MWBE PROGRAM UPDATE

Board of Education Work Session

September 12, 2016

AGENDA

• Progress to Date

• MWBE Utilization as of August 2015

• Strategic Outreach, Communications, Partnerships

• Program Governance Actions

• 2016-17 Approved Operational Enhancements

• BoE Discussion on 2016-17 Program Enhancements

• SBE Program

• Inclusion of non-bond funded $50k> projects

Appendix

• Implementation Horizon

• Best Practice Agency Assessment

• Areas of Community & Stakeholder Feedback

• Reference Materials

PROGRESS TO DATE

CURRENT MWBE UTILIZATIONProgress Against Aspirational Goal

Goals

Program

Established

January

2015

CURRENT MWBE UTILIZATIONUtilization Breakdown Since Goals Program

$17,145,153 to MWBE Firms31.15% Utilization

OUTREACH & COMMUNICATIONSKey Strategies, Expected Outcomes, Updates

As part of the process review, staff developed a strategic outreach, communication and partnership plan, in alignment with operational enhancements:

Key Strategies:• Enhance reporting process to Board of Education and public• Partner with agencies to expand business growth opportunities to

constituencies• Enhance process to quantify effectiveness of outreach and

communication efforts• Hold community forum to share progress and discuss upcoming

opportunities • Update communication tools, including website

Expected Outcomes:• New MWBE firms have the appropriate level of information to be able to

bid on projects as prime and subcontractors• Agency partners actively recruit and solicit MWBEs to bid on DPS projects• Prime contractors have better understanding of program and can utilize

DPS resources to recruit ready, willing and able MWBE subcontractors2016 Updates and Activities:• Monthly Coffee Chats• Marketing Class• Continue with “how to do business with DPS” workshops

PROGRAM GOVERNANCEEstablishing long term program and operational success

Hiring of Director of Business Diversity & Outreach to lead overall program strategy and operations.

• Interviews- Planned for first half of September

• Town Hall- Planned for September 19

• Final Interviews- Planned for second half of September

• Start Date- Targeting October

Hiring of third party contractor to provide an independent review on whether the district’s procurement procedures are fair. Deliverables include:

• Interview of DPS personnel, contractors and community members regarding procurement practices and

Business Diversity Program.

• Assessment of process to generate and evaluate RFP bids, and the award process with a focus on whether

practices exist that put certain groups or suppliers at an unfair disadvantage in competing for business.

• Review Disparity Report, procedural and RFP/bid documents associated with one or more contracts

awarded over the past 18 months.

• Analysis of other government agency best practices, including but not limited to RTD, the City and County

of Denver, Denver Water, Denver Housing Authority, CDOT. A majority of this information has already been

gathered by DPS staff and would be made available.

• Develop a report summarizing findings including qualitative and/or quantitative evidence, along with

recommendations on improvements to the program.

2016-17 OPERATIONAL STRATEGIESApproved program enhancements

PROGRAM AREAS FOR BOEDISCUSSION

The following recommendations reflect input from community feedback, best

practice assessment, and internal process review. There are identified risks and

benefits for consideration.

2016-17 OPERATIONAL STRATEGIESBOE Discussion – SBE Program

Discussion:

Types of SBE programs, pros / cons, learnings

Establish a race and gender neutral component of MWBE program by creating a

Small Business Enterprise (SBE) Program, either through goals or a set-aside of

projects.

Anticipated Positive Impacts Potential Risks

➔Establish potential categories of 2016

Bond projects that would be good

candidates for SBE set aside (e.g.,

LED lighting upgrades)

➔Provides a great opportunity to

expand the number of firms we work

with; Majority (90%+) of MWBEs are

also SBEs

➔Assists SBEs to grow as Primes

➔Would need to define pool of

contracts that are appropriate

for SBEs as primes

➔Awarding projects to a

designated SBE group instead

of open competition

2016-17 OPERATIONAL STRATEGIESBOE Discussion – Non Bond-funded 50k> Projects

Discussion:

Feedback on expanding program scope to non-bond funded construction projects

Include non-bond $50k> construction and construction related projects in MWSBE

program. Currently, program scope is limited to bond-funded construction

projects.

Anticipated Positive Impacts Potential Risks

➔Increase program reach and

opportunities for MWBEs and SBEs

➔Ability to add scope/dollars using

existing processes

➔Increased operational costs to

monitor compliance for a larger

number of contracts

OPEN DISCUSSION

APPENDIX

IMPLEMENTATION HORIZON

BEST PRACTICE ASSESSMENTSummary of Findings

COMMUNITY & STAKEHOLDER FEEDBACK

REFERENCE MATERIALS

• Board Update from May 2016: http://www.boarddocs.com/co/dpsk12/Board.nsf/files/AA2UBN7A90C6/$file/Equitable%20Contracting%20BOE%20update%205_19_16.pdf

• Detailed Best Practice & External Agency Assessment: https://docs.google.com/document/d/1EjSSuwdraMyMRntsdTVIzUuNKPMU16D_binq06c2MYU/edit

• Sample Aspirational Goals Structure from Charlotte Mecklenburg Schools (CMS) 1

(1) Goals are applied to all projects. Contractors are expected to meet Aspirational Goals or provide a Good Faith Effort (GFE), detailing outreach to Sub-Contractors