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Small Local and Minority Business Enterprise Performance Results FY 2015Where Water Matters Diversity...just the way we do business Where Water Matters Small Local and Minority Business Enterprise Performance Results FY 2015 July 1 2014June 30 2015 The Commissioners respectfully submit this report in accordance with 20-207 of the Public Utilities Article Annotated Code of Maryland which states By October 31st of each year shall issue a report to the Montgomery County and Prince Georges County Senate and House Delegations to the Maryland General Assembly concerning 1 the implementation and administration of the minority business enterprise programs under this subtitle for the fiscal year ending on the preceding June 30 and 2 appropriate recommendations concerning the programs. Diversity...just the way we do business 1 I WSSC SLMBE Performance Results Purpose Statement 1 Letter from the General ManagerCEO 3 About WSSC 4 About WSSCs SLMBE Office 5 Executive Summary 6 SLMBE Highlights Since the 2010 Disparity Study 8 SLMBE Program Fiscal Year 2015 Performance Results 9 Payments 9 FY 2015 MBE Procurement Card Expenditures 11 Awards 12 Small Local Business Enterprise Program Performance Results 14 WSSCs SLMBE Program and Strategic Sourcing 15 Supplier Diversity the Strategy that keeps on giving. Success Stories for the SLMBE Program 15 Strategic Alliance Success Certification Agencies 15 Success Story First-Time SLMBE Prime Awardees 16 Success Story SLMBE Solar Power Eco-Green Diversity 17 Extensive Outreach 18 The Road Ahead 19 2015 WSSC Leadership 20 2015 SLMBE Team 21 Glossary of Terms 22 Production Credits 24 Special SLMBE Acknowledgement to Mr. Jerry N. Johnson GMCEO 25 Contents WSSC SLMBE Performance Results I 2 Letter from the General ManagerCEO October 31 2015 Greetings Community and Business Partners The publication of the 2015 Small Local and Minority Business Enterprise SLMBE Performance Results marks the end of another year of accomplishments for WSSCs SLMBE Program. The SLMBE Performance Results for Fiscal Year FY 2015 reflects a continuing and robust effort across the organization deep engagement with many stakeholders and our strong commitment to supplier diversity a commitment that starts at the top of our organization and is embedded in the way we do business every day. We are proud of our performance in FY 2015 because it provides ample evidence of our hard work building partnerships with minority and women-owned businesses and with small and local firms as we strive to bring value to the people we serve through the Minority and Women Business Enterprise MWBE Program and the Commissions Small Local Business Enterprise SLBE Program. As a consequence of this hard work and these partnerships I am pleased to report to you that WSSC Made contract payments of over 134.4 million to MWBEs 25 of total contract payments an increase of 34.5 in payments or 34.4 million more than 2014. Awarded 187.9 million in MWBE contracts 28 of total awards. A 5 increase from the 23 awarded in 2014 and Increased MWBE contract payments to 24 vs. 22 in 2014 to firms in Prince Georges County and to 10 vs. 9 in 2014 to firms in Montgomery County. We continue to make progress because WSSCs Commissioners and its senior management team are committed to supplier diversity a commitment reflected in our dynamic MWBE programs. As the strategies for fulfilling WSSCs mission to provide the highest quality drinking water while returning clean water back to the environment grow and evolve our relationships with suppliers do too. Throughout this transformation our SLMBE Program remains a high and consistent priority. We invite you to read this Report and learn more about this Program which is unlike any other in the region. We appreciate the support of the business communities in Prince Georges and Montgomery counties and throughout the region. We also appreciate the recognition we have received for our dedication to the small local minority and women business communities. Jerry N. Johnson General ManagerCEO 3 I WSSC SLMBE Performance Results We are WSSC Where Water Matters The life-sustaining water and wastewater services that we provide are critical for ensuring public health and make it possible for individuals families and businesses to enjoy a good quality of life. For nearly 100 years 24 hours a day and seven days a week we have served the people of Prince Georges and Montgomery counties. Our core mission is to provide safe and reliable water lifes most precious resource and return clean water to our environment all in an ethical sustainable and financially responsible manner. To achieve our mission WSSC maintains two reservoirs and