HomeMy WebLinkAbout022806 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..)
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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
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· 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.
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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
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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
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.