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WhereWaterMattersSmallLocalandMinorityBusinessEnterpriseOfficeLegislativeReportFY2014Diversity...justthewaywedobusiness WSSCs5600-acrewatershedwhichprotectsmillionsofgallonsofdrinkingwater SLMBELegislativeReportI0WhereWaterMattersSmallLocalandMinorityBusinessEnterpriseOfficeLegislativeReportFY2014July12013June302014TheCommissionersrespectfullysubmitthisreportinaccordancewith20-207ofthePublicUtilitiesArticleAnnotatedCodeofMarylandwhichstatesByOctober31stofeachyeartheCommissionshallissueareporttotheMontgomeryCountyandPrinceGeorgesCountySenateandHouseDelegationstotheMarylandGeneralAssemblyconcerning1theimplementationandadministrationoftheminoritybusinessenterpriseprogramsunderthissubtitleforthefiscalyearendingontheprecedingJune30and2appropriaterecommendationsconcerningtheprograms.Diversity...justthewaywedobusiness 2IWSSCSLMBELegislativeReportContents__________________________________________________________________________PurposeStatement1__________________________________________________________________________LetterfromtheGeneralManagerCEO4__________________________________________________________________________BrightonDamReservoir5__________________________________________________________________________AboutWSSC6__________________________________________________________________________AboutWSSCSLMBE7__________________________________________________________________________ExecutiveSummary89Figure1FY2014MWBEContractPayments8Figure2FY2013MWBEContractPayments8Figure3FY2014MWBEContractAwards9Figure4FY2013MWBEContractAwards9__________________________________________________________________________PerformanceMeasuresDataandGraphs1013Figure5SummaryofTotalContractPaymentsbyWSSCContractingArea10Figure6TotalMWBEPaymentsbyClassification11Figure7TotalMWBEContractPaymentsbyLocation11Figure8TotalContractPaymentsbyLocation11Figure9TotalContractAwards12Figure10MWBEPrimeandSubcontractorAwards12Figure11TotalNumberofContractsAwardedbyBusinessType12Figure12TrendingReportbyFiscalYearforMWBEAwards13Figure13TrendingReportbyMWBEAwardsbyFiscalYearandWSSCContractingArea13__________________________________________________________________________ WSSCSLMBELegislativeReportI3__________________________________________________________________________SmallLocalBusinessEnterpriseProgramDataandMetrics14Figure14PaymentstoSLBEFirmsbyWSSCContractingArea14Figure15PaymentstoSLBEFirmsbyLocation14Figure16AwardstoSLBEFirmsbyContractingArea14__________________________________________________________________________ProcurementCardExpenditures15Figure17MBEP-CardExpenditures15__________________________________________________________________________InternalEffortsofWSSCandtheSLMBEOffice16SupplierAdvocacy16Compliance16SupplierDevelopmentAccomplishments16__________________________________________________________________________ExtensiveOutreach1718Figure18FY2014SLMBEOutreachEffortsbyOrganization17OutreachTools17StrategicPartners18Figure19SLMBEAwardsRecognitionforFY201418__________________________________________________________________________GoingForward19__________________________________________________________________________WSSC2014Leadership20__________________________________________________________________________SLMBE2014Team21__________________________________________________________________________GlossaryofTerms2223__________________________________________________________________________ProductionCredits24__________________________________________________________________________ 4IWSSCSLMBELegislativeReportLetterfromtheGeneralManagerCEOOctober312014GreetingsCommunityandBusinessPartnersJustasweareenteringanewfallseasoninourregion2014marksnewbeginningsforWSSCsSmallLocalandMinorityBusinessEnterpriseSLMBEProgram.TheLegislativeReportforFiscalYearFY2014representstheeffortsandaccomplishmentsofanewerafortheSLMBEProgram.Ourcommitmenttosupplierdiversitystartsatthetopofourorganizationandisembeddedinthewaywedobusinesseveryday.Webuildpartnershipswithminorityandwomen-ownedbusinessessmallandlocalfirmsandbringvaluetothepeopleweservethroughtheMinorityandWomenBusinessEnterpriseMWBEProgramandtheCommissionsownSmallLocalBusinessEnterpriseSLBEProgram.WeworkeverydaytoprovideoutreachinternaleducationandimprovementsinourbusinessmodeltofindandassistnewSLMBEvendors.InthemidstoftransformationourSLMBEProgramhasremainedstrongbecomingmoreagileandmanagingsignificantaccomplishmentsforFY2014includingContractpaymentsof99.9milliontoMWBEs20oftotalcontractpaymentsAwarded228.5millioninMWBEcontractsanincreaseof42.3millionmorethan2013Awarded111millioninSLBEcontractswithsignificantincreasesinSLBEpaymentsinbothPrinceGeorgesandMontgomerycountiesandApprovedover80newSLBEvendorsinourWSSCProgram.WeinviteyoutoreadthisReportandlearnmoreaboutthisProgramwhichisunlikeanyotherintheregion.WeappreciatethesupportofthebusinesscommunitiesinPrinceGeorgesandMontgomerycountiesandthroughouttheregion.Wealsoappreciatetherecognitionwehavereceivedforourdedicationtothesmalllocalminorityandwomenbusinesscommunities.GeneralManagerCEOJerryN.JohnsonInFY2014therewasasignificantincreaseinSLBEpaymentsandawardsinbothPrinceGeorgesandMontgomeryCounties. WSSCBrightonDamReservoir 