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EndofYearReport
TheMinorityWomanBusinessEnterpriseProgram
Presentedby:
D URHAMCO UN T YRE POR TFOR2016 201 7 A PR IL2017
TableofContents
EXECUTIVESUMMARY...........................................................................................................................3
OVERVIEWOFRESULTS.........................................................................................................................5
COUNTYOFDURHAMMWBEORDINANCE.............................................................................................8
MWBEGOALMETHODOLOGY.............................................................................................................11
MWBEPROGRAMPLAN......................................................................................................................13
DURHAMCOUNTYCONSTRUCTIONSURVEY........................................................................................15
MWBEEXTERNALADVISORYCOUNCIL.................................................................................................24
MWBEENGAGEMENTACTIVITIES........................................................................................................27
ListofTables
Table1TotalCountyfundsspentforprocurementofconstruction,goodsandservices
perquarter........................................................................................................................5
Table2TotalfundsspentdirectlywithMWBEvendors/primecontracts....................................5
Table3TotalFundsspentwithMWBEsubcontractors................................................................5
Table4TotalFundsspentwithMWBEasvendors/primes/subcontractors.................................6
Table5PercentageofSpendOverallwithMWBEfirms...............................................................6
Table6CategoryofSpendbyRaceandGenderbyDollarAmountandPercentage
1stQuarter.......................................................................................................................6
Table7CategoryofSpendbyRaceandGenderbyDollarAmountandPercentage
2ndQuarter......................................................................................................................7
Table8CategoryofSpendbyRaceandGenderbyDollarAmountandPercentage
3rdQuarter......................................................................................................................7
Table9TotalCountyFundsSpentinDollars(1st3rdQuarter)......................................................8
Table10GoalsBasedonAvailability:DurhamCounty/CityDisparityStudy,January2015.......12
Table11ListofprojectconstructionrequirementsthatmayimpactMWBEparticipation......14
Table12DurhamCountySurveyAugustandSeptember2016..................................................23
ListofFigures
Figure1TotalCountyFundsSpentinPercentages(1st3rdQuarter)..........................................8
Figure2RevisedCountyofDurhamMinorityandWomenBusinessEnterprise
(MWBE)Ordinance.........................................................................................................9
Figure3DurhamCountyMWBEConstructionSurveyForm......................................................16
Figure4DurhamCountyMWBEExternalAdvisoryCouncilOperatingGuidelines....................25
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ExecutiveSummary
TheInstituteisa30yearoldorganizationwithafocusondiversity.Ourorganizationoperates:
TheWomensBusinessCenterinpartnershipwiththeU.S.SmallBusinessAdministration
thatsupportsthegrowthanddevelopmentofwomenownedbusinesses;
TheMinorityBusinessDevelopmentCenterinpartnershipwiththeU.S.Departmentof
Commerce, which supports the ability of minority businesses to get access to capital,
contracts,andconsultingservicesforrevenueandjobgrowth;
TheSouthAtlanticSmallBusinessTransportationResourceCenterinpartnershipwith
the U.S. Department of Transportation that works with prime contractors on major
federalDepartmentofTransportationprojectstoutilizediversecontractorsandprovide
bondingassistance;and
The N.C. Department of Transportation OnTheJob Training Program to support and
leverageworkforceopportunitiesandconstructiontalentdevelopment.
TheInstituteofMinorityEconomicDevelopment(TheInstitute)ispleasedtopartnerwiththe
County of Durham to assist with diversity and inclusion strategy, including identification of
minority and woman vendors, workforce development, training and development, outreach,
collaborationwithcommunitypartners,stakeholdersandresources,performanceandtracking,
and support providing information and connections to build efficient internal and external
processes.
MinorityandWomenBusinessEnterprises(MWBEs)aremajorcontributorstoournational,state
andlocaleconomies.ThesuccessofourMWBEsisessentialtoprovidingjobs,promotinggrowth,
anddiversifyingoureconomy. Overthepastyear,theInstitute partneredwiththeCountyof
Durham to assess the current processes, procedures and policies of the MWBE program and
provideguidanceandrecommendationstostrengthenourentirebusinesscommunity.
