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

Minority, Women and Small Business Enterprise Program

Board of Education Management Oversight Presentation August 23, 2016

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 2016-2017 Expenditures Actual 2015-2016 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 (2015-2016)

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Category Analyzed M/W/SBE Firms Total eligible expenditures

$298.6 million $61.2 million

Construction

$59.4 million $22 million

Architecture and Engineering

$5.9 million $830,574

Contracted Services

$99.3 million $19.4 million

Goods

$134 million $19 million

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Construction Architecture & Engineering Contracted Services Goods Overall M/W/SBE Goal 21% 16% 14% 11% Annual % Total 10-11 25.26% 27.64% 22.89% 10.52% Annual % Total 11-12 17.93% 18.45% 21.86% 8.73% 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% 0% 5% 10% 15% 20% 25% 30% 35% 40%

Overall MWSBE Utilization FY 2015-2016

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$14M $12M $16M $17M $45M $47M $65M $98M $65M $27M $28M $39M $52M $59M $61M 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 10-11 4.07% 12.83% 4.46% 2.49% Annual % Total 11-12 4.09% 9.81% 7.34% 2.07% 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% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Overall Minority Business Enterprise Utilization FY 2015-2016

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

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 10-11 21.02% 7.25% 8.41% 2.02% Annual % Total 11-12 8.55% 2.82% 7.46% 2.29% 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% 0% 5% 10% 15% 20% 25%

Overall Women Business Enterprise Utilization FY 2015-2016

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$9M $8M $13M $11M $24M $27M $40M $64M $42M $8M $9M $17M $27M $26M $25M 10 20 30 40 50 60 70 2001-20022002-20032003-20042004-20052005-20062006-20072007-20082008-20092009-20102010-20112011-20122012-20132013-20142014-20152015-2016

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 10-11 0.00% 1.35% 7.22% 3.82% Annual % Total 11-12 5.29% 5.81% 8.25% 3.72% 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% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9%

Overall Small Business Enterprise Utilization FY 2015-2016

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$0 $0 $0 $0 $11M $10M $13M $18M $14M $13M $11M $10M $10M $9M $13M 2 4 6 8 10 12 14 16 18 20 2001-20022002-20032003-20042004-20052005-20062006-20072007-20082008-20092009-20102010-20112011-20122012-20132013-20142014-20152015-2016

Millions Fiscal Years

Overall Small Business Enterprise Spend

Accomplishments

• At 20.51% of eligible spend, CMS achieved $61.2 million in total MWSBE

spending

• Achieved and exceeded aspirational goals in three of the four categories

(construction, contracted services and goods)

• Achieved and exceeded MBE aspirational goals in all four categories

(construction, architecture & engineering contracted services and goods)

• Achieved and exceeded WBE aspirational goals in three of the four

categories (construction, contracted services and goods)

• Increased SBE spend by $3.85 million over previous fiscal year

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Major Initiatives

• The Women’s Business Center of Charlotte
• Targeted outreach and development sessions;

expanded Charlotte MED Week

• Hosted joint outreach sessions with the three

upcoming Construction Manager at Risk Projects (East Mecklenburg High addition, Northwest School

• f the Arts auditorium renovation and addition,

Myers Park High building # two addition)

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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