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Home My WebLink AboutMINUTES - 01092007 - C.107 ' ............ =°�. Contra TO: BOARD OF SUPERVISORS _ FROM: SUPERVISOR GAYLE B. UILKEMA o+ J�, Costa DATE: DECEMBER 18, 2006 °ST --_C ----- County '4 OULj SUBJECT: RECOMMENDATIONS ON SMALL BUSINESS ENTERPRISE AND e-OUTREACH PROGRAMS SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1. ACCEPT report on e-Outreach implementation issues and their resolution. 2. MODIFY the Small Business Enterprise (SBE) Program to permit the acceptance of State-certified SBEs as well as County-certified SBEs in assessing compliance with County SBE goals and outreach requirements. FISCAL IMPACT: No additional County cost is anticipated. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON c7 APPROVE AS RECOMMENDED �_ O ER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN UNANIMOUS(ABSENT i ) AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE AYES: NOES: SHOWN. ABSENT: ABSTAIN:I ATTESTED: JANUARY 9,2007 CONTACT: JULIE ENEA(925)335-1077 JOHN CULLEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR CC: INTERNAL OPERATIONS COMMITTEE STAFF COUNTY ADMINISTRATOR GENERAL SERVICES DIRECTOR GSD PURCHASING MANAGER AFFIRMATIVE ACTION OFFICER COUNTY COUNSEL(SCHMIDT) Bl(� EPUTY SBE and e-Outreach Report and Recommendations December 18 2006 Supervisor Gayle B. Uilkema Page 2 BACKGROUND/REASONS FOR RECOMMENDATIONS: On December 18, 2006,the County Administrator's Office reported to the internal Operations Committee on the result of their review of the implementation of e-Outreach. e-Outreach was authorized and directed by the Board of Supervisors on February 6, 2006 for all County purchases of commodities and routine services over$10,000 with optional use of e-Outreach by departments for transactions of$10,000 or less. The review identified transition issues have been resolved through administrative directive(see attached issue paper). In addition,the review revealed an area of apparent inconsistency in County policy. Currently,the County accepts only County certified SBEs when awarding contracts, not State certified SBEs,yet the qualifying criteria is the same for both. (Note that the State SBE Program verifies its SBEs with a three-year time limit,while the County self certification has no time limit.) The result of this exclusion is that otherwise qualified SBEs are not included in the SBE Program and Outreach Program reports,thus undercounting the County's efforts in these two areas. Purchasing Manager Kevin Berenson reported to the Committee that RFP Depot automatically contacted 191 State certified SBEs in third quarter, 2006, out of a total of 14,436 BE contacts including 316 County-certified SBEs. (See attached revised reporting format.) The Advisory Council on Equal employment Opportunity considered the recommendation regarding State certified SBEs at their November meeting and unanimously endorsed the recommendation. Due to Supervisor DeSaulnier's recent departure from the Board of Supervisors,the Internal Operations Committee(IOC) did not have a quorum at its regularly scheduled meeting on December 18. In the interest of continuing the normal course of committee business, I have reviewed the background materials normally provided to the IOC and am forwarding to the Board my recommendations. Following is the report on e-Outreach Implementation issues prepared by the County Administrator's Office. e-Outreach Implementation—Issues. On February 6,2006 the Board of Supervisors authorized and directed the extension of the e-Outreach pilot to all County purchases of commodities and routine services over$10,000 with optional use of e-Outreach by departments for transactions of$10,000 or less. Transition to e-Outreach from the County's existing system has brought to light issues regarding roles and responsibilities for implementation,resulted in duplication of effort and revealed that otherwise qualified SBEs are not being recognized by the program. The purpose of this paper is to identify transition issues and to provide direction to support the successful implementation of e-Outreach in accordance with the Board of Supervisors directives. Issues include: • Duplicative databases of certified BEs • Qualified BEs not County-certified • Internal Operations Committee reports—responsibility and content SBE and e-Outreach Report and Recommendations December 18 2006 Supervisor Gayle B. Uilkema Page 3 • Departmental reporting responsibilities for purchasing transactions • Oversight role of County Administrator's Office Issue:Duplicative Databases—Currently,both the Affirmative Action Office (AA) and the Purchasing/Materials Management Division of the General Services Department(Purchasing) maintain databases