AswebeganaddressingthenumerousopportunitiesoftheMWBEprogram,theteamfocusedon
oneofthemostpressingissuesaroundtheDisparityStudyanditsfindings.Basedonthestudy,
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wewantedtofigureouthowwecouldincreasetheprobabilityofsuccessforwomenandminority
ownedbusinesses.
Therewereafewimmediateconcernsthatneededtobeaddressed:
UpdatetheMWBEordinance.Thisimportantdocumentclearlystatesthepolicy,process
andpracticeofprocurementintheCountyofDurhamandutilizationofMWBEs;
ProvideathoroughanalysisofMWBEgoalmethodology,whichisconsistentwithcurrent
marketconditionsanddefensible;and
Modernize the MWBE Program Plan document, which speaks to the details of
participationoncontractstowardsatisfactionofMWBEaspirationalgoals.
Yet,evenasmanynewfirmshavesuccessfullygainedafootholdinthemarketplacebecauseof
thislongstandingpublicpolicyinitiative,few,ifany,oftheseMWBEfirmshaveemergedtoalevel
of market dominance, or even mainstream competitive viability. As a result, the population
segmentsfromwhencethesefirmshaveemergedcontinuetosuffertoasignificantextentunder
thestagnation.
TheInstituteandCountyofDurhamteammembersbeganworkingonamorecomprehensiveand
holisticapproach.OurinitialfocusistostrengthentheCountyspublicpolicyandadministrative
practices aimed at providing prime and subcontracting opportunities as a point of entry for
underutilizedminorityandwomenbusinesses.
ThepurposeoftheMinorityWomenBusinessEnterpriseProgramistopromotethedevelopment
andgrowthofMWBEfirmsandensurethattheyhaveanopportunitytodobusinesswiththe
County. The program is designed to assist MWBE firms in participating in all aspects of the
Countysprocurementandcontractingactivities.
OurdesiredoutcomeistoincreasethepercentageoffundsspentwithMWBEs;toidentifyand
increasethenumberofMWBEfirmsattendingtheCountysoutreachandtrainingprograms;and
toensureMWBEprojectparticipationgoalsaremet,ataminimum.
Hereisacumulativereportoftheresultsforthefirstthreequarters(July2016March2017)of
theMinorityandWomenBusinessEnterpriseProgram.
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OverviewofResults
Table1TotalCountyfundsspentforprocurementofconstruction,goodsandservicesperquarter
QUARTER FUNDSSPENT
1stQuarter(JulySept) $13,829,633
2ndQuarter(OctDec) $14,890,576
3rdQuarter(JanMarch) $12,270,469
Total $40,990,678
Table2TotalfundsspentdirectlywithMWBEvendors/primecontracts
QUARTER FUNDSSPENT
1stQuarter(JulySept) $1,990,608
2ndQuarter(OctDec) $1,969,634
3rdQuarter(JanMarch) $2,425,508
Total $6,385,750
Table3TotalFundsspentwithMWBEsubcontractors
QUARTER FUNDSSPENT
1stQuarter $68,867
2ndQuarter $521,927
3rdQuarter $1,982,301
Total $2,573,095
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Table4TotalFundsspentwithMWBEasvendors/primes/subcontractors
QUARTER FUNDSSPENT
1stQuarter $2,059,476
2ndQuarter $2,491,561
3rdQuarter $4,407,809
Total $8,958,846
Table5PercentageofSpendOverallwithMWBEfirms
QUARTER %SPEND
1stQuarter 14.89%
2ndQuarter 16.73%
3rdQuarter 35.92%
Table6CategoryofSpendbyRaceandGenderbyDollarAmountandPercentage1stQuarter
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Table7CategoryofSpendbyRaceandGenderbyDollarAmountandPercentage2ndQuarter
Table8CategoryofSpendbyRaceandGenderbyDollarAmountandPercentage3rdQuarter
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Figure1TotalCountyFundsSpentinPercentages(1st3rdQuarter)
DURHAMCOUNTYSPEND1 st 3 rd QUARTER
CountySpend
withMWBE
21.86%
CountySpend
withOthers
78.14%
Table9TotalCountyFundsSpentinDollars(1st3rdQuarter)
$SPEND
TotalCountyFundsSpent $40,990,678
TotalCountyFundsSpent
$8,958,846
withMWBE
CountyofDurhamMWBEOrdinance
TheMWBEOrdinancewasamendedandupdatedtoaddresstheconcernsofthecomprehensive
disparitystudy,toexamineandanalyzetheprocurementpracticesandprocessesoftheCounty
andtheirprimecontractors.Thedisparitystudy,authoredbyGriffinandStrong,P.C.soughtto
ascertain the participation and utilization of minority and women owned businesses that are
eligible to provide goods and services. The Institute and the County of Durhams MWBE
Management Team members believe the new ordinance is inclusive and provides direction to
strengtheninclusionandengagement.