over 5600 acres of watershed issues construction permits performs over 500000 laboratory tests each year maintains over 42000 fire hydrants conducts water meter testing and inspects plumbing installations natural gas appliance installations and food service establishments and much more. We replaced over 60 miles of water pipelines and refurbished over 33 miles of sewer lines in the past year. We strive for excellence in the essential services we provide. WSSC is governed by six Commissioners with equal representation from Montgomery and Prince Georges counties. WSSCs workforce of 1600 employees demonstrate our commitment to diversity and inclusion in our recruiting and retention initiatives. Our valued employees are highly-trained professionals from meter readers and administrators to engineers accountants laboratory technicians environmental scientists and the many other skilled and talented professionals it takes to run our modern agency. Supporting Supplier Diversity and Excellence at WSSC We can only do what we do with our many diverse suppliers. Our budget for FY 2015 included 707.2 million for operating expenses and 625.4 million in capital expenditures. In FY 2015 there were 542.7 million in total contract payments and 25 or 134.4 million of those payments were to minority and women-owned businesses. About WSSC District of Columbia PRINCEPRINCE GEORGESGEORGES COUNTYCOUNTY PRINCEPRINCE GEORGESGEORGES COUNTYCOUNTY MONTGOMERYMONTGOMERY COUNTYCOUNTY MONTGOMERYMONTGOMERY COUNTYCOUNTY PATUXENT RIVER POTOMAC RIVER Silver Spring Downtown Laurel Upper Marlboro Damascus Accokeek Gaithersburg WSSC SLMBE Performance Results I 4 5 I WSSC SLMBE Performance Results Diversity is good business and great for our rate payers. Since 1978 the Washington Suburban Sanitary Commission WSSC has demonstrated a strong commitment to minority and women-owned businesses by empowering WSSCs Small Local and Minority Business Enterprise SLMBE Office to effectively advocate for MBE participation and sheltered contract opportunities exclusive to the SLBE marketplace. Today the SLMBE Office has infused into the culture of WSSC the value that diversity is just the way we do business. The ultimate goal of the SLMBE Program is to level the playing field for entering businesses and firms nearing graduation to fairly compete and win contract opportunities with WSSC. Mission Statement The SLMBE Office is dedicated to creating an inclusive purchasing environment while building sustainable relationships expanding opportunities and cultivating the growth of small local and minority business enterprises which adds value to the Commission and the community we serve. SLMBE Strategy The SLMBE Office administers WSSCs MBE SLBE Programs by setting contract participation goals and determining contract opportunities for placement in the shelter program. The SLMBE Office conducts important outreach to the business community regarding new contract opportunities by serving as subject-matter experts on numerous panels and workshops throughout the year maintaining important associations with area professional and trade associations and engaging in discussions with the public on how to conduct business with WSSC. The SLMBE Office delivers on its Four Pillars of Supplier Advocacy Compliance Extensive Outreach and Supplier Development through an extensive network of supporting organizations assisted by an exceptional staff. About WSSCs SLMBE Office Diversity.just the way we do business During the past decade WSSC has awarded over 1 billion to SLMBE firms. Our mandate each year is to determine and implement new strategies to build on this record. We recognize that SLMBE firms help provide ideas and perspectives reflective of the diverse marketplace and community in which we serve. WSSCs 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 Small Local and Minority Business Enterprise SLMBE firms. The MBE Program is mandated to lower barriers to contracting opportunities for MBE primes and subcontractors. In doing so WSSC effectively levels the competitive field for MBEs WBEs and small and local businesses in Montgomery and Prince Georges counties and the surrounding metropolitan area. This report will describe the accomplishments of WSSCs supplier diversity initiatives in FY 2015. WSSCs Minority Business Enterprise MBE Program was 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 renewed. SP MBE 11-01 which in accordance with applicable law is a narrowly-tailored program facilitates participation of responsible MBEs in all types of WSSC contracting and provides in limited circumstances for race-conscious remedies consistent with the results of WSSCs 2010 Disparity Study. The results conveyed in the following