EQUAL BUSINESS OPPORTUNITY/ CONTRACT COMPLIANCE DIVISION VISION To Provide Comprehensive Assistance and Support for the Growth and Development of Jacksonville s Small and Emerging Businesses Jacksonville Small and Emerging Business Program (JSEB) is established through ORDINANCE CODE CHAPTER 126 PARTS 6A AND 6B
Presentation Overview Why Focus on Small Businesses? Background Roles and Responsibilities Strategic Plan Current and Future Improvements
Who Our Customers Are External Small Businesses Independent Authorities Contractors Private Sector Organizations Internal Procurement Ombudsman Department Project Managers
Why Focus on Small Businesses? Small firms: Represent 99.7% of all U. S. employers Employ 50% of all private sector employees Pay 44% of total U.S. private payroll Have generated 65% of net new jobs annually over the 17 years Create more than 50% of non-farm private GDP Hire 43% of high tech workers (scientists, engineers, computer programmers, etc) Produce 13 times more patents per employee than large firms Source: US Dept of Commerce, Census Bureau and Intl. Trade Administration
Background Division established by Ordinance Code 2004-602-E in August 2004 Inspector General Report Independent Audit Performed
Central Operations Department Deputy Director Annette Davis Division Chief Vacant Equal Business Opportunity/ Contract Compliance Division JBA Administrator Derrick Willoughby JBA Analyst Chuck McNeil JBA Contract Compliance Officer Professional Services Martha Eaves-Knox JBA Contract Compliance Officer Construction Services Ezra Thomas
Budget Salaries 2010/2011 $1,925,806 $260,114 $500,000 is allocated annually pursuant to ordinance code chapter 126; sec. 126.624 $500,000 has been rolled over to fund the disparity study
Staff There are four staff members that provide the following services: Analyzes and tracks JSEB data for reports, and measurements Conducts compliance reviews for contracts Reviews certification applications Conducts education and training Increases Access to Capital, Bonding, and Mentoring opportunities EO/EA Race/Sex Composition The division currently has 4 filled positions with 3 (75%) of the positions currently filled by minorities; two African American males and one African American female Each staff person has at least a bachelor s degree and is highly skilled in small/minority business program administration, construction and professional services management, and systems analysis
Business Quote In the business world, everyone is paid in two coins: cash and experience. Take the experience first; the cash will come later. Harold Geneen
Roles and Responsibilities Administer the Jacksonville Small and Emerging Business (JSEB) Program according to Jacksonville Ordinance Code Chapter 126 Parts 6A and 6B Program components include: Certification Establishing Participation Goals and Contract Compliance Access to Capital Bonding Assistance Training, Education and Mentoring Other Office Functions
Certification In FY2010, 397 small business applications were processed for certification or recertification in the JSEB Program. Qualifications for certification include: Local Residency Owner s personal net worth less than $605,000 Business gross receipts average less than $6,000,000 over the most recent three year period For-profit business Control by 51% owner(s) Perform a commercially useful function
Certification JSEB Certified Vendors 500 450 400 350 300 250 200 150 100 50 0 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010
Establish Participation Goals on City Projects Review Bid Specs for Goal Setting Set-a-side Participation Encouragement Review Low Bids Review Good Faith Efforts Attend Pre-Bid and Pre-Construction Meetings Monitor Projects for Compliance
Establish Participation Goals on City Projects In FY 2010, JSEB vendors: Were awarded $20,837,993 (6.18% of the city s total sourceable* awards of $337,237,307) Received $61,068,014 (14.81% of the city s total sourceable* spend of $412,453,464) *To be considered sourceable, an award or expenditure must generally result from a competitive solicitation for supplies, contractual services, professional services, or capital improvements and not from: (i) an exceptional purchase, i.e., any purchase excepted by law or rule from the requirements for competitive solicitation, or (ii) the solicitation or purchase of services and/or supplies for which there are no certified JSEBs that provide the same.
