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DRAFTSmallLocalandMinorityBusinessEnterpriseOfficeLegislativeReportFY2013REVISEDAPRIL2014 DRAFT SmallLocalandMinorityBusinessEnterpriseOfficeLegislativeReportFY2013July12012June302013TheCommissionersrespectfullysubmitthisreportinaccordancewith20-207ofthePublicUtilitiesArticleAnnotatedCodeofMarylandwhichstatesByOctober31stofeachyeartheCommissionshallissueareporttotheMontgomeryCountyandPrinceGeorgesCountySenateandHouseDelegationstotheMarylandGeneralAssemblyconcerning1theimplementationandadministrationoftheminoritybusinessenterpriseprogramsunderthissubtitleforthescalyearendingontheprecedingJune30and2appropriaterecommendationsconcerningtheprograms.Diversity...justthewaywedobusiness 2SLMBELegislativeReportLetterfromtheGeneralManagerCEO4ExecutiveSummary6PaymentsandAwards6Figure1FY2013MWBEContractPayments6Figure2FY2012MWBEContractPayments6Figure3FY2013MWBEContractAwards7Figure4FY2012MWBEContractAwards7SLBEContractPayments7OutreachandEducation7SupportingDiversityandExcellenceatWSSC8CleanWaterforMontgomeryandPrinceGeorgesCounties8BuildingandSustainingDiversity9AccountabletothePeopleWeServe9PerformanceIndicatorsPaymentsandAwards10MinorityandWomenBusinessEnterpriseProgramContractPayments10Figure5DetailsofMWBETotalContractPaymentsbyWSSCContractType10Figure6MWBETotalContractPaymentsbyWSSCContractType10Figure7MWBEandMajorityTotalContractPayments10Figure8PrimeandSubcontractPaymentsbyMWBEClassications11Figure9TotalContractPaymentsbyLocation11Figure10TotalMWBEContractPaymentsbyLocation11SmallLocalBusinessEnterpriseProgramContractPayments12Figure11PaymentstoSLBEFirmsbyWSSCContractType12Figure12PaymentstoSLBEFirmsbyLocation12Contents SLMBELegislativeReport3MWBEandSLBEContractAwards12Figure13MBEandWBETotalContractAwardsbyWSSCContractType12Figure14MWBEPrimeandSubcontractorAwardsbyWSSCContractType13Figure15MWBEandSLBEContractAwardsbyBusinessType13Figure16MWBEAwardsTrendingReportFY2009201313Figure17MWBEAwardsTrendingReportFY20092013byContractType14Figure18AwardstoSLBEFirmsbyContractType14ProcurementCardExpenditures14Figure19ProcurementCardExpenditures14BuildingRelationships15SupplierAdvocacy15Compliance15Outreach16Figure20FY2013OutreachEfforts16SupplierDevelopment17GoingForward18WSSCLeadership19TheSLMBETeam20Glossary21ProductionCredits24 4SLMBELegislativeReportLetterfromtheGeneralManagerCEOOctober312013DearCommunityandBusinessPartnersAsanindustryleaderalocalemployerandacaringmemberofthecommunityweservetheWashingtonSuburbanSanitaryCommissionhastheopportunityandtheobligationtopromoteeconomicandsocialdiversity.Werecognizethatadiverseandinclusiveprocurementprocessonethatpromotescompetitionandqualityhelpsusprovidecustomerswithreliableandaffordableservices.TheFY2013LegislativeReporthighlightsourSmallLocalandMinorityBusinessEnterpriseSLMBEProgram.Ourcommitmenttosupplierdiversitystartsatthetopofourorganizationandisembeddedinthewaywedobusiness.ThroughtheMinorityandWomenBusinessEnterpriseMWBEProgramandtheCommissionsownSmallLocalBusinessEnterpriseSLBEProgramwebuildpartnershipswithminority-andwomen-ownedbusinessesandbringvaluetothepeopleweserve.Weworkdailythroughoutreachinternaleducationandimprovementsinourbusinessprocessestondnewcertiedvendors.Andwecontinuallymeasureourprogressintheseefforts.SomeofoursignicantaccomplishmentsforFY2013includeContractpaymentstotaling92.1milliontoMWBE20percentoftotalcontractpaymentswhichis8percentlessthanFY2012Awarding186.2millioninMWBEcontracts25percentoftotalawardsand57.2millionmorethanin2012Awarding1.6millioninSLBEcontractsWeappreciatethesupportofourmissionbythebusinesscommunitiesinPrinceGeorgesandMontgomeryCountiesandthegreatermetropolitanareaandtherecognitionwehavereceivedforourdedicationtothesmalllocalminorityandwomenbusinesscommunities.SincerelyJerryN.JohnsonGeneralManagerCEO SLMBELegislativeReport5 6SLMBELegislativeReportExecutiveSummaryPaymentsandAwardsHighlightsWSSCiscommittedtocontractingwithSmallLocalandMinorityBusinessEnterprisermsinPrinceGeorgesandMontgomeryCountiesandthesurroundingmetropolitanarea.ThisreportdescribestheaccomplishmentsoftheCommissionssupplierdiversityinitiativesinFY2013.OurmostsignificantsuccesseswereIncreasingtheparticipationofSLMBErmsintheCommissionscontractingopportunities.Registering158newMWBEsuppliersintheCentralizedBidderRegistrationsystem.Approving102newSLBErms.SupportingthedevelopmentofbusinesscapacityandcompetitivenessthroughCommission-hostedsupplierdiversitytrainingprograms.TheCommissionmadepaymentstotaling92133148toMinorityandWomenBusinessEnterprisesand7.1milliontoSmallLocalBusinessEnterprises.TheMBEProgramwasre-authorizedbytheMarylandGeneralAssemblyinMay2012.TheProgramiscodifiedintheWSSCStandardProcedureSPMBE11-01whichsupportstheregulatoryreportingrequirements.AsourprioryearsperformancedemonstratesWSSCisfullycommittedtoourMBEProgramandsupplierdiversity.Forexamplein2013weoutperformedthepreviousyearinMWBEawardsaleadingindicatoroffuturecontractpayments.Makingmorethan92millionincontractpaymentstoMWBEsuppliershashadasignificantimpactonthosesuppliersandonourcommunityyetwedidfallshortofourpaymentgoalin2013.Aswehaveeachyearweareusingour2013experiencetoinformourSLMBEprograms.ThisyearforexampleweexceededourgoalforpaymentstoMWBEsinthegoodsandservicesareabutwefellshortofthemarkachievedin2012.Sincecompletingour2010DisparityStudywehaveworkedtoupdateandintegrateourpoliciesbyforexampleexpandingourprogramssettingvoluntarygoalsandpreferencesincertainareasintroducinganewshelteredmarketprogramincreasingflexibilitytoimproveSLBEsuppliersaccessandupdatingtrackingsystemstoenhancecompliance.Wearecurrentlyreviewingour2013performanceandexaminingtheimpactofnewpoliciesourgoalsandourgoal-settingmethodology.Figures1and2showthedifferencesinMWBEcontractpaymentsbetween2012and2013.TotalContractPaymentsMajoritySubcontractPaymentsMBEWBE.MBEandWBEdollarsincludePrimeandSubcontractdollars.Majoritydollarsareadjust-edtoexcludetheamountprofferedtosubcontractorstoensuresubcontractsarenotdoublecounted.8020MWBE92133148Majority3729315477228MWBE102281071Majority263399584Figure2FY2012MWBEContractPaymentsFigure1FY2013MWBEContractPayments SLMBELegislativeReport7SLBEContractPaymentsPaymentstoSmallLocalBusinessEnterprisermsdecreasedinFY2013butawardsincreased.ThetotalcontractpaymentsmadethisyeartoSLBErmsincludingprimecontractorsandvalidatedpaymentstosubcontractorswas7.1million.OutreachandEducationTheCommissioncontinuestodeliverarobustscheduleofeducationalseminarsdesignedtohelpsuppliersbidsuccessfullyonWSSCcontracts.Wetrainsuppliersinbuildingbusinesscapacitytoenhancetheircom-petitivenessandinnetworkingeffectivelywithprimecontractorsforjointventureandteamingopportunities.Aspartofourcomprehensiveoutreachandstake-holderengagementstrategytheCommissioncontinuedthisyeartoexpandrelationshipswiththebusinesscommunityandprofessionalandtradeorganizations.ThroughtargetedsuppliercommunicationstheWSSCwebsiteprogrambrochuresandtheannualSLMBELegislativeReporttheCommissionremainedastrategicresourcetothesuppliercommunityandareliablelinktosimilarinitiativesthroughoutourservicearea.Ouroutreacheffortsbroughtmeasurableresults.TheCommissionsSLMBEOfcehostedcohostedorparticipatedin75externaleventssuchastradeshowsbusinessprocurementfairsandnetworkingeventsandconducted53outreacheventsincludingsupplierdiver-sitytraining.Theseeffortsledtoatotalof1078newsuppliersregisteredintheCommissionsCentralizedBidderRegistrationsystemincluding158newMBEsuppliers.Therewere102newrmsapprovedfortheSLBEProgram.WSSCandtheSLMBEOfcereceivedseveralawardsforitsaccomplishmentsincludingAdvocateoftheYearAwardfromtheMarylandDCMinoritySupplierCounciltothedirectoroftheSLMBEOfceTowandaR.Livingston.7525MWBE186250875Majority5600868198218MWBE129037973Majority573944275Figure3FY2013MWBEContractAwardsFigure4FY2012MWBEContractAwardsThenexttwochartsshowanincreaseinawardstoMWBErmsfromFY2012toFY2013. 8SLMBELegislativeReportexibleandknowledgeableemployeeswhopromoteserviceexcellenceandinnovation.Integratesupplychainmanagementandsupplierdiversity.Ensureoperationalefciencyandreliableservicetocustomerssuppliersandallstakeholdersthroughtransparentequitableandresponsiblepro-curementpracticesthatinvolveinformandreectthecommunityweserve.Deliverexcellentcustomerservice.Ensurecustomercondencethroughthedeliveryoftimelyhighqualityproductsandservicestointernalandexternalcustomers.Ensuresecurityandsafety.Protectourpeopleourbusinessandourcommunitythroughproactiveplanningemergencypreparednessandutilizationofeffectiveriskmanagement.Enhancecommunicationsandstakeholderrelation-ships.Proactivelycommunicateandsustainrelation-shipsandstrategicpartnershipswithourcommunitykeystakeholdersandjurisdictionsinsupportofourmissionandfuturesuccess.Demonstrateenvironmentalstewardship.Promotesafeandresponsiblestewardshipofourwaterairandlandusingefcientandeffectiveeducationtechnologyandbusinesspractices.CleanWaterforPrinceGeorgesandMontgomeryCountiesTheSmallLocalandMinorityBusinessEnterpriseOfceispartoftheWashingtonSuburbanSanitaryCommission.WSSCisoneofthelargestandmostadvancedwaterandwastewaterutilitiesintheUnitedStatesservingPrinceGeorgesandMontgomeryCountiesanareaofsome1000squaremilesandnearly1.8millionresidents.OnourBoardthreeCommissionersrepresenteachcountywithinourservicearea.WSSCoperatesthreereservoirstwowaterltrationplantsandsevenwastewatertreatmentplants.Wemaintainmorethan5500milesofwatermainlinesandmorethan5400milesofsewermainlinesandweperform500000testsannuallytoensurewatersafetyandquality.OurbudgetforFY2013included662millionforoperatingexpensesand788millionincapitalexpenditures.Butnumbersarejustpartofthestory.UnderlyingthemisthemissionofWSSCtoprovideourcommunitywithsafeandreliablewaterandtoreturncleanwatertoourenvironmentinanethicalsustainableandnanciallyresponsiblemanner.TocarryoutthatworkWSSChasseteightstrategicprioritiesSustaininfrastructure.Planinvestinandrenewourinfrastructuretomeetcustomerexpectationsthroughinnovativecost-effectivetechnologyandworld-classassetmanagementpractices.Ensurenancialstability.Practicesoundnancialstewardshipensuringdeliveryofthebestqualitywaterandwastewatertreatmentservicestoourcustomersatareasonablecostwithaffordableratesuseinnovativeideasforminimizingrateincreases.Optimizeworkforcemanagement.Sustainahigh-performingdiverseworkplacethatattractsandretainsSupportingDiversityandExcellenceatWSSCWSSCMissionWeareentrustedbyourcommunitytoprovidesafeandreliablewaterlifesmostpreciousresourceandreturncleanwatertoourenvironmentallinanethicalsustainableandnanciallyresponsiblemanner. SLMBELegislativeReport9BuildingandSustainingDiversityTheSLMBEProgramembodiesWSSCscommitmenttothehigheststandardsofdiversityandexcellenceinprocurementacrossalloftheCommissionsstrategicpriorities.TheProgramstwoarmstheMinorityBusinessEnterpriseProgramandtheSmallLocalBusinessEnterpriseProgramaredesignedtomitigatetheeffectsofdiscriminationinourmarketarea.ItistheCommissionsgoaltoensurethatoursuppliersreflectthecommunityweserveandthatsmallandlocalsuppliershaveanopportunitytocompeteandwincontractswithWSSC.Guidedbyourcommitmenttoexcellenceanddiver-sitytheCommissioncollaboratescloselywithinternalandexternalstakeholders.WeactivelyseekouthighlyskilleddiversecontractorswhosefreshperspectivesandinnovativeideashelpmeettheCommissionsbusi-nesschallenges.TheSLMBEProgramstrengthenstheCommissionspartnershipwiththesebusinessesthroughdedicatedresourcesfairpoliciesandproce-duresandastrongportfolioofprogramsandservices.Theseincludesupplieradvocacycomplianceoutreachandsupplierdevelopment.Inlinewiththisworkwesetandstrivetomeetannualgoalsforexpenditurescertificationofminorityandwomenbusinessesandapprovalofsmallandlocalbusinesses.AccountabletothePeopleWeServeEachyearwesubmitthisreporttothestatedelega-tionsofthetwocountiesweservePrinceGeorgesandMontgomeryasrequiredbythePublicUtilitiesArticleoftheAnnotatedCodeofMaryland.TheCoderequiresWSSCtoreportontheimplementationandadministra-tionofourminoritybusinessenterpriseprogramsandtomakerecommendationsconcerningtheseprograms.Butourresponsibilitydoesnotendthere.WermlybelievetheCommissionmustbeaccountablenotonlytotheGeneralAssemblybuttoourbusinesspartnersourinternalcolleaguesandthepeoplewhodependonus.Thesestakeholdersarenotonlythebeneciariesofoureffortstheyarethekeystooursuccess.TohelpusunderstandhowwellweareservingthemtheCommissionpublishedadisparitystudyin2010thatcloselyexaminedouruseofminority-andwomen-ownedrmsascontractorsandsubcontractors.Wehavebeguntoinstitutemanyoftherecommendationsfromthatreportandweexpecttocompleteanotherdisparitystudyin2015examiningtheprogresswehavemade.Inthemeantimeweinviteallinterestedpartiestoexaminethislegislativereportandworkwithustohelpusfulllourcommitmenttodiversityinallouroperations.HelpUsProtecttheEnvironmentWSSCworkstoreduceitscarbonfootprintbypublishingthisreportonitswebsiteandbyelectronictransmission.Alimitednumberofprintedcopieswillbemadeavailableuponrequestbutweencourageyoutoviewthereportonlineatwww.wsscwater.com.SLMBEMissionTheSLMBEOfceisdedicatedtocreatinganinclusivepurchasingenvi-ronmentwhilebuildingsustainablerelationshipsexpandingopportuni-tiesandcultivatingthegrowthofsmalllocalandminoritybusinesseswhichaddvaluetotheCommissionandtothecommunityweserve. 