of County certified BE's (Small Business Enterprises, Women Owned Business Enterprises, Minority Business Enterprises, Local Business Enterprises, Disabled Veteran Business Enterprises, Disadvantaged Business Enterprises and Other Business Enterprises). The databases are not identical. Some departments also maintain their own databases. A business may be listed in one database as a County-certified SBE but not in another database. This results in conflicting reports on the County's efforts to meet its SBE goals and ensure widespread outreach. The RFP Depot database is constructed to automatically send out notices of bid opportunities to BEs with appropriate N1GP (National Institute of Governmental Purchasing)codes for the bid opportunity. Consequently, it makes most sense to migrate the current AA database and any departmental databases into the Purchasing Vendor Database,which is linked to the RFP Depot database. The Purchasing Vendor Database is housed on the County's Intranet site and so is available to Departments that do not use RFP Depot(now optional for purchasing transactions under$10,000, professional/personal services and construction contracts). Resolution of Database Issue— Effective immediately,all departments will send their databases to Purchasing for integration into a single database. All Self Certification Forms will be sent to Purchasing as well. Effective January 1, 2007, departments will use the Purchasing Vendor Database or RFP Depot Database for all commodity purchases. Departments may continue to use their own databases for professional/personal services and construction contracts until those are merged into the e-Outreach Program. Issue: Qualified BEs not County Certified—Certification of BE status with Contra Costa County is based on a self-certification form that has no expiration date. For all County-certified BEs, AA has maintained a database that is not publicly accessible and a publicly-accessible Directory(on the County's website). In September 2004, a complaint regarding publication of a telephone number in the public Directory resulted in AA requesting all AA Directory-listed BEs to recertify on a new form that allowed them to decide whether or not they wanted information on their businesses to be publicly available. The notice did not mention that businesses would be removed from the Directory and decertified if they did not recertify on the new form. The notices went out only to businesses in the centralized AA database list. Subsequently,non-respondents were purged from the AA Directory, but not from the Purchasing database or individual departmental databases. As a result,departments, including Purchasing, identified as SBEs some vendors that could not be confirmed by AA because the business was no longer identified in the AA database as a SBE. This has also resulted in otherwise qualified SBEs not being included in the quarterly AA reports on the SBE and Outreach Program. SBE and e-Outreach Report and Recommendations December 18 2006 Supervisor Gayle B.Uilkema Page 4 These differences have also revealed an area of apparent inconsistency in County policy. The County accepts only County-certified SBEs when awarding contracts, not State-certified SBEs,yet the qualifying criteria is the same for both. (The State SBE program verifies its SBEs, with a three year time limit, while the County's self-certification has no time limits.) Resolution of Certification Issue—The County Administrator's Office (CAO)will request that the Board of Supervisors accept State-certified SBEs as well as County-certified SBEs in assessing compliance with County SBE goals and outreach requirements. In addition,Purchasing will establish a periodic recertification program to ensure that County-certified SBEs are re-certified every three years. Issue:Internal Operations Committee Reports—Currently the Internal Operations Committee of the Board of Supervisors receives a semi-annual report on the County's SBE and Outreach programs. The report includes countywide summary information and activity by department broken down into the areas of purchasing, professional/personal services and construction. For the SBE Program, information is provided on the number of contracts awarded (total and those awarded to SBEs);the dollar amount awarded(total and those awarded to SBEs);the percentage awarded to SBEs by number and dollar amount; and the dollar amount paid to SBEs. For the Outreach Program, information is provided on the number and dollar amount of all contracts/transactions awarded within the program threshold and the number of MBE, WBE, SBE, LBE and DVBE contractors/service providers/vendors that were solicited or contacted. Since departments have been responsible for SBE awards