U.S. Counties Procurement-based Small Business Development...

U.S. Counties Procurement-based

Small Business Development

Best Practices

Research Produced by

In Partnership With

Tim Lohrentz, Director of Inclusive Business Initiatives, Insight Center

Helen R. Foster, Director of Research & Development, DelACCESS Consortium

December, 2009

This report is not to be reproduced without the expressed

written permission of New Castle County, Insight Center for Community Economic Development and DelACCESS

Consortium.

U.S. Counties Procurement-based Small Business Development Best Practices

December 14, 2009 / Confidential / of 30

Table of Contents

I. Counties Nationwide with Procurement-based Small Business Programs ............... 4

A. Background Research ............................................................................................. 4

B. It All Starts With Strategic Sourcing Best Practices ................................................. 5

II. Fact-based Evidence of the Impact of Small Business Programs ............................ 6

III. Procurement-based LSBs, Inclusive of MWBEs ................................................... 8

IV. Summary Comparison of Small Business Programs Within 11 Counties ........... 19



Other Authors, Reviewers and Feedback Contributors

J. Michael Bowman, Delaware Technology Park, Chairman and President

Ty Austin, DelACCESS Consortium, Director of Strategic Initiatives and Delaware Technology Park, Board Member

Hunter Ficke, DelACCESS Consortium, Advisor, Retired (Formerly of Dupont)

L. Jay Burks, DE Office of Minority Women Business Enterprise, Executive Director

Elizabeth Wardrop, Delaware State University, Purchasing Manager

Clinton Tymes, DE Small Business Development Center, Director



I. Counties Nationwide with Procurement-based Small Business Programs

A. Background Research

This research was documented based on a combination of the DelACCESS Consortium Small Business Development ModelTM model and the Insight Center for Community Economic Development’s (Insight) Inclusive Business Initiative.

The DelACCESS Consortium Small Business Development ModelTM is designed to benefit government agency procurement operations and local small businesses within a community. The Insight Center for Community Economic Development’s Inclusive Business Initiative” is focused on ensuring the inclusion of minority-owned and women-owned businesses in ways that benefit everyone in a community.



B. It All Starts With Strategic Sourcing Best Practices Today, many counties nationwide control costs through sourcing strategies like volume consolidation, best price evaluation, and cooperative purchasing. County economic development and procurement professionals are also tasked with meeting local spending goals and increasing spend and opportunities for minority- and women-owned suppliers. With limited resources, it is difficult for most publicly funded organizations to control costs through strategic sourcing while supporting economic development local small business programs, such as a supplier diversity initiative. These objectives may seem at odds due to pre-conceived notions that local small businesses (LSBs) which include minority- and women-owned business enterprises (MWBEs), are not competitive. In reality, a strategic sourcing initiative can successfully support these multiple objectives if procurement professionals expand their prospective supplier base, looking beyond traditional sources of supply. They must critically review the products and services they buy and open their business to increased competition. They must evaluate cost controls along with the quality and service provided by all potential suppliers. Procurement professionals will be surprised to learn that many certified LSBs including MWBEs can compete and win business. Moreover, identifying a portion of spend solely for certified LSBs can foster competition. Introducing LSBs in this manner allows counties to experience their capabilities first hand with limited risk, but it also creates a competitive challenge to existing suppliers, keeping them in check. To be sure, a strategic sourcing initiative can create opportunities for certified LSBs which may not have existed in the past. Applying best practices identified from the DC SBDM model to county procurement policies and practices will pave the way for complying with the ARRA by cost-effectively executing multiple strategic sourcing initiatives with a voluntary supplier diversity initiative. Procurement professionals can meet voluntary supplier diversity goals by incorporating these goals into its sourcing structure, methodology and strategies. The comprehensive understanding of a spend category achieved through strategic sourcing facilitates selecting certified LSBs that are competitive and can satisfy departmental general managers. In strategic sourcing, procurement professionals are encouraged to "cast the net wide" to create opportunities for non-incumbents, thus opening the door for certified LSBs inclusive of MWBEs. In evaluating various sourcing strategies, procurement professionals can improve their effectiveness by considering local small business opportunities and goals. Last but not least, this approach can also keep other suppliers more competitive.



II. Fact-based Evidence of the Impact of Small Business Programs The following fact-based results provide evidence that County-level small business development programs in concert with a strategic procurement initiative can be successful in making a local economic development impact.

In 2006, Essex County, NJ awarded $14,977,087 to small, women, and minority contractors, representing 10.3 percent of the $145 million that the County spent on private contracts in total. In 2007, through greater access to information and more opportunity to bid on goods and services, $32,456,141 was awarded to small, women, and minority vendors, representing 20 percent of the $154 million in private contracts awarded for that period. Essex County doubled its small business program impact in one year!

Fairfax County, VA The following table shows how Fairfax County’s well managed small business efforts have positioned it to meet the ARRA requirements. Specifically, the table shows that over the past five years, Fairfax County’s total purchases have averaged 37.8% with non-minority, non-women-owned small businesses, 5.6% with minority-owned small businesses and 4.2% with women-owned businesses. The five year average total is $259 million per year or 47.6% with Small, Women-owned and Minority-owned businesses.

