Diversity just the way we do business!
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1 Small, Local and Minority Business Enterprise ( SLMBE ) Office Towanda R. Livingston, Director Commission Meeting Wednesday, September 21, 2016 Diversity just the way we do business!
2 Overview Definition(s): Minority Business Enterprise (MBE) Firm: A certified minority-owned, woman-owned firm and/or socially-disadvantage-owned firm. Aspirational Goal: A benchmark (metric) to assess the effectiveness of the program over a period of time. Not meant to be applied to every contract. Enabling Statutory and Regulatory Foundation Sections and of the Public Utilities Article, MD. Code Ann. Standard Procedure (SP) MBE Fact-based 2010 Disparity Study and supported by the 2015 Disparity Study Evidence to justify the application of Race- or Gender-Conscious Remedies for four (4) broad Contracting Areas: Architectural & Engineering; Construction; Goods & General Services; and Professional Services. Owner: SLMBE Office 2
3 Objective Adopt Aspirational Goals for MBE Contract Payments/ Expenditures for each Contracting Area; A consistent, legally sufficient, transparent approach in setting its Aspirational Goals for the MBE Program Payments/Expenditures; and Establish a measurable performance standard that can be evaluated and tested over time. Owner: SLMBE Office 3
4 Methodology MBE Utilization and Availability Outcome of 2010 and 2015 Disparity Study findings; Actual Contract Area Payments to MBE firms (Architectural & Engineering, Construction, Goods and General Services, Professional Services); and WSSC availability of certified ready, willing and able MBE firms. Annual Projected Budget for each of the Contract Area Payments/Expenditures A rolling average of the previous three (3) fiscal years of total Contract Payments Owner: SLMBE Office 4
5 Diversity just the way we do business! Owner: SLMBE Office 5
6 Proposed MBE Aspirational Goals by Contracting Areas Architectural & Engineering - (24%) Construction - (13%) Goods & General Services - (33%) Professional Services - (23%) Special Note: These Aspirational Goals for the four (4) MBE Contract Payment/Expenditures/Spend areas are not applicable to individual contracts, but do serve as benchmarks. Owner: SLMBE Office 6
7 Fiscal Year End 2016 MBE Program Performance by Contracting Area(s) Total Contract Payments to MBEs Summary Architectural & Engineering - $11.1 million on 28% Construction - $47.7 million or 13% Goods & General Services - $33.6 million or 25% Professional Services - $22.4 million or 40% Special Note: Results achieved via contract-specific goal setting. Owner: SLMBE Office 7
8 Commissioners Next Steps Vote to adopt aspirational metrics during September 2016 Commission Meeting; and Include adopted aspirational metrics in monthly SLMBE Dashboard commencing in October Owner: SLMBE Office 8
9 WSSC SLMBE Dashboard JUNE 2016 MWBE TOTAL CONTRACT PAYMENT AND AWARD DATA Summary - Total Contract Payments to MWBE Firms Fiscal Year-To-Date Contracting Area M/WBE$** M/WBE%** MBE $ WBE $ Majority $ Total Contract Payments A/E Services $ 11,069,068 28% $ 11,069,068 $ - $ 28,988,558 $ 40,057,626 Construction Services $ 47,685,450 13% $ 47,685,450 $ - $ 306,870,916 $ 354,556,366 Goods and Services $ 33,635,948 25% $ 24,789,834 $ 8,846,114 $ 103,642,761 $ 137,278,709 Professional Services $ 22,441,700 40% $ 17,583,145 $ 4,858,555 $ 33,164,389 $ 55,606,088 Totals $ 114,832,166 20% $ 101,127,497 $ 13,704,669 $ 472,666,623 $ 587,498,789 Note: numbers are rounded to the nearest whole dollar FISCAL YTD M/WBE VALIDATED SUBCONTRACT PAYMENTS: $5,965,798 in A&E Payments; $8,682,567 in Construction Payments; $3,608,924 in Goods and Services Payments; and $2,406,894 in Professional Services Payment (Special Note: After the year-end reconciliation for all Contract payment categories and to ensure all dollars are properly classified by business category, adjustments have been made accordingly) **M/WBE includes Certified-MBE and WBE firms (displayed for reporting purposes only.) The Total Contract Payments FYTD is $587,498,789 of which $20,664,183 is FYTD M/WBE validated Subcontract Payments. These validated M/WBE Subcontract Payments have been subtracted from the Majority Contract Payments and added