Minority, Women, and Small Business Enterprise Program. Board of Education Management Oversight Presentation August 25, 2015
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1 Minority, Women, and Small Business Enterprise Program Board of Education Management Oversight Presentation August 25, 2015
2 History/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 an 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 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
3 History/Overview Success is measured using the following program objectives: Marketing and Outreach Certification Utilization Monitoring and Reporting Training and Technical Assistance 3
4 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 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, Historically Underutilized Business (HUB) office, designers, contractors, HUB contractors, and State Construction Office 4
5 Budget Click to add text Proposed Expenditures Actual Expenditures Expenditures Salaries & Benefits $155,657 $155,657 Purchased Services $12,637 $13,000 Total Expenditures $168,294 $168,657 5
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% 6
7 lick to add text Results ( ) Category Analyzed M/W/SBE Firms Total eligible expenditures $305.1 million $58.6 million Construction $84.7 million $26.9 million Architecture and Engineering Contracted Services $7.7 million $923,000 $76.7 million $16.3 million Goods $136 million $14.5 million 7
8 Overall MWSBE Utilization FY % 40% 35% 30% 25% 20% 15% 10% 5% 0% Construction Architecture & Engineering Contracted Services Goods Overall M/W/SBE Goal 21% 16% 14% 11% Annual % Total % 13.33% 25.38% 14.71% Annual % Total % 27.64% 22.89% 10.52% Annual % Total % 18.45% 21.86% 8.73% Annual % Total % 18.90% 18.76% 10.35% Annual % Total % 15.68% 18.19% 13.14% Annual % Total % 11.98% 21.21% 10.65% 8
9 Millions 120 Overall MWSBE Spend 100 $98M 80 $65M $65M 60 $45M $47M $52M $59M 40 $39M $27M $28M 20 $14M $12M $16M $17M Fiscal Years 9
10 Overall Minority Business Enterprise Utilization FY % 14% 12% 10% 8% 6% 4% 2% 0% Construction Architecture & Engineering Contracted Services Goods Overall MBE Goal 10% 4% 5% 3% Annual % Total % 4.70% 6.37% 2.63% Annual % Total % 12.83% 4.46% 2.49% Annual % Total % 9.81% 7.34% 2.07% Annual % Total % 14.88% 6.92% 2.56% Annual % Total % 12.88% 6.87% 3.42% Annual % Total % 8.78% 8.70% 2.51% 10
11 Millions Overall Minority Business Enterprise Spend 25 $23M 20 $16M $16M 15 $12M $11M $11M 10 $10M $9M $7M $6M 5 $5M $4M $5M $3M Fiscal Years 11
12 Overall Women Business Enterprise Utilization FY % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Construction Architecture & Engineering Contracted Services Goods Overall WBE Goal 6% 7% 4% 3% Annual % Total % 5.46% 11.01% 3.18% Annual % Total % 7.25% 8.41% 2.02% Annual % Total % 2.82% 7.46% 2.29% Annual % Total % 1.93% 7.52% 3.97% Annual % Total % 2.43% 7.22% 5.74% Annual % Total % 1.88% 8.84% 4.34% 12
13 Millions Overall Women Business Enterprise Spend 70 $64M $40M $42M 30 $27M $27M $26M $24M 20 $17M 10 $9M $8M $13M $11M $8M $9M Fiscal Years 13
14 Overall Small Business Enterprise Utilization FY % 8% 7% 6% 5% 4% 3% 2% 1% 0% Construction Architecture & Engineering Contracted Services Goods Overall SBE Goal 5% 5% 5% 5% Annual % Total % 2.50% 6.41% 7.64% Annual % Total % 1.35% 7.22% 3.82% Annual % Total % 5.81% 8.25% 3.72% Annual % Total % 2.09% 4.33% 3.69% Annual % Total % 0.87% 4.20% 3.98% Annual % Total % 1.33% 3.67% 3.80% 14
15 Millions 20 Overall Small Business Enterprise Spend 18 $18M $13M $14M $13M 12 $11M $11M 10 $10M $10M $10M $9M $0 $0 $0 $ Fiscal Years 15
16 Accomplishments At 19.2% of eligible spend, CMS achieved $58.6 million in total MWSBE spending Increased overall and MBE spend by $7 million over previous fiscal year Achieved/exceeded aspirational goals in two of the four categories (construction and contracted services) Achieved/exceeded MBE aspirational goals in three of the four categories (construction, architecture & engineering and contracted services) Achieved/exceeded WBE aspirational goals in three of the four categories (construction, contracted services and goods) 16
17 Accomplishments 2014 Agency Diversity Advocate of the Year Award North Carolina Statewide Minority Enterprise Development Week 17
18 Accomplishments 2015 North Carolina HUB Office Good Faith Efforts Awards Public Sector 18
19 Major Initiatives Host joint outreach sessions with the three upcoming Construction Manager at Risks Projects (J. M. Alexander Middle replacement; Berryhill/Reid Park relief; Olympic High renovation/addition) Targeted outreach/development sessions 19
20 Next Steps Continue to review procurement plans and meet with key stakeholders regarding utilization of MWSBEs Continue debriefing process for unsuccessful suppliers/contractors to improve competitiveness Continue to participate in Carolinas-Virginia Minority Supplier Development Council MBE Industry groups 20
21 Questions
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