pages highlight the success WSSC has achieved since implementing SP MBE 11-01 and a companion program SP SLBE 12-01 which assists small businesses located in Montgomery County and Prince Georges County to participate in WSSC contracting. These policy changes led to new contract requirements and have impacted results for awards and ultimately payments. The cornerstone of the MBE program and key performance measure is the dollar value of contract payments made to MWBEs.1 In alignment with the goals of the MBE Program WSSC continues to implement strategies to support increasing contract payments to MWBEs each fiscal year based on the 2010 Disparity Study. In FY 2015 WSSC spent 134.4 million 25 in total contract payments to MWBEs Figure 1 as compared to 99.9 million 20 in payments made in FY 2014 Figure 2. This represents a 34.5 increase in payments made to our ever-growing supplier base in the MWBE vendor community. Executive Summary Figure 1 FY 2015 MWBE Contract Payments 20 80 25 75 MWBE 99965605 Majority 391394729 Figure 2 FY 2014 MWBE Contract Payments MWBE 134409006 Majority 408331009 1The abbreviation MWBE includes women-owned business enterprises WBEs as well as minority-owned firms that have obtained MBE certification as provided in SP MBE 11-01 WSSC SLMBE Performance Results I 6 Figure 3 FY 2015 MWBE Contract Awards 23 77 MWBE 228579268 Majority 745802881 Figure 4 FY 2014 MWBE Contract Awards 28 72 MWBE 187869377 Majority 486419520 In FY 2015 WSSC awarded 187.9 million 28 in contracts to MWBE firms Figure 3 as compared to 228.6 million 23 in FY 2014. Fewer contract dollars were awarded to MWBEs in FY 2015 as WSSCs total contract award dollars declined by 300 million to 674.3 million relative to FY 2014 Figure 4. However the proportion of MWBE award dollars increased by 5 in FY 2015. Thus even in a year when WSSCs overall contract award dollars declined our MBE Program helped MWBEs to increase their percentage participation through WSSCs concerted effort to stimulate competitive sourcing of MWBEs. As a race and gender neutral program WSSCs signature SLBE Program continues to demonstrate value to our local economy. Spending with SLBE firms increased again in FY 2015. The total contract payments made to SLBE firms inclusive of prime contractors and validated payments of sub-contractors in FY 2015 was 22 million a 3.8 million increase compared to FY 2014 SLBE contract payments of 18.2 million. SLMBE Outreach The SLMBE Office continues to cultivate and expand relationships with the business community and professional and trade organizations. Our vigorous outreach efforts to educate and enlist new suppliers include Providing contracting opportunities and information 738 new suppliers registered in WSSCs Centralized Bidder Registration CBR system as of June 30 2015 60 internal and external outreach events such as businessprocurement fairs tradeshows and business matchmaking and networking events to link the SLMBE program to the wider business community WSSCs performance in FY 2015 and our goals for the current year demonstrate our commitment to the success of the SLMBE Programs and the community that WSSC continually serves. Executive Summary cont. Total Awards 674288897 Total Awards 974382149 MWBE Awards SLBE Program 7 I WSSC SLMBE Performance Results W E SLMBE Highlights Since the 2010 Disparity Study January 20 2010 Graduation requirements for the Minority Business Enterprise Program were proposed by General ManagerCEO Jerry N. Johnson. WSSC voted to adopt the MBE graduation proposal as specified in Resolution 2010-1856 by the General ManagerCEO May 26 2010 Disparity Study Kick-Off Presentation December 15 2010 WSSC completed 2010 Disparity Study March 16 2011 WSSC voted unanimously to adopt Resolution 2011-1909 which authorizes a new Minority Business Enterprise MBE Program SP MBE 11-01 July 20 2011 WSSC approves key changes in SLBE Programs WSSC adopted by resolution the SLBE Program referred to as Standard Procedure SP SLBE 12-01 that outlines race-and-gender-neutral remedies in WSSCs SLBE Program July 2011 WSSC modifies solicitation process to capture SLMBE participation in contracts Appendix A and Good Faith Efforts Guide August 26 2011 New SLBE Program Effective SP SLBE 12-01 November 22 2011 WSSC reported to the General Assembly it made contract payments in the amount of 66.9 million to MWBEs April 2012 The MBE Program was re-authorized by the Maryland General Assembly July 1 2012 The MBE Program statute became effective and is authorized through July 1 2017 October 30 2012 New web-based compliance system launched November 2012 WSSC reported to the General Assembly it made contract payments in the amount of 102.3 million to MWBEs October 31 2013 WSSC