Page 1 Page 2 Page 3 Page 4 Page 5 Page 6Executive Summary During the past decade, WSSC has awarded over $1 billion in total contracts to Minority Business Enterprise (MBE or M/WBE) and Small Local Business Enterprise (SLBE) firms. Our mandate each year is to determine and implement new strategies to build on this record. We recognize that MBE and SLBE firms help provide ideas and perspectives reflective of the diverse marketplace and communities we serve. We see our diverse suppliers and small businesses as assets ripe for developing and growing into strategic long term partners. We need to sustain our level of service excellence and our local economies. WSSC has invested in the SLMBE Program to provide opportunities as primes and/or subcontractors, to diverse firms and small businesses. WSSC’s SLMBE Program has created many win-win solutions for WSSC and our 1.8 million residents to whom we proudly provide water and sewer services. WSSC continues its commitment to the success of M/WBE and SLBE firms. The MBE Program has been established to mitigate barriers to contracting opportunities for MBE primes and subcontractors. WSSC continues its work to re-engineer the competitive public contracting field for MBEs, WBEs and small and local businesses in Montgomery and Prince George’s counties and the surrounding metropolitan area. This report will summarize the accomplishments of WSSC’s SLMBE Program in FY 2016. WSSC’s MBE Program is codified in WSSC Standard Procedure (SP) MBE 11-01. The statutory foundation for SP MBE 11-01 was reauthorized by the General Assembly in 2012 and will expire on July 1, 2017 unless reauthorized. SP MBE 11-01 is a narrowly- tailored program in accordance with applicable law and facilitates participation of responsible MBEs in all types of WSSC contracting. It provides, in limited circumstances, for race-conscious remedies consistent with the results of WSSC’s 2010 Disparity Study and its recently completed 2015 Disparity Study. The results conveyed in the following pages highlight the successes WSSC has achieved since implementing SP MBE 11-01 and SP SLBE 12-01. The SLBE program assists small businesses primarily located in Montgomery county and Prince George’s county to participate in WSSC contracting. These fully complementary enabling policies have led to progressive supplier diversity programmatic development and have positively impacted the outcome. The policies have also contributed to achieving service excellence by ensuring we support the organization with a diverse supply chain that timely provides goods and services that help with cost savings and avoiding and mitigating risk. The cornerstone of the MBE program and key performance measure is the dollar value of total contract payments made to M/WBEs.1 In alignment with the goals of the MBE Program, WSSC continues to implement strategies to support increasing total contract payments to value-driven M/WBEs each fiscal year based on the 2010 and 2015 Disparity Studies. In FY 2016, WSSC spent $114.8 million (20%) in total contract payments to M/WBEs (Figure 1) as compared to $134.4 million (25%) in total contract payments made in FY 2015. (Figure 2) M/WBE Total Contract Payments M/WBE Total Contract Awards In FY 2016, WSSC awarded almost $151 million (27%) in total contracts to M/WBE firms (Figure 3) as compared to $187.9 million (28%) in FY 2015. (Figure 4) Small Local Business Enterprise (SLBE) Program As a “race- and gender-neutral” program, WSSC’s signature SLBE Program continues to demonstrate value to our local economy. Spending with SLBE firms increased again in FY 2016. The total contract payments made to SLBE firms, inclusive of prime contractors and validated payments of subcontractors in FY 2016, was $31 million, a $9 million increase compared to FY 2015 SLBE total contract payments of $22 million. SLMBE Office Outreach The SLMBE Office continues to cultivate and expand relationships with the business community and professional and trade organizations. Our extensive outreach efforts are targeted to prepare the market 20% 80% M/WBE $114,832,166 Majority $472,666,623 Total Contract Payments $587,498,789 Figure 1: FY 2016 M/WBE Total Contract Payments Figure 2: FY 2015 M/WBE Total Contract Payments Majority $408,331,009 Total Contract Payments $542,740,015 25% 75% M/WBE $134,409,006 28% 72% Total Contract Awards $674,288,897 M/WBE $187,869,377 Majority $486,419,520 27% 73% Total Contract Awards $565,706,576 M/WBE $150,968,610 Majority $414,737,966 Figure 3: FY 2016 M/WBE Total Contract Awards Figure 4: FY 2015 M/WBE Total Contract Awards 1 The abbreviation “M/WBE” includes women-owned business enterprises (“WBEs”) as well as minority-owned firms that have obtained MBE certification as provided in SP MBE 11-01