The Durham County Commissioners unanimously adopted the new MWBE Ordinance on
November28,2016.
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Figure2RevisedCountyofDurhamMinorityandWomenBusinessEnterprise(MWBE)Ordinance
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MWBEGoalMethodology
The MWBE goal methodology is essential to providing the overall goal. As we have stressed
before, it is extremely important that we include all our calculations and assumptions in our
submission.Inotherwords,we"showedourwork."Welaidoutexplicitlywhatourdatasources
were,whatassumptionswemade,howwecalculatedeachstepoftheprocess,etc.Alongthese
lines, we made sure that our goal submission contains a clear description of our public
participation process, a good summary of the comments received during that process and a
summary of what, if any, changes were made based on those comments. Without this
information,itisdifficultforanyonetoevaluatetheactualgoalwehaveselected.
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OverallMWBEParticipationGoals:
DurhamCountyProcurementFY2017
Ethnic/GenderClassifications: ProcurementCategories
1. AfricanAmerican 1. Construction
2. AsianAmerican 2. A/E(Architecture/Engineering)
3. HispanicAmerican 3. Services
4. AmericanIndian 4. Goods
5. WhiteFemales
The disparity study also contained detailed data on utilization, i.e. actual contract awards
compared to availability for the same ethnic/gender classifications and procurement
categories. This comparison allowed for an assessment of disparity ratios. Among the
suggestionsinthestudywastheestablishmentofspecificparticipationgoalsinresponsetothe
presenceofdisparityratios.Oneoftheimplicationsfromthestudy,isthatthegoalsshouldnot
be less than the noted availability. The market area availability factors in the study are
summarizedbelow:
Table10GoalsBasedonAvailability:DurhamCounty/CityDisparityStudy,January2015
TotalMean Median
Categories Construction A/E Services Goods Availability, Valueof
AllCategories Availability
BlackAmerican 14.6 9.8 10.9 2.8 9.5 10.4
AsianAmerican 1.3 3.0 1.1 .43 1.5 1.3
Hispanic 4.2 1.8 1.1 .43 1.9 1.5
American
American .65 .75 1.0 .5 .73 .70
Indian
WhiteFemale 13.8 11.0 9.5 7.1 10.4 10.3
AllMinorities 34.6 26.3 23.7 11.3 24.0 25.0
Source:DurhamCounty/CityofDurhamMultijurisdictionalDisparityStudy,January2015
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OverallParticipationGoals
Table 10 shows a summary of the availability factors which can also certainly be used for
participationgoals,bycategoryofprocurement.Theinformationinthetable,again,drawnfrom
the2015disparitystudy,canalsobeusedtocalculateanoverallMWBEparticipationgoal.The
lasttwocolumnsinthetableshowcalculationsofboththemean(average)andmedian(mid
point of values) of the availability. The median is usually recommended over the mean
(average),asafigurethatwouldhelpovercomethefluctuationsinthenumbers.Therefore,the
recommendedOverallMWBEParticipationGoal,forDurhamCounty,is25.0%.