Fairfax County, VA Small, Minority-owned and Women-owned Business Statistics

FY 2005 FY 2006 FY2007 FY2008* FY2009*

TOTAL PROCUREMENT DOLLARS (not including p-cards)

$466,756,825 $542,780,255 $555,770,388 $617,279394 $552,518,807

SMALL BUSINESS DOLLARS AND PERCENTAGE

$190,638,53340.8%

$191,208,18735.2%

$196,491,23735.4%

$224,181,580 36.3%

$227,011,77441.1%



Fairfax County, VA Small, Minority-owned and Women-owned Business Statistics

FY 2005 FY 2006 FY2007 FY2008* FY2009*

MINORITY BUSINESS DOLLARS AND PERCENTAGE

$ 31,498,7026.7%

$ 35,096,5126.5%

$ 31,010,4235.6%

$ 30,144,161 4.9%

$23,834,6384.3%

WOMEN-OWNED BUSINESS DOLLARS AND PERCENTAGE

$ 19,711,2324.2%

$ 21,908,5904.0%

$ 22,296,6334.0%

$ 26,758,358 4.3%

$24,828,9864.5%

TOTAL SWAM DOLLARS AND PERCENTAGE

$241,848,46751.8%

$248,213,29045.7%

$249,798,29344.9%

$281,084,098 45.5%

$275,675,39949.9%



III. Procurement-based LSBs, Inclusive of MWBEs

To illustrate how a county can approach selecting Local Small Businesses, inclusive of Minority and Women Owned Businesses Best Practices, 42 counties were compared to New Castle County, DE. Best practices identified in voluntary supplier diversity programs in the governmental sector were summarized into eight key practices employed by supplier diversity or affirmative procurement programs.

Eleven counties with the highest similarity scores to New Castle County, in order to look at practices in those counties that may enhance the NCC’s Small Business Development Initiative. In order of similarity, the 11 counties are: Anne Arundel (MD), Baltimore (MD), Essex (NJ), Polk (FL), Lee (FL), Prince George’s (MD), Hudson (NJ), Fairfax (VA), Westchester (NY), DeKalb (GA), and Contra Costa (CA). An examination of the 11 comparison counties reveals that:

1. The county populations range from 513,000 (Anne Arundel) to 1,011,000 (Contra Costa)

2. The median household incomes range from $36,063 (Polk) to $81,050 (Fairfax)

3. None have a combined city-county government

4. The largest city in the county ranges from 39,000 (Anne Arundel) to 281,000 (Essex)

5. Ten are in a multiple city metro with only one in a single city metro (DeKalb)

6. Eight are in the Mid-Atlantic region, three in the South, and one in the West.

The 11 comparison counties have a variety of procurement programs:

Eight have voluntary supplier diversity (SD) programs: Anne Arundel, Contra Costa, DeKalb, Essex, Fairfax, Lee, Polk, and Westchester.

Three have MWBE affirmative (legally mandated) procurement programs: Baltimore County, Hudson, and Prince George’s.

Several have small business programs, in addition to SD or MWBE programs.

Section IV has a more detailed description of the SD or MWBE programs in these 11 counties.



Eight Keys to Successful Supplier Diversity Programs

We begin by discussing eight key components of successful supplier diversity programs in the governmental sector. Two components of all supplier diversity programs are a vendor registration or certification system and a robust vendor database. All of the 11 counties have these components with Baltimore, Essex, Lee, Polk, and Westchester counties standing out.

1. Executive Buy-in

Because of its voluntary nature, a governmental supplier diversity program requires executive buy-in, starting with the Governor, County Executive, or Mayor, as well as legislature or council. The executive leadership sets the supplier diversity expectations for departmental management and holds management accountable by requesting regular spend reports and evaluating them based on those expectations.

The counties that are strong in their level of Executive Buy-in include Baltimore County, Contra Costa, Fairfax, Hudson, and Prince George’s. For example:

Baltimore County’s leaders have helped lead efforts to raise the participation goals and move toward an automated system. In particular, county leaders supported and financed a recent disparity study which has led to a robust MWBE program.

The Contra Costa Administrator and County Commissioners fully support the supplier diversity program. The commissioners often ask agency heads about their SBE and MWBE outreach and spending reports.

Fairfax Board of Supervisors appoints a 12-member Small Business Commission that advises the Board and county purchasing office in order to enhance the capacity of small businesses including MWBEs.

Hudson builds relationships with each county council member (freeholder) by having them participate in the county’s cable access television program. The council member picks a MWBE in their district to interview and then interviews them on the show, along with the MWBE Director. They also provide many photo opportunities for council members at their events.

Prince George’s commitment and executive buy-in is evident in the $40 million per year that has been awarded to MWBEs since 2003. The MBE program is guided by a seven member Minority Business Opportunities Commission,



appointed by the County Executive, which meets monthly to propose recommendations and strategies to meet MBE objectives.

Recommendation: NCC should identify small and diverse businesses in each of the 12 county districts and find ways to allow the 12 county council members to become the champions of small and diverse businesses in their district, following the example of Hudson County.

