Public Contracting and Supplier Diversity

City of Grand Rapids Presented by: City of Grand Rapids and the Monday Group

Purpose of Today’s Meeting

Update: Changes; Issues; Progress

on EBO Programs in Grand Rapids

Role of the Monday Group assisting the City of Grand Rapids and as a model resource for other public entities in Michigan.

Pre-Proposal 2 Program

City moved away from quotas and mandates

Incentives programs developed for contractors who contributed to the

City’s Sustainability Plan

(Strategic Plan).

Grand Rapids – Sustainability

Plan

Social Equity

Prosperous Economic

Enrich Lives

Clean Environment

Incentives in All Major Areas of

City’s Sustainability

Plan

Acceptance

Diversity and Inclusion Programs

Private Public Not-for-Profit

“EQUAL BUSINESS OPPORTUNITY (EBO) PROGRAMS

CONSTRUCTION, GOODS and PROFESSIONAL SERVICES”

Proposal 2 Impact

Diversity and Inclusion Programs Continued

Private

Public

Not-for-Profit

Post-Proposal 2 Impact

26.7%

16.0%

27.9%

4.6% 3.6%8.1% 13.9%

10.8%4.7%

8.8%

1.4% 0.5%0.5%

0.2%

62.5%

79.3%

63.3%

94.0% 95.9%91.4% 86.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2004 2005 2006 2007 2008 2009 2010

SUBCONTRACT PARTICIPATIONBEFORE (2004-06) AND AFTER (2007-10) PROPOSAL 2

MBE

WBE

Non-MWBE

Not for distribution – unpublished EBO Special Report Update – October 2011

What’s Making a Difference?

Micro-Local Business Enterprise Designation&

“THE MONDAY GROUP”

MICRO-LOCAL

BUSINESS ENTERPRIS

E

DISADVANTAGEDBusiness owners

with limited capital resources are at a

disadvantage when doing business

ECONOMIC SIZE Smaller than small

businesses are economically

challenged when doing business

LOCATION Limited

geographical area

influence

All conditions must be met to be qualified as a Micro-Local

Business Enterprise

New Approach

City of Grand RapidsMicro-Local Business Enterprise (Micro-LBE)

New class of small businesses meeting special requirements.

Location - Kent County, over 6 months Size - 25% SBA Size Standard, 2 or more yearsOwnership - owner’s Net Worth $250,000 or

lessRWA - Registered online with CCR & GR

Purchasing

Eligible businesses include all groups:¤Minority Business Enterprises,¤Women Business Enterprises,¤Veteran Owned Business,¤Non-Minority/Women Business Enterprises

26.7%

16.0%

27.9%

4.6% 3.6%8.1% 13.9%

10.8%4.7%

8.8%

1.4% 0.5%0.5%

0.2%

62.5%

79.3%

63.3%

94.0% 95.9%91.4% 86.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2004 2005 2006 2007 2008 2009 2010

SUBCONTRACT PARTICIPATIONBEFORE (2004-06) AND AFTER (2007-10) PROPOSAL 2

MBE

WBE

Non-MWBE

Micro-LBE Impact

Micro-LBE 22.8%, 2009; 29.2%, 2010

Up Hill but Up!

The Monday Group Connection

Includes invested parties to build consensus.

Helped develop the Micro-LBE program.

Sounding board for proposed policies.

Resource for others building diversity and inclusion programs in construction.

Who is Monday Group? Public and Private Organizations

Dykema Excavators; K&R, Inc.

Mobile Air;

Taylor Electric

Purpose of Monday GroupConnects Owners with large and

small contractors who have demonstrated diversity and inclusion.

Develops collaborative environment with area financial institutions.

Education of members and community.

Accomplishments

 Monday Group members have worked collaboratively for fair and inclusive supplier and contractor diversity programs. ◦Resulted in initiatives and outcomes

that have benefited the local contracting community

Monday Group has worked out many litigation issues and shared their potential value with private, not-for-profit, and public sector entities.

BenefitsUnited Front.Community Support

for City Policies.Collaborative efforts.

◦ Expand programs to other entities.

◦ Modify and improve the Micro-LBE program.

◦ Banking.

Private PartnersSpectrum Health > 15%.VanAndel Institute 19%Grand Rapids Community

Foundation >20%.KROC Center/Salvation Army

17%Eastern Floral 20%

What do these Plans all have in Common?CEO mandate with accountability and

measurement of success or failure.Minority participation is a

requirement, not a suggestion.Smaller bid packages to

accommodate a larger pool of companies.

Community and business outreach.Contractors inclusion plan is

submitted with their bid. (MDOT)

A Plan for Everyone

Cities/counties/municipalitiesPublic school districtsPublic universities and collegesNot-for-Profit OrganizationsFor-Profit Businesses (Private or

Publicly-owned)

YOU CAN ADOPT NEW OR PROVEN CONCEPTS FOR YOUR ORGANIZATION

ReviewSuccessful diversity programs

are:◦ Driven by the owner.◦Accomplished by CMs selected by

the ownerThere are working models in

West Michigan that can be adapted to your organization.

Plan now for future projects.

Next StepsWe want you to utilize the

Monday Group model.We want to partner with you in

developing contractor and supplier diversity.

Let us Help you and Learn from you.

Questions/Comments

Thank You!