and outreach, it has made sense to advise the Internal Operations Committee of departmental level activity. However, under e-Outreach, outreach is automatic and so not dependent upon department effort. Consequently, departmental level reporting of outreach is no longer instructive for purchases handled through e-Outreach. In addition,AA has historically prepared the report to the Internal Operations Committee. Departments send their reports to AA which compiles them into a single report and calculates the countywide statistics. As the County migrates to e-Outreach for not only purchasing transactions but also construction and professional/personal services,Purchasing could easily generate the Internal Operations Committee reports, based on the management report capabilities provided by RFP Depot. The Board has already agreed that Purchasing will prepare SBE reports for transactions under$10,000 for all departments(regardless of whether or not the award is through e-Outreach). Outreach is only required for transactions above $10,000 and so will also be part of Purchasing's report. Note that this will give the Internal Operations Committee consolidated information on all purchasing transactions. This is also consistent with the Internal Operations Committee's report to the Board about the departmental operational efficiencies that would result from the e-Outreach process, i.e. "replace departmental reporting under the current SBE and Purchasing Outreach Program..." [since]... "manual tracking and compilation by department would no longer be necessary." Resolution of Internal Operations Committee reporting issues—Effective January 1,2007, both Purchasing and AA will submit semi-annual SBE and Outreach Program reports to the Internal SBE and e-Outreach Report and Recommendations December 18 2006 Supervisor Gayle B.Uilkema Page 5 Operations Committee. Purchasing will be responsible for all reports regarding commodity transactions, which will provide information based on type of commodity for the Outreach program and by department for the SBE program. AA will continue to provide semi-annual SBE and Outreach Program reports for professional/personal services and construction until those areas are integrated into e-Outreach, at which time the reporting responsibility will transfer to Purchasing. Issue:Departmental Reporting Responsibilities for Purchasing Transactions—Currently, departments are still documenting SBE compliance and outreach efforts for their purchasing transactions and forwarding that information to AA for review and compilation. If departments continue to send this information to AA it would be duplicative and the County would not realize the operational efficiencies expected under the e-Outreach program. Resolution of Departmental Reporting Issues—Effective January 1, 2007,Departments will forward their SBE award data to Purchasing for all commodity transactions handled outside of the e-Outreach process. Departments will continue to send outreach and SBE award data to AA for professional/ personal services and construction until reporting responsibility transfers to Purchasing. Issue: Oversight by County Administrator's Office—The Board of Supervisors directed implementation of the e-Outreach Program "under the oversight of the County Administrator's Office."No specifics were given beyond this broad direction. Clarification would help ensure that both AA and Purchasing are meeting the expectations of the Board and working together effectively to ensure the program's success. The RFP Depot system has capacity to generate various management reports,both ad hoc reports and pre-designed reports on a real time basis(currently, reports are one quarter in arrears). Direct access to the RFP Depot management report system will allow AA to make ad hoc reports. In addition, AA and Purchasing can work together to identify requirements for standardized activity and compliance reports as appropriate. Resolution of Oversight Responsibility— Purchasing will provide access to the RFP Depot reporting function to the Affirmation Action Officer,the Affirmative Action Secretary and other CAO staff, as directed by the Assistant County Administrator. AA will have the access for ad hoc reports. In addition, Purchasing and AA will work with RFP Depot to create report templates that provide an appropriate level of program oversight. These reports should be able to be downloaded upon demand. The Assistant County Administrator will resolve any oversight issues. CD CD CD CD C I TD 2.S d SO - D -0 CUP,6 Co CO C.) CD ; U) C) -A CD 0 0 011- 0 CCD (P 0- %- (P CD ul tD CD 0i. CD 0 ID so CD CD 'lop CP i§ _ 0 0 1 (D (P C-) -3 CD CD Q) (P CD CD, C: % un 0 01. 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