Recommendation: NCC should continue to track MWBE participation as prime or subs on county contracts, including separate tracking and reporting of ARRA-funded contracts.

Recommendation: NCC should develop a series of small business and supplier diversity performance measures for county departments, including department heads and purchasing agents. These measures should include dollar and percentage amount of SBE and MWBE spend; year-to-date improvement over the prior year; number of new SBE and MWBE firms doing business with the department; number of new SBE and MWBE vendor relationships, such as newly certified firms; and number of and attendance at MWBE events. NCC may wish to have the performance measures included in personnel reviews.

2. Technology and E-Procurement Used to Promote Outreach and Diversity

Electronic procurement system that ensures transparency and accurate tracking of procurement; accessible, online vendor registration and vendor directory; electronic notification of procurement opportunities to local and diverse small businesses

Westchester County (NY) has an integrated system of e-procurement, online directory of local or diverse firms, and e-notification of potential procurement opportunities in areas of expertise. The e-procurement system includes a log for each firm of which county projects that the small business has bid on.

Baltimore County alerts small diverse businesses of procurement opportunities and provides an online directory of small diverse businesses

Lee County (FL) maintains an online directory of certified diverse businesses, searchable by commodity or industry. The directory is operated by community partner, Florida Gulf Coast University

Essex County (NJ) initiated a start-of -the-art electronic vendor registration system in 2007

Hudson County (NJ) electronically collects contracting and procurement opportunities from all municipalities and school districts in the county and sends out e-notifications about those opportunities to local diverse businesses.



Contra Costa (CA) utilizes the online BidSync vendor registration and e-procurement system, along with the state and many other public agencies.

Recommendation: Utilize e-procurement technology, such as the non-profit DelACCESS Consortium e-procurement system and related applications from various for-profit IT vendors. In addition, NCC should maintain an updated, online directory of certified, local small businesses, and maintain a SBDI website with proposals, opportunities and resources.

3. Departmental Promoters

Supplier diversity within a government with de-centralized purchasing requires a promoter, or coordinator, in each agency. Even when there is centralized purchasing, the program will work best when it identifies a key contact within each agency or department.

Contra Costa is one of the only counties to have supplier diversity liaisons in each county department. While also dealing with the necessary paperwork, the liaisons seek out potential diverse vendors to become registered with the county in order to become eligible for its supplier diversity program. The liaisons also prepare an SBE/MWBE outreach and spending report for their department.

Recommendation: NCC should develop departmental liaisons for its supplier diversity (SD) program, beginning with those departments receiving ARRA funds. NCC may wish to consult with Contra Costa County in setting this up. The duties of the departmental liaisons would be to seek out potential diverse prime- or sub-contractors, to ensure that the firms are certified, and to inform the firms about both prime- and sub-contracting opportunities. The departmental SD liaisons, as well as department heads, should have performance measures for the diverse spend of their department.



4. Training and Motivating Staff

Purchasing staff will need to be trained on various components of supplier diversity – from the big picture of why it’s important to the details of community outreach and tracking.

DeKalb, Hudson and Polk counties make efforts to train and motivate county department purchasing agents and other staff to participate in the MWBE or SD programs. For example:

DeKalb ensures that various county agencies are aware of its Local Small Business Enterprise (LSBE) program and encourages them to utilize LSBEs, including MWBEs.

Hudson has an informal training process so that various county purchasing agents and construction managers are aware of the MWBE program.

Polk encourages various county agencies and their purchasing agents to utilize MWBEs through the county’s Supplier Diversity program. County policy directs agencies to increase their utilization of MWBEs in procurement and contracting.

Recommendation: NCC should train purchasing staff in various county agencies about the SBDP and the supplier diversity component, especially those agencies that receive ARRA or other federal dollars.

5. Awards and Positive PR – ‘Carrots Rather Than Sticks’

Unlike mandated sub-contracting programs, supplier diversity relies on positive public relations and motivation rather than sanctions. A successful program will need to find ways to award and recognize its champions and promoters among all the key stakeholders.

DeKalb, Essex, and Hudson counties have numerous events that highlight successful firms and prime contractors, providing positive P.R. to those doing things the “right way. For example:

Hudson highlights firms through photo opportunities and a cable access television show. Previously, the county had an awards dinner for participating majority firms and successful diverse firms.



Recommendation: NCC should organize an annual awards event which would recognize county agencies and large private businesses with outstanding SBDP and supplier diversity participation, an MWBE advocacy award, and an outstanding MWBE award.

6. Partnerships and Outreach

While true of any affirmative procurement program, a supplier diversity program especially relies on strong relationships with business associations, chambers of commerce, small business development centers, and other organizations, as well as direct relationships with diverse vendors themselves. A key activity of most governmental supplier diversity programs is to set up events where a large number of diverse vendors can get to know the relevant purchasing agents for their product or service.

DeKalb, Essex, Fairfax, Hudson and Lee counties have a number of partnerships. For example:

DeKalb organizes numerous trade shows, seminars, and expos in partnerships with business and community organizations.