10SLMBELegislativeReportMinorityandWomenBusinessEnterpriseProgramContractPaymentsFigure5DetailsofMWBETotalContractPaymentsbyWSSCContractTypeAnoverviewofcontractpaymentsandawardscanbefoundintheExecutiveSummary.Thissectionexaminesthedatainmoredetail.Webeginwithpaymentsbecausethesemeasuretheactualasopposedtofutureachievements.PerformanceIndicatorsPaymentsandAwardsMWBEMWBEMBEWBEMajorityTotalContractTypeGoaldollarspercentdollarsdollarsdollarsdollarsAEServices2415427618301237351430541044568885650813835ConstructionServices2019650951918918084732867200261067216379463GoodsandServices2851522496342828626123236235105048886153512635ProfessionalServices20553208312307209924599844068000244358762AllContractTypes269213314820626499582948319037293154746506469556216ProfessionalServices5532083ConstructionServices19650951AE15427618GoodsandServices51522496178020MWBE92133148Majority372931547HereandthroughoutwestrivetoprovidecurrentaccurateandcompleteinformationinordertoensurecompliancewithWSSCobjectivesandtodemonstratehowtheMBEandSLBEProgramsperformedinFY2013.Figure6MWBETotalContractPaymentsbyWSSCContractTypeFigure7MWBEandMajorityTotalContractPaymentsTotalContractPaymentsMajoritySubcontractPaymentsMBEWBE.MBEandWBEdollarsincludePrimeandSubcontractdollars.Majoritydollarsareadjustedtoexcludetheamountprofferedtosubcontractorstoensuresubcontractsarenotdoublecounted.NoteTheMajorityContractpaymentsof372931547excludes18747264ofMWBEvalidatedsubcontractpayments. SLMBELegislativeReport11Figure8PrimeandSubcontractPaymentsbyMWBEClassifications3230Hispanic2168130624AfricanAmerican27274746Asian128372190Native138760Disabled438523FemaleWBE298874781447OtherMaryland2194829321411WashingtonSMSA49068370PrinceGeorgesCounty630751777OutofState3247359313MontgomeryCounty583583039BaltimoreSMSA42606319395OtherMaryland4561504245WashingtonSMSA4774852PrinceGeorgesCounty36053925OutofState21888890MontgomeryCounty1067795815BaltimoreSMSA1417601912TotalContractPaymentsMajoritySubcontractPaymentsMBEWBE.MBEandWBEdollarsincludePrimeandSubcontractdollars.Majoritydollarsareadjustedtoexcludetheamountprofferedtosubcontractorstoensuresubcon-tractsarenotdoublecounted.Figure9TotalContractPaymentsbyLocationForthepurposeofthisdocumentWSSCreportstotalcontractpaymentsbasedonitsserviceareasofPrinceGeorgesandMontgomeryCountiestheBaltimoreandWashingtonmetropolitanareasothercountiesinMarylandandoutofstate.Figure10TotalMWBEContractPaymentsbyLocation 12SLMBELegislativeReportSmallLocalBusinessEnterpriseProgramContractPaymentsOurSLBEProgramisarace-andgender-neutralprogramspecicallydesignedbytheCommissiontoencouragecontractingwithsmallrmslocatedinPrinceGeorgesandMontgomeryCounties.TheSLBEProgramfurtherstheCommissionsobjectiveoffosteringbroad-basedcompetitionwithinthesmallandlocalbusinesscommunityandencouragingeconomicgrowthbyofferingbenetstosmallrmsheadquarteredinPrinceGeorgesandMontgomeryCounties.Thesebenetsincludespecialsubcontractingrequirementspreferenceinevaluationandpricingsmallcontractrotationamentor-protginitiativeashelteredmarketprogramandexpandedunbundlingseetheGlossaryfordenitionsofseveraloftheseterms.InFY2013ourpaymentstoSLBErmsprimesandvalidatedpaymentstosubcontractorstotaled7.1million.MWBEandSLBEContractAwardsseeanincreaseinpaymentsasthosecontractsarecompletedovertime.The57.2millionincreaseinawardsspecicallytoMWBErmsconrmsourongoingcommitmenttodiversity.Figure13MBEandWBETotalContractAwardsbyWSSCContractTypeMWBEWBEMBEMajorityTotalContractTypepercentdollarsdollarsdollarsdollarsAEServices3171610491604765423208703ConstructionServices1813000086337205395017829481485034GoodsandServices373305032649270976140281796222603098ProfessionalServices545173009784020873954019040860AllContractTypes2533697626152553250560086819746337695Figure11PaymentstoSLBEFirmsbyWSSCContractTypeWSSCContractTypeTotalsAEServices30032ConstructionServices5988137GoodsandServices1116612ProfessionalServicesTotal7134781Figure12PaymentstoSLBEFirmsbyLocationLocationCountyTotalsMontgomeryCounty2157746PrinceGeorgesCounty3835000MarylandOtherNon-Local1142035Total7134781Contractawardsserveasaleadingindicatoroffuturecontractpayments.Thenumbersinthissectionshowanincreaseof43millionintotalcontractawardsforthecurrentscalyearwhichsuggestswewillalso SLMBELegislativeReport13SubpercentPrimeSubTotalContractTypeofMWBEdollarsdollarsdollarsAEServices9626950068915487161049ConstructionServices58359485005051870586467205GoodsandServices12722914451002985682321301ProfessionalServices257774559252676110301320AllContractTypes3811628400469966871186250875Figure14MWBEPrimeandSubcontractorAwardsbyWSSCContractTypeFigure15MWBEandSLBEContractAwardsbyBusinessType7124Majority836AwardsMWBE285AwardsSLBE56Awards5MWBEMWBEAwardsMajorityAwardsTotalAwardsFiscalYearpercentdollarsdollarsdollars2009249247420029657593138905013120102977127129192506464269633593201131133211249294257980427469229201218129037973573944275702982248201325186250875560086819746337694Figure16MWBEAwardsTrendingReportFY20092013 