Minority, Women, and Small Business Enterprise Program. Board of Education Management Oversight Report Aug. 23, 2011
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1 Minority, Women, and Small Business Enterprise Program Board of Education Management Oversight Report Aug. 23, 2011
2 History The MWSBE Office proactively works to increase the participation of minority, women and small businesses through inclusive procurement activities. Success is measured using the following program objectives: Outreach Certification Utilization Monitoring and reporting Training and technical assistance
3 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 Purchase and Contract: cooperation in promoting the use of small contractors, minority contractors, physically handicapped contractors, and women contractors. General Statutes Statewide uniform certification of historically underutilized businesses General Statutes Minority Business Participation Goals (defines good faith efforts and the full scope of the law) General Statutes Administration (Public Entity Responsibilities) General Statutes Historically Underutilized Business (2007 Amendment Definition) General Statutes 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 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, HUB office, designers, contractors, HUB contractors, and State Construction Office
4 Budget Actual Expenditures Actual Expenditures Expenditures Salaries 95, ,363 Benefits 18,833 33,994 Purchased services 4,732 8,632 Total Expenditures $119,450 $192,989
5 Challenges Perceived preferred bidders list Budget reductions Reduction in bond-funded construction projects Reduction in force
6 Aspirational Goals Category MBE Goal WBE Goal SBE Goal M/W/SBE Goal Construction 10% 6% 5% 21% Architecture, engineering and surveying Contracted services (other than construction) 4% 7% 5% 16% 5% 4% 5% 14% Goods 3% 3% 5% 11%
7 Total Eligible Expenditures FY Category Analyzed M/W/SBE Firms Total eligible expenditures $176M $27M Construction $3M $760K Architecture and engineering Contracted services $1.2M $333K $63M $14M Goods $109M $11M
8 45% Overall M/W/SBE Utilization % 35% 30% 25% 20% 15% 10% 5% 0% Construction Architecture & Contracted Services Goods Overall M/W/SBE Goal 21% Engineering 16% 14% 11% Annual % Total 05/ % 12.26% 17.72% 8.83% Annual % Total 06/ % 17.74% 21.90% 10.66% Annual % Total 07/ % 18.21% 24.71% 11.82% Annual % Total 08/ % 25.38% 27.10% 14.16% Annual % Total 09/ % 13.33% 25.38% 14.71% Annual % Total % 27.64% 22.89% 10.52%
9 Millions Overall M/W/SBE Spending $98M 80 $65M $65M 60 $45M $47M 40 $27M 20 $14M $12M $16M $17M Fiscal Years
10 14% Minority Business Enterprise Utilization 12% 10% 8% 6% 4% 2% 0% Construction Architecture & Contracted Goods Overall MBE Goal 10% Engineering 4% Services 5% 3% Annual % Total 05/ % 7.52% 2.74% 1.04% Annual % Total 06/ % 11.11% 5.46% 1.63% Annual % Total 07/ % 11.09% 8.73% 0.43% Annual % Total 08/ % 11.36% 8.19% 0.95% Annual % Total 09/ % 4.70% 6.37% 2.63% Annual % Total 10/ % 12.83% 4.46% 2.49%
11 Millions 18 Minority Business Enterprise Spending 16 $16M $11M $11M 10 $10M $9M 8 6 $5M $5M $6M 4 $4M $3M Fiscal Years
12 45% Women Business Enterprise Utilization 40% 35% 30% 25% 20% 15% 10% 5% 0% Construction Architecture & Contracted Goods Overall WBE Goal Engineering Services 6% 7% 4% 3% Annual % Total 05/ % 4.74% 6.62% 6.36% Annual % Total 06/ % 6.42% 12.45% 7.01% Annual % Total 07/ % 5.63% 12.91% 4.66% Annual % Total 08/ % 12.10% 13.23% 3.00% Annual % Total 09/ % 5.46% 11.01% 3.18% Annual % Total 10/ % 7.25% 8.41% 2.02%
13 Millions 70 Women Business Enterprise Spending $64M $40M $42M 30 $27M $24M $9M $8M $13M $11M $8M Fiscal Years
14 12% Small Business Enterprise Utilization 10% 8% 6% 4% 2% 0% Construction Architecture & Contracted Goods Overall SBE Goal 5% Engineering 5% Services 5% 5% Annual % Total 05/ % 0.00% 9.35% 1.43% Annual % Total 06/ % 0.21% 3.40% 2.02% Annual % Total 07/ % 2.16% 3.69% 6.79% Annual % Total 08/ % 1.91% 5.42% 10.21% Annual % Total 09/ % 2.50% 6.41% 7.64% Annual % Total 10/ % 1.35% 7.22% 3.82%
15 Millions 20 Small Business Enterprise Spending 18 $18M $13M $14M $13M 12 $11M 10 $10M $0 $0 $0 $ Fiscal Years
16 Results 15% of eligible expenditures spent with M/W/SBE firms Exceeded the overall aspirational goals by 4 to 11% in three of four categories Exceeded the MBE goal in architecture and engineering and increased construction by 1.5% over fiscal year Exceeded WBE goals in construction, architecture and engineering, and contracted services Exceeded SBE goals in contracted services Participated in How-To-Do Business with Charlotte-Mecklenburg Schools seminar as well as 15 other conferences, workshops, seminars, training sessions and presentations promoting M/W/SBE program Supplier diversity efforts recognized by the Carolinas Minority Supplier Development Council MBEIC Supplier Diversity Impact Award
17 Major Initiatives Charlotte Minority Economic Development Initiative Building Services Operational and Cost Improvement Lean Six Sigma Project Supplier Quality Assessments
18 Next Steps Meet with key stakeholders regarding use of M/W/SBEs Identify opportunities for M/W/SBEs in strategic sourcing and supply chain management Continue to expand debriefing process for unsuccessful suppliers/contractors to improve competitiveness Continue to expand Second Tier Sourcing Program Track M/W/SBE cost-savings/cost-reduction contribution
19 Questions
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