Essex organizes several events and expos together with businesses, ethnic and community organizations, including the county procurement expo, the women’s business enterprise procurement expo, and the professional services procurement expo.

Fairfax’s Small Business Commission (SBC) forms partnerships with ethnic, faith-based, community, and business organizations to further opportunities for small businesses and MWBEs as well as to public commission activities. Specifically, the SBC is a founding member of the Community Business Partnership, a nonprofit collaboration that operates five business centers, including Hispanic and women business centers.

Hudson partners with all municipalities and school districts in the county related to advertising contracting and procurement opportunities.

Lee partners with the water management district, port authority, airport, and redevelopment agency in joint events and to advertise contracting opportunities.

Recommendation: NCC may wish to continue developing and increasing outreach activities for diverse firms, perhaps using DeKalb County as an example. Such outreach should include opportunities to meet and network with county purchasing agents and



purchasing agents from the private sector that is already doing business with the county.

7. Strategic Use of Under-Threshold Contracts

Most government agencies have a minimum amount below which contracts do not need to be sent out for bids or ‘under-threshold’ contracts which might only need a quote. Strategic use of these small contracts, while not compromising on the quality of the service or product that the government is purchasing, is an important component to supplier diversity efforts.

Contra Costa, DeKalb, Essex, Fairfax, Hudson, Lee, Polk, and Westchester counties all make extensive use of prime contracting and outreach to diverse firms, including strategic use of non-competitive contracts, in order to further the goals of supplier diversity. For example:

Contra Costa encourages MWBEs to register with the online BidSync vendor registration system and uses BidSync to search for MWBEs on small contracts. In addition, on contracts under $50,000, the county provides special outreach only to certified SBEs. County purchasing agents must get at least 50% of bids from SBEs or consult with neighboring jurisdictions if they are not able to locate any SBEs.

DeKalb gives small businesses (SBEs), including MWBEs, a 5% discount on all prime bids. Local SBEs receive a 10% discount.

Essex utilizes small businesses for many small procurement opportunities, including MWBEs.

Fairfax’s Small Business Commission creates a venue that facilitates small businesses, including MWBEs, to obtain county contracts, as well as from large businesses.

Hudson’s county administrator encourages purchasing agents to utilize MWBEs, when possible, for under-threshold procurement opportunities.

Hudson also will forward the contracting and procurement opportunities from municipalities and school districts, including under-threshold opportunities, to all of the 500 MWBEs in its vendor database.



Polk’s Office of Supplier Diversity encourages MWBEs to participate in the county’s monthly Vendor Day to build relationships with purchasing staff that might lead to under-threshold contracts. The county’s Purchasing Division has initiated a program called "Vendor Day" to make their staff available to interested vendors on the 2nd Thursday of each month. During Vendor Day appointments, purchasing staff will meet one-on-one with interested vendors to view product presentations; speak to vendors about bidding opportunities and requirements; and answer questions. Firms can make a video or slide presentation to purchasing staff.

Prince George’s also sponsors a Vendor Day each Wednesday.

Westchester sends email notifications of county business opportunities only to registered MWBEs. MWBEs can also create an account on the MWOB website in order to access a running log of business opportunities.

Recommendation: NCC should continue to look for ways to encourage prime contracting with diverse small businesses, especially on smaller bids, including those under the multiple bid level. NCC may wish to require at least one quote from a certified MWBE firm on under threshold contracts, such as those between $5,000 and $50,000. For ARRA-funded projects, NCC may wish to add a requirement that it seeks out bids from MWBE firms, with the goal of receiving at least one bid from amongst those firms.

8. Maximizing the Supply Chain: Sub-Contracting and 2nd Tier

While governmental supplier diversity programs generally do not require sub-contracting efforts, a little encouragement can go a long way. In fact, many large suppliers or contracts already have a supplier diversity program in place and governments can simply leverage and track those existing private-sector programs.

All three of the counties with affirmative procurement programs – Baltimore, Hudson, and Prince George’s – utilize sub-contracting or level two supplying, to meet a large portion of their goals. For example:

Baltimore requires prime contractors to utilize MWBEs on construction projects, following a recent disparity study. Soon this will be required on county purchasing of goods and services as well.

Hudson requires prime contractors to have a 20% utilization rate of small businesses on large contracts, including MWBEs.



Prince George’s requires prime contractors to have a 20% utilization rate of certified MWBEs, unless MWBEs are not available. This policy is supported by a recently completed disparity study.

In addition, DeKalb and Essex include MWBEs in required sub-contracting with small businesses:

DeKalb requires 20% local, small business enterprise participation as sub-contractors on many large projects, including MWBEs.

Essex requires small business participation as sub-contractors on many large projects, including MWBEs.