6IWSSCSLMBELegislativeReportWeareWSSCWhereWaterMattersThelife-sustainingwaterandwastewaterservicesthatweprovidearecriticalforensuringpublichealthandmakeitpossibleforindividualsfamiliesandbusinessestoenjoyagoodqualityoflife.Fornearly100years24hoursadayandsevendaysaweekwehaveservedthepeopleofPrinceGeorgesandMontgomerycounties.Ourcoremissionistoprovidesafeandreliablewaterlifesmostpreciousresourceandreturncleanwatertoourenvironmentallinanethicalsustainableandfinanciallyresponsiblemanner.InordertoachievethismissionWSSCmaintainstworeservoirsandover5600acresofwatershedissuesconstructionpermitsperformsover500000laboratorytestseachyearmaintainsover42000firehydrantsconductswatermetertestingandinspectsplumbinginstallationsnaturalgasapplianceinstallationsandfoodserviceestablishmentsandmuchmore.Westriveforexcellenceineveryoneoftheessentialservicesweprovide.TheCommissionisgovernedbysixCommissionerswithequalrepresentationfromMontgomeryandPrinceGeorgescounties.WSSCemployeesincludemeterreadersengineersaccountantslaboratorytechniciansandenvironmentalscientists.SupportingDiversityandExcellenceatWSSCOurbudgetforFY2014included698.8millionforoperatingexpensesand742.2millionincapitalexpenditures491.3millionintotalcontractpaymentsand20ofthosepaymentsweretominorityandwomen-ownedbusinesses.www.wsscwater.comAboutWSSCWhereWaterMattersDistrictofColumbiaPRINCEGEORGESCOUNTYPRINCEGEORGESCOUNTYMONTGOMERYCOUNTYMONTGOMERYCOUNTYPATUXENTRIVERPOTOMACRIVERSilverSpringDowntownLaurelUpperMarlboroDamascusAccokeekGaithersburg WSSCSLMBELegislativeReportI7Since1978theWashingtonSuburbanSanitaryCommissionCommissionhasdemonstratedastrongcommitmenttominorityandwomen-ownedbusinessesbyempoweringWSSCsSmallLocalandMinorityBusinessEnterpriseSLMBEOfficeandbymakingdiversityapartofhowWSSCsstaffdoesbusiness.IndoingsotheCommissionseekshighlyskilleddiversesupplierswhosefreshperspectivesandinnovationhelpmeetWSSCsbusinesschallenges.MissionStatementTheSLMBEOfficeisdedicatedtocreatinganinclusivepurchasingenvironmentwhilebuildingsustainablerelationshipsexpandingopportunitiesandcultivatingthegrowthofsmalllocalandminoritybusinessenterpriseswhichaddsvaluetotheCommissionandthecommunityweserve.SLMBEStrategyTheSLMBEOfficeadministersWSSCsMBEProgramanditssignatureSLBEProgram.TheMinorityBusinessEnterpriseMBEandSmallLocalBusinessEnterpriseSLBEProgramsaresupportedbydedicatedresourcespoliciesandprocedures.TheseProgramshelptheCommissiontoachieveitsSLMBEobjectivesbyofferingtrustedandconvenientservicestobothourinternalandexternalstakeholdersthroughSupplierAdvocacyComplianceExtensiveOutreachandSupplierDevelopment.MBESLBESLMBESeeGlossaryofTermsforafulldescriptionofWSSCsSLMBEdesignationsAboutWSSCSLMBEDiversity.justthewaywedobusiness WSSCcontinuesitscommitmenttothesuccessofSmallLocalandMinorityBusinessEnterprisefirmsinPrinceGeorgesandMontgomerycountiesandthesurroundingmetropolitanarea.ThisreportwilldescribetheaccomplishmentsoftheCommissionssupplierdiversityinitiativesinFY2014.TheMinorityBusinessEnterpriseMBEProgramwasre-authorizedbytheMarylandGeneralAssemblyinMay2012.TheProgramiscodifiedintheWSSCStandardProcedureSPMBE11-01whichprovidestheregulatoryreportingrequirements.ThispolicywasimplementedalongwithSLBESP12-01afterthe2010DisparityStudyandprovidednewguidelineswhichhasledtochangesinMWBEandSLBEcontractrequirements.Thesenewcontractrequirementshaveimpactedresultsforawardsandultimatelypayments.InFY2014theCommissionspent99.9million20intotalcontractpaymentstoMinorityandWomenBusinessEnterprisesMWBEFigure1ascomparedto92.1millioninFY2013Figure2.Althoughwedidnotmeettheaspirationalgoalof26westillexceededlastyears92millionincontractpaymentsby7.8million.8IWSSCSLMBELegislativeReportExecutiveSummaryFigure1FY2014MWBEContractPayments20802080MWBE92137148Majority372931547Figure2FY2013MWBEContractPaymentsMWBE99965604Majority391394729TotalContractPaymentsMajoritySubcontractPaymentsMBEWBE.MBEandWBEdollarsincludePrimeandSubcontractdollars.Majoritydollarsareadjustedtoexcludetheamountprofferedtosubcontractorstoensuresubcontractsarenotdoublecounted. WSSCSLMBELegislativeReportI9Figure3FY2014MWBEContractAwards2575MWBE186250875Majority560086819Figure4FY2013MWBEContractAwards2377MWBE228579268Majority745802881InFY2014theCommissionawarded228.5million23toMWBEfirmsFigure3ascomparedto186millioninFY2013.AlthoughthereweremoreMWBEAwarddollarsWSSCstotalcontractawarddollarsof974millionincreasedby228milliontotalcontractawarddollarsinFY2013Figure4.SpendingwithSLBEfirmsincreasedinFY2014.ThetotalcontractpaymentsmadetoSLBEfirmsinclusiveofprimecontractorsandvalidatedpaymentsofsubcontractorsinFY2014was18.2millionanincreaseof11.1millioncomparedtoFY2013SLBEcontractpaymentsat7.1million.TheSLMBEOfficecontinuestocultivateandexpandrelationshipswiththebusinesscommunityandprofessionalandtradeorganizations.OurvigorousoutreacheffortsofeducatingandenlistingnewsuppliersincludeProvidingcontractingopportunitiesandinformationRegisteringover840vendorsintheCentralizedBidderRegistrationCBRsystemApprovingover80newfirmsintheSLBEProgramParticipatinginapproximately65internalandexternaleventssuchasbusinessprocurementfairstradeshowsandbusinessmatchmakingandnetworkingevents.WSSCsperformanceinFY2014andourgoalsforthecurrentyeardemonstratesourcommitmenttothesuccessoftheSLMBEProgramsandthecommunitythatWSSCcontinuallyserves.ExecutiveSummarycont. 10IWSSCSLMBELegislativeReportSLMBEProgramFiscalYear2014PerformanceMeasuresDataandGraphsForthepurposeofthisFY2014LegislativeReportWSSCreportstotalcontractpaymentsbasedontheserviceareaofPrinceGeorgesandMontgomerycountiestheBaltimoreandWashingtonStandardMetropolitanStatisticalAreaSMSArespectivelyothersurroundingcommunitiescountiesinMarylandandoutofstate.ThefollowingpagesprovidethebreakdownofcontractpaymentsandawardsforFY2014.ItisourgoaltoprovideaccurateandcompleteinformationtoensurecompliancewiththeSLMBEProgramobjectivesanddemonstratetheperformanceoftheMBEandSLBEProgramsforFY2014.MWBEPROGRAMDataandMetricsMWBEcontractawardamountsserveasaleadingindicatorforWSSCsMBEcontractperformance.HoweveractualpaymentstoMBEfirmsmeasuresthesuccessoftheMWBEProgram.ThefollowingfiguresprovidethebreakdownofcontractpaymentsbasedontotalcontractpaymentsWSSCcontractingareasandMWBEclassifications.PaymentsPaymentsserveasalaggingindicatorasaresultofthecontractawards.InFY2014WSSCstotalcontractpaymentstotaled491millionwhilethetotalcontractMWBEpaymentswere99.9millionor20showninFigure5below.MWBEMWBEPrimeMBEPrimeWBEMWBEPrimeMajorityTotalContractAreadollarspercentdollarsdollarsSubDollarsdollarsdollarsAEServices9098265.56191525818.0326237.367546210.1739249368.4248347633.98ConstructionServices27583027.541322192959.835390067.71190406387.03217989414.57GoodsServices53798502.063128666654.0922160181.132971666.84117552567.97171351070.03ProfessionalServices9485809.98186536860.962238181.84710767.1844186405.5953672215.57TotalAllContractAreas99965605.142058922292.9124424600.3316618711.90391394729.01491360334.15Figure5SummaryofTotalContractPaymentsbyWSSCContractingAreaSUMMARYOFFY2014TOTALCONTRACTPAYMENTSANDAWARDSTotalContractPaymentsMajoritySubcontractPaymentsMBEWBE.MBEandWBEdollarsincludePrimeandSubcontractdollars.Majoritydollarsareadjustedtoexcludetheamountprofferedtosubcontractorstoensuresubcontractsarenotdoublecounted. WSSCSLMBELegislativeReportI11TotalContractPaymentsMajoritySubcontractPaymentsMBEWBE.MBEandWBEdollarsincludePrimeandSubcontractdollars.Majoritydollarsareadjustedtoexcludetheamountprofferedtosubcontractorstoensuresubcontractsarenotdoublecounted.Figure6representsthebreakdownofthe99.9millionpaidtoMBEfirms.Figure6TotalMWBEPaymentsbyClassification28271529Hispanic-American27658682African-American28478838FemaleWBE27325880Asian-American154073830Native-American1155091Disabled9584820OtherMBE20829Figure7illustratesatotalof52.4millionofWSSCstotalMWBEcontractpaymentsremittedtobusinessesdomiciledinPrinceGeorgesandMontgomeryCountiesandothercountiesinthestateofMaryland.Figure7TotalMWBEContractPaymentsbyLocation222028OutofState28218605WashingtonSMSA19344253PrinceGeorgesCounty2219249410BaltimoreSMSA991014211MarylandOther110804759MontgomeryCounty9219633Figure8Illustratesatotalamountofcontractsawardedwith54ofthepaymentstoout-of-statefirms.Figure8TotalContractPaymentsbyLocation131754OutofState2645847814WashingtonSMSA21516145PrinceGeorgesCounty626338837BaltimoreSMSA32439108MarylandOther855463925MontgomeryCounty24640023PaymentsCont. 