INSTRUCTIONS / DEFINITIONS
1. SUBCONTRACTOR – a business hired by the prime contractor to perform a specific aspect of the contract.
(Provide name of company, address and telephone number.)
2. SCOPE OF WORK – A commercially useful function performed by the contractor.
3. EMERGING SMALL BUSINESS (ESB) – A business that (1) has been certified by the Office of Minority
Business Development (OMBD) for a period of seven years or less, (2) has annual gross receipts for each of its
three fiscal years preceding application for certification of $500,000 or less if engaged in the const ruction
business or of $250,000 or less if engaged in non-construction business, (3) has fewer than ten employees, (4) is
not a subsidiary of another business and does not belong to a group of businesses owned and controlled by the
same individuals, (5) has its principal place of business within the City of Richmond Enterprise Zone, (6)
possesses a City business license, and (7) pays personal property, real estate, and business taxes to the City of
Richmond.
4. MINORITY BUSINESS ENTERPRISE (MBE) – A business at least 51% of which is owned and controlled
or 51% operated by minority group members or, in case of a stock corporation, at least 51% of the stock, which
is owned and controlled by minority group members. Minority group members are citizens of the Unite d States
who are African American, Hispanic American, Asian American and American Indian.
5. FIRST, SECOND, AND/OR THIRD-TIER SUBCONTRACTING – The scope of work that is initially
contracted by the prime contractor to a subcontractor is considered 1
st
-tier subcontracting. If that subcontractor
further subcontracts all or a portion of the work, it becomes 2
nd
-tier subcontracting. Likewise, if the 2
nd
-tier
subcontractor decides to subcontract a portion of the work, it is 3
rd
-tier subcontracting. The prime contractor
will receive credit for 100% of the dollar value of the 1
st
, 2
nd
, 3
rd
-tier subcontracting for MBE/ESB participation.
In summary, only work performed by MBE/ESBs counts toward the minority participation goal. Refer to City of
Richmond Office of Minority Business Development Policy and Procedures Section 6-1.0 through 6-5.10.
6. SUPPLY PURCHASES – The prime contractor will receive credit for 100% of the dollar value of supplies
purchased from an MBE/ESB.
7. MENTOR/PROTÉGÉ – An arrangement based on a written development plan, approved by the City, which
clearly sets forth the objectives of the parties and their respective roles, the duration of the arrangement and the
services and resources to be provided by the mentor to the protégé. MBE/ESB credit for a legitimate
mentor/protégé arrangement will be four (4) points toward the satisfaction of the MBE/ESB goal for the
specified project.
8. JOINT VENTURE – An arranged partnership of the MBE/ESB and one or more other firms to carry out a
single, for-profit project, for which the parties combine their property, capital, efforts, skills and knowledge, and
in which the MBE/ESB is responsible for a distinct, clearly defined scope of work and whose share of the capital
contributions, control, management, risks, and profits of the joint venture are commensurate with its ownership
interest. MBE/ESB credit for legitimate joint ventures will be five (5) points toward the satisfaction of
the MBE/ESB goal for a specified project.
9. OTHER CREDIBLY VIABLE METHODS – BLANKET BONDING – The prime contractor covers the
bonding requirement for the subcontractor. MBE/ESB credit for Blanket Bonding will be two (2) points
toward the satisfaction of the MBE/ESB goal for a specified project .
Apprenticeship – An apprentice that is bound to work for another for a designated amount of time in return for
instruction in a trade or business. MBE/ESB credit for Apprenticeship will be one (1) point toward the
satisfaction of the MBE/ESB goal for a specified project.
10. DOLLAR AMOUNT & PERCENTAGE OF CONTRACT – MBE/ESB monetary value and percentage of the
subcontract.
MBE/ESB-2 Participation Commitment Form Revised Date 4/9/2015