Recommendation: NCC may consider requiring prime contractors on ARRA funded projects to have prime contractors or suppliers to have a MWBE program, in order to be consistent with federal equal opportunity provisions. NCC may wish to consider a variety of ways for prime vendors to meet this requirement, in order to be consistent with a voluntary approach, such as:

A percentage of the contract to be sub-contracts with MWBE firms (sliding scale

of points awarded based on percentage);

An established supplier diversity program, including on indirect spend, with a documented percentage of MWBE spend (sliding scale of points awarded based on percentage and improvement); and/or

A MWBE development program, where the prime assists MWBE in growth and development. This assistance could take many forms: mentoring a MWBE firm over the long-term, providing short-term technical assistance to one or more MWBE firms, entering into a joint venture or purchasing compact with one or more MWBE firms, contributing to nonprofits involved in MWBE development, etc.

Recommendation: NCC may consider requiring prime contractors or suppliers on any county contract or purchase above a certain threshold to utilize at least 20% or 25% local small businesses (SBEs), including MWBEs.

Recommendation: NCC may consider an annual publication that rates each prime contractor and supplier to the county on their efforts to sub-contract with MWBEs. This



is in keeping with the voluntary approach but adds some publicity incentive to firms to utilize MWBEs.

9. Eliminating Barriers with Well-Placed Bonding, Financing, and Loan Guarantee Programs

Successful governmental supplier diversity programs often add a component of bonding assistance, low-interest loan programs, or loan guarantees as a way of eliminating financial barriers for small or diverse businesses.

DeKalb, Fairfax, Hudson, Lee, Prince George’s, and Westchester counties readily connect potential diverse vendors firms with business development services of the county, as well as various financing programs. For example:

DeKalb has one of the most active business services programs, with two training workshops per month.

Fairfax customizes its MWBE services and information to four levels of business capacity: start-up, growth, expansion, and mature business. The Fairfax Small Business Commission promotes classes and seminars that address immediate small business needs such as networking strategy, legal, marketing, human resources, customer service, etc. It also has a mentorship program.

Hudson produces a ‘How go get started’ manual for new and emerging businesses. It also refers businesses to the county’s small business loan program and Jersey City’s loan program.

Lee’s DBE program is located within and operated by the SBDC, providing MWBEs with one-stop access to small business workshops, counseling, and SBA financial products.

Prince George’s schedules regular seminars and workshops, as well as providing one-on-one counseling, referral, and matchmaking services.

Westchester sends special invitations to MWBEs to attend workshops and trainings.



Recommendation: NCC should partner with local SBDCs, the state’s Economic Development Department, and nonprofit business development centers, to provide more financing and business development services to local small and diverse businesses.

While none of the 11 comparison counties offer a model program that could be duplicated in its entirety by New Castle County, all have something to offer as examples and should be examined as sources for supplier diversity ideas in policies and program implementation.



IV. Summary Comparison of Small Business Programs Within 11 Counties

Using the criteria listed below, 42 U.S. counties were assigned points relative to NCC. Thirty nine of the 42 selected have populations between 300,000 and 1,200,000, and with a supplier diversity program (SD), an affirmative procurement program (MWBE), or a small business procurement program (SBP). Three additional counties outside the population limits but with interesting programs were added to the list.

a. County population 0 to 5 points b. Median household income 0 to 3 points c. City-county combined government 0 to 2 points d. Largest city population 0 to 2 points e. Metropolitan area characteristic 0 to 3 points f. Regional of the country 0 to 3 points g. Type of SBE, MWBE or SD program 0 to 3 points

Note: If program type contains a mandatory MWBE procurement program (i.e., an affirmative procurement program), then 0 points were given because NCC’s SBDP will include a voluntary supplier diversity program.

Counties scored high on each criteria by having a characteristic similar to New Castle County: a population between 500,000 and 600,000 people, a relatively high median household income ($52,419), without a combined city-county government, a small population of the county’s largest city (73,000), located within a multiple-city metropolitan region, and located within the Mid-Atlantic region. The final comparison criterion was not matched to NCC’s current policy but rather to the proposed policy of having a supplier diversity program as part of a small business development program.

Anne Arundel County, MD (ranked #1)

The Office of Central Services is responsible for the operation and maintenance of the County's Minority Business Enterprise Program. It is the policy of Anne Arundel County to assure all persons seeking to do business with the County, equal opportunity and access to participate in the procurement of all commodities and services. The Minority/Small Business Enterprise Coordinator is an advocate for "equal business opportunity" in procurement and functions on many levels including, but not limited to:

Monitoring the effectiveness of the County's procurement efforts

Providing technical assistance to women and minority businesses

Recording statistics on W/MBE utilization

Updating the County's Minority and Women-Owned Business directory



Providing leadership and direction to the County's Minority Business Enterprise Committee

Website: http://www.aacounty.org/CentServ/MBE.cfm

Baltimore County, MD (ranked #2)

[Note: The City of Baltimore is exclusive of Baltimore County and operates as a separate city-county.] The mission of Baltimore County’s Office of Fair Practices and Community Affairs is to ensure that Baltimore County employees and county citizens are provided equal treatment, access and opportunity in the delivery of all Baltimore County Services. One of the goals of this office is to increase participation of minority, women and disabled-owned businesses in construction and goods and services contracts.

The Minority Business Enterprise Office provides information to minority, women and disabled owned businesses regarding procurement opportunities, preparing of business and marketing plans and financial information. Baltimore County Government is committed to providing greater opportunities for participation by minority, women and disabled owned businesses. A search list of certified MWBEs is available online through Prism Compliance Management.