reported to the General Assembly it made contract payments in the amount of 92.1 million to MWBEs 2014 Over 65 SLMBE outreach events conducted in 2014 October 31 2014 WSSC reported to the General Assembly it made contract payments in the amount of 100 million to MWBEs May 19 2015 2015 Disparity Study Kick-off. WSSC General ManagerCEO Jerry N. Johnson announced the selection of MGT of America Inc. MGT to conduct the latest Disparity Study June 17 2015 WSSC approved Resolution No. 2015-2091 extending its existing Standard Procedure SP MBE 11-01 up to and including September 30 2016 2010 2011 2012 2013 2014 2015 W E W E W E E WSSC SLMBE Performance Results I 8 SLMBE Program Fiscal Year 2015 Performance Results For the purpose of this FY 2015 SLMBE Results WSSC reports total contract payments based on the service area of Prince Georges and Montgomery counties the Baltimore and Washington Standard Metropolitan Statistical Area SMSA other surrounding communitiescounties in Maryland and out of state. The following pages provide the breakdown of contract payments and awards for FY 2015. It is our goal to provide accurate and complete information to comply with the SLMBE Program objective of ensuring supplier diversity and to demonstrate the performance of the MBE and SLBE Programs for FY 2015. MWBE PROGRAM Data and Metrics MWBE contract award amounts serve as a leading indicator for WSSCs MBE contract performance. However actual payments to MBE firms measure the success of the MWBE Program. The following figures provide the breakdown of contract payments based on total contract payments WSSC contracting areas and MWBE classifications. Payments Payments serve as a lagging indicator as a result of the contract awards. In FY 2015 WSSCs total contract payments totaled 542.7 million while the total MWBE payments were 134.4 million or 25 shown in Figure 5 below. Goal MWBE MWBE Total MBE Total WBE MWBE Total Majority Total Contract Area dollars percent dollars dollars Sub Dollars dollars dollars AE Services 24 12386579 28 12008351 378228 4899666 31813260 44199839 Construction Services 20 47121487 17 45500465 1621022 9558433 237183496 284304983 Goods Services 28 57264135 34 40258053 17006082 5257974 112836298 170100433 Professional Services 20 17636805 40 13768584 3868221 2109012 26497955 44134760 Total All Contract Areas 26 134409006 25 111535453 22873553 21825085 408331009 542740015 Figure 5 Summary of Total Contract Payments by WSSC Contracting Area SUMMARY OF FY 2015 TOTAL CONTRACT PAYMENTS AND AWARDS Sub Dollars are included in the Total MWBE Dollars. 9 I WSSC SLMBE Performance Results Figure 6 represents the breakdown of the 134.4 million paid to MWMBE firms. Figure 6 Total MWBE Payments by Classification 31 20 15 33 Hispanic- American 41216248 African- American 44146600 Female WBE 26487951 Asian- American 20058032 MWBE MWBE Majority Total Awards Fiscal Year percent Payments Payments dollars 2011 27 66853578 182334869 249188447 2012 28 102281071 263399584 365680655 2013 20 92137148 372931547 465068695 2014 20 99965604 391394729 491360333 2015 25 134409006 408331009 542740015 5 Year Average 24 Figure 9 Trending Report by Fiscal Year for MWBE Payments PaymentsCont. FY 2015 MBE Procurement Card Expenditures Figure 10 MBE P-Card Expenditures 95 5 MBE P-Card Expenditures 314838 Majority P-Card Expenditures 5911004 Procurement Cards P-Cards are used for expenditures of less than 5000. In FY 2015 total P-Card purchases were 6.2 million of which WSSCs MBE P-Card expenditures were 314838 5 and the Majority P-Card expenditures were 5.9 million Figure 10. The five-year fiscal year trending data depicts that on average WSSC has paid 24 of its total payments to MWBE firms. In FY 2015 WSSC paid 25 of its contracts to MWBE firms Figure 9. 11 I WSSC SLMBE Performance Results WSSC SLMBE Performance Results I 12 Awards MWBE WBE MBE Total Majority Total Contract Area percent dollars dollars MWBE dollars dollars Awards dollars AE Services 16 0 13025053 13025053 69241298 82266351 Construction Services 26 0 77231870 77231870 216736187 293968057 Goods Services 30 28355429 47625269 75980698 174256122 250236820 Professional Services 45 6325616 15306140 21631756 26185913 47817669 Total All Contract Areas 28 34681045 153188332 187869377 486419520 674288897 Figure 11 Total Contract Awards Figure 13 Total Number of Contracts Awarded by Business Type 66 32 2 SLBE 22 Awards MWBE 400 Awards Of the 187.9 million in total MWBE awards 131.2 million was awarded to prime MWBE firms and 56.7 million to MWBE subcontractors. Thirty percent was awarded to certified MWBE subcontracting firms. In FY 2015 WSSC awarded 1234 contracts. Of that total 32 was awarded to MWBE firms and 2 to SLBE firms. Sub percent