010203040506014SLMBELegislativeReportFigure17MWBEAwardsTrendingReportFY20092013byContractTypeFigure18AwardstoSLBEFirmsbyWSSCContractTypeContractTypeTotalsAEConstruction344588GoodsandServices1309559ProfessionalServicesTotal1654147ProcurementCardExpendituresProcurementCardsP-Cardsareusedforinformalexpendituresoflessthan5000.WhiletheseexpendituresarenottrackedformallyforregulatoryreportingtheCommissiondoesworktoensurethatoursupplierdiversityeffortscarryovertoourcreditcardexpenditures.ThedataprovidedhereisaggregatedfrommonthlyreportsforFY2013providedbyWSSCsP-Cardnancialpartner.Figure19ProcurementCardExpenditures95MajorityP-CardExpenditure64671335MWBEP-CardExpenditure337745FiscalYearAEServicesConstructionServicesGoodsandServicesProfessionalServices2009267452520104716342520113684138201227104231201331183754 SLMBELegislativeReport15BuildingRelationshipsSettinggoalsfordiversitywouldmeanlittlewithoutfocusedeffortstoachievethosegoals.TheSLMBEOfcehasdevelopedabroadrangeofprogramsandactivitiesthatbuildandstrengthenourrelationshipswiththelocalbusinesscommunityprofessionalandtradeorganizationspolicymakersandthepublic.Theyfallunderfourcategoriesfourpillarsthatsupportourdiversityprogramsupplieradvocacycomplianceout-reachandsupplierdevelopment.SupplierAdvocacyToensurethatallsuppliershavefairandequalaccesstoWSSCcontractswecontinuallyDevelopandimplementpoliciesandprocedurestoenhancediversityReviewandapproveSLBEapplicationsandguidelinesServeonprojectandcontractevaluationcommitteesReviewsolicitationstorecommendMWBEandSLBEsubcontractingrequirementsonWSSC-fundedcontractsIdentifyshelteredmarketopportunitieswhereMBEandSLBErmscancompeteinasmallvendorpool.ComplianceAmajorgoalinFY2013wastomakecompliancewithSLMBErequirementseasiertofulllandtotrack.Weareproudtoreportthatthisyearwemadeasuccessfultransitiontoanewweb-basedcompliancetoolthatwillhelpusmeetthisgoal.WSSCsnewsystemimprovesqualitycontrolhelpseliminateduplicateeffortsinternallyandmakesourprocessesmoretransparenttoallusers.Wenowprovideon-linetutorialsforvendorsandconductmonthlytrainingforbothinternalandexternalusers.WSSCsleadershipandstaffplayanintegralroleintheenforcementofgoodfaitheffortsandothercompliancemeasures.TheCommissionroutinelyscru-tinizesprimecontractorsdocumentssupportinggoodfaitheffortsandtheirrequestsforwaiversmodify-ingsubcontractingcommitments.TheSLMBEOfcereceived18waiverrequestsinFY2013approved6ofthemanddenied12.Allsixoftheapprovedrequestswereforpartialwaivers.BeginninginFY2014wewillbegintrackingtheeffectswaivershaveonpayments.ThisyearwealsoinitiatedaWSSC-wideawarenesscampaignMakeComplianceMatterincludingthefollowingRespondtocomplaintsofunsatisfactorycompli-anceandtakecorrectiveactiononnewandexistingcontracts.Validatesubcontractorutilizationnowusingthenewweb-basedcompliancesystem.AttendmonthlycontractcompliancemeetingswiththeChiefProcurementOfcerandprojectmanagers.ProvidemonthlyAppendixAtrainingseeGlossarytoensurebiddersareinformedaboutthesolicitationprocess. 16SLMBELegislativeReportOutreachOuroutreacheffortsareextensiveandfar-reaching.ForexamplethisyearweHostedtheFifthAnniversaryoftheWomensBusinessExpo.Hostedparticipatedinapproximately125procurementfairscorporateroundtablessupplierdevelopmenttrainingsandconferences.ParticipatedinlocalandnationalworkshopsconferencesmatchmakingeventsbusinessfairsandVendorDayshostedbyotherstakeholders.Participatedin29outreacheffortshostedbyrmsownedbywomenHispanicAmericansNativeAmericansAsianAmericansorAfricanAmericans.AggressivelyexecutedacommunicationandengagementstrategytoinformtheSLMBEcommunityofimminentcontractingopportunities.BecauseoftheseandothereffortsWSSCreceivedseveralrecognitionsOrganizationRecognitionMarylandDCMinoritySupplierAdvocateoftheYearDevelopmentCouncilWomenEmpoweredtoAchieveDistinguishedCommunitytheImpossibleWETATiServiceAwardWomensBusinessEnterpriseHallofFameInducteeNationalCouncilWBENCShilohBaptistChurchCertificateofAppreciationWomenPresidentsRecognitionforcontinuedEducationalOrganizationsupportandpartneringOnlinecommunicationsarecentraltoouroutreachefforts.OurcommunicationsactivitiesincludeWeeklyE-Alerts.Theseareissuedthroughthedata-basesoftheCommissionandtheSLMBEOfcetopro-videvendorswithtimelyinformationaboutcontractingopportunitiessuppliereventsandnavigatingthepro-curementprocess.Corporatewebsite.WSSCmaintainsup-to-dateinforma-tionabouttheSLMBEProgramonthecorporatewebsitewww.wsscwater.com.ThisyearwecreatedanewiconlinkingvendorsdirectlytotheSLMBEhomepage.SLMBEProgramwebpages.Weprovideonlineinforma-tiononthegoodsandservicesWSSCpurchasesaccesstotheWSSCweb-basedcompliancesystemtechnicaldocumentstoassistincontractingwithWSSCandinformationforratepayersandthepublic.SupplierscanFigure20FY2013OutreachEffortsNumberEventTypeofEventsChamberofCommerce16Non-ProtOrganizations1PrivateCorporations12StateandLocalGovernment17WomenBusinessOrganizations11WSSCContractIndustry45SpecicWorkshopsMinoritySupplier3DevelopmentCouncilWomensBusinessEnterprise5NationalCouncilWBENCRegionalOfceWomenPresidentsEducationOrganizationWPEO