The following Baltimore County MWBE services are available:

Technical assistance and individual counseling.

Participation in outreach events, procurement conferences and trade shows to further expand the program's initiatives.

Annual reports on the MBE/WBE participation status.

Reports on the effectiveness of the County's MBE/WBE procurement efforts.

The Executive Order is the culmination of an extensive evaluation of existing practices and a collaborative effort between contractors, sub-contractors and County purchasing officials. It advocates to develop better reporting methods, target specific industry sectors, foster more effective partnerships and provide assistance in conducting business with the County. These systemic changes are based, in part, on a recently concluded study of minority and women owned businesses and their availability to do work in the County.

The purpose of the MBE Commission is to advise the Baltimore County Executive on ways to increase opportunities for participation by minority, women and disabled-owned business enterprises in the County's procurement process.

Website: http://www.baltimorecountymd.gov/Agencies/fairpractices/minoritybusiness/index.html



Essex County, NJ (ranked #3)

The mandate of the Essex County Office of Small Business Development and Affirmative Action is to ensure equal opportunity and fair play in contracting, procurement, and employment within the County of Essex. A new County Executive in 2002 decided that more needed to be done to promote equal opportunities for access to the County’s procurement system, a Disparity Study Commission was appointed. A consultant was retained to conduct public hearings, examine records and provide recommendations.

The findings were presented to the public in October 2005 at the conclusion of an eight-month study. It resulted in the December opening of the Office of Small Business Development and Economic Opportunity, designed to help the County make their public contracting and procurement policies and procedures more available to small, woman and minority-owned businesses. The office was later renamed the Office of Small Business Development and Affirmative Action (SBDAA).

In 2006, 10% of the county’s spending was with small businesses, including MWBEs. In 2007 this doubled to 20% of county discretionary spending. In 2007, the Office unveiled the new Essex County Vendor Registration System. This state-of-the-art registration system is the latest tool to advance the County’s initiative to make information and business opportunities more accessible.

Since its opening, the SBDAA has reached out to the community of small, women and minority business owners through a variety of business expos. The events included the Essex County Procurement Expo, the Women’s Business Enterprise Procurement Expo, Reaching New Heights – Professional Services Procurement Expo, “Meet the Municipal Purchasing Agents,” and “Partnering for Opportunity and Access to Capital” in January 2008.

Website: http://www.essex-countynj.org/index.php?section=dept/cd

Polk County, FL (ranked #4)

The Office of Supplier Diversity is responsible for working with County agencies and the Women and Minority Business community of Polk County in the following capacities:

Advocacy: To serve as an advocate for County agencies and the Women and Minority Business Community of Polk County for business throughout the Board of County Commissioners.

Compliance: To work as a compliance institution to insure the utilization of Women and Minority Vendors in contracting with the Board of County Commissioners.

Outreach: To serve as an outreach facilitator to educate and inform WMBE's of classes and opportunities that will help to grow their businesses.



The Board of County Commissioners enacted Ordinance 00-57 in 2000 to adopt a Women/ Minority Business Enterprise (W/MBE) Program. By enacting this ordinance the Board established their commitment to increasing the participation of women and minority owned business enterprises in the procurement of commodities, services, and construction for Polk County government. The Purchasing Division is committed to the implementation of the W/MBE program adopted by the Board of County Commissioners, through the Office of Supplier Diversity and the Minority Business Manager.

County policy states that W/MBE's shall have maximum feasible opportunity to participate in the County's procurement process and the Purchasing Division shall do the following:

Ensure nondiscrimination in the administration of the County's procurement process.

Maintain a procurement environment in which W/MBE's can compete fairly.

Prevent barriers that may obstruct the participation of W/MBE's in the County's procurement activities.

Assist in the development of firms so that they can compete successfully in the marketplace outside the W/MBE Program.

As an education and outreach effort, the W/MBE program identifies and registers minority and women-owned firms that wish to supply goods and services to the county. Program activities include seminars, workshops and individual consultations to inform minority or women-owned firms of county procurement policies. There are more than 300 business opportunities with Polk County.

Website: http://www.polk-county.net/subpage.aspx?menu_id=184&nav=bus&id=4120

Lee County, FL (ranked #5)

The Disadvantaged Business Enterprise (DBE) program, specifically for minority and women owned businesses, is committed to providing assistance to Lee County’s small business community in the following areas: State Government Certification application assistance; business and technical assistance; and procurement assistance. The DBE program is operated by the SBDC at Florida Gulf Coast University.

The DBE program is not an entitlement program, but a marketing program for qualified businesses to become certified and aggressively go after county and state contracts. Seminar topics of the SBDC include marketing, website development, and QuickBooks.

The DBE program maintains an online directory of certified MWBE firms, including from the state, the SBA, the Water Management District, and the Port Authority. There are



filters to select firms in only certain commodities or industries. The program information is available in both English and Spanish.

