Equitable & Inclusive Contracting Policy Update – Feb 2015 1
Program Background Context : • Denver Public Schools (DPS) has added over 15,000 students over the last 7 years and currently owns 135 facilities with an average age of 55 years. In order to provide safe and healthy facilities for students, DPS has sought bonds to meet capital construction needs. • Further, the board has outlined clear, aggressive goals for student achievement in the Denver Plan. These goals include making sure we have great schools in every neighborhood and closing the opportunity gap between students of color and white students. About the program to increase diverse participation in bond program: While keeping the core tenets of the DPS Bond program to deliver high-quality facilities on and keeping student needs as a top priority, DPS wants to successfully implement a program focused on broadening the opportunities for minority and women-owned businesses (M/WBEs) For several years, DPS facilities teams have been engaged in a set of activities to help expand opportunities for diverse businesses to participate in the DPS Bond program. But in order to significantly expand opportunities, we chose to pursue a goals program to set clear expectations for participation by diverse firms. We expect this program to apply to dollars spent for this bond and future bonds as well. Legal Framework for creation of a goals program: MGT of America completed a disparity study that provides factual and anecdotal evidence of utilization and availability of minority and women-owned businesses that have and can do work with DPS. If disparity is found within the study period, a legally justified need exists for an M/WBE program, in accordance with the guidelines set forth by the Supreme Court and relevant subsequent cases. The disparity study also provides recommendations of best practices based on the study’s findings. Equitable & Inclusive Contracting Policy Update – Feb 2015 2
Results of the disparity study showed significant under-utilization in some areas but not in others. MWBE Utilization Category Construction Prime Contractors 8.20% 24.2 % of construction Construction Subcontractors 24.20% subcontractor awards went to women or Construction-related Professional Service Prime Contractors 13.77% minority owned businesses Construction-related Professional Service Subcontractors 23.58% Category MWBE Disparity Index** Construction Prime Contractors 56.74 Construction Subcontractors 54.28 Construction-related Professional Service Prime Contractors 80.86 Construction-related Professional Service Subcontractors 84.63 *The study period used actual DPS spend on construction and construction-related professional services from 1/1/09 – 12/31/13. **Disparity index is the ratio of the actual spend with MWBE firms divided by the market for available MWBE firms multiplied by 100. A disparity index score of 100 indicates no disparity. A disparity index score below 80 indicates a substantial level of disparity. Study Conclusion This study provides factual evidence for establishing a M/WBE program for DPS capital projects. This evidence is based on quantitative and qualitative data from public and private sources. While DPS has made significant progress in M/WBE inclusion, any future efforts must be narrowly tailored to address the issues identified in this report. Equitable & Inclusive Contracting Policy Update – Feb 2015 3
Recent improvements to the bond program • Policy ACE (Equitable and Inclusive Contracting Policy) adopted by Board on November 20 , 2014 • Pursuant to Board policy, DPS staff has led the following: – Established DPS Goals Committee – Disparity Study and Aspirational Goals to be reported to Board on February 19, 2015 – Currently 24 projects have MWBE project goals – Bid documentation has been updated to include MWBE commitment, Letter of Intent process – Compliance Coordinator and Compliance Analyst hired (2 new FTEs to support program efforts) – Implementation of computerized system to track data (B2G )underway, April 1 st Go-Live – Evaluation of SBE Sheltered Market qualifier Equitable & Inclusive Contracting Policy Update – Feb 2015 4
Board policy calls for staff to implement aspirational goals, outlined here • Established once every 5 years by Governance Committee • Reflect current market availability based upon the Disparity Study and current comparable goals used by the City & County of Denver • DPS to provide annual reporting and updates to the Board of Education on progress toward aspirational goals, and any recommended actions. Category Disparity Study Recommended Recommended DPS MWBE Goal MWBE Goal Construction 18.6% 24% Architecture & Engineering (A&E) 16.5% 24% – construction-related professional services Recommended DPS MWBE Aspirational Goals DPS aspires to achieve results greater than the recommendations from the Disparity Study, while staying within the available MWBE market the study provided. Achievement of these goals will result in a very significant increase in the utilization of diverse businesses for these services. Using actual results and progress towards the goals, we will develop and share annual action plans to continue improving our program. 5
Goals Committee • Goals Committee Members – Nine (9) member goals committee of external stakeholders in construction or architectural/engineering services • 3 MBE: Michael Roybal, Raymond Garcia, Jeffrey Knight • 3 WBE: Rebecca Arisitizabal-Sandstrom, Janelle Martinez, Heather Noyes • 3 Majority: Gary Constant, Tom Stone, Julie Witecki • Staggered 2-year and 3-year terms • Goal Setting Process – Goals Committee receives project scope breakdown and data showing market availability – Senior Construction Services staff member presents project scope breakdown and any special requirements during Goals Committee meeting – Goals Committee member motions for project goal, majority vote to recommend goal – Recommended project goals and disclosure of Committee member interest in projects are documented – Committee Chair (Trena Deane) records and approves recommended goal – The Project Manager has opportunity to request/justify amendment of goal to Chair Provide goals Meet 2x month to recommendations Committee Chair review upcoming for upcoming approves goals projects projects Equitable & Inclusive Contracting Policy Update – Jan 2015 6
So far, goals committee has set goals on these projects MWBE Project # Project Name Engineers Estimate Project Goal Commitment Lowry Addition $4,045,600.00 25% 50% PP2257 East HS $2,397,637.15 20% 62% PP2385 Randolph & Manual $1,397,955.97 20% TBD PP2274 North HS $1,633,821.00 30% TBD PP2381 Ellis, Hamilton, Roberts, Whittier and Howell $295,131.00 25% TBD PP2393 DSA and Phillips $420,750.00 33% TBD PP2267 JKF $2,990,882.00 20% TBD PP2384 Park Hill Smith $701,377.00 30% TBD PP2132 GWHS Pool Renovations $320,000.00 10% TBD PP2269 Pioneer Charter $590,000.00 30% TBD PP2273 Place Bridge $1,190,000.00 35% 52% PP2378 Multi Site $647,601.00 30% TBD PP2265 Hill MS $1,500,000.00 30% TBD PP2362 FD Columbine 0% set for these $346,019.00 0% N/A projects because PP2377 FD Philips $195,838.00 0% N/A and there is low PP2379 FD Ash Grove $231,898.00 0% N/A availability for type PP2382 FD Ellis $357,692.00 0% N/A of work needed PP2259 Centennial Reroof $98,000.00 0% N/A PP2353 JFK $170,000.00 25% TBD PP2438 Del Pueblo $2,744,252.00 25% TBD PP2260 Centennial $1,969,236.00 15% TBD PP2268 Eagleton $940,738.00 15% TBD PP2262 Schenck $220,000.00 30% TBD PP2380 Cory - Merrill $826,803.00 15% TBD Equitable & Inclusive Contracting Policy Update – Feb 2015 7
Next steps • Continue implementation of a strong goals program • Continue to work with members of the community on ways to improve the program, including ideas to build capacity of diverse firms to bid on major projects • Provide annual reports to board of education on progress Equitable & Inclusive Contracting Policy Update - Sep 2014 8
Recommend
More recommend