12IWSSCSLMBELegislativeReportAwardsContractawardsserveasaleadingindicatoroffuturecontractpaymentsbuttheimpactofthemultiyearcontractawardswillnotbeevidentforthepaymentsinasinglefiscalyear.Thisisanincreaseof42.3millionintotalcon-tractMWBEawardsforthecurrentfiscalyearcomparedtoFY2013186.2million.Figure9summarizestotalcontractsawardedinFY2014228millionor23wasawardedtocertified-MWBEfirms.SubpercentPrimeSubTotalAwardsContractAreaofMWBEdollarsdollarsdollarsAEServices4916950000.0016283338.5533233338.55ConstructionServices6631122340.1759783829.3790906169.54GoodsServices980214150.557873638.2988087788.84ProfessionalServices3510552008.515799962.5816351971.09TotalAllContractAreas39138838499.2389740768.79228579268.02Figure10MWBEPrimeandSubcontractorAwardsMWBEPrimeWBEPrimeMBEMWBEPrimeMajorityTotalAwardsContractAreapercentdollarsdollarssubdollarsdollarsdollarsAEServices402475000.0014475000.0016283338.5550789255.5784022594.12ConstructionServices150.0031122340.1759783829.37535579761.00626485930.54GoodsServices4122995066.4857219084.077873638.29124837142.70212924931.54ProfessionalServices322141731.678410276.845799962.5834596722.0150948693.10TotalAllContractAreas2327611798.15111226701.0889740768.79745802881.28974382149.30Figure9TotalContractAwardsFigure11TotalNumberofContractsAwardedbyBusinessType70282SLBE24AwardsMWBE308AwardsMajority789AwardsOfthe228millioninMWBEawards138.8wasawardedtoprimeMWBEFirmsand89.7milliontoMWBEsubcontractsFigure10.InFY2014WSSCawarded1121contractsofthattotal28wasawardedtoMWBEfirmsand2toSLBEfirms.Figure11. WSSCSLMBELegislativeReportI13MWBEMWBEAwardsMajorityAwardsTotalAwardsFiscalYearpercentdollarsdollarsdollars20102977127129.00192506464.00269633593.00201131133211249.00294257980.00427469229.00201218129037973.00573944275.00702982248.00201325186250875.00560086819.00746337694.00201423228579268.02745802881.28974382149.30Figure12TrendingReportbyFiscalYearforMWBEAwardsFiscalYearAEServicesConstructionServicesGoodsandServicesProfessionalServices201047163425201136841382012271042312013311837542014401541320102030405060Figure13TrendingReportofMWBEAwardsbyFiscalYearandWSSCContractingAreaThefive-yearfiscalyeartrendingdatadepictsthatonaverageWSSCawarded25.2ofitstotalcontractstoMWBEfirms.InFY2014WSSCawarded23ofitscontractstoMWBEfirms.Figure12MWBEpercentageFigure13demonstratesthetrendofMWBEawardsbycontractingareaoverthepastfiveyears.AwardsCont. 14IWSSCSLMBELegislativeReportEstablishedin2001theSLBEProgramisWSSCssignatureprogramtoensurethelocalbusinesscommunityhasopportunitiestoparticipateinWSSCcontracting.TheSLBEProgramisaraceandgender-neutralprogramspecificallydesignedbytheCommissiontoencouragecontractingwithsmallfirmslocatedinPrinceGeorgesandMontgomerycountiesandorsignificantemployeepresence.TheSLBEProgramfurtherstheCommissionsobjectiveoffosteringbroad-basedcompetitionwithinthesmallandlocalbusinesscommunityandencouragingeconomicgrowthbyofferingbenefitstosmallfirmsheadquarteredinPrinceGeorgesandMontgomerycounties.Thesebenefitsincludespecialsubcontractingrequirementspreferenceinevaluationandpricingandashelteredmarketprogram.PaymentsInFY2014ourpaymentstoSLBEfirmsprimesandvalidatedpaymentstosubcontractorstotaled18.2millionasdepictedinFigure14with16.9millioninpaymentsforConstruction.Figure15providesabreakdownoftheSLBEpaymentsbylocationwith11.3millionofthe18.2milliontofirmslocatedinPrinceGeorgescounty.PrimeSubTotalContractAreadollarsdollarsdollarsAEServices0.003465330.003465330.00ConstructionServices3244971.00102191776.00105436747.00GoodsServices1497718.04124000.001621718.04ProfessionalServices350000.00332543.00682543.00Total5092689.04106113649.00111206338.04Figure16AwardstoSLBEFirmsbyContractingAreaSMALLLOCALBUSINESSENTERPRISEPROGRAMDataandMetricsWSSCContractAreaTotalsAE5272.50Construction16947332.94GoodsandServices1188752.58ProfessionalServices144125.99Total18285484.01Figure14PaymentstoSLBEFirmsbyWSSCContractingAreaLocationCountyTotalsOutofState884324.38PrinceGeorgesCounty11318050.80WashingtonSMSA1004074.48MontgomeryCounty4189077.98MarylandOther889956.37Total18285484.01Figure15PaymentstoSLBEFirmsbyLocationSLBEfirmswereawarded111.2millionwiththemajorityofawardsinthecontractingareaofConstructionintheamountof105millionFigure16. WSSCSLMBELegislativeReportI15FY2014MBEProcurementCardExpendituresFigure17MBEP-CardExpenditures955MBEP-CardExpenditures331192MajorityP-CardExpenditures6519974ProcurementCardsP-Cardsareusedforinformalexpendituresoflessthan5000.WhiletheseexpendituresarenottrackedformallyforregulatoryreportingtheCommissiondoesworktoensurethatoursupplierdiversityeffortscarryovertoourcreditcardexpenditures.InFY2014totalP-Cardpurchaseswere6.8millionofwhichWSSCsMBEP-Cardexpenditureswere3311925andtheMajorityP-Cardexpenditureswere6.5millionFigure17. 