Big Ideas for Small Business. Office of Equal Opportunity Mission. Purpose. Process.

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Big Ideas for Small Business. Office of Equal Opportunity Mission. Purpose. Process.

  1. 1. Wednesday, February 15, 20121 Overview - Office of Equal Opportunity Mission, Purpose, Processes Prepared for Living Cities Peer to Peer February 7, 2012
  2. 2. 2 Office of Equal Opportunity Priorities OEO Mission: To advance equal economic benefit for Clevelanders by ensuring compliance with contractor goals & requirements, by providing development and support activity for target groups & by advocacy, with commitment to excellent public service. How? Effective administration, monitoring and enforcement of the City’s minority and female-owned business enterprise programs; the new programs for smaller, local businesses; and Fannie M. Lewis Cleveland Resident Employment Law programs.
  3. 3. 3 Office of Equal Opportunity OEO Priorities Costs/benefits of business-government relations. 1. Increase the pool of M/F/CSB businesses seeking contracting opportunities from the City of Cleveland 2. Increase the average number of bidders on major contracts 3. Increase the number and dollar amount of M/F/CSB that receive contracts with the City of Cleveland 4. Ensure the contracting workforce of City contractors is representative of the demographic composition and diversity for the City of Cleveland; and 5. Adopt green building standards into capital projects to reduce operating costs and improve the environmental performance of city facilities and infrastructure.
  4. 4. 4 Office of Equal Opportunity Ordinances OEO implements and enforces on three Codified Ordinances: 187 Cleveland Small Business 187A Local Producer Sustainable Business 188 Cleveland Resident Employment
  5. 5. 5 Office of Equal Opportunity5 Office of Equal Opportunity 2010 Entered contract with NERA for Disparity Study
  6. 6. 6 Office of Equal Opportunity “Self Help”: invest locally/employ locally Goal: to sustain Cleveland’s economy How? Promote entrepreneurial parity Inclusion Growth firms/sustainable growth Contract unbundling Wealth creation Reject bids that do not reflect acceptable participation levels.
  7. 7. 7 Office of Equal Opportunity Types of Contracts Professional Services: specialized services (Architects, Engineers, Attorneys, Surveys, Strategic Planning, ect) – Example: Feasibility Study and Strategic Plan for Burke Airport Public Improvement: construction contracts that include labor, supplies and materials. – Example: Renovation of the 668 Euclid Building Requirements Contract: the purchase of goods & services over a fixed timer period or up to a maximum dollar amount based on quantity. – Example: Salt
  8. 8. 8 Office of Equal Opportunity CERTIFICATION
  9. 9. 9 Office of Equal Opportunity Certification Types OEO certifies contractors in the following designations: Minority Business Enterprise (MBE) Female Business Enterprise (FBE) Cleveland-Area Small Business (CSB) LPE SUBE Storefront Renovation Program
  10. 10. 10 Office of Equal Opportunity Cleveland-Area Small Business (CSB) A Business Enterprise is eligible for certification as a CSB: City of Cleveland Small Business” or “CCSB” means a CSB that has its principal office located physically within the municipal boundaries of the City. Cleveland Contracting Market” or “Contracting Market” means the geographic market area consisting of Cuyahoga County, Ohio, or the geographic market area identified in a disparity study.
  11. 11. 11 Office of Equal Opportunity Minority Business Enterprise (MBE) A business enterprise is eligible for certification as a Minority Business Enterprise if: The Business Enterprise is owned, operated and controlled by one or more Minority Persons who have at least 51% ownership The Minority Persons who own the Business Enterprise have operational and managerial control, interest in capital, and earnings commensurate with the percentage of ownership The Business Enterprise is located and doing business in the Cleveland Contracting Market Ch. 187.05(a)
  12. 12. 12 Office of Equal Opportunity Female Business Enterprise (FBE) A Business Enterprise is eligible for certification as a Female Business Enterprise if: The Business Enterprise is owned, operated and controlled by one or more Females who have at least 51% ownership The female owners have operational and managerial control, interest in capital, and earnings commensurate with the percentage of ownership The Business Enterprise is located and doing business in the Cleveland Contracting Market Ch. 187.05(b)
  13. 13. 13 Office of Equal Opportunity Local Producer Sustainable Business Local Producer ~ LPE Companies headquartered in the 5 county region (Cuyahoga, Geauga, Lake, Lorain and Medina) and supply goods or services in the region; as well as growers or producers of food that are headquartered in a wider fifteen-county region (the above counties as well as Erie, Huron, Richland, Ashland, Wayne, Holmes, Stark, Summit, Portage and Tuscarawas); Certified through OEO. Eligible for a 2% BID DISCOUNT or 2 EVALUATION CREDITS Sustainable Business ~ SUBE Companies headquartered in the 5 county region (Cuyahoga, Geauga, Lake, Lorain and Medina) which are certified as sustainable businesses through approved programs*; Certified through OEO. Eligible for a 2% BID DISCOUNT or 2 EVALUATION CREDITS