Website: http://cli.fgcu.edu/sbdc/dbe.asp

Prince George's County, MD (ranked #6)

Prince George’s County has a strong commitment in implementing its Minority Business Enterprise (MBE) Program that ensures that contracting opportunities and awards are available to the MBE community.

The Minority Business Development Division (MBDD) is located within the Office of Central Services. Its’ role is to promote the development of Minority Business Opportunities within Prince George’s County by offering the Minority Business Entrepreneurs aggressive business advocacy, training, procurement guidance and professional expert referrals.

The MBDD is the division that is charged under County Law to serve the interest of the minority business community. MBDD assists in structuring the procurement procedures and activities to facilitate and encourage the award of at least thirty percent (30%) of the total dollar value, directly or indirectly, to minority business enterprises. The value of subcontracts with MBEs is included in the computation of the above dollar value.

Prince George’s County has a strong commitment in implementing its MBE Program that ensures that contracting opportunities and awards are available to the MBE community. Since 2003, the County has awarded more than $40 million annually to minority and female owned businesses.

In March 2005, the County Executive reenacted the Minority Business Opportunities Commission (MBOC). The Commission is comprised of seven volunteers who are residents of Prince George’s County and are representatives of the business and/or legal community and it also includes at least one individual that represents the citizens.

The commissioners are appointed by the County Executive and confirmed by the County Council. They serve a four-year-term. The Commissioners meet monthly to discuss issues relating to the MBE community and propose recommendations and strategies to meet MBE objectives.

The Prince George’s Minority Business Enterprise (MBE) Program is comprised of three major components:

a) MBE Procurement Assistance

b) Business Development

c) MBE Certification

MBE PROCUREMENT ASSISTANCE



To enhance the opportunities for MBEs to participate in the County’s procurement, the following instruments are used:

Bonus Points Systems*

For contracts valued up to $1.0 million, Prince George’s County will apply “bonus points” to any bid offered by a certified MBE. Generally, a certified County-based MBE will receive “bonus points” equaling 10% of the apparent responsible and responsive bid price offered, and any other certified MBE will receive a comparable discount bonus of 5%. These “bonus points” are applied to evaluate the certified MBE bid price only, and are not applied to ultimate payments under the contract awarded.

RFPs and Multi-Step Bids*

Request For Proposals and Multi-Step Bids are utilized when factors other than price must be considered in making a contract award. MBE prime contractors receive 15% of the total evaluation points on RFPs. The “Bonus Points System” applies to certified MBE prime contractors once they meet the technical criteria in the Multi-Steps Bids. There are various procurement regulations that are utilized in facilitating the awarding of contracts to the minority and women owned businesses. The information provided is an overview.

Mandatory Subcontracting*

In construction and other public work projects, Prince George’s County requires non-MBE firms to utilize certified MBE sub-contractors to complete no less than 20% of the required work. With oversight by MBDD, this subcontract requirement may be waived only if certified MBEs are not available to perform unique and extraordinary contract requirements.

Restricted Bids*

Where and adequate pool of certified MBEs are qualified and available to satisfy contract requirements, MBDD will advocate and recommend to the Purchasing Agent “restricting” the bid competition to certified MBEs only.

BUSINESS DEVELOPMENT

The MBDD is committed to the development of the minority business community. To that effect it provides the following services:

Advocacy

Matchmaking

MBE Directory

Procurement Opportunity Guidance



Referral Assistance

Seminars/Workshops

MBE CERTIFICATION

A minority business participating in the procurement process that wishes to receive the tangible benefits of the Minority Business Enterprise Program must be certified through MBDD.

Website: http://www.princegeorgescountymd.gov/Government/AgencyIndex/CentralServices/minority.asp?nivel=foldmenu(6)

Hudson County, NJ (ranked #7)

The Office of Minority and Women Business Enterprise (OMWBE) is designed to assist women and minorities who seek to do business in Hudson County. OMWBE services business enterprises that need assistance with start-up, certification as a government contractor, or ongoing assistance through video and in-person seminars. Seminar topics include business coaching, bonding, insurance, financing, and bid estimating. Other county departments also lead seminars to discuss how to do business with their agency.

OMWBE also provides monitoring of Minority or Women-owned businesses through the entire procurement process, from review and process of bids to possible awarding of contracts. It is charged with ensuring that departments comply in full with affirmative action principles in contract allocations.

Website: http://www.hudsoncountynj.org/dept/small_business/default.asp

Fairfax County, VA (ranked #8)

The Small Business Commission (SBC) was created by the Board of Supervisors to advise and assist the Board, county executive, and county purchasing agent on any matter that will enhance the capability of small, minority and women-owned businesses, and those owned by disabled persons, to succeed and to obtain contracts with the County.

The Commission is made up of 12 representatives appointed by the Board of Supervisors, all of whom serve without compensation. The purpose of the SBC is to develop a program and venue that will result in small businesses obtaining contracts from large businesses or departments within the Fairfax County Government. Most small business and MWBE services are provided by the SBC rather than through county staff.