MWBE MWBE Total MWBE Contract Area of MWBE PRIME dollars Sub dollars Awards dollars AE Services 92 1017708 12007345 13025053 Construction Services 33 51965453 25266417 77231870 Goods Services 20 60842580 15138118 75980698 Professional Services 20 17328091 4303665 21631756 Total All Contract Areas 30 131153832 56715545 187869377 Figure 12 MWBE Prime and Subcontractor Awards Contract awards serve as a leading indicator of future contract payments. Because contracts may have multi-year terms the impact of an award may extend beyond a single fiscal year. FY 2015 saw a 40.6 million decrease in MWBE contract awards 187.9 million compared to FY 2014 228.5 million. Figure 11 summarizes total contracts awarded in FY 2015 187.9 million or 28 was awarded to certified- MWBE firms. This is a proportional increase of 5 over FY 2014 23 MWBE contract awards. Majority 812 Awards 13 I WSSC SLMBE Performance Results Figure 14 Trending Report by Fiscal Year for MWBE Awards Figure 15 Trending Report of MWBE Awards by Fiscal Year and WSSC Contracting Area MWBEpercentage Figure 15 demonstrates the trend of MWBE awards by contracting area over the past five years. AwardsCont. Fiscal Year AE Services Construction Services Goods and Services Professional Services 2011 36 8 41 38 2012 27 10 42 31 2013 31 18 37 54 2014 40 15 41 32 2015 16 26 30 45 60 50 40 30 20 10 0 The five-year fiscal year trending data depicts that on average WSSC awarded 25 of its total contracts to MWBE firms. In FY 2015 WSSC awarded 28 of its contracts to MWBE firms Figure 14. MWBE MWBE Majority Total Fiscal Year percent Awards dollars Awards dollars Awards dollars 2011 31 133211249 294257980 427469229 2012 18 129037973 573944275 702982248 2013 25 186250875 560086819 746337694 2014 23 228579268 745802881 974382149 2015 28 187869377 486419520 674288897 5 Year Average 25 WSSC SLMBE Performance Results I 14 Established in 2001 the SLBE Program is WSSCs signature program to ensure the local business community has opportunities to participate in WSSC contracts. The SLBE Program is a race and gender-neutral program specifically designed by WSSC to encourage contracting with small firms located in Prince Georges and Montgomery counties andor having a significant employee presence in the jurisdictions. The SLBE Program furthers the Commissions objective of fostering broad-based competition within the small and local business community and encouraging economic growth by offering benefits particularly to those small firms headquartered in Prince Georges and Montgomery counties. These benefits include special subcontracting requirements preference in evaluation and pricing and a sheltered market program. Payments In FY 2015 our payments to SLBE firms primes and validated payments to subcontractors totaled 22 million as depicted in Figure 16 with 19.5 million in payments for Construction Services. Figure 17 provides a breakdown of the SLBE payments by location with 10.4 million of the 22 million to firms located in Prince Georges County and another 6.4 million paid to those in Montgomery County. Prime Sub Total Contract Area dollars dollars dollars AE Services 0 2962659 2962659 Construction Services 2795342 28196717 30992059 Goods Services 1678964 0 1678964 Professional Services 1000000 532051 1532051 Total 5474306 31691427 37165733 Figure 18 Awards to SLBE Firms by Contracting Area Small Local Business Enterprise Program Performance Results WSSC Contract Area Totals AE Services 125120 Construction Services 19585140 Goods and Services 1584832 Professional Services 716044 Total 22011136 Figure 16 Payments to SLBE Firms by WSSC Contracting Area LocationCounty Totals Out of State 2164247 Prince Georges County 10416062 Washington SMSA 84242 Montgomery County 6446198 Maryland Other 2900387 Total 22011136 Figure 17 Payments to SLBE Firms by Location SLBE firms were awarded 37.2 million with the majority of award dollars in the contracting area of Construction Services in the amount of 30.9 million Figure 18. 15 I WSSC SLMBE Performance Results WSSCs SLMBE Program and Strategic Sourcing WSSC continues its commitment to guarantee the SLMBE communitys participation in our acquisition of goods and services and professional services. To this end as part of WSSCs current Supply Chain Management Transformation initiative SLMBE firms are given early consideration in WSSC Strategic Sourcing efforts. Strategic Sourcing includes efforts such as expanding the supplier pool conducting negotiations developing customer and supplier relationships risk management and ensuring SLMBE participation in the solicitation process. Cross-functional Strategic Sourcing Teams SST are formed to develop strategies for securing goods and services with a mind towