PRINCE GEORGES COUNTY OFFICE OF CENTRAL SERVICES

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PRINCE GEORGES COUNTYOFFICE OF CENTRAL
SERVICES

• Response To Disparity Study
• MINORITY BUSINESS DEVELOPMENT DIVISION

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Background/Purpose Of Study

• In 1978, Prince Georges County established a
  affirmative action program to engage MBEs in the
  contracting process
• In March 2005, D.J. Miller was commissioned to
  follow up the 1991 disparity study
• D.J. Millers study provided an updated analysis
  of the Minority Business Enterprises (MBEs)
  programs effectiveness, as well as, determining
  the availability of minority and female-owned
  businesses (MFBEs) and the utilization of
  contracting opportunities of firms in Prince
  Georges County
• Disparity study covered the period of FY 1994
  2004 which includes one year of the Johnson
  administration
• Four (4) major areas of procurement activity were
  reviewed
• Construction
• Non-professional Services
• Professional Services (Architectural
  Engineering)
• General Procurement
• For the purpose of this study, DJ Miller
  defined minority businesses as MFBEs and Prince
  Georges County refers to minority businesses as
  MBEs

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Overview of Methodology

• The study examined the following areas
• Review of County past procurements including
  overall minority businesses as well as, minority
  female businesses, laws, policies procedures
• Collection analysis of FY 1994-2004 purchasing
  records contracting records, as well as, MFBE
  participation levels and
• Anecdotal interviews with minority, female
  white male business owners
• Note Only twenty-one (21) firms agreed to
  participate in the interview

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Statistical Analysis of MFB Utilization

• According to the statistical data gathered during
  the study, the following was concluded
• In FY 1994 2004, Prince Georges County awarded
  168.4 million in Purchase Orders for
  Professional services of which 37 was awarded to
  MBEs and 3 to MFBEs.
• In FY 1994 2004, Prince Georges County awarded
  171 million in Purchase Orders for
  Non-Professional services of which 14 was
  awarded to MBEs and 2 to MFBEs.
• In FY 1994 2004, Prince Georges County awarded
  86.7 million in Purchase Orders for General
  Procurement with 13 awarded to MBEs and 8 to
  MFBEs.
• In FY 1996 2004, Prince Georges County awarded
  362 million in construction contracts of which
  of 35 was awarded to MBEs and 1 to FBEs.

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Disparity Conclusions By Ethnicity
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Disparity Conclusions By Ethnicity (cont.)
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Disparity Conclusions By Procurement Types
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Total MBE/Non-MBE Dollars Spent In The Four
Fiscal Years Following The Disparity Study
(FY05 FY08)
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Total Dollars Spent During Disparity Study
FY94-FY04 vs. FY05-FY08

• Over a ten year period, 208,380,003 MBE dollars
  were spent during the Disparity Study timeframe
  (FY94-FY04) which represents 27 of total
  procurement dollars spent.
• Over the four year period of (FY05FY08), a total
  of 278,886,262 MBE dollars were spent which
  represents 35 of total procurement dollars.

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Disparity Study Recommendations

• In light of their findings, D.J. Miller provided
  the following recommendations to Prince Georges
  County
• Changes in Purchasing Procedures and Practices
• Development of One-Stop Shopping
• Integration of MFBE Objectives Into the
  Purchasing Process
• Enhancements to the Minority Business Enterprise
  Program
• Development and Implementation of a
  Nondiscrimination Policy

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Disparity Study Recommendation/Solutions

• Changes in Purchasing Procedures and Practices
• a.) Development of One-Stop Shopping
• While Prince Georges County did not agree with
  the recommendation to develop a one stop shop at
  this time, the Office of Central Services, on an
  on-going basis, has established changes to
  procurement practices and agrees to expanded
  collaborative efforts
• Established quarterly structured collaboration
  between inter-county departments that have MBE
  responsibilities i.e. EDC and the FSC, WMATA, PGC
  School System, etc.
• Joint strategic planning of MBE efforts
• Collaborates with partners to co-sponsor events
  i.e. Prince George's County School Board,
  Economic Development Corporation (EDC), Park and
  Planning etc
• Establishing joint MBE goals and best practices.

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Disparity Study Recommendations/Solutions Cont.

• II. Integration of MFBE Objectives into
  Purchasing Process
• Increased MBDD participation in Contract Review
  Committee (CRC) and Procurement Analysis Group
  (PAG) process
• Established organizational work flow with
  Procurement to restrict bids based upon MBE
  capability
• Met and exceeded the annual 30 goal for MBE
  utilization for all Prince Georges County
  contracts
• Exceeded 30 goal in FY04 (32), FY05 (32), FY06
  (37), FY07 (37) and FY08 (34)
• Developed a contract tracking system to track all
  purchase order activity by commodity and contract
  type. This system included MBE participation
  awards
• Hired full-time Compliance Officer to monitor MBE
  plans and utilization
• Implemented periodic procurement and project
  management training for Procurement staff
• Revised delegation of procurement authority with
  Department of Public Works And Transportation and
  Department of Environmental resources that
  requires bi-monthly contract review meetings with
  participation by MBDD and Procurement
• Developed e-procurement system in 2004.