16IWSSCSLMBELegislativeReportInternalEffortsofWSSCandtheSLMBEOfficeThecommitmentoftheSLMBEProgramisrootedinthebeliefoftheWSSCCommissionersGeneralManagerCEOandseniormanagementthatdiversityisjustthewaywedobusiness.ThiscommitmentisgrowingdeeperinWSSCsculturewithpositiveeffectsinhowWSSCimplementspoliciestoincreaseparticipationbyMBEandWBEfirmsincontractingopportunities.MotivatedbyourachievementsinFY2014theSLMBEOfficestrivescontinuouslytointegratenewbestandcurrentsupplierdiversitypracticesandprincipalsdesignedtomeetandexceedourfiscalyearMBEexpenditureaspirationalgoal.TheSLMBEOfficeStrategycentersaroundFourStrategicPillarsthatincludeSupplierAdvocacyComplianceExtensiveOutreachandSupplierDevelopmentandarethehallmarkoftheSLMBEOffice.SupplierAdvocacyTheSLMBEOfficeensuresfairandequalaccesstoWSSCcontractsforallsuppliersbySupportingpoliciesandprocedurestofurtherthepurposeandgoalsoftheSLMBEProgramReviewingandapprovingSLBEapplicationsandguidelinesforWSSCssignatureSLBEProgramServingonprojectandcontractevaluationcommitteesandsourcingteamsandReviewingsolicitationsforMBEandSLBEsubcon-tractingrequirementrecommendationsforcontracts.ComplianceTheSLMBEOfficeremainsvigilantinexecutingcompliance-relatedactivities.ExamplesoftheseeffortsincludeConductingmonthlytrainingsonPRISMWSSCssubcontractreportingtoolforbothinternalandexternalend-usersProcessingover600contract-relatedSLMBEmemorandumsidentifyingopportunitiesforMWBEandSLBEfirmsonWSSC-fundedcontractsinFY14comparedto500inFY13resultinginanincreaseofapproximately17ValidatingsubcontractorutilizationthroughtheuseofcompliancereportingtoolsRespondingtonumerouscompliance-relatedissuesforresolutionsReviewingwaiverrequestswhichdecreasedfrom18inFY13tothreeinFY14.AllthreeoftheFY14requestsforwaiversweredeniedresultinginnoimpacttopaymentsEstablishingcorrectiveactionplansandprovidingcounselingtocontractorsinsupportoftheirperformanceonWSSC-fundedcontractsandImplementingadesignatedmailboxforcompliancequestionsandissuesandcontractmatters.SupplierDevelopmentAccomplishmentsIncollaborationwiththeWSSCProcurementOfficeandWSSCscontractingareastheSLMBEOfficeco-hostedandorservedaspresentersinseveralHowtodoBusinesswithWSSCeventsattheWSSCheadquartersinLaurelMaryland.FormanyoftheparticipatingsupplierstheopportunitytonetworkreceivecontractforecastsfromthevariousbusinessunitsandlearnaboutWSSCcontractingproceduresenhancedtheirsuccessindoingbusinesswithWSSC.MembersoftheSLMBEOfficealsoservedonpanelswithmanyofthesupportingagenciestoprovideMWBEfirmswithinformationabouttheSLMBEOfficeandhowtosuccessfullydobusinesswithWSSC. WSSCSLMBELegislativeReportI17WSSCsSLMBEOfficecontinuestoparticipateinanarrayofoutreachandeducationalactivitiesdesignedtofacilitatesuppliersparticipationonWSSCcontracts.StaffeffectivelymanagedlimitedresourcestosuccessfullyHostandorparticipateinover65SLMBEEventsseefigure18belowParticipateinlocalandnationalworkshopsmatchmakingeventsandbusinessfairsExecuteanaggressivecommunicationstrategytokeeptheSLMBEcommunityawareofcontractingopportunitiesMaintainavisiblepresenceinlocalregionalandnationalmediaOutreachToolsWeuseavarietyoftoolstoengageandcommunicatewithoursuppliercommunityincludingWeeklyE-AlertsprovidesvendorswithtimelycontractingopportunitiessuppliereventsandpertinentinformationfornavigatingtheprocurementprocessSLMBEMailboxprovidespersonalizedcommunicationtosuppliersviaslmbewsscwater.comSLMBEWebsiteprovidespublicaccesstoWSSCWeb-BasedComplianceSystemOnlineregistrationforWSSC-hostedeventsMBEandSLBEPoliciesProceduresWSSC2010DisparitySupportingAgenciesandOrganizationsComplianceFAQsFiscalYearPaymentAwardsResultsCalendarofEventsup-to-dateaccesstoSLMBEsupportedeventsdesignedtoenhancesupplierknowledgeinformationandotherresourcesFace-to-FaceVendorAssistancePre-BidConferencesOn-sitesupportbyappointmentWeb-BasedComplianceMailboxPersonalizedforcompliancecontractmattersissuesStrategicPartnershipsrelationshipbuildingwithkeycommunitypartnersforincreasedsuppliersupportNumberOrganizationTypeofEventsChamberofCommerce4Non-ProfitOrganizations1PrivateCorporations6StateandLocalGovernment10WSSCContractIndustrySpecificWorkshops38MinoritySupplierDevelopmentCouncil3WBENCWPEO4Figure18FY2014SLMBEOutreachEffortsbyOrganizationExtensiveOutreach 