to the M/WBE Prime Contract Payments ($94,167,983) to ensure that they are not double counted. The Majority Contract Payments depicted in the table above have been adjusted to reflect the subtraction. The following equation has been applied to the Total Contract Payments to determine the M/WBE percentage of Contract payments: M/WBE$ (excluding Subcontract Payments) + Majority$ = Total Payments. The Total M/WBE$/Total Payments = Total M/WBE%. Note: M/WBE$ (excluding Subcontract Payments) + Majority$ = Total Payments. The Total M/WBE$/Total Payments = Total M/WBE% Summary - MWBE Total Contract Award Dollars* Fiscal Year-To-Date Contracting Area M/WBE$** MWBE%* WBE $ MBE $ Majority $ Total Contract Awards A/E Services $ 24,142,923 24% $ - $ 24,142,923 $ 75,830,404 $ 99,973,327 Construction Services $ 52,982,280 24% $ - $ 52,982,280 $ 166,853,648 $ 219,835,928 Goods & Services $ 43,425,295 28% $ 7,815,332 $ 35,609,963 $ 109,556,656 $ 152,981,951 Professional Services $ 30,418,112 33% $ 8,359,298 $ 22,058,814 $ 62,497,258 $ 92,915,370 Totals $ 150,968,610 27% $ 16,174,630 $ 134,793,980 $ 414,737,966 $ 565,706,576 Note: numbers are rounded to the nearest whole dollar MBE Subcontract Awards FYTD: A&E - $18,814,411 Construction - $14,927,727 Goods and Services - $4,522,672 and Professional Services - $8,046,504 *MBE and WBE Award Dollars include Prime and Subcontract Award Dollars. Majority Award Dollars are adjusted to exclude the amount proffered to Subcontractors. Note: Majority Prime Award Dollars - Subcontract Award Dollars proffered to M/WBE = Majority$. M/WBE Prime Award Dollars + Subcontract Award Dollars proffered to M/WBE = M/WBE$ Page 1 of 3 FINAL 9/15/2016 4:38 PM
10 A/E Services WSSC SLMBE Dashboard JUNE 2016 Contracting Area *Total MBE% WBE $ MBE $ Majority $ Construction Services Goods & Services Professional Services Totals Note: numbers are rounded to the nearest whole dollar *Total MBE% and MBE$ includes MBE and WBE Payments SLBE TOTAL CONTRACT PAYMENT AND AWARD DATA Total Contract Payments to SLBE Firms Fiscal Year-To-Date The Total Prime and Subcontract Payments to SLBE firms FYTD for June 2016 is $31M Total Contract Payments 100% $ - $ 398,587 $ - $ 398,587 37% $ 7,138,735 $ 2,868,034 $ 17,024,186 $ 27,030,955 2% $ - $ 31,185 $ 1,761,733 $ 1,792,918 8% $ - $ 148,822 $ 1,640,086 $ 1,788,909 34% $ 7,138,735 $ 3,446,628 $ 20,426,006 $ 31,011,368 Note: Majority refers to approved SLBEs that have not been identified as either a MBE or WBE. The SLBE Program is a race/gender neutral Program. A/E Services Construction Services Goods & Services Professional Services Contracting Area Total Contract Awards to SLBE Firms Fiscal Year-to-Date *Total MBE% WBE $ MBE $ Majority $ Total Contract Awards 100% $ - $ 7,558,401 $ - $ 7,558, % $ - $ 30,491,870 $ - $ 30,491,870 14% $ 48,000 $ 385,994 $ 2,717,711 $ 3,151,705 54% $ - $ 1,901,368 $ 1,632,088 $ 3,533,456 Totals 90% $ 48,000 $ 40,337,633 $ 4,349,799 $ 44,735,432 Note: numbers are rounded to the nearest whole dollar The Total Prime and Subcontract Awards to SLBE firms FYTD for June 2016 is $44.7M (Special Note: Goods & Services Contract Award dollars were reduced by $384,901 was re-classified to Construction MBE Contract Award dollars in comparison to the SLBE Contract Award dollars reported in the May 2016 FYTD SLMBE Dashboard.) *Total MBE% and MBE$ includes MBE and WBE Awards Note: Majority refers to approved SLBEs that have not been identified as either a MBE or WBE. The SLBE Program is a race/gender neutral Program. Registered Vendors WSSC SUPPLIER PORTAL SYSTEM (FORMALLY:CENTRALIZED BIDDER REGISTRATION (CBR) SYSTEM) May-16 Jun-16 FYTD 2016 SLMBE % of YTD Registered Total Vendors % Total SLMBE Vendors % Total MBE Only Vendors % Total SLBE Only Vendors % Total Combo MBE/SLBE Vendors % CBR vendor registration officially began on December 3, Effective November 1, 2015, WSSC launched the WSSC Supplier Portal System which will be the new Bidder Registration System. As of June 30, 2016, the total number of registered firms were 4,252. PLEASE NOTE: The numbers reflected above are tentative and are subject to change Page 2 of 3 FINAL 9/15/2016 4:38 PM
11 WSSC SLMBE Dashboard JUNE 2016 Page 3 of 3 FINAL 9/15/2016 4:38 PM
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