contract equity program small business enterprise …...contract equity program key components...
TRANSCRIPT
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Contract Equity Program Small Business Enterprise
Bid Discount
Presented to
Board of Directors November 26, 2013
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FY13 Contract Participation
Solid Color = Contracting Objective/Goal Checkerboard Color = Actual Results
*Total Contract Awards minus Exclusions
Distribution Based on $80M* in Contract Awards
**Contracts < $70,000
50%
25%
6.3%
25%
65%
6%
47%
27%
0%
20%
40%
60%
80%
100%
White Men White Wom e n Ethnic Minorities Sm all Business ≤ $70K
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Contract Participation FY04 thru FY13
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SBEs – Let’s Do Business!
Partner: California Department of General Services
May 17, 2013
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FY14 Planned Activities
•Participate in AGC/Caltrans District 04 Mentor Protégé Program for Construction starting in January 2014.
•Implement new prime and subcontractor matchmaking session for targeted construction projects.
•Investigate “piggy-backing” on BART’s proposed SBE Bonding Assistance Program.
•Investigate the feasibility of providing a bid discount for non-SBE Prime Bidders who use SBE subcontractors.
•Consider investigating a regional approach for increasing the availability of loans and/or line of credit to SBEs.
•Continue to engage in aggressive outreach and education efforts.
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Contract Equity Program Key Components
•Good Faith Outreach Efforts
•Waiver Provision
•Contracting Objectives White Men 25%
White Women 6.3%
Ethnic Minorities (Men & Women) 25%
•Small Business Component
5% Bid Discount (max. $50K/year) 50% SBE Participation Goal for Contracts < $70,000
Set-Aside Goal of 25% for Contracts < $70,000
•Encouragement of Local Business
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FY13 Fiscal Impact of SBE Bid Discount
SBE AWARDEE BID AMOUNT
ADDITIONAL COST SBE Apparent Low
Frank A. Olsen $11,886 $11,848 $38
Starline Supply $675 $669 $7
WHCI $31,394 $30,883 $510
WHCI $32,521 $31,805 $716
Bearing Engineering $ 756 $741 $15
WHCI $28,924 $28,475 $449
WHCI $2,930 $2,905 $26
ABC Valve/Tool $17,447 $17,400 $47
TOTAL ADDITIONAL COST $1,807 (1.5%)
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Recommendation
Increase the maximum dollar cap for the 5% SBE bid discount from $50,000 per year to $100,000 per year on all competitive bid projects effective January 1, 2014 and applicable to all bid projects advertised on or after that date.
•Authority: Public Contract Code §2002 (no dollar limit on cap).
•Review and Monitoring: Quarterly.
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Alternative
Increase the maximum dollar cap for the 5% SBE bid discount from $50,000 per year to $250,000 per year with an annual budget limit of $500,000 on all competitive bid projects effective January 1, 2014 and applicable to all bid projects advertised on or after that date.
•Authority: Public Contract Code §2002 (no dollar limit on cap).
•Review and Monitoring: Throughout the year; will report to the Board if 75% of the budget limit is reached.
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Hypothetical FY13 Fiscal Impact of SBE Bid Discount with Either Increased Maximum Dollar Cap
SBE AWARDEE BID AMOUNT
ADDITIONAL COST SBE Apparent Low
Frank A. Olsen $11,886 $11,848 $38
Starline Supply $675 $669 $7
WHCI $31,394 $30,883 $510
WHCI $32,521 $31,805 $716
Bearing Engineering $ 756 $741 $15
WHCI $28,924 $28,475 $449
WHCI $2,930 $2,905 $26
ABC Valve/Tool $17,447 $17,400 $47
Efi Discount Computers $1,795,252 $1,732,277 $62,975
TOTAL ADDITIONAL COST $64,782 (3.5%)
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Questions?