18IWSSCSLMBELegislativeReportExtensiveOutreachcont.TheSLMBEOfficecontinuestoactivelyparticipateonleadershipboardsandcommitteesofsupplierdiversityorganizationstoremainconnectedtothebestcurrentpracticesinsupplierdevelopmentandtoprovideexpertiseonadministeringasuccessfulMBEProgram.TheSLMBEOfficealsomaintainsmembershipsandsupportoflocalandnationalcouncilchambersassociationsandotherlike-mindedorganizations.TheseorganizationsincludeWomenPresidentsEducationalOrganizationWPEOandCapitalRegionMinoritySupplierDevelopmentCouncilCRMSDC.TheSLMBEOfficecontinuedtosupportnumerousregionalminoritydiversitybusinessdevelopmentgroupsbasedintheCommissionscommunity.ThesegroupsrepresentvariousethnicpopulationsegmentsaswellasspecificinterestsinthepublicandprivatesectorsoftheWSSCregion.BecauseoftheseandotherSLMBEeffortsinFY14WSSCreceivedseveralrecognitionsseefigure19belowincludingDATERECEIVEDORGANIZATIONAWARDRECIPIENTNOMINATEDMDHispanicBusinessBronzeSupporterAppreciationWSSCSLMBE932013ConferenceMEAMagazine25InfluentialWomenTowandaLivingston1022013inBusinessAwardCapitalRegionMinorityPublicEntityoftheYearWSSCSLMBE10112013SupplierDiversityCouncilWomenofPrinceGeorgesRecognitionAwardTowandaLivingston12122013WomensPresidentsRecognitionAwardWSSCSLMBE1232014EducationalOrganizationFigure19SLMBEAwardsRecognitionforFY2014ToWSSCaStrategicPartnerisonewhoknowsunderstandsandshowstheirsupportofourcorestrategiesandcanhelpsustainourcorevalues.AStrategicPartnerisagileinnovativecangrowwithusandhaspositionedthemselvestobringusvaluebyparticipatinginoureffortstodelivercosteffectivesolutionswithourcustomerinmind. WSSCSLMBELegislativeReportI19GoingForwardSincetheinceptionofWSSCsMinorityBusinessEnterpriseMBEProgramin1996theCommissionhascontinuedtofindwaystoexpandaccesstominorityandwomen-ownedbusinesses.TheCommissionseekshighlyskilleddiversesupplierswhosefreshperspectivesandinnovationmeettheongoingbusinesschallengesofdeliveringqualitywaterandwastewaterservices.TheSLMBEOfficesaffirmativeprocurementinitiativesareanintegralpartofWSSCsmissionwhicharetoprovideworld-classservicestothecommunity.AswecontinuetobuildrelationshipswithMBEfirmsthroughvariousinitiativesoftheSmallLocalandMinorityBusinessEnterpriseSLMBEtheCommissionisproudofthepositiveprogramresultswhicharedemonstratedby99.9millioninMBEpaymentsandthe111.2millionawardedtoSLBEfirmsthroughoursignatureSLBEProgram.ThisfigureexceedstheFY2013performanceby104millionpaymentstoSLBEfirms.TheoverallgoalforMWBEfirmsinFiscalYear2015andbeyondwillfocusonre-evaluatingthevendorterritory.LookingforwardtoFY2015theCommissionscomprehensivesupplierdiversitystrategywillfocusonthefollowinginordertomeetFY2015goalsBrandingAswecontinuetofacilitategrowthinoursuppliercommunityourgoalistocontinuetobuildeducationandawarenesstopromotepositivechangesinhowoursuppliersdobusinesswithWSSCandbeyond.OperatingattheintersectionofbusinessstrategytechnologyandinnovativecommunicationthefocusinFY2015willbetoexploreenhancingourreachintothecommunitybyimplementingastrategythatincludesasocialmediacampaignbaseduponcommunityneedandcontinuetoimplementBestPracticesintheSupplierDiversityIndustry.OneoftheproposedchangesisthetransformationoftheSLMBEOfficetotheSupplierDiversityOffice.TransformationPlanSinceourlastreportWSSChascontinuedtoblazetrailsinthewaterandwastewatermanagementservicesindustrybyengaginginaThree-YearSupplyChainManagementPlanthatensuresthatweoperateefficientlyandeffectively.ThegoalofthisstrategyisaneffectiveandwellmanagedsupplychainthatdeliverstherightgoodsandservicestotherightplaceattherighttimeattherightcostthusensuringthatWSSCistakingadvantageofthesenewpracticesinordertodemonstrategoodstewardshipofourlimitedresources.TheSLMBEOfficeisactivelyengagedinthetransformationoftheProcurementOffice.DisparityStudyTheSLMBEOfficeispleasedtoannouncethatinFiscalYear2015WSSCwillundertakeaDisparityStudyofprocurementproceduresforFiscalYears20102014.ThisStudywillassesstheresultsofafact-findingprocessaboutWSSCsprocurementactivityonwomen-ownedandminoritybusinessenterprisesandpossibleadditionalclassificationssuchasbusinessesownedbyveteransandAmericanswithdisabilities.ThepurposeoftheStudyistoevaluatehowwellWSSCscurrentprocurementpoliciespromoteequalopportunityintheawardofitscontractsevaluatethebusinessmarketinthisregionanddetermineifasignificantstatisticaldisparityexistsinawardingWSSCcontractstowoman-ownedandminorityfirmsrelativetotheavailabilityofsuchfirmsinthemarket.ItisimportantthatwemakethisinformationavailabletoourratepayersourbusinesscommunitypolicymakersinMontgomeryandPrinceGeorgescountiesaswellasotherinterestedstakeholders.ThegoalsoftheStudyincludeWSSCfactualpredicateforassessingfutureprogramsGoalSettingGoalsettingforMWBEandSLMBEvendorstodetermineparticipationratesinWSSCcontractsforgoodsservicesarchitectureengineeringprofessionalservicesandconstructionRecommendationsastohowtheSLMBEOfficemaybebeststructuredtoensureproperimplementationofanyresultingStandardProceduresandorbusinesspoliciesImplementationPlantoaddressanynewrecommendations 