SLMBELegislativeReport17registeronlineforWSSC-hostedeventsandlearnaboutothereventsinwhichweareparticipating.SuppliersmayalsodownloadtheMBEandSLBEProgrampoliciesWSSCStandardProcedurestheWSSC2010DisparityStudyanddocumentsrequiredtoapplyforSLBEstatus.Professionaltradeanddiversity-relatedorganiza-tionsprovidemanyopportunitiestoexchangeideasstaycurrentonbestpracticesinsupplierdevelopmentandshareexpertiseonadministeringasuccessfulMBEprogram.Weparticipateonleadershipboardsandcom-mitteesofsupplierdiversityorganizationsandthroughactivemembershipsupportanumberoflocalandnationalbusinesscouncilschambersassociationsandsimilarorganizations.AmongtheseareAmericanContractComplianceAssociationACCAAssociatedBuildersandContractorsInc.ABCBaltimoreWashingtonCorridorChamberBWCCGreaterWashingtonHispanicChamberofCommerceGWHCCInstituteforSupplyManagementISM-MDKoreanBusinessEnterpriseMarylandChamberofCommerceMDDCMinoritySupplierDevelopmentCouncilMDDCMSDCMid-AtlanticHispanicChamberofCommerceMontgomeryCountyChamberofCommerceNationalForumforBlackPublicAdministratorsNFBPAPrinceGeorgesCountyChamberofCommerceU.S.PanAsianChamberofCommerceWomenPresidentsEducationalOrganizationWPEOTheSLMBEOfcealsocontinuestosupportmanyminoritydiversitybusinessdevelopmentgroupsbasedinourservicearea.Thesegroupsrepresentethnicpop-ulationsandotherpublicandprivatesectorbusinessinterestsinourregion.SupplierDevelopmentWhileWSSChasdevelopedstrongrelationshipswithmanycontractorsovertimewerecognizetherearemanymorebusinessesincludingminority-andwomen-ownedsmallandlocalbusinesseswiththepotentialtobegoodpartners.TohelpfulllthatpotentialtheCommissionhostedandfacilitatedseveralSupplierEducationSessionsatWSSCsheadquartersinLaurelMaryland.ThesesessionsgaveparticipantsanopportunitytonetworkwithinternalandexternalstakeholdersreceiveinformationonbuildingtheirbusinesscapacityandlearnaboutWSSCcontractingproceduresallofwhichenhancetheirabilitytodobusinesswithWSSC.Suppliersofallsizesandclassicationsparticipatedintheseseminarsworkshopsandinformationalses-sionswhichincludedMoneyMattersAccesstoCapitalHowtoDoBusinesswithWSSCquarterlyWomensBusinessExpoStrategicPartnersOurstrategicpartnersUnderstandandsupportourcorestrategies.Liveuptoourcorevalues.Areagileandinnovative.Cangrowwithus.Anticipateourneeds.Delivercost-effectivesolutionswithourcustomersinmind. 18SLMBELegislativeReportInreachingouttothecommunitydevelopingnewsup-pliersandworkingwithinterestedpartnerstomakethecontractingprocesssmootherandmoretranspar-entWSSCsSLMBEProgramhasbenetedboththeCommissionandthe1.8millionresidentsweserve.Ourachievementsareprogressivetheymarkapathnotadestination.Ourpastperformancerepre-sentsamilestoneandinspirestheCommissiontodoevenbetterinreachingminority-andwomen-ownedbusinessestobroadenouroutreachtoadditionalpopulationslikeveteransandpeoplewithdisabilitiestogivesmallbusinessesopportunitiesthatmayulti-matelyleadtotheirgraduationfromtheSLBEprogramandtoeducatesupplierssothattheycanworkmoreeffectivelywiththeCommissionandimprovetheirabilitytocompeteforbusiness.Keepingoursightsonthesegrowthstrategieswillincreasecontractoppor-tunitiesforsmallminority-andwomen-ownedbusi-nessesenhancediversityandtakeuscondentlyintothefuture.WhileourcontinuingstrongperformanceincontractawardsgivesusreasonforoptimismweknowthatwedidnotreachouroverallgoalinpaymentstoMWBErmsinFY2013.Wearealreadylookingbehindthenumbersandplanningwhatwecandodifferentlyintheyearsahead.Ourcommitmenttodiversityisastrategicprioritythatwemustintegrateateverylevel.ForFY2014theCommissionscomprehensivestrategyonsupplierdiversitywillincludeafocusonMetricsensuringthatwemeasuretheappropriatevariables.WewillevaluateandcompareperformancetrendssincetheinceptionofthenewMBEandSLBEpoliciestoidentifythebestmeasuresrelatedtopay-mentsawardsnumberofcontractsandnumberofcontractors.Targetssettingannualgoals.TheCommissionwillanalyzetheFY2014contractopportunitiestoensurethatweestablishgoalsthathelpusachieveourobjectives.Processbuildingrelationshipswithsuppliers.Wewillworktocontinuestrengtheningouroutreachandcom-municationseffortstargetingtherightaudiencesanddevelopingatoolthathelpsmeasureperformance.Wecontinuetoworktoenhanceopportunitiesforallsuppliersbyintegratingnewtechnologiesdevelopingmorestreamlinedandresponsivebusinessprocessesandassessingtheneedsandpotentialofthework-force.Toallourstakeholdersthe1.8millionresidentswhoseinterestsweserveweofferoursincerethanksfortheirongoingsupport.GoingForward