1

GOAL STATEMENT

Improve the contributions of certified minority,

women, and socially and economically disadvantaged small businesses to the

Washington State economy through their increased utilization in public contracting

and procurement

2

GMAP Initiative

Work with state agencies to increase purchases from minority and women owned firms by facilitating access to opportunities and increasing the capacity of certified firms

3

Issue #1:

Low participation of minority and women-owned businesses in public contracting

Lack of genuine outreach, opportunity, and inclusion continues to be a problem for ethnic

communities and the state economy

4

3941

4632 4644

3979

4466

4938 4917

3217 31872828

21842525 2541

583768

1042 1039 980 1043 1121

1923

505 499 474 330 384

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

FY 92 FY 93 FY 94 FY 95 FY 96 FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04

Cer

tifie

d Fr

ims

Certified firms doing business with the state

5

Certified firms doing business with the state (cont.)

0

100

200

300

2002 2003 2004 2005 2006Strategic

Goal

WBE

MBE

Approximately 8% of certified firms actually did business with state agencies in FY05

6

Certified firms doing business with the state (cont.)

0

100

200

300

2002 2003 2004 2005 2006Strategic

Goal

Women

Asian AmericanHispanicBlackAmerican Indian

(Breakdown of MBE’s into specific ethnic groups)

7

Class of Contract Participation MBE MBE WBE WBE Base Dollars Expenditures Percent Expenditures Percent

Construction 973,167,010 5,405,294 0.56% 5,261,825 0.54%Architecture/Engineering 117,485,616 1,076,134 0.92% 2,471,928 2.10%

Professional Services 100,338,820 541,497 0.54% 3,855,284 3.84%Purchased Goods 340,098,099 2,205,937 0.65% 3,700,678 1.09%

Purchased Services* 540,262,837 6,028,447 1.12% 5,160,270 0.96%UW Purchased Goods/Services** 556,788,885 3,314,677 0.60% 4,597,403 0.83%

Total 2,628,141,267 18,571,986 0.71% 25,047,388 0.95%

Purchased Goods and Services.

M/WBE Expenditures and Goal AchievementBy Class of Contract

*Purchased Services also includes 20% of expenditures with travel agencies. **University of Washington reported expenditure totals in Construction, Engineering/Architecture and did not separate

M/WBE Expenditures and Goal Achievement By Class of Contract

8

Strategies: Collaborate with Governor’s Policy Office,

General Administration, and Capital Projects Advisory Review Board

Identify Opportunities Conduct Genuine Outreach Set project goals

9

Issue #2:

Prime Contractor Planning and Reporting

It is difficult to plan for and measure the usage of OMWBE certified firms

10

FY04FY05

$2,600

$19 $25

$2,100

$15 $24$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Pbase

MBE

WBE

FY04:

MBE – 0.71%

WBE – 0.96%

FY05:

MBE – 0.70%

WBE – 1.13%

Revenue earned by certified firms (in millions)

11

Best Strategies for Public Owners: Improved quality control Drive costs out of construction Enterprise risk management

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Issue #3:

Prompt payment of vendors and contractors

Small businesses need cash flow to survive and grow

13

Strategy: Subcontracts should be paid when the work is

done

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Issue #4:

Right size contracts and subcontracts for small businesses

Size of contracts/subcontracts determines the ability of small businesses to bid and be successful

15

Strategy: When possible, unbundle state contracts

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Issue #5:

Waive or reduce performance bonds and insurance requirements

Maintaining bonds and insurance is cost prohibitive

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Strategies: Waive or reduce bonding for low risk

subcontracts Reduce insurance requirements and insurance

costs

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BEST PRACTICES – PROCESS FAIRNESS

• Opportunities must be Real

• Competitive and Fair Bidding Process

• Open and Honest Communications

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“… the need for economic prosperity for minority businesses is critical to the

Washington State economy.”

Governor Christine Gregoire

“Accountability… for delivering the best results that are most important to citizens.”