57 th Annual Carolinas Association of Governmental Purchasing

1. 57th Annual Carolinas Association of Governmental Purchasing Purchasing Conference and Vendor Exhibition March 3-6, 2013 Putting Your Words to Work: M/WBE Outreach & Reporting Presenter: Denisha Harris, MPA City of Greenville and Greenville Utilities Commission Minority and/or Women Business Enterprise (M/WBE) Coordinator

2. Learning Objectives • Understand the business case for implementing M/WBE outreach programming • Know the legal definition of M/WBE Outreach • Learn strategies for building an effective outreach program (not plan) • Review reporting requirements and best practices

3. Have you seen this before? • Before awarding a contract, a public entity shall do the following: Develop and implement a minority business participation outreach plan to identify minority businesses that can perform public building projects and to implement outreach efforts to encourage minority business participation… NC GS 143-128.2(e)

4. Does this sound familiar? Policy Statement It is the policy of (insert your agency here) to provide minorities and women equal opportunity for participating in all aspects of contracting and procurement programs, including but not limited to…

5. But what does it all mean?

6. Time to Put Our Words to Work…!

7. The Business Case • Historically and even into present day, M/WBE firms are not utilized in proportion to their availability in the market. Why? Lack of Access, Discrimination? **Compelling Interest** “Without adequate capital minority-owned firms will fail to realize their full potential. In 2002 there were 4 million minority-owned firms, grossing $661 billion in receipts and employing 4.7 million workers. If minority-owned firms would have reached parity with the representation of minorities in the U.S. population, these firms would have employed over 16.1 million workers, grossed over $2.5 trillion in receipts, and numbered 6.5 million firms.”1 1U.S. Department of Commerce, Minority Business Development Agency. Disparities in Capital Access between Minority and Non-Minority-Owned Businesses: The Troubling Reality of Capital Limitations Faced by MBEs, 2010.

8. The Business Case • It’s a smart economic decision. • The World Trade Organization estimates that for most countries, purchases by the government represent 10-15 percent of the gross domestic product (GDP). Government’s purchasing power can : • Expand the tax base • Create Jobs • Build a Stronger Economy “Since the 1980s, with support from expanded government and corporate supplier diversity programs as well as other initiatives, minority firms as a whole have seen their revenue rise by about 10 percent annually, have created 23 percent more jobs, and have enjoyed an overall growth rate three times higher than that of traditional businesses.”2 2Ewing Marion Kauffman Foundation . The New Agenda for Minority Business Development, 2005.

9. The Business Case • It’s just good business. • When firms compete, buyers win. Governments are obligated to be good stewards of public funds. Participation policies promote competition, avoid favoritism, and also help ensure that local governments do not pay excessive prices for construction.3 3Bell, Fleming A. Construction Contracts with North Carolina Local Governments (Chapel Hill: School of Government, University of North Carolina, 2007) 1.

10. Statutory Requirements for M/WBE Outreach (legal definition) • Before awarding a contract, a public entity shall do the following: (1) Develop and implement a minority business participation outreach plan to identify minority businesses that can perform public building projects and to implement outreach efforts to encourage minority business participation in these projects to includeeducation, recruitment, and interaction between minority businesses and nonminority businesses.

11. From Plan to Program: Strategies for Building a Successful Outreach Program

12. From Plan to Program: M/WBE Outreach The purpose of minority business outreach is to identify ready, willing, and able M/WBE firms and to encourage minority business participation. Participation can be defined as: • The act of minority firms (as defined by NC GS 143-128.2(g)) becoming actively involved in public contracting and procurement opportunities. Actively involved means that minority firms are: • Enrolling in the bid process/Actively pursuing opportunities. • Successfully completing the contracting process. • Winning bids!

13. From Plan to Program: Basic Principles

14. The Five “Be” Attitudes: Be Distinct Be Accessible Be Intentional Be Proactive Be Authentic Great leaders understand that the right attitude will set the right atmosphere, which enables the right responses from others…John Maxwell

15. The “Be” Attitudes: Be Distinct Brands are designed to: • As the old adage states, a picture speaks a thousand words. Your “visual brand” (i.e.: logo, tag line, etc.) should paint a picture of your program and what makes it distinct. • Your “brand” is also the unique way that you operate your program. Are you focused on education and training? Maybe networking and empowerment? Emphasize what makes you unique.

16. The “Be” Attitudes: Be Distinct Putting Our Words to Work…

17. The “Be” Attitudes: Be Accessible • One of the most prominent barriers to participation is Access. Historically, large government agencies have been viewed as impenetrable fortresses. Your job is to ensure that business owners: • Know who you are. • Understand what services they can expect. • Feel at ease to contact you with any questions/concerns.

18. The “Be” Attitudes: Be Accessible Comprehensive Website*About the Program*Forms*Bid Opportunities*Directory*Resources for Business*Upcoming Events*Who’s Who In Business www.greenvillencmwbe.org

19. Welcome Packet-Brochure-Vendor Forms-Certification Info-How to Do Business Workbook The “Be” Attitudes: Be Accessible “Old School”

20. The “Be” Attitudes: Be Accessible “New School” Television Online Video Social Media

21. The “Be” Attitudes: Be Accessible

22. The “Be” Attitudes: Be Intentional • Hone in on your target audience and make sure they are prepared to compete. • Strive to have all M/WBEs that desire to do business become certified. • Create an M/WBE list serve of potential and existing business partners and send bid opportunities. How? • Business License List • Subset HUB Directory • Walk-Ins • Link business owners to important resources.

23. The “Be” Attitudes: Be Proactive • Make one of your goals to create a pipeline of new business owners through proactive engagement. How? • Host Awards and Recognition Programs/Events. • Align with various minority groups. • Enlist M/WBE Ambassadors

24. The “Be” Attitudes: Be Authentic Trust is the key. Without trust, your efforts will not be as effective.

25. What's Next? Reviewing Reporting Requirements & Best Practices

26. What Gets Measured Gets Done: M/WBE Reporting Reporting is an opportunity to catalogue the results and outcomes of M/WBE efforts with the intent of providing information for decision making and follow-up actions. Important Functions: • Track expenditures (e.g. by category of work, minority group, governmental unit) • Discover trends (as a function of time or any of the other tracking measures) • Account for activities (i.e. outreach efforts, etc.) • Benchmark progress (e.g. goals attainment) • Demonstrate Success!! Success cannot always be measured in #’s, most often through people…

27. What Gets Measured Gets Done: M/WBE Reporting Reporting is an opportunity to catalogue the results and outcomes of M/WBE efforts with the intent of providing information for decision making and follow-up actions. Who should you be reporting to?: • State of NC • Local Governing Bodies • Minority Business Communities • Anyone required of your local program • General Public • You!

28. M/WBE Reporting Requirements (Construction) Application • All public agencies subject to G.S.143-128.2 shall report to the Department of Administration HUB Office the following with respect to eachbuilding project (both formal and informal): • Verifiable percentage goal • Type of project • Dollar Value • M/WBE utilization* • Good faith efforts • Et al *design related and misc values are captured but not reported as a part of HUB participation (not required by statute) NC GS 143-128.3 and 143-131

29. M/WBE Reporting Requirements (Construction) Method • HUBSCO Reporting System (www.hubsco.com) • Web-based system • Must request user access • Forms/User Manual available online (www.doa.nc.gov/hub) Frequency • As projects are completed (automatic reminders)

30. M/WBE Reporting Requirements (Goods and Services) Application: Every governmental entity required by statute to use the services of the Department of Administration in the purchase of goods and services, every local school administrative unit, and every private, nonprofit corporation other than an institution of higher education or a hospital that receives an appropriation of $500,000 or more during a fiscal year. NC GS 143-48 State Agencies* Public Universities * Community Colleges * Public School Districts

31. M/WBE Reporting Requirements (Goods and Services) Method: • Manual Report *download instructions and forms at www.doa.nc.gov/hub Frequency: • Quarterly Basis

32. M/WBE Reporting Requirements: ????? For questions concerning NC State required M/WBE reporting, contact: Jerry Ryan Statistician 919.807.2332 jerry.ryan@doa.nc.gov

33. M/WBE Reporting Tips & Best Practices View City of Greenville’s Annual Report @ www.greenvillencmwbe.org

34. Resources & Information For more information and samples of the materials discussed today, go to the City of Greenville/GUC M/WBE website @ www.greenvillencmwbe.org If you would like a copy of the presentation, email me at dharris@greenvillenc.gov