Minority, Women, and Small Business Enterprise Program Board of Education Management Oversight Report Aug. 23, 2011
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
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, HUB office, designers, contractors, HUB contractors, and State Construction Office
Budget Actual 2010-2011 Expenditures Actual 2009-2010 Expenditures Expenditures Salaries 95,833 150,363 Benefits 18,833 33,994 Purchased services 4,732 8,632 Total Expenditures $119,450 $192,989
Challenges Perceived preferred bidders list Budget reductions Reduction in bond-funded construction projects Reduction in force
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%
Total Eligible Expenditures FY 2010-2011 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
45% Overall M/W/SBE Utilization 2010-2011 40% 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 05/06 15.14% 12.26% 17.72% 8.83% Annual % Total 06/07 22.91% 17.74% 21.90% 10.66% Annual % Total 07/08 28.40% 18.21% 24.71% 11.82% Annual % Total 08/09 31.29% 25.38% 27.10% 14.16% Annual % Total 09/10 41.19% 13.33% 25.38% 14.71% Annual % Total 10-11 25.26% 27.64% 22.89% 10.52%
Millions Overall M/W/SBE Spending 120 100 $98M 80 $65M $65M 60 $45M $47M 40 $27M 20 $14M $12M $16M $17M 0 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Fiscal Years
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 05/06 4.85% 7.52% 2.74% 1.04% Annual % Total 06/07 5.06% 11.11% 5.46% 1.63% Annual % Total 07/08 3.82% 11.09% 8.73% 0.43% Annual % Total 08/09 4.08% 11.36% 8.19% 0.95% Annual % Total 09/10 2.58% 4.70% 6.37% 2.63% Annual % Total 10/11 4.07% 12.83% 4.46% 2.49%
Millions 18 Minority Business Enterprise Spending 16 $16M 14 12 $11M $11M 10 $10M $9M 8 6 $5M $5M $6M 4 $4M $3M 2 0 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Fiscal Years
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 05/06 8.85% 4.74% 6.62% 6.36% Annual % Total 06/07 11.80% 6.42% 12.45% 7.01% Annual % Total 07/08 22.68% 5.63% 12.91% 4.66% Annual % Total 08/09 25.62% 12.10% 13.23% 3.00% Annual % Total 09/10 44.19% 5.46% 11.01% 3.18% Annual % Total 10/11 21.02% 7.25% 8.41% 2.02%
Millions 70 Women Business Enterprise Spending $64M 60 50 40 $40M $42M 30 $27M $24M 20 10 $9M $8M $13M $11M $8M 0 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Fiscal Years
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 05/06 1.44% 0.00% 9.35% 1.43% Annual % Total 06/07 5.76% 0.21% 3.40% 2.02% Annual % Total 07/08 1.84% 2.16% 3.69% 6.79% Annual % Total 08/09 1.59% 1.91% 5.42% 10.21% Annual % Total 09/10 2.54% 2.50% 6.41% 7.64% Annual % Total 10/11 0.00% 1.35% 7.22% 3.82%
Millions 20 Small Business Enterprise Spending 18 $18M 16 14 $13M $14M $13M 12 $11M 10 $10M 8 6 4 2 0 $0 $0 $0 $0 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Fiscal Years
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 2009-2010 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
Major Initiatives Charlotte Minority Economic Development Initiative Building Services Operational and Cost Improvement Lean Six Sigma Project Supplier Quality Assessments
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
Questions