  14. 14. 14 Office of Equal Opportunity Certification Registry The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. NAICS was developed by Office of Management and Budget (OMB), and adopted in 1997 to replace the Standard Industrial Classification (SIC) system.
  15. 15. 15 Office of Equal Opportunity Benefits of Certification Certification is your key to open doors to contracting opportunities with the City Everything the City buys, from streets and sewers to toothpick and toilet paper, has subcontracting goals attached Your certification makes you eligible to help prime contractors meet those goals
  16. 16. 16 Office of Equal Opportunity Certification Process Application Review Application Submission Interviews Site Visits Certification Approval
  17. 17. Wednesday, February 15, 201217 Office of Equal Opportunity EVALUATION
  18. 18. 18 Office of Equal Opportunity Evaluation – OEO Schedules Schedule 1: Project Contact Information Form Schedule 2: Schedule of Subcontractor Participation Schedule 3: Statement of Intent to Perform as a Subcontractor Schedule 4: Subcontractor Unavailability/Impracticality
  19. 19. 19 Office of Equal Opportunity Evaluation – Good Faith Effort Opportunities for Subcontracting Availability of CSB/MBE/FBE Potential Subcontractors Bidder’s Commitment to CSB/MBE/FBE Subcontractors Bidder’s Efforts to Subcontract to CSB/MBE/FBE Firms
  20. 20. 20 Office of Equal Opportunity COMPLIANCE
  21. 21. 21 Office of Equal Opportunity MBE/FBE/CSB Compliance Chapter 187 – Cleveland-Area Business Code Provides bid discounts to MBE/FBE/CSB prime bidders Requires that prime contractors make a good faith effort to contract with MBE/FBE/CSB subcontractors
  22. 22. 22 Office of Equal Opportunity Cleveland Resident Employment Monitoring Chapter 188 – Fannie M. Lewis Cleveland Resident Employment Law 20% of Construction Worker Hours done by Cleveland residents 4% of the 20% (8 hours for every 1000 hours worked on the contract) done by low-income workers
  23. 23. 23 Office of Equal Opportunity Resident Employment Law (Fannie Lewis Law) Any public improvement contact in the amount of $100,000. – Must place 20% construction hours for Cleveland residents. – Must place 4% low income residents.
  24. 24. 24 Office of Equal Opportunity C.O. 188 (Fannie M. Lewis Law) Projects are subjected to a Five-part Significant Efforts test. If the contractor passes this test, they are deemed to have made a Significant Effort in obtaining Low Income Hours. The test points are as follows: 1. Were any actions taken by the company to attempt compliance? 2. Was contact made with OEO to discuss possible shortfalls before or during the project & not after completion? 3. Were there any special circumstances surrounding the project? 4. Was the Resident Hour requirement attained? 5. Is the company routinely (>50%) non-compliant with Low Income requirements?
  25. 25. 25 Office of Equal Opportunity Monthly Reporting Affidavit (MRA) Process: Contractors submit MRA each month, providing OEO with comprehensive data regarding payments made to MBE, FBE and CSB subcontractors, as well as Resident Worker Hour and Low-Income Worker Hour information where applicable. OEO provides training documentation to all contractors upon implementation of the MRA, and provides technical assistance to contractors on an as-needed basis. Result/Outcome: Increases coordination between Contract Monitors and contractors in data collection and avoids data entry duplication. Flexible and user-friendly, allowing contractors to import workforce data from their own existing databases. Reduces paper consumption and physical file size by allowing contractors to submit some reports electronically. NOTE: OEO is in the process of contracting with B2GNow, a real time contract compliance & diversity management software.
  26. 26. 26 Office of Equal Opportunity City of Cleveland Spend Comparison 2008, 2009, 2010 Year Annual Spend CSB CSB FBE CSB MBE CSB MBE FBE FBE FBE MBE MBE Total Participation 2008 $461,303.013.65 3.2% N/A N/A N/A 2.9% N/A 9.1% 15.2% 2009 $362,931,210.08 4.2% 5.1% 10.3% 1.1% 0.4% N/A 1.4% 22.5% 2010 $350,066,563.25 12.5 % 3% 9% 0.9% 0.8% 0.7% 2% 28.9%
  27. 27. 27 Office of Equal Opportunity OUTREACH
  28. 28. 28 Office of Equal Opportunity Outreach - Certification Working with all agencies to create a joint certification Established working relationship with State of Ohio Edge Certification process Consistently partnering to identify joint opportunities for Technical Assistance. Working with Cleveland Clinic to ensure our Certification will maintain its value through there affirmative action programs Establishing lasting partnerships with : NEORSD, SBA, CMHA, Cuyahoga County, State of Ohio, GRTA, GCP, Presidents Council, CAAO, WECO, MCBAP, SBDC Staff more visible at community events
  29. 29. 29 Office of Equal Opportunity Attendance at Outreach Events Partner with CMHA, Cuyahoga County, NEORSD, RTA, Urban League, HBA, Other
  30. 30. 30 Office of Equal Opportunity 2012 Major Tasks Complete Disparity Study Implementation of B2GNow Develop Target markets program Align OEO, WFD, ED Prevailing Wage CSB Penalty Contracts Under $50,000 Quarterly sub-contractor Meetings
  31. 31. 31 Office of Equal Opportunity Q & A Thank You

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