Minority/Women Business Enterprise Minority/Women Business Enterprise Ordinance RecommendationsOrdinance Recommendations

Business DevelopmentBusiness Development

August 25, 2009

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Increase Graduation Program Increase Graduation Program Net Worth to $2.3MNet Worth to $2.3M

• Would allow firms more opportunity to Would allow firms more opportunity to grow before reaching graduate status.grow before reaching graduate status.

• Provides M/WBE firms more time to Provides M/WBE firms more time to mature & stabilize within our program.mature & stabilize within our program.

• The $750K net worth was established The $750K net worth was established in 1992 and is outdated.in 1992 and is outdated.

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Certify Large M/WBE Firms as Graduates

• Allows larger minority & women firms to

receive certification• Graduate firms are limited to larger

projects within Professional services and Construction; however…

• Potentially allows for greater participation in the categories of “goods & commodities” and “other services”

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Overall M/WBE Goals for Each Overall M/WBE Goals for Each CategoryCategory

Architect & Engineering

Services

Construction Other Services

Goods and Commodities

Current Overall

Goal

24% 25% 24% 10%

Revised Overall

Goal

27% 25% 27% 10%

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Increase Sliding Scale LimitsIncrease Sliding Scale Limits

Contract Contract AmountAmount

Previous Previous (Oct. ’98 – (Oct. ’98 – Jan. ’02)Jan. ’02)

Current Current (Jan. ’02 – (Jan. ’02 – Present)Present)

Proposed Proposed New ScaleNew Scale

0 - $100K 7.5% 0 8%

$100K-$500K 5% 5.5% 7%

$500K-$750K 3% 5.5% 6%

$750K-$2M 3% 4% 5%

>$2M-<$5M 3% 3% 4% ($2-5M)

>5M 3% 3% 3%

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GFE Recommendation• Good Faith Effort - The efforts undertaken by a

contractor to obtain minority/women-owned business enterprises participation in a contract, and shall include all the following:

• Notice– Email or fax : 7days– Scope of work– How to obtain plans & specs– Bonding information– Bid submittal deadline– 24 hr notice for addenda

• Follow-up • Documentation of any shortfalls in the M/WBE goals• Documented BDD resource usage

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GFE Recommendation• The following may be substituted for any

one of the aforementioned criteria:– Utilize the Disney Entrepreneur Center

to host workshops that will inform M/WBE firms on how to better prepare for sub-contracting opportunities; or

– Participation in Orange County sponsored “How to do Business” workshops or match maker events to become more familiar with certified M/WBE resources

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MWBE OrdinanceMWBE OrdinanceRecommendations SummaryRecommendations Summary

1.1. Increase business networth to $2.3MIncrease business networth to $2.3M

2.2. Certify firms as Graduate firmsCertify firms as Graduate firms

3.3. Modify (improve) good faith effort criteriaModify (improve) good faith effort criteria

4.4. Sliding scale correctionSliding scale correction

5.5. Modify the participation goalsModify the participation goals

6.6. Other minor changesOther minor changes