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Overview of Target Market Program Legislation for Minority-Owned and Women-Owned Firms

This symposium, led by Don Kupferschmid and other specialists, explores significant legislation, including Senate Bill 51 and Public Act 96-0795, effective July 1, 2010. The discussion highlights the Department's Chief Procurement Officer's responsibility to implement a target market program aimed at increasing participation from minority-owned and women-owned firms in public contracts. Key aspects include estimating program value, contract letting, participation requirements, and strategic funding allocations to maximize opportunities for these businesses in the construction sector.

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Overview of Target Market Program Legislation for Minority-Owned and Women-Owned Firms

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  1. Target Market Program Symposium March 3, 2011

  2. Overview of Legislation Don Kupferschmid Special Assistant to the Office of the Secretary

  3. Overview of Legislation • Senate Bill 51 • Public Act 96-0795 • Effective July 1, 2010 • Creates 20 ILCS 2705/2705‑600

  4. Overview of Legislation • Purpose – “In order to achieve all diversity goals, the Department’s Chief Procurement Officer shall develop and coordinate a target market program . . .”

  5. Overview of Legislation • Para 1 – Estimating Target Market Program $ • In January, CPO estimate $ value of all IDOT contracts for calendar year • Multiply estimated $ by Minority-Owned & Women-Owned (M/O & W/O) target market percentages to establish TMP $ • Allocate contracts equal to TMP $ • Para 2 – Establish Target Market Contract Letting • CPO and IDOT identify TMP Contracts • Segment Contracts into Feasible Lettings with Varying Projects • Para 3 – Determine M/O & W/O Participation • Require at least 3 Interested, Qualified M/O or W/O firms for contact inclusion • If necessary, require M/O and W/O training to participate

  6. Overview of Legislation • Para 4 – Participation Inclusions • Limited to M/O and W/O businesses or Joint Ventures consisting of M/O, W/O or both. • Prime Contractor may sub 50% of $ to non M/O or W/O firms • Para 5 – Federally Funded Contracts • IDOT may vary eligibility to comply with Federal Requirements • Para 6 – TMP Contracts with Insufficient Bids • Reallocate funds to other TMP contracts when insufficient bidding occurs • Para 7 – Special Considerations • Chief Procurement Officer may: • Expedite payments • Reduce Retainages • Advance Contractor start-up and mobilization costs

  7. IDOT’s Target Market Program Implementation Bill Grunloh Chief Procurement Officer

  8. TMP Implementation Goal – Create a program to assist Minority-Owned and Women-Owned firms to achieve additional construction projects: • Establish the Target Market Program • Maximize the 2011 Construction Season

  9. TMP Implementation Target Market Program Amount • OP&P and CPO • Reviewed FY2011 Annual Program identifying state funded construction projects • Assumed Calendar Year and Fiscal Year would be equal amounts

  10. Eligible funds for Target Market Program: TMP Implementation Target Market Program Amount (Cont) • Added district specific projects representing funded state funds: • District Specific Projects $40,000,000 • Total Target Market Eligible Dollars:

  11. Eligible funds for Target Market Program: TMP Implementation Target Market Percentages • Chief Counsel and CPO • Reviewed IDOT aspirational goals (22.77%) • Set Target Market Percentage to 30% • Target Market Dollars: $103,536,000 * 30% = $31,060,080

  12. TMP Implementation Target Market Split (Minority-Owned & Women-Owned) • Chief Counsel and CPO • Based on: Business Enterprise for Minorities, Females and Persons with Disabilities Act for the State of Illinois (30 ILCS 575/4)     Sec. 4. Award of State contracts.  (b) In the case of State construction contracts, the provisions of subsection (a) requiring a portion of State contracts to be awarded to businesses owned and controlled by persons with disabilities do not apply. Not less than 10% of the total dollar amount of State construction contracts is established as a goalto be awarded to minority and female owned businesses, and contracts representing 50% of the amount of all State construction contracts awarded to minority and female owned businesses shall be awarded to female owned businesses. • The Split: $31,060,080 * 50% = $15,530,400

  13. Target Market Projects Christine Reed Director, Division of Highways

  14. TMP Projects • Division of Highways and CPO • Projects Selected based: • Feasibility and Variety • Available Minority-Owned and Women-Owned Firms • Varied Locations throughout State • 13 Projects (Districts 1, 4, 8) • 7 Minority-Owned ($1,810,000) • 6 Women-Owned ($1,785,000) • Total ($3,595,000)

  15. TMP Implementation Initial Target Market Letting • February 25, 2011 • Projects: • Item 2 withdrawn due to Construction Conflicts • Received Bids of 4 items • Item 1 (District 1 – Minority-Owned, Drainage) – 4 bidders • Item 11 (District 8 – Women-Owned, Deck Sealing) – 1 bidder • Item 12 (District 8 – Minority-Owned, Demolition) – 3 bidders • Item 13 (District 8 – Minority-Owned, Concrete Work) – 2 bidders • Award pending Bid Analysis

  16. TMP Legislation Ellen Schanzle-Haskins Chief Counsel

  17. TMP Legislation • Concerns with existing Legislation • Proposed New Legislation (SB1923)

  18. TMP Suggestions Audience

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