Establish Participation Goals on City Projects JSEB Awards from Sourceable Funds JSEB Expenditures from Sourceable Funds 35.00% 25.00% 30.00% 25.00% 20.00% 20.00% 15.00% 15.00% 10.00% 5.00% 10.00% 5.00% 0.00% FY2006 FY2007 FY2008 FY2009 FY2010 0.00% FY2006 FY2007 FY2008 FY2009 FY2010
Access to Capital A pool of resources totaling $1,215,000 was established to assist small businesses with working capital for projects awarded through the City of Jacksonville, JEA, JPA, JTA, and JAA. Contributors include: Bank of America City of Jacksonville Centerbank Jacksonville Aviation Authority Everbank Jacksonville Electric Authority First Guaranty Bank & Trust Jacksonville Port Authority Wachovia Bank Jacksonville Transportation Authority Prosperity Bank
Access to Capital The Access to Capital program is currently managed by Essential Capital. At September 30, 2010: over $2.4 million in loans were provided to JSEB vendors Loans assisted JSEBs in securing almost $28 million in contracts and subcontracts. $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Access to Capital Program Loans FY2005 FY2006 FY2007 FY2008 FY2009 FY2010
Bonding Assistance The Bonding Assistance program, currently administered by P.A. Wallace & Associates, was established to provide support services to JSEB vendors in their efforts to secure performance and payment bonds for public and private contracts. This program does not provide the underlying bond but assists with the application process, provides small business support and training, and offers action plans for those who do not qualify for bonding. To date, 82 JSEB vendors have obtained/been approved for Performance and Payment bonds.
Bonding Assistance Vendors Assisted 160 140 120 100 80 60 40 20 0 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010
Training, Education and Mentoring Training and Education JSEB Orientation Recertification requires 20 points per year Quarterly calendars of education opportunities Manage Expectations Mentoring JSEB vendors are matched with established businesses Focuses on key management issues, such as cash flow, strategic planning, marketing, accounting, human resources, and other related business areas
Other Office Functions Reporting Annual, Quarterly, Public Records Requests Outreach Conferences, Workshops, Local Partners and Advocates JSEB Online Directory Name, contact information, areas of certification, dates of certification JSEB Monitoring Committee Staff support Section 3 (HUD) Certification
Strategic Plan Short Term Lean, Efficient Staff Improve Services Align Internal Tasks with Ordinance Build Effective Relationships Formulate Clear Policies and Procedures Establish Better Tracking Systems Branding
Strategic Plan Long Term Provide Excellent Business Assistance for Jacksonville s Small Businesses Increase Mentor/Mentee Relationships Expand JSEB Vendor Database Implement Technically Sound, High Quality Vendor Tracking Systems Conduct a Disparity Study by 2013 Administer a Program Narrowly Tailored to the Results of the Disparity Study Be Considered a Nationwide Model for Small Business Programs
Current Improvements Savings - Effective August 1, 2010, previous staff positions (10) eliminated, new positions (4) created, saving approximately $270,000 Lean Staff - New staff selected and were in place by October 4, 2010 Establish policies - currently drafted for certification JSEB Orientation restructured Go Live in February 2011 Build Effective Relationships The division has reached out to all local agencies and will establish agency contacts for the purpose of reviewing opportunities for small business Contract Review - vendor contracts currently being reviewed for improved services
Future Improvements Re-Branding Effort Public Information is assisting with EBO s new look, feel, logo, web address, and web updates Collaborate with ITD to build tracking system A centralized comprehensive tracking system to ensure a better reporting mechanism Offset costs associated with training Classes provided by the city or its consultants should charge a small fee; this would reduce no shows and increase interest on the part of participants. Further, it would offset costs associated with providing quality facilitation Enhance Certification Align the program with state or federal programs for ease of use for our customers and speedier reviews; possibly include Veterans as part of the program Disparity Study projected for solicitation in 2011
Concerns Disparity Study results and subsequent changes Buy-in from key stakeholders
Measuring Success Outreach efforts expanding the JSEB vendor pool Increase the overall percentage of dollars awarded and expended to JSEB vendors Increase in the number of vendors utilizing the program benefits Increase in the numbers of vendors graduating from the program Support the JSEB Monitoring Committee
Questions