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HomeMy WebLinkAboutDisparity Study UpdateSWaM Procurement Programs A Historical Perspective Lavera Tolentino, Purchasing Agent, Finance Department July 14, 2026 1 Background & Purpose 2 •2018 Disparity Study identified the underutilization of businesses owned by women, minorities and service- disabled/veterans •12 recommendations were implemented •New aspirational goals were adopted to align with study findings •The SWaM Business Office was established •Key focus areas identified •Significant improvements in •Utilization •Actual spending •Subcontracting •Outreach & Networking City Council Adoptions/Resolutions (1995 – 2018) 3 •1995 – Creation of the region's first Minority Business Council (MBC) •2007 – An Administration Directive was established for SWaM-certified business small purchase procedures •2008 – City Council adopted a Resolution setting a 10% minority-owned business participation goal in City contracting •2012 – Small Business Enhancement Program (SBEP) implemented •2012 – Bond Waiver Program implemented •2018 – City’s 1st Disparity Study was conducted *** *** *** •2020 – Commonwealth of Virginia Minority Business Commission 2019 City Council Resolution •Implement all 12 recommendations from the 2018 disparity study •9 recommendations from the disparity study ▪Update the City’s aspirational participation goals ▪Establish a dedicated SWaM Business Office ▪Improve data collection ▪Annual growth monitoring ▪Undertake a local SWaM certification program ▪Increase small business subcontracting opportunities ▪Implement project specific contract goals ▪Unbundle large contracts ▪Prompt payment 4 2019 City Council Resolution (con’t) •3 recommendations from City Council ▪Improve networking and outreach •Increased small business workshops ▪Improve contracting opportunity notification •Implementation of the Supplier Portal •Utilization of eVA ▪Implement a small business set-aside program •Sheltered Bidding 5 Minority-owned and Women-owned Spend (pre-, during-, and post- 2018 Disparity Study) 0% 10% 20% 30% 40% 50% FY99 FY19 FY24 29.7% 9.5% 0.01% $2.26M 0.01% $48.8M 9.5% $120.7M 29.7% *FY99 *FY19 FY24 M/WBE SPEND DOLLARS BY YEAR * There was no aspirational goal for women-owned businesses 6 Aspirational Goals •Prior to the 2018 Disparity Study •10% of City expenditures to minority owned businesses •Post 2018 Disparity Study (updated/established) •12% for minority-owned businesses •13.3% for woman-owned businesses •11.9% for service-disabled/veteran-owned businesses •Expenditures to minority-owned and woman- owned businesses exceeded the aspirational goals in fiscal years 2022, 2023, and 2024 7 Thank You QUESTIONS? 8 2018 & 2025 Disparity Studies A Closer Look at Differing Landscapes 9 Lavera Tolentino, Purchasing Agent, Finance Department July 14, 2026 Disparity Studies 2018 Study 10 2025 Study •Study Period •July 1, 2012 – June 30, 2017 (5 years) •Relevant Geographical Market Area •Virginia Beach, Chesapeake, Norfolk and Portsmouth •Availability Analysis •12% MBE •13.3% WBE •11.9% SDV •Utilization Analysis •10.7% MBE •8.2% WBE •0.7% SDV •Disparity Analysis •Disparity Index (%) = $ utilized $ available •Study Period •July 1, 2020 – June 30, 2024 (4 years) •Relevant Geographical Market Area •Virginia Beach, Chesapeake, Norfolk, Portsmouth and Suffolk •Availability Analysis •25.2% MBE •13.7% WBE •12.6% SDV •Utilization Analysis •4.5% MBE •6.3% WBE •1.1% SDV •Disparity Analysis •Disparity Index ($) = $ of participation $ of availability Legal Realities •Virginia Procurement Laws •Does not authorize localities to enact a local preference program •Open competition 11 •Disparity Study •Required to focus on the region of the locality •Relevant Geographical Market Area (RGMA) City of Virginia Beach Program Success 12 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% FY22 FY23 FY24 *3-Year M/WBE Award and Spend Awards Spend 23.2% 22.2% 27.1% 29.7% 23.7% 26.1% $118M 23.7% $105M 22.2% $181M 23.2% FY22 FY23 FY24 M/WBE AWARD DOLLARS BY YEAR $95M 26.1% $101M 27.1% $121M 29.7% FY22 FY23 FY24 M/WBE SPEND DOLLARS BY YEAR Program Status Other Localities •Federal Government •Current Legal Landscape •Small Business Programs •Race and Gender Neutral •Commonwealth of Virginia •Recently completed a Disparity Study •No action taken to date 13 Taking cadence from the Commonwealth •Virginia is a Dillion Rule state, localities are required to follow state practices 14 Recommendation QUESTIONS? 15