Minority, Women and Small Business Enterprise Program Management - - PowerPoint PPT Presentation

Minority, Women and Small Business Enterprise Program Management Oversight Report Board of Education

• Aug. 22, 2017

History and Overview

• Since 1993, the MWSBE Office has proactively worked to increase the

participation of minority, women and small businesses through inclusive procurement activities.

• In 2004, CMS conducted a disparity study that resulted in 21

recommendations.

• In 2005, the Board of Education adopted a new policy and a MWSBE

regulation was created, leading to the enhancement of Lawson to track our spend, establishment of MWSBE aspirational goals, expansion of outreach and the revision of the MWSBE procedures manual and database.

• In 2005-2006, the first full year of implementation of all the changes,

there was a focused effort to increase CMS utilization of MWSBE

• firms. The changes resulted in a period of growth until the economic

downturn.

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History/Overview

Success is measured using the following program objectives:

• Marketing and Outreach
• Certification
• Utilization
• Monitoring and Reporting
• Training and Technical Assistance

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Driving Governance

• CMS Policy DJA

Minority-owned, women-owned, and small business enterprises (collectively “M/W/SBE”) as well as other responsible vendors shall have a fair and reasonable opportunity to participate in CMS business opportunities

• General Statutes 143-48

Purchase and Contract: cooperation in promoting the use of small contractors, minority contractors, physically handicapped contractors, and women contractors

• General Statutes 143-48.4

Statewide uniform certification of historically underutilized businesses

• General Statutes 143-128.2

Minority Business Participation Goals (defines good faith efforts and the full scope of the law)

• General Statutes 143-128.3

Administration (Public Entity Responsibilities)

• General Statutes 143-128.4

Historically Underutilized Business (2007 Amendment Definition)

• General Statutes 143-131

Informal Bidding: scope of applicable law for construction projects less than $500,000 (increased from $300,000 in 2007 legislation)

• Senate Bill 914, Session Law 2001-496 December, 2001

To enhance and improve good faith efforts to recruit and select minority businesses for participation in public construction contracts

• NC Administrative Code – 301 Minority Business Participation Goal

Rules governing minority participation goals and responsibilities of owners, Historically Underutilized Business (HUB) office, designers, contractors, HUB contractors, and State Construction Office

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Budget

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Types of Expenditures Proposed 2017-2018 Expenditures Actual 2016-2017 Expenditures Salaries & Benefits $168,657 $155,657 Purchased Services $12,500 $11,637 Total Expenditures $181,157 $167,294

Aspirational Goals

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Category MBE Goal WBE Goal SBE Goal M/W/SBE Goal

Construction

10% 6% 5% 21%

Architecture, engineering and surveying

4% 7% 5% 16%

Contracted services (other than construction)

5% 4% 5% 14%

Goods

3% 3% 5% 11%

Results (2016-2017)

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Category Analyzed M/W/SBE Firms Total eligible expenditures

$297.4 million $78.1 million

Construction

$89.7 million $44.5 million

Architecture and Engineering

$4.9 million $653,180

Contracted Services

$76.2 million $19.3 million

Goods

$126.6 million $13.7 million

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Construction Architecture & Engineering Contracted Services Goods Overall M/W/SBE Goal 21% 16% 14% 11% Annual % Total 12-13 23.08% 18.90% 18.76% 10.35% Annual % Total 13-14 28.09% 15.68% 18.19% 13.14% Annual % Total 14-15 31.76% 11.98% 21.21% 10.65% Annual % Total 15-16 37.04% 14.13% 19.53% 14.18% Annual % Total 16-17 49.57% 13.39% 25.31% 10.79% 0% 10% 20% 30% 40% 50% 60%

Overall MWSBE Utilization FY 2016-2017

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$14M $12M $16M $17M $45M $47M $65M $98M $65M $27M $28M $39M $52M $59M $61M $78M 20 40 60 80 100 120