MWBEProgramPlan
TheMWBEProgramPlanprovidestheguidancefortheprogrammanagertodetermineproject
goal setting guidance. This plan allows for an evaluation of the available work items, the
percentageforitemsofwork,thediversityofworkitems,specialtyitemsofworkandaplanfor
inclusionwithmeasuredaspirationalgoals.
ProjectGoalSettingGuidance
AvailableWorkItems
The Engineers Estimate is a confidential document, for internal use, that identifies the major
itemsofworkthatmaybeavailabletoMWBEsubcontractors.
Available%forItemsofWork
EachmajorworkitemidentifiedintheEngineersEstimatehasanassociateddollarvalue,which
isindicatedbyits%valueasitrelatestothetotalEngineersEstimatefortheproject.
Diversity(Mix)ofWorkItems
Review the Engineers Estimate to determine the work items for which there is potential for
MWBEparticipation.ItemswithrelativelyhighpercentagesmayprovideopportunitiesforMWBE
participation.
SpecialtyItemsofWork
Projects that consist primarily of specialty items (sanitary sewers, pumping plant equipment,
lightingandelectricalsystems,etc.)maylimitMWBEparticipationduetolimitedavailabilityof
MWBEcontractorswhoperformtheseitems.
RailroadImpacts
Railroad crossings can impact MWBE participation due to additional liability insurance
requirementsforworkwithintherailroadrightofway.Thisisespeciallytrueonsmallerprojects.
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ProjectLocation
Thegeographicallocationoftheprojectmustbetakenintoaccount.Someareashavealarger
poolofavailableMWBEcontractorsthanothers.Alistofavailablefirmscanbegeneratedusing
theState,Local,andFederaldatabases.
ProjectConstructionRequirements
Table11ListofprojectconstructionrequirementsthatmayimpactMWBEparticipation
Projectsthatareisolatedornotnearmajorhighwayfacilitiesmay
ProjectAccess
notbeattractivetoMWBEfromotherpartsoftheCounty.
Projectswithmultipleconstructionstagesmaycreatescheduling
StagedConstruction
difficultiesandmaynotbeconducivetoheavyMWBEparticipation.
MWBEsubcontractorsmaynotfindprojectsthatrequirenightwork
NightWork
attractive.
Projectswithmultipleconstructiontimerestrictionsmaycreate
TimeRestrictions resourceschedulingdifficultieswhichcouldreduceopportunitiesfor
MWBEsubcontractors
MWBEsubcontractorsmayfindprojectsinvolvingroadclosuresvery
RoadClosures
attractiveduetotheflexibilitytheyaffordandsafetyfromtraffic.
Projectsthatmustbebuiltundertrafficmaynotbeattractiveto
UnderTraffic
someMWBEsubcontractorsduetoschedulingandsafetyconcerns.
MWBEfirmsmayfindprojectsonnewlocationveryattractivedueto
NewLocation
theflexibilitytheyaffordandsafetyfromtraffic.
Considerationshouldbegiventofactorssuchasonroadvs.offroad
Hauling hauling,thetypesofmaterialstobehauledandthepercentageof
thetotalamountofworkthathaulingrepresents.
OtherItemstopossiblyconsider
1. DesignBuild
2. Public,Partner,Private(PPP)
3. Historicalgoalsonsimilarprojects
4. Overallgoalstatus
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DurhamCountyConstructionSurvey
The County of Durhams MWBE Management Team and The Institute recently conducted a
businesssurveyofseverallocalconstruction,goodsandservices,andengineering/architectural
companies.Thepurposeofthesurveywastogatherinformationonreasonsbusinessesdidor
didnothavesuccessgettingcontractswiththeCountyofDurham.Toidentifypotentialobstacles
thatthosebusinessesmighthaveencounteredwithdoingbusinesswiththeCountywasalsoan
objectiveofthesurvey.