20IWSSCSLMBELegislativeReport2014WSSCLeadershipWSSCBoardofCommissionersFY2014GeneW.CounihanChairChrisLawsonVice-ChairOmarM.BoulwareMaryHopkins-NaviesDr.RoscoeM.MooreJr.AdrienneA.MandelJerryN.JohnsonGeneralManagerCEO WSSCSLMBELegislativeReportI212014SLMBETeamTraceyEdwardsSLMBEActingDirectorCurrentlyservingdualroleasSLMBESpecialistandActingDirectoronbehalfofthedirec-torinherabsencebasedonthedescriptionabove.TowandaR.LivingstonSLMBEDirectorAdministersandoverseestheSmallLocalandMinorityBusinessEnterpriseProgramandOfficeincludingtrackingmonitoringandimplementationofprograms.TheDirectorisalsoresponsibleforensuringthatcontractorscomplywiththecontractparticipationrequirementsandforseeingthatoverallprogramgoalsandobjectivesaremet.BeverlyPerryAdministrativeAssistantIIIAssiststheDirectorandhelpsmanagetheSLMBEOffice.DalilaPerlaComplianceSpecialistResponsiblefortrackingmonitoringandreportingcomplianceandenforcementdata.ThomasMikeTurnerProgramUnitCoordinatorCoordinatestheOfficesresourcesandensuresthatpracticesandproceduresarealignedwiththeCommissionscontractingpolicies.LaCreshiaWoodFieldComplianceSpecialistTracksmonitorsandreportssubcontractingdataandSLMBEsupplierperformance.StacyBradnerSLMBEProjectManagerImplementsandmanagesstrategicinitiativesbymanaginginternalandexternalstaffconsultantsanalysisfindingsandrecommendationsinsupportoftheSLMBEProgram. 22IWSSCSLMBELegislativeReportGlossaryofTermsAppendixASectioninWSSCsolicitationsdescribingtheSLMBEparticipationrequirementspotentialsubcontractingopportunitiesgoodfaitheffortsevaluationteststandardsdeterminingcommerciallyusefulfunctionandapplicableSLMBEProgramforms.AwardThefinalselectionofabidderorofferorforaspecifiedprimecontractorsubcontractdollaramount.ContractawardsaremadebytheCommissiontoprimecontractorsorsuppliersandbyprimecontractorsorsupplierstosubcontractorsorsub-suppliersusuallypursuanttoanopenInvitationforBidIFBaRequestforProposalRFPoranArchitectureEngineeringQualifica-tionprocess.Contractawardsreflectanticipateddollaramountswhichmaybedifferentfromeventualpayments.BidderAfirmsubmittingapriceorproposalinresponsetoanInvitationforBid.CentralizedBidderRegistrationSystemCBRAnautomatedweb-basedsystemwhereprospectivebiddersregistertoprovidegoodsorservicestotheCommission.CommissionorWSSCTheWashingtonSuburbanSanitaryCommission.ComplianceAssuringthatwhatispromisediswhatispaid.AlsofortheSLMBEOfficereviewingandreportingdatatoprovideanaccuratepictureofhowtheSLMBEProgramisperforming.ContractorAnypersonhavingacontractwithWSSC.ContractTypeAreaswithintheCommissionthatcontractforgoodsandprofessionalservicesincertainindustriesArchitecturalEngineeringConstructionGoodsandServicesandProfes-sionalServices.ConstructionTheprocessofbuildingalteringrepairingimprovingordemolishinganypublicfacilityincludingstructuresbuildingspipelinesplantsinfrastructureorotherpublicimprovementstorealproperty.Itdoesnotincludetheroutineoperationroutinerepairorroutinemaintenanceofthesefacilities.Constructionmaterialsandsuppliesmaybepartofaconstructionpurchaseifprocuredbythecontractor.IfconstructionmaterialsandsuppliesarepurchaseddirectlybyWSSCtheyareclassifiedasgoodspurchases.DisparityStudyAstatisticalanalysisofWSSCprimecontractorsandsubcontractors.ThemostrecentdisparitystudycoveredtheperiodJuly12003toJune302009andconsideredpurchaseordersanddirectpaymentsfromseveralWSSCdatasources.DollarsDollarspaidtoprimessubcontractorsandsuppliersforWSSCcontractedgoodsandservices.FiscalYearFYTheCommissionsfiscalyearisJuly1throughJune30.GoalEitheradesiredannualtargetoracontractspecificsubcontractingrequirement.AnnualtargetsareaspirationaltheyarenotapplicabletoindividualcontractsbutareintendedtoserveasbenchmarksagainstwhichtomeasuretheeffectivenessoftheSLMBEPrograminincreasingparticipationofreadywillingandableSLMBEsinWSSCcontractingopportunities.GoodFaithEffortsActionstakenbyabidderrespondentorprimecontractorasestablishedbyreliabledocumentationofthebiddersintenttocomplywiththeSLMBEProgramgoalsandprocedures.Goodfaitheffortsgobeyondduediligenceandincludebutarenotlimitedtoallspecifiedrequirements.GoodsSuppliesequipmentmaterialsandalltangiblepersonalpropertyexcludingrealproperty.GraduationAnMBEorSLBEfirmpermanentlygraduatesfromtheCommissionsSLMBEProgramwhenitmeetsthecriteriastatedinSPMBE11-01effectiveMay12011andSPSLBE12-01effectiveAugust262011respectively.MBEMBEisusedintwowaysinthisreport1WhenusedtodescribeanofficialWSSCprogramorpolicyMBEreferstoanylegalentityexceptajointventurethatisorganizedtoengageincom-mercialtransactionsiscertifiedasbeingatleastfifty-onepercent51ownedmanagedandcontrolledbyoneormoresociallyandeconomi-callydisadvantagedminorityorwomanindividuals