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. 2

History/Overview Success is measured using the following program objectives:  Marketing and Outreach  Certification  Utilization  Monitoring and Reporting  Training and Technical Assistance 3

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 4

Budget Types of Proposed Actual Expenditures 2017-2018 2016-2017 • Click to add text Expenditures Expenditures Salaries & Benefits $168,657 $155,657 Purchased Services $12,500 $11,637 Total Expenditures $181,157 $167,294 5

Aspirational Goals Category MBE Goal WBE Goal SBE Goal M/W/SBE Goal Construction 10% 6% 5% 21% Architecture, 4% 7% 5% 16% engineering and surveying Contracted services 5% 4% 5% 14% (other than construction) Goods 3% 3% 5% 11% 6

Results (2016-2017) Category Analyzed M/W/SBE Firms • lick to add text $297.4 million $78.1 million Total eligible expenditures $89.7 million $44.5 million Construction $4.9 million $653,180 Architecture and Engineering $76.2 million $19.3 million Contracted Services $126.6 million $13.7 million Goods 7

Overall MWSBE Utilization FY 2016-2017 60% 50% 40% 30% 20% 10% 0% 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% 8

Overall MWSBE Spend 120 $98M 100 $78M 80 $65M $65M Millions $61M $59M 60 $52M $47M $45M $39M 40 $28M $27M $16M $17M 20 $14M $12M 0 Fiscal Years 9

Overall Minority Business Enterprise Utilization FY 2016-2017 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 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% 10

Overall Minority Business Enterprise Spend 30 $28M 25 $23M $23M 20 $16M $16M Millions 15 $12M $11M $11M $9M $10M 10 $7M $6M $5M $5M 5 $4M $3M 0 Fiscal Years 11

Overall Women Business Enterprise Utilization FY 2016-2017 35% 30% 25% 20% 15% 10% 5% 0% 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% 12

Overall Women Business Enterprise Spend 70 $64M 60 50 $42M $41M $40M 40 Millions $27M $26M $27M 30 $25M $24M 20 $17M $13M $11M $8M $8M $9M $9M 10 0 Fiscal Years 13

Overall Small Business Enterprise Utilization FY 2016-2017 6% 5% 4% 3% 2% 1% 0% 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% 14

Overall Small Business Enterprise Spend 20 $18M 18 16 $14M 14 $13M $13M $13M 12 $11M $11M Millions $10M $10M $10M $10M $9M 10 8 6 4 2 $0 $0 $0 $0 0 Fiscal Years 15

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) 16

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) 17

Accomplishments 2016 NC MWBE Coordinators’ Network Rising Star Award  Supplier Diversity Compliance Coordinator Stacey Moretti 18

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) 19

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 20

Questions