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022806 Minority Contracting Proposed Procurement Ordinance Changes to Encourage Contracting and Subcontracting with Woman-Owned and Minority-Owned Businesses. · Background · Summary of the Proposed Ordinance · Ordinance Administration · Next Steps · November 2004: City's Minority Business Council (MBC) presented proposed initiatives to City Council. · Minority Participation is 2 % for minority business; 1.80/0 for woman- owned business; (construction is less than 1 0A..) -PBl'tBJJI UrTUlill-PHJlllBJJla lYJ111Dl'H1B,;J illlil . yy f)lllilll~ 0 yY llBil - ~'Irlll~ 5% 4% 4% 3% 3.0% 3% 2% 2% 1% 1% 0% FYOO 4.1% FY01 3.1% FY02 3.2% 2.8% 2.0% 1.8% t7% FY03 FY04 FY05 II % MinorityVendors II % Woman-Owned Vendors - PI' up ,00 B d ~ \ lllBll dlllB1JI rl p rl P'r{l'l [)'~fP'r~rl p~'~r ~ ~__ ~_ ___ I ~_ I _~ Y I · Require a Woman and Minority Participation Plan for all construction contracts in excess of $50,000 and all RFPs. · Notice to all Woman and Minority-Owned businesses in database regarding each construction IFB over $50,000 and all RFPs. · IFB for goods and services over $50,000 will be sent to at least 3 woman or minority-owned businesses, if possible. · Failure to submit a Woman and Minority Participation Plan shall result in a bid being declared . nonresponsive. · 510A. owned and controlled by one or more socially and economically disadvantage persons. · Includes (but not limited to) Black Americans, Hispanic Americans, Asian Americans, Eskimos, and Aleuts I.Adds Definition of Woman and Minority Participation Plan. · Outlines ten issues a contractor must address. 2. Adds Definition of "Woman-Owned Business" · Business or other entity that is at least fifty- one percent owned and controlled by a woman or women. 3. Current · Good Faith Efforts - defined to include sum total of efforts to provide for equitable participation of minority employees and subcontractors. Proposed · Broaden definition of good faith efforts to include the sum total of efforts to provide for the equitable participation of woman employees and subcontractors. -PI'up'o0Bd ~\111BlldlllB1JI rl I I ..J rl I I ~ 'oll~'II'll t'IJ'oll ~ 'oll'II'ilt'I~ 4. Current · Notice to all minority-owned businesses on list for IFB in excess of $15,000. Proposed · Notice for IFB in excess of $50,000 · Adds requirement for notice to woman- owned business -PI'up'o0Bd ~\111BlldlllB1JI rl I I ..J rl I I ~ 'oll~'II'll t'IJ'oll ~ 'oll'II'ilt'I~ 5. Current · Every bid in excess of $15,000 is required to have a statement on good faith minority-owned participation efforts. Proposed · Increase to $50,000 · Require a Woman and Minority Participation Plan for all bids in excess of $50,000 -PI'up'o0Bd ~\111BlldlllB1JI rl I I ..J rl I I ~ 'oll~'II'll t'IJ'oll ~ 'oll'II'ilt'I~ 6. Current · Failure to submit a statement of good-faith effort is treated as an informality. Proposed · Failure to submit a Woman and Minority Participation Plan shall result in a bid being declared nonresponsive -PI'up'o0Bd ~\111BlldlllB1JI rl I I ..J rl I I ~ 'oll~'II'll t'IJ'oll ~ 'oll'II'ilt'I~ 7. Current · Prior to final payment, all construction contractors must provide documentation regarding the actual good faith minority-owned business participation efforts undertaken in connection with the contract. Proposed · Prior to final payment, each construction contractor shall submit a report documenting its efforts undertaken in compliance with its Woman and Minority Participation Plan. -PI'up'o0Bd ~\111BlldlllB1JI rl I I ..J rl I I ~ 'oll~'II'll t'IJ'oll ~ 'oll'II'ilt'I~ 8. Current · Failure to submit documentation of actual good faith minority-owned business participation efforts prior to final payment is not addressed. Proposed · A contractor will not receive final payment until he submits documentation of actual woman and minority-owned business participation efforts. · If contractor fails to submit documentation of actual woman and minority-owned business participation efforts prior to final payment, the contractor may be debarred from contracting with the city for a period of up to two (2) years. -PI'up'o0Bd ~\111BlldlllB1JI rl I I ..J rl I I ~ 'oll~'II'll t'IJ'oll ~ 'oll'II'ilt'I~ 