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Disparity Study Recommendations/Solutions Cont.

• III. Enhancement to Minority Business Enterprise
  Program
• Since 2003, the Office of Central
  Services has enhanced its MBE program in the
  following ways
• Expanded outreach to MBEs resulting in an average
  increase of 40 for attendance at minority
  business events and networking opportunities.
  Minority business events included training on
  business proposals development, pricing, capacity
  building etc
• Provided on-going education and outreach to
  County agencies to help them better understand
  the procurement process as it relates to the
  utilization of MBEs
• Revised Bonding requirements to include
• Not requiring bonds on non-construction contracts
  less than 50,000
• Allowing other financial instruments such as
  letters of credit, financial statements etc in
  lieu of bond
• Waiving bond requirements based on risk and type
  of contract
• Increase timeframe for obtaining bonding from 10
  days after contract notice of award to 30 days
  after contract notice of award.
• Partnered with FSC to implement the Contracting
  Cash Flow Program that provides start-up funding
  for companies receiving contract awards from
  Prince Georges County
• Implemented legislation to utilize various
  certification vehicles which allows MBEs to
  exceed the established Maryland Department of
  Transportation (MDOT) criteria for being an MBE
  and still maintain their certification status
• Initiated training and team building sessions
  between MBDD and Procurement operation.

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Disparity Study Recommendations/Solutions Cont.

• III. Enhancement to Minority Business Enterprise
  Program (cont.)
• Provided on-line access for firms to become
  certified
• Complied and developed MBE Directory that is both
  available on the Countys intranet and internet
• Established review of all procurement actions to
  determine MBE opportunities, as well as, the
  restricting of bids for MBE participation only
• Initiated MBE outreach in 2003 with the first
  formal outreach event in ten years. Since 2003,
  attendance at annual outreach and bi-monthly
  training events have exceeded 1500 firms
• Established quarterly structured collaboration
  between inter-county departments that have MBE
  responsibilities i.e. EDC and the FSC, WMATA, PGC
  School System, etc.
• Collaborated with partners to co-sponsor events
  i.e. Prince George's County School Board,
  Economic Development Corporation (EDC), Park and
  Planning etc.
• Established vendor day on Wednesdays that allows
  firms to meet with the Directors Office and
  MBDD.

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Disparity Study Recommendations/Solutions Cont.

• III. Enhancement to Minority Business Enterprise
  Program (cont.)
• Developed Contracting Tracking System that allows
  real time tracking procurement activity to
  include MBE participation
• Revised buyer performance evaluations to include
  identifying MBE firms for participation in
  procurement actions
• Assigned MBE analyst to Buyer teams to ensure
  communication and optimum participation
• Revised procurement analysis group process to
  empower MBDD representatives to ensure MBE goals
  are fulfilled
• Improved web-site to include MBE Directory,
  calendar of events, procurement forecast, as well
  as, advertised procurements.

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Disparity Study Recommendations/Solutions Cont.

• IV. Non-discrimination Policies and Procedures
• Since 2003, the Office of Central Services has
  made the following changes to the
  non-discrimination policies and procedures
• Hired Compliance Officer to review and audit
  contracts for compliance
• Implemented Living Wage compliance monitoring
• Hired NIGP to revise procurement regulations
• Established performance indicators to track and
  trend progress towards goals.

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Current and Future Initiatives
The following represents the current and future
initiatives to address the increased
recommendations of the study.

• I. Current Initiatives
• Continuous external training with MBE Firms
  (Proposal Writing, Pricing, Marketing/Branding,
  Legal Issues facing Businesses, Capitalization,
  Bonding and Financing etc.)
• Weekly vendor meetings with the Directors Office
  to determine MBE Capacity and identify potential
  procurement opportunities
• Annual MBE fairs, workshops and match-making
  events
• Education and outreach to County agencies to help
  them better understand the procurement process as
  it relates to the utilization of MBEs
• Conducting an analysis on women-owned business to
  develop strategies to support increased
  opportunities in Prince Georges County
• Conducting analysis of MBE capability in
  under-utilized areas of construction, roads,
  highways, etc.
• Increased sub-contracting monitoring.

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Current and Future Initiatives Cont.

• II. Future Initiatives
• Schedule MBE presentations on a bi-weekly basis
  with County agencies to generate interest and
  sensitivity in utilizing MBEs
• On-line training modules for MBE firms
• Increased networking events to facilitate teaming
  and partnering
• Women-owned business forums to increase
  participation
• Development of Green purchasing polices
• Matchmaker meetings with MBEs, prime contractors,
  developers and other stakeholders
• Establishing MBE liaisons at all County agencies.