WSSCSLMBELegislativeReportI23asdefinedinArticle14-301oftheStateFinanceProcurementArticleoftheMarylandAnnotatedCodeandisreadywillingandabletosellgoodsorservicesthatarepurchasedbytheWSSC.InthisuseMBEincludeswomen-ownedbusinessenterprisesandislimitedtofirmsthathaveobtainedMBEcertificationinaccordancewiththeprovisionsofSectionVII.A.2Whenusedinconjunctionwithgraphsandtablesinthisreportitincludesonlyminority-ownedbusinessesanddoesnotincludewomen-ownedbusinesses.MWBEPercentageTheawardpaymentsmadetocertifiedminorityandwomenbusinessenterprisesdividedbythetotalawardspaymentsmajorityplusMWBE.NotethatitispossibletohavealowerMWBEpaymentpercentageinagivenyearevenifthetotalamountpaidishigherdependingonthetotaldollaramountofallcontractpayments.PaymentsDollarsactuallypaidtoprimecontractorssubcontractorsorsuppliersforWSSC-contractedgoodsandservices.ProcurementCardP-CardAcreditcardusedbyCommissionemployeestopurchaseitemsunder5000.TheseexpendituresarenotcurrentlyincludedintheMWBEpaymentdata.ProcurementOfficeTheofficethatobtainsgoodsandprofessionalservicesCommission-wide.ProfferToincludeinanoffer.WhenabidderorproposersofferisacceptedwithsubcontractingparticipationtheCommissionstatesthatthebid-derorproposerhasprofferedsubcontractingonthecontract.ServicesLabortimeoreffortnotinvolvingthedeliveryofatangiblematerialproductotherthanreportsincidentaltotherequiredperformance.Thetermincludesconsultingpersonalprofessionaltechnicalandadvisoryservices.Itdoesnotincludeemploymentagreementsandcollectivebargainingagreements.ShelteredMarketProgramAprogramthatgivesMWBEandSLBEfirmstheopportunitytocompeteinsmallervendorpools.SmallLocalBusinessEnterpriseSLBEAnindependentlyownedandoperatedbusinessregardlessofraceethnicityorgenderthatislocatedinPrinceGeorgesCountyorMontgomeryCountyor25percentofwhoseemployeesliveinoneorbothcounties.SmallLocalandMinorityBusinessEnterprisesSLMBEDefinedinaccordancewithSections20-304ofthePublicUtilitiesCodeMd.CodeAnn.andthecriteriaadoptedbytheCommissioninSPMBE11-01effectiveMay12011.StandardMetropolitanStatisticalAreaSMSAAgeographicalregionwitharelativelyhighpopulationdensityatitscoreandcloseeconomictiesthroughoutthearea.StrategicPartnersAbusinesspartnerwhounderstandsandshowssupportofourcorestrategieslivesuptoourcorevaluesisagileandinnovativecangrowwithusanticipatesourneedsandisabletodelivercost-effectivesolutionswithourcustomersinmind.SubcontractorAfirmthatprovidesgoodsorservicestoaprimecontractorinfurtheranceoftheprimecontractorsperformanceunderacontractorpurchaseorderwithWSSC.UnbundlingDividinganaspectofacontractsuchasaserviceintosmallerpartsusuallyinordertoencouragecompetitionbysmallerbidders.WaiverApprovalfromtheProcurementOfficetoputasidearequirementinaspecificcontract.Requestsforwaiversmustbesubmittedinwritingandsupportedbydocumentationthatdemonstratesagoodfaithefforttomeettherequirementeitherpre-orpost-awardofaWSSCcontract.WaiversaresubjecttoapprovalbytheSLMBEDirector.Women-OwnedBusinessEnterpriseWBEAnylegalentityexceptajointventurethatisorganizedtoengageincommercialtransactionsandthatiscertifiedasbeingatleast51percentownedmanagedandcontrolledbynon-minorityfemales. 24IWSSCSLMBELegislativeReportTheSLMBETeamwishestothankthefollowingwhowereinstrumentalinproducingthisFY14LegislativeReportContributorsEditorsSLMBEOfficeTraceyEdwardsActingDirectorBeverlyPerryAdministrativeAssistantIIILisaMaloneBusinessAnalystO.DalilaPerlaComplianceSpecialistLaCreshiaWoodFieldComplianceSpecialistStacyR.BradnerProjectManagerTechnicalReviewStrategicSystemsManagementOfficeCrystalKnight-LeeDirectorTaraWoodsAdministrativeAssistantIIIF.MartinRookardSr.StrategicManagementAdvisorProductionSupportCommunicationsOfficeDebbieDonnellyGraphicsDesignSpecialistAmyWilsonGraphicsDesignSpecialistRonaldWilliamsPhotographerAyokaBlandfordPublicAffairsUnitCoordinatorGeneralSupportServicesLisaCooperActingManagerBrendaHammondReprographicsAideWilliamRoweReprographicsSpecialistGeneralManagersOfficeJohnnieHemphillChiefofStaffGeneralCounselsOfficeJeromeBlaskGeneralCounselVickyWebbAssociateCounselIIFinanceOfficeJanetMoskavichAccountantIIIDisbursementsTamikaJacksonBudgetAnalystIIBudgetProductionCredits SLMBELegislativeReportI0SLMBELegislativeReportI0ComeGrowwithUsSmallLocalandMinorityBusinessEnterpriseOfficeRegistertodobusinesstoday.Itsquickeasyandfree.Visitwww.cbr-wssc.comDiversity...justthewaywedobusinessWhereWaterMatters WhereWaterMatters14501SweitzerLaneLaurelMD20707www.wsscwater.com301-206-88002014WashingtonSuburbanSanitaryCommissionRegistertodobusinesstoday.Itsquickeasyandfree.Visitwww.cbr-wssc.com