9. Current · Compliance is not addressed Proposed · If actual woman and minority participation substantially deviates below the levels outlined in the Woman and Minority Participation Plan, the contractor shall provide an explanation for the deviation. · The City shall in its sole discretion determine whether reasonable justification for the deviation exists. · In the event that there is not reasonable justification for the deviation, or in the event that the contractor fails to submit an explanation for the deviation, the contractor may be debarred from contracting with the city for a period of up to two (2) years. -PI'up'o0Bd ~\111BlldlllB1JI - r J - r;'1 r r~ ~l -1 ~~ I ::.J 10. Current · No notice is required to woman and minority-owned businesses regarding requests for proposals for City contracts. Proposed · The purchasing agent shall provide notice of all RFPs to all woman and minority-owned businesses on the list maintained by the purchasing agent. -PI'up'o0Bd ~\111BlldlllB1JI - r J - r;'1 r r~ ~l -1 ~~ I ::.J 11. Current · Every proposal submitted in response to a request for proposals must contain a statement setting forth good faith minority- owned business participation efforts. Proposed · All contractors responding to a RFP must include a Woman and Minority Participation Plan. -PI'up'o0Bd ~\111BlldlllB1JI - r J - r;'1 r r~ ~l -1 ~~ I ::.J 12. Current · Failure to submit a statement of good-faith efforts is treated as an informality. Proposed · Failure to submit a Woman and Minority Participation Plan shall result in a bid being declared nonresponsive. -PI'up'o0Bd ~\111BlldlllB1JI - r J - r;'1 r r~ ~l -1 ~~ I ::.J 13. Current · No requirement to provide documentation regarding the actual good faith minority-owned business participation efforts undertaken in connection with the contract. Proposed · Prior to final payment, each construction contractor shall submit a report documenting its efforts undertaken in compliance with its final Woman and Minority Participation Plan. -PI'up'o0Bd ~\111BlldlllB1JI - r J - r;'1 r r~ ~l -1 ~~ I ::.J 14. Current · Failure to submit documentation of actual good faith minority-owned business participation efforts prior to final payment is not addressed. Proposed · A contractor will not receive final payment until he submits documentation of actual woman and minority-owned business participation efforts. · If a contractor fails to submit a documentation of actual woman and minority-owned business participation efforts prior to final payment, the contractor may be debarred from contracting with the City for a period of up to two (2) years. · Failure to comply with the statement of good faith efforts is not addressed. Proposed · If actual woman and minority participation substantially deviates below the levels in the Plan, the contractor shall explain the deviation. · The City shall determine whether reasonable justification for deviation exists. · In the event that there is not reasonable justification for the deviation, or in the event that the contractor fails to submit an explanation for the deviation, the contractor may be debarred from contracting with the City for a period of up to two (2) years. 16. Current · Solicitations for contracts for the provision of goods and services of more than $15,000 shall include at least three minority-owned businesses. Proposed · Increase $15,000 to $50,000. Solicitations under $50,000 will be addressed in the Procurement Manual. Solicitations for contracts over $50,000 shall include at least three woman-owned or minority-owned businesses. · No change in award basis. · Contractors will be required to report on actual woman and minority participation compared to plan they submit. · Form will be provided. · Purchasing manual will be updated to reflect changes. · The City is taking greater proactive steps toward providing opportunities for doing business with minority and woman-owned businesses. · Greater accountability for prime contractors. · City Council Agenda for March 7, 2006. · Continue to monitor impacts of this change. · Continue to recommend other initiatives to City Council over time as evaluation of data warrants. · Implement other administrative improvements.