Millions

Fiscal Years

Overall MWSBE Spend

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Construction Architecture & Engineering Contracted Services Goods Overall MBE Goal 10% 4% 5% 3% Annual % Total 12-13 5.94% 14.88% 6.92% 2.56% Annual % Total 13-14 7.26% 12.88% 6.87% 3.42% Annual % Total 14-15 14.52% 8.78% 8.70% 2.51% Annual % Total 15-16 16.04% 11.04% 7.15% 4.57% Annual % Total 16-17 17.08% 9.24% 11.12% 2.96% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Overall Minority Business Enterprise Utilization FY 2016-2017

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$5M $4M $3M $5M $10M $11M $11M $16M $9M $6M $7M $12M $16M $23M $23M $28M 5 10 15 20 25 30

Millions Fiscal Years

Overall Minority Business Enterprise Spend

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Construction Architecture & Engineering Contracted Services Goods Overall WBE Goal 6% 7% 4% 3% Annual % Total 12-13 13.44% 1.93% 7.52% 3.97% Annual % Total 13-14 19.28% 2.43% 7.22% 5.74% Annual % Total 14-15 15.99% 1.88% 8.84% 4.34% Annual % Total 15-16 18.66% 3.01% 6.96% 5.02% Annual % Total 16-17 30.82% 2.77% 9.72% 4.22% 0% 5% 10% 15% 20% 25% 30% 35%

Overall Women Business Enterprise Utilization FY 2016-2017

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$9M $8M $13M $11M $24M $27M $40M $64M $42M $8M $9M $17M $27M $26M $25M $41M 10 20 30 40 50 60 70

Millions Fiscal Years

Overall Women Business Enterprise Spend

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Construction Architecture & Engineering Contracted Services Goods Overall SBE Goal 5% 5% 5% 5% Annual % Total 12-13 3.70% 2.09% 4.33% 3.69% Annual % Total 13-14 1.55% 0.87% 4.20% 3.98% Annual % Total 14-15 1.25% 1.33% 3.67% 3.80% Annual % Total 15-16 2.35% 0.08% 5.42% 4.59% Annual % Total 16-17 1.67% 1.38% 4.47% 3.61% 0% 1% 2% 3% 4% 5% 6%

Overall Small Business Enterprise Utilization FY 2016-2017

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$0 $0 $0 $0 $11M $10M $13M $18M $14M $13M $11M $10M $10M $9M $13M $10M 2 4 6 8 10 12 14 16 18 20

Millions Fiscal Years

Overall Small Business Enterprise Spend

Accomplishments

• At 26.25% of eligible spend, CMS achieved $78.1 million in total MWSBE

spending; an increase of $17M or 6% over the previous year

• Exceeded aspirational goals in two of the four categories (construction and

contracted services)

• Exceeded MBE aspirational goals in three of the four categories

(construction, architecture & engineering, and contracted services)

• Increased overall and MBE spend by $5 million over previous fiscal year

(primarily due to construction)

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Accomplishments

• Exceeded WBE aspirational goals in three of the four categories

(construction, contracted services and goods)

• Increased WBE spend by $16 million over previous fiscal year (primarily

due to construction)

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Accomplishments

2016 NC MWBE Coordinators’ Network Rising Star Award  Supplier Diversity Compliance Coordinator Stacey Moretti

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Major Initiatives

• Targeted outreach and development sessions; expanded

Charlotte MED Week

• Conduct annual lessons-learned reviews with other entities

and share information regarding diverse supplier utilization

• Hosted joint outreach sessions with the three upcoming

Construction Manager at Risk Projects (JM Alexander demolition, Selwyn demolition/addition and Myers Park High site package)

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Next Steps

• Continue to review procurement plans and meet

with key stakeholders regarding utilization of MWSBEs

• Continue debriefing process for unsuccessful

suppliers and contractors to improve competitiveness

• Continue to participate in Carolinas-Virginia

Minority Supplier Development Council MBE Industry groups

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Questions