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Disparity Study & MBE/WBE Program Overview Water & Wastewater Commission August 2020 DANIELLE LORD, AW PROCUREMENT MGR. EDWARD CAMPOS, INTERIM DIRECTOR MATTHEW DUREE, PROCUREMENT MGR. Objectives 2 PROVIDE A GENERAL OVERVIEW OF THE DISPARITY STUDY HIGHLIGHT THE SMBR PROGRAM PROVIDE DETAILS REVIEW AUSTIN WATER’S REGARDING MBE/WBE MBE/WBE REQUIREMENTS IN CONTRACTING PARTICIPATION AND CONTRACTING EFFORTS What is a Disparity Study? 3  Examines the procurement history of a government agency during a specific time frame to determine if there is statistical and or anecdotal information to suggest that the agency’s past or current practices in the solicitation and award of contracts have been exclusionary, disparate or discriminatory in nature in the awarding of contracts to minority-owned, women owned, and disadvantaged business enterprises (MWDBEs). ‐ Why is a disparity study necessary? 4 Legally required to continue the City’s MBE/WBE Program. Assists with making recommended improvements to the MBE/WBE Program. Provides a legal defense regarding the City’s established MBE/WBE Goals. What are the legal requirements of a disparity study? 5 Analyze multiple years of data. Courts recommend at least 3 to 5 years. Analysis should be relative to specific industries: construction, professional services, commodities, etc. Disparity analysis should be inclusive of surrounding markets Balanced analysis of past and present industry and contract discrimination Collect and analyze data such as availability and utilization for both minority and non- minority firms as well as subs and primes. Broad analysis for availability, capacity and willingness of firms to participate on contracts. Collect and analyze anecdotal evidence 6 Disparity Study Contact Information Study information • http://austin.disparity-study.com • austin-study@mwbelaw.com • 855-692-3529 (855-MWBELAW) City of Austin Study Manager: • Tamela Saldana, DisparityStudy@austintexas.gov SMBR Programs 7 MBE/WBE Procurement Program – local program Disadvantaged Business Enterprise (DBE) Program – federal program Airport Concessions DBE Program – federal program Each unique in the applicable laws Each program acts as a gatekeeper - pass/fail item on all procurements Goals set on trades/scopes of work associated with a specific project Majority of goal setting work supports the Capital Improvement Program One goal established for entire project Currently being revised for approval by the FAA Request for Qualifications – (RFQS) – goals established for design work Invitation for Bid (IFB) – goals established for entire solicitation Request for Proposals (RFP) – Best Value Procurement – goals may be established for the entire solicitation or specific components of the work Competitive Sealed Proposals (CSP) – Best Value Procurement – goals established for entire solicitation Design-Build (DB) – Best Value Procurement – goals are established for the design phase and another set of goals for the construction phase Construction Manager at Risk – Best Value Procurement – goals are established for various phases of the work COA Goal Setting Methodology 8 All COA’s procurements over the City Manager’s Authority are reviewed for goals except for: Procurements exempted from SMBR Program (MBE/WBE Rules Section 1.2) 1. COA sale of personal and real property 2. Loan transactio ns where COA is a debtor 3. 4. Lease and franchise agree- ments Agreement s to use COA real property 5. Gifts to COA for material, equipment, supplies or services 6. Interlocal or intergovern mental agree- ments between or among political subdivisions 7. Sole Source Purchases 8. Public Heath and Safety Emergency Purchases Setting Goals 9  Contract Specific Goal Setting   Solicitation document provides project overview Trade Summary Sheet identifies scopes of work  Percentages reflect the anticipated amount of materials/supplies and services 10 Trade Summary 11 Goal Calculation Formula No. of Certified Vendors (Per Ethnicity) X % of Scope Total Vendors Compliance Determination 12 City of Austin MBE/WBE compliance determined under City Code 2-9(A-D)-21(E) Firms are compliant by: Meeting goals or Demonstrating Good Faith Efforts for any WBE or ethnic category where goals are not met (GFE) Counting Participation 13 Prime certified firms may count their own participation Firm must be certified by the City of Austin Firms are certified for commodity codes on Compliance Plan Every level of subcontractor participation may be counted toward the goals Dually certified firms are counted as either MBE or WBE but not both Post Award Contract Monitoring 14 Monitor contracts to assure MBE/WBE Program Compliance to include:  Monitor contracts to assure compliance plan goals are being met and MBE/WBE subcontractors/suppliers are being utilized  Reviews RFC changes to assure compliance and opportunities to MBE/WBEs on any new scopes of work where there is availability.  Reviews and process Subcontract SUBK Expenditure Reports  Reviews and process Contract Closeouts assuring MBE/WBE participation and payment  Assist with MBE/WBE- Prime subcontract issues Purchasing Office: MBE/WBE Reporting 15 Competitive awards with MBE/WBE availability is defined as: Competitive Award: • Reporting reflects contracts awarded through a competitive process. • Data is not reflective of contracts that are exempt from the SMBR Program. MBE/WBE Availability: Reporting reflects contract • awards in which there was at least three or more MBE/WBE’s registered under the commodity code that corresponds with the scope of work. If contract is awarded to MBE/WBE when there is no availability in the commodity code, those numbers are still reflective in the reporting. • Austin Water FY19 MBE Payments 16 Category Construction Commodity Non-Professional Professional *As of June 2020 Possible Competitive Payment Actual Competitive Payment $66,370,632 $299,058 $4,266,896 $1,059,169 $13,404,736 (20.20%) $98,794 (33.03%) $89,975 (2.11%) $25,068 (2.37%) Austin Water FY19 WBE Payments 17 Possible Competitive Payment Actual Competitive Payment Category Construction Commodity Non-Professional Professional *As of June 2020 $9,071,325 $119,216 $2,850,128 $1,037,621 $10,345 (0.11%) $6,712 (5.63%) $0 (0%) $300,582 (28.97%) Similar Department Comparison: 18 Analysis of Total Payments for FY19 Departments Total Competitive Total Total % of WBE to Total Competitive Total Competitive Total Payments with Competitive Total MBE Payments Competitive % of MBE to Total WBE Availability WBE Payments Competitiv e WBE Sub Payments MBE Payments with Availability MBE Sub Payments Austin Water $13,078,290 $305,875 $11,764 2.43% $71,995,755 $11,022,423 $2,596,150 18.92% Austin Energy Austin Resource Recovery Fleet Services $51,679,217 $310,620 $65,823 0.73% $104,798,552 $835,842 $2,418,575 3.11% $1,302,148 $138,943 $0 10.67% $2,435,837 $129,921 $0 5.33% $273,277 $675 $0 0.25% $3,310,677 $412,698 $0 12.47% Aviation $3,080,468 $693,876 $0 22.53% $4,441,836 $266,147 $111,761 8.51% Purchasing Office Vendor 19 Outreach  Annual Small Business Contracting Forum  500+ small businesses attend  Austin Water & SMBR attends and participates annually  70 new vendors registered at the event Austin Water Purchasing Services Vendor Outreach 20  Extensive Market Research to ensure that viable vendors are reached even if they are not registered as a City of Austin vendor.  Attend Pre-Solicitation Meetings to answer questions and entice vendor participation.  Collaboration between Austin Water, Purchasing Office, and SMBR to carve out specific scopes for MBE/WBE participation.  Partnering with SMBR to review future projects and initiatives. Questions?