Inaddition,thesurveywasawaytoinformlocalminorityandwomenbusinessesaboutfuture
opportunitieswithintheirbusinessmarket.Withover700milliondollarspotentiallybeingspent
withintheCountyandCityofDurhamoverthenextyear,theCountyandtheInstitutewantedto
proactivelyinformandalertminorityandwomenbusinessesoffutureopportunities.
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Figure3DurhamCountyMWBEConstructionSurveyForm
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Thesurveywasconductedbyidentifyingminorityandwomenbusinessesthathavedonebusiness
withtheCountyofDurhaminthepast,utilizingstateandfederalMWBEandDBEdatabases.The
businessesidentifiedwereemailedthesurvey(Figure3)andsomereceivedfollowupphonecalls
if the firm did not respond to the emailed survey. Some identified firms were not able to be
contactedduetoincorrectemailaddressesandphonenumbers.
Most firms were based in Durham County. A few firms were in surrounding counties, but
previouslyhadcontractswiththeCountyofDurham.Resultsof10questionsthatgiveusagood
ideaofhowthecompaniesdobusinessarepostedbelow.
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Table12DurhamCountySurveyAugustandSeptember2016
Numberoffirmsemailedsurvey 135
Numberoffirmswithwrongorreturnedemails 40(30%)
Numberofsurveyscompleted 35(26%)
Numberofsurveysnoresponse 60(45%)
Numberoffollowupphonecallsmade 75
EvaluationofTop10ResponsesofSurvey
1. 65% of responses were from construction, 20% from goods and services, 15% from
engineering/architectural.
2. 90%ofresponsesindicatedtheysubmitbidstoandworkforsamecontractorsandbidto
lessthan5primecontractors.
3. 25%ofresponseshaveworkedoncounty,state,orfederalcontracts.
4. 75%ofresponsesweresubcontractorswhoareinthe$150Krangeforawardedcontracts.
5. 50% of responses have never had a government contract or know where to find
information.
6. 80%ofresponseswerefromcompanieswhohavenothadacontractover$250K.
7. 95%ofresponsesarecompanieswithlessthan15employees.
8. 65%ofresponseshadNOestimatingoraccountingsoftware.
9. 90%ofresponsesstatedthatittook3160daysforinvoicepaymenttobemade.
10. 75%ofresponsesindicatedtheyworkunderformalcontract.
Inconclusion,themajorityofcompaniescompletingthesurveyaresmallandwouldbenefitfrom
educational sessions on doing business with the County of Durham. There is also a need for
instructiononunderstandinghowtosubmitabid,estimating,bonding,insurance,andotherbid
itemsthatmayberequiredbytheagency.TheseareareaswhereTheInstituteispreparedto
assisttheCountyofDurhamandcontractorswithaddressingandunderstanding.
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MWBEExternalAdvisoryCouncil
TheMWBEExternalAdvisoryCouncilisaforumfordiscussiononissuesthatwilldirectlyimpact
the new MWBE ordinance, contract, subcontracting and projects with minority and women
participationgoals.Thisworkgroupwillconsistofadiversegroupandwillmeetonaquarterly
basis.
TheMWBEExternalAdvisoryCouncilwascreatedtohelptheMWBEManagementTeamandthe
DurhamCountyGovernmenteducate,inform,navigate,andcommunicatewithDurhamCounty
businessownersandtheDurhamCountycommunity.Theguidelinesstipulatehowthegroupwill
operate.
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Figure4DurhamCountyMWBEExternalAdvisoryCouncilOperatingGuidelines
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MWBEEngagementActivities
AmericanContractComplianceAssociation(ACCA)NationalInstitute,August2016
MainLibraryRenovationProjectKickoff&MWBEOutreachInitiatives,September2016
MedWeek,October2016
DurhamCountyExpo,October2016
NCMWBECoordinatorsNetworkConference,November2016
MainLibraryRenovationDiversityOutreachandPreQualificationTraining,
February2017
PublicAwarenessInformationEvent,February2017
BusinessDevelopmentClasses,May10,2017andJune8,2017
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www.TheInstituteNC.org