SLMBELegislativeReport192013WSSCLeadershipWSSCBoardofCommissionersFY2013ChristopherLawsonChairGeneW.CounihanVice-ChairMelanieHartwig-DavisAntonioL.JonesAdrienneA.MandelDr.RoscoeM.MooreJr.GeneralManagerCEODirectorSLMBEOfficeJerryN.JohnsonTowandaR.Livingston 20SLMBELegislativeReportTowandaR.LivingstonSLMBEDirectorAdministersandoverseestheSmallLocalandMinorityBusinessEnterpriseProgramandOfceincludingtrackingmonitoringandimplementationofprograms.TheDirectorisalsoresponsibleforensuringthatcontractorscomplywiththecontractparticipationrequirementsandforseeingthatoverallprogramgoalsandobjectivesaremet.DalilaPerlaBusinessAssociateProvidesadministrativeandtechnicalsupportforeachprogramelementwithintheSLMBEOfce.TraceyEdwardsProgramSpecialistManagesrelationshipsandassistswithoutreachtoSLMBErmsmanagestheSLBEdatabaseandmonitorsandauditstheSLBEProgramapprovalprocess.LaCreshiaWoodFieldComplianceSpecialistTracksmonitorsandreportssubcontractingplandataandSLMBEsupplierperformance.TheSLMBETeamBeverlyPerryAdministrativeAssistantIIIAssiststheDirectorandhelpsmanagetheSLMBEOfce.ThomasMikeTurnerProgramUnitCoordinatorCoordinatestheOfcesresourcesandensuresthatpracticesandproceduresarealignedwiththeCommissionscontractingpolicies.NikkiaCarverOutreachCoordinatorPlansandmanagestargetedoutreacheffortsandmanagescommunity-partnerrelationships. SLMBELegislativeReport21GlossaryAppendixASectioninWSSCsolicitationsdescribingtheSLMBEparticipationrequirementspotentialsub-contractingopportunitiesgoodfaitheffortsevalua-tionteststandardsdeterminingcommerciallyusefulfunctionandapplicableSLMBEProgramforms.AwardThenalselectionofabidderorofferorforaspeciedprimecontractorsubcontractdol-laramount.ContractawardsaremadebytheCommissiontoprimecontractorsorsuppliersandbyprimecontractorsorsupplierstosubcontractorsorsub-suppliersusuallypursuanttoanopenInvitationforBidIFBaRequestforProposalRFPoranArchitectureEngineeringQualicationprocess.Contractawardsreectanticipateddollaramountswhichmaybedifferentfromeventualpayments.BidderArmsubmittingapriceorproposalinresponsetoanInvitationforBid.CentralizedBidderRegistrationSystemCBRAnautomatedweb-basedsystemwhereprospectivebiddersregistertoprovidegoodsorservicestotheCommission.CommissionorWSSCTheWashingtonSuburbanSanitaryCommission.ComplianceAssuringthatwhatispromisediswhatispaid.AlsofortheSLMBOfcereviewingandreportingdatatoprovideanaccuratepictureofhowtheSLMBEProgramisperforming.ContractorAnypersonhavingacontractwithWSSC.ContractTypeAreaswithintheCommissionthatcon-tractforgoodsandprofessionalservicesincertainindustriesArchitecturalEngineeringConstructionGoodsandServicesandProfessionalServices.ConstructionTheprocessofbuildingalteringrepair-ingimprovingordemolishinganypublicfacilityincludingstructuresbuildingspipelinesplantsinfrastructureorotherpublicimprovementstorealproperty.Itdoesnotincludetheroutineoperationroutinerepairorroutinemaintenanceofthesefacili-ties.Constructionmaterialsandsuppliesmaybepartofaconstructionpurchaseifprocuredbythecontractor.IfconstructionmaterialsandsuppliesarepurchaseddirectlybyWSSCtheyareclassiedasgoodspurchases.DisparityStudyAstatisticalanalysisofWSSCprimecontractorsandsubcontractors.Themostrecentdis-paritystudycoveredtheperiodJuly12003toJune302009andconsideredpurchaseordersanddirectpaymentsfromseveralWSSCdatasources.DollarsDollarspaidtoprimessubcontractorsandsuppliersforWSSCcontractedgoodsandservices.FiscalYearFYTheCommissionsscalyearisJuly1throughJune30.GoalEitheradesiredannualtargetoracontract-specicsubcontractingrequirement.AnnualtargetsareaspirationaltheyarenotapplicabletoindividualcontractsbutareintendedtoserveasbenchmarksagainstwhichtomeasuretheeffectivenessoftheSLMBEPrograminincreasingparticipationofreadywillingandableSLMBEsinWSSCcontractingopportunities. 