The SBC employs a business philosophy: all businesses have a life cycle. They start with an idea of providing a service or a product. When an entrepreneur writes the idea



on paper, the idea begins to take form and shape. However, it only blossoms into reality when the entrepreneur takes a risk, i.e., invests money, gets a loan, quits his job, etc. At that point, the business is born. And just like a living being, it goes through different stages. We have grouped the various stages of a business life cycle into four major phases: Start-Up, Growth, Expansion, and Mature.

Fairfax County customizes its website and the services it offers, including procurement assistance, based on the business life cycle. It attempts to help businesses find the information they need in the appropriate stage of their business life cycle.

The SBC is a founding member of the Community Business Partnership (CBP), 501(c)3 organization whose mission is to foster economic revitalization through small business start-ups, expansions, new capital investments and job creation. To accomplish its mission, CBP has a variety of programs, targeted primarily to low-income individuals, minorities and women, providing training, technical assistance and access to capital for existing and start-up businesses. Programs include:

Business Finance Center

Business Incubation Center

Hispanic Entrepreneur Center

South Fairfax Small Business Development Center

Women's Business Center of Northern Virginia

Website: http://www.fairfaxcounty.gov/dpsm/osb/

Westchester County, NY (ranked #9)

When it comes to small business, Westchester County is committed to creating a level playing field and helping everyone succeed. That's why the county developed a program specifically promoting minority- and women-owned business participation in Westchester.

The Minority- and Women-Owned Business (MWOB) Program is an excellent resource for minority- and women-owned businesses who may be just starting out or who have long been established in the local economy. To reap the most benefits of this program, businesses are strongly encouraged to register online.

By registering the minority- or women-owned business, the business owner receives these benefits:

High visibility to county departments, contractors, and anyone interested in doing business with MWOBs



E-mail notifications of business opportunities, such as Requests for Proposals (RFPs) in areas of expertise (only registered MWOB’s receive these notices)

Access to a running log of business opportunities that the business submitted to the county for consideration

Special invitations to workshops and training to help the business succeed

The MWOB Program maintains an online directly of registered MWBEs that is searchable by type of good or service. Through this program, the county helps maintain a competitive marketplace while providing high quality services and products, which maximizes taxpayer dollars.

Website: http://blog.westchestergov.com/index.php?option=com_content&task=view&id=478&Itemid=951

DeKalb County, GA (ranked #10)

DeKalb County offers a preference on county contracts for local small business enterprises (LSBEs), including MWBEs. LSBEs are provided a 10% discount on prime bids, while out-of-area SBEs are provided with a 5% discount. In addition, primes on large contracts must include 20% participation of certified SBEs, including MWBEs. DeKalb expects to conduct a disparity study soon which could strength its LSBE program as well as contracting with MWBEs.

The Contract Compliance Division manages the LSBE program and is responsible for:

Certifying businesses as Local Small Business Enterprises, Minority Business Enterprises, and Woman Business Enterprises. The certification forms are online:

o http://www.co.dekalb.ga.us/purchasing/pdf/LSBE_Certification.pdf

o http://www.co.dekalb.ga.us/purchasing/pdf/MBE_WBE_Certification.pdf

Small Business Outreach Program through workshops, seminars and conferences for small business growth.

Assisting business owners in completing vendor list applications.

Promoting small business involvement and positive relationships with internal County departments.

Oversight on Selection Committees and bid openings.

Review of sealed bids and RFPs prior to award.



Website: http://www.co.dekalb.ga.us/purchasing/organizational.htm

Contra Costa County, CA (ranked #11)

The County values the contributions of businesses in the County's Contracting Programs for construction, purchasing and professional/personal services in order to promote the County's commitment to ensuring full and equitable participation for County contracts by minority, women, and other businesses.

The objective of the Outreach Program is for departments, consultants, and contractors to outreach to all businesses, including Minority Business Enterprises (MBEs), Women Business Enterprises (WBEs), Small Business Enterprises (SBEs), Local Business Enterprises (LBEs) and Disabled Veteran-owned Business Enterprises (DVBEs), to provide equal opportunity for vendors, service providers, and contractors to compete for business with the County. The program covers commodities/purchasing transactions that exceed $10,000; professional/personal service contracts of $2,500 or more; and construction projects that exceed $100,000. The Outreach Program continues to show progress with departments documenting their outreach efforts to all vendors.

In December, 1999, the Contra Costa County Board of Supervisors adopted a Small Business Enterprise (SBE) Program. The purpose of the program is to assist in the development, solicitation and award of contracts to small businesses. California Government Code defines a SBE as independently owned and operated, not dominant in its field of operation, whose principal office and officers are located in California. The business must have 100 or fewer employees with average gross receipts of ten million dollars, or less, over the previous three years, or be a manufacturer with 100 or fewer employees. The Program allows SBE owners to self certify their status.

Website: http://ca-contracostacounty.civicplus.com/index.aspx?NID=428

NCC Small Business Strategy For Projects Using Federal Recovery Funds


The criteria were applied to all 42 counties, similarity scores were calculated and the counties were ranked, with the top 11 chosen for closer examination.

NCC Small Business Strategy For Projects Using Federal Recovery Funds


U.S. Counties Procurement-based Small Business Development...

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