,
in particular Woodlawn community residents.
2. Ensure that the workforce on University of Chicago construction sites reflects the
diversity of the community (see table below for U.S. Census data on the seven (7) zip
community impact area)
3. Maximize apprenticeship opportunities to create long-term career options for Chicago
residents screened and referred by the University’s established community
4. Hire local community residents when possible (union journey-workers or laborers),
especially residents of Woodlawn
The Contractor agrees to provide a Workforce Projection/Community Hiring Plan form (to be
submitted by Owner), estimating the total workforce for each trade and the number of potential
community hires and/or apprenticeship commitments. The Contractor and/or each Subcontractor
should fill out this document. Commitments stated on this form will be considered as a basic part
of contract negotiations.
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Minority and female hours will be measured as a percentage of the total work hours of all
construction workers employed on the Project, at the Project site, within each of the categories of
journeyworkers, apprentices, laborers by the Contractor and all work site Subcontractors.
Community Impact Census Data
Total Population 263,671
White 45,818 17.4%
Black or African American 188,779 71.6%
American Indian and Alaska
Native 651 0.2%
Asian 5,440 2.1%
Native Hawaiian and Other
Pacific Islander 102 0.0%
Some other race 18,465 7.0%
Two or more races 4,416 1.7%
Hispanic or Latino (of any race) 37,202 14.1%
(Source: U.S. Census Bureau, 2000)
ADMINISTRATION, MONITORING, AND REPORTING
A. Judging the qualifications of all subcontracting tiers is solely the responsibility of the
Contractor. In determining whether the Contractor has met its stated expectation level of
M/WBE and local firms used on the Project as set forth on the Contractor’s form(s), the
Contractor may only count contract awards and purchases to eligible M/WBE and local firms.
B. For contracts involving a joint venture, the Contractor may count toward its M/WBE or local
business expectation the portion of the total dollar value of the contract with the joint venture
partner equal to the percentage of the M/WBE or local business ownership and control of the
C. Credit for M/WBE and local business participation will only be given for one category per
Subcontractor, Supplier, or Consultant. (For example, the dollar value of a contract with a
firm owned and controlled by minority women should be counted either toward the MBE or
WBE participation goal, but not both. Contractor can decide which category he/she would
prefer business to be counted under.)
D. Contractor's obligation under this Plan is to comply with all provisions and to meet all
guidelines set forth herein or otherwise agreed upon. Contractor agrees that the Plan shall be
administered in the following manner:
1. Contractor agrees that these Economic Impact Plan provisions are to be inserted into
each contract for any of the Work subcontracted by the Contractor to others, and that the
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Contractor will be responsible for enforcing or causing all subcontractor tiers to enforce
such provisions. The Contractor will report such enforcement efforts to the University of
Chicago as often as may be required by the University.
2. During the contract period, Contractor will maintain and make available to the University
documentation regarding M/WBE participation and utilization. Contractor will clarify the
real economic benefit paid out to these business entities. To verify that the participation
is genuine and legitimate, careful and comprehensive award, reporting and verification
procedures will be used on this Project. Failure to submit any required report in a timely
manner will result in withholding of payment to the Contractor. (See Item G of this
Section - Required Documents & Forms.)
E. The Contractor must report the Monthly Report as follows:
1. The required form(s) are to be submitted to the Facilities Services Office (or its designee)
along with the Contractor’s monthly invoice (or pay-out request). For Projects on which
no monthly invoice is submitted, the Contractor’s Monthly Report must be submitted to
the Facilities Services Office no later that the 15th of each month.
2. Each month the required form(s) should include all the contracting and subcontracting
activity (contract awards and paid-to-date amounts) through the end of the previous
F. Certified Payroll Process
The Contractor must collect and submit weekly certified payroll reports (U.S. Department of Labor
Form WH-347 or equivalent) each month to the Facilities Services Office (or its designee).
Certified payroll must include all union skilled and unskilled labor performing work on a project.
The Contractor shall obtain from its subcontractors, a certified copy of each weekly payroll in hard
copy and electronic form, and submit to Construction Compliance within seven days after the
regular payroll date.
1. A contractor may use the DOL Form WH-347, “Optional Payroll Form,” which provides all
the necessary payroll information certifications. Along with the form mentioned, the
Contractor must also provide the University of Chicago with a certified payroll data
diskette/CD-ROM, which shall consist of field entries consistent with the information,
stated on form WH-347. However, the Contractor may use his own payroll form provided
it includes the same information and certifications as the DOL form WH-347, “Optional
2. This information should include the Contractors’ as well as the Subcontractors’
information. At no time will the diskette/CD-ROM serve as the only type of certified
payroll submittal; a hard copy must also be submitted containing original signatures for
each submitted certified payroll. The demographics for the database should include the
fields listed below. The database must be written in a Microsoft Excel File.
3. The following fields must include:
Field Name Type Size
Week Ending Data 8 characters
Payroll No. Numeric 4 characters
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Contract Number Text 15 characters
Project and Location Text 60 characters
Contractor Text 25 characters
Subcontractor Text 25 characters
Employee Last Name Text 20 characters
Employee First Name Text 20 characters
Race and Gender Text 2 characters
(Choices) Journeyman Text 10 characters
Trade (i.e. electrician, plumber) Text 25 characters
Total Hours Worked Numeric 3.1 characters
Rate of Pay Numeric 4.2 characters
It is imperative that each field is completed to its entirety. It is the Contractor’s responsibility that
the diskette/CD-ROM is free of viruses and/or corrupted files. In the event that a diskette/CD-
ROM is incomplete or otherwise corrupted or defective, it will be considered void, nullified and
returned to the Contractor informing the Contractor of such findings. It is the Contractor’s
responsibility that the information is re-submitted within five business days upon receipt for further
Contractor agrees to make available to government officials such reports and information as may
be required by the Illinois Department of Human Rights or to any other administrative or
governmental entity involved in the Project.
G. Required Documents & Forms
Included in this Exhibit is a listing of documentation and some of the forms required for
Compliance/Subcontractor Participation and Monitoring. This is not necessarily an exclusive list
and may change if more efficient methods of eliciting the needed information become available
during the term of this Agreement. Upon approval by Owner of the selection of its Subcontractor
the Contractor shall forward to the Owner the following:
1. Copies of partial and final waivers of lien for all tiered subcontractors who perform work;
2. Copies of notice of award for each trade contractor awarded;
3. Certified Payrolls accompanied with Apprentice Certifications, as applicable;
4. Copies of Contractors’ Request for Payment and Sworn Statements; which should
identify percentage of construction completion;
5. All overall adjusted contract amounts;
6. Completed Affidavit of Construction Manager regarding MBE/WBE Participation;
7. Completed Letter of Intent from MBE/WBE;
8. Copies of current letter of certification for each MBE/WBE firm identified;
9. Construction Manager shall incorporate the completed Affidavit of Prime Contractor
and/or Bidder regarding MBE/WBE participation and Letter of Intent from MBE/WBE from
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the apparent selected subcontractor approved by the University into their subcontractor
agreements. Contractor shall provide a copy of the subcontractor agreement;
10. Issue notices of MBE/WBE letters of intent to do business which delineates the dollar
commitment and percentages directed to MBE/WBE firms;
11. MBE/WBE contract and paid to date amounts;
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