22SLMBELegislativeReportGoodFaithEffortsActionstakenbyabidderrespon-dentorprimecontractorasestablishedbyreliabledocumentationofthebiddersintenttocomplywiththeSLMBEProgramgoalsandprocedures.Goodfaitheffortsgobeyondduediligenceandincludebutarenotlimitedtoallspeciedrequirements.GoodsSuppliesequipmentmaterialsandalltan-giblepersonalpropertyexcludingrealproperty.GraduationAnMBEorSLBErmpermanentlygradu-atesfromtheCommissionsSLMBEProgramwhenitmeetsthecriteriastatedinSPMBE11-01effectiveMay12011andSPSLBE12-01effectiveAugust262011respectively.MBEMBEisusedintwowaysinthisreport1WhenusedtodescribeanofcialWSSCprogramorpolicyMBEreferstoanylegalentityexceptajointventurethatisorganizedtoengageincommercialtransactionsiscertiedasbeingatleastfty-onepercent51ownedmanagedandcontrolledbyoneormoresociallyandeconomicallydisadvan-tagedminorityorwomanindividualsasdenedinArticle14-301oftheStateFinanceProcurementArticleoftheMarylandAnnotatedCodeandisreadywillingandabletosellgoodsorservicesthatarepurchasedbytheWSSC.InthisuseMBEincludeswomen-ownedbusinessenterprisesandislimitedtormsthathaveobtainedMBEcerticationinaccordancewiththeprovisionsofSectionVII.A.2Whenusedinconjunctionwithgraphsandtablesinthisreportitincludesonlyminority-ownedbusinessesanddoesnotincludewomen-ownedbusinesses.MWBEPercentageTheawardspaymentsmadetocertiedminorityandwomenbusinessenterprisesdividedbythetotalawardspaymentsmajorityplusMWBE.NotethatitispossibletohavealowerMWBEpaymentpercentageinagivenyearevenifthetotalamountpaidishigherdependingonthetotaldollaramountofallcontractpayments.PaymentsDollarsactuallypaidtoprimecontractorssubcontractorsorsuppliersforWSSC-contractedgoodsandservices.ProcurementCardP-CardAcreditcardusedbyCommissionemployeestopurchaseitemsunder5000.TheseexpendituresarenotcurrentlyincludedintheMWBEpaymentdata.ProcurementOfceTheofcethatobtainsgoodsandprofessionalservicesCommission-wide.ProfferToincludeinanoffer.Whenabidderorpro-posersofferisacceptedwithsubcontractingpar-ticipationtheCommissionstatesthatthebidderorproposerhasprofferedsubcontractingonthecontract.ServicesLabortimeoreffortnotinvolvingthedeliveryofatangiblematerialproductotherthanreportsincidentaltotherequiredperformance.Thetermincludesconsultingpersonalprofessionaltechnicalandadvisoryservices.Itdoesnotincludeemploymentagreementsandcollectivebargainingagreements. SLMBELegislativeReport23ShelteredMarketProgramAprogramthatgivesMWBEandSLBErmstheopportunitytocompeteinasmallervendorpools.SmallLocalBusinessEnterpriseSLBEAnindependentlyownedandoperatedbusinessregardlessofraceethnicityorgenderthatislocatedinPrinceGeorgesCountyorMontgomeryCountyor25percentofwhoseemployeesliveinoneorbothcounties.SmallLocalandMinorityBusinessEnterprisesSLMBEDenedinaccordancewithSections20-304ofthePublicUtilitiesCodeMd.CodeAnn.andthecriteriaadoptedbytheCommissioninSPMBE11-01effectiveMay12011.StandardMetropolitanStatisticalAreaSMSAAgeographicalregionwitharelativelyhighpopu-lationdensityatitscoreandcloseeconomictiesthroughoutthearea.StrategicPartnersAbusinesspartnerwhounder-standsandshowssupportofourcorestrategieslivesuptoourcorevaluesisagileandinnovativecangrowwithusanticipatesourneedsandisabletodelivercost-effectivesolutionswithourcustom-ersinmind.SubcontractorArmthatprovidesgoodsorservicestoaprimecontractorinfurtheranceoftheprimecontractorsperformanceunderacontractorpur-chaseorderwithWSSC.UnbundlingDividinganaspectofacontractsuchasaserviceintosmallerpartsusuallyinordertoencouragecompetitionbysmallerbidders.WaiverApprovalfromtheProcurementOfcetoputasidearequirementinaspeciccontract.Requestsforwaiversmustbesubmittedinwritingandsup-portedbydocumentationthatdemonstratesagoodfaithefforttomeettherequirementeitherpre-orpost-awardofaWSSCcontract.WaiversaresubjecttoapprovalbytheSLMBEDirector.Women-OwnedBusinessEnterpriseWBEAnylegalentityexceptajointventurethatisorganizedtoengageincommercialtransactionsandthatiscerti-edasbeingatleast51percentownedmanagedandcontrolledbynon-minorityfemales. 24SLMBELegislativeReportProductionCreditsThefollowingpeoplewereinstrumentalinproducingthisreportExecutiveSponsorTowandaR.LivingstonDirectorSLMBEOfceContributorsEditorsSLMBEOfficeNikKiaCarverOutreachCoordinatorTraceyEdwardsProgramSpecialistLisaMaloneBusinessAnalystDalilaPerlaBusinessAssociateBeverlyPerryAdministrativeAssistantIIIMikeTurnerProgramUnitCoordinatorLaCreshiaWoodFieldComplianceSpecialistTechnicalReadersStrategicSystemsManagementOfficeCrystalKnight-LeeActingDirectorTaraWoodsAdministrativeAssistantIIIProductionSupportCommunicationsOfficeDesignandLayoutAmyWilsonGraphicsDesignSpecialistWSSCPhotographyRonaldWilliamsPhotographerGeneralSupportServicesLogisticsOfficeBrendaHammondReprographicsSpecialistRevised0414 DRAFTComeGrowwithUsSmallLocalandMinorityBusinessEnterpriseOfficeDiversity...justthewaywedobusinessRegistertodobusinesstoday.Itsquickeasyandfree.Visitwww.cbr-wssc.com DRAFT14501SweitzerLaneLaurelMD20707www.wsscwater.com301-206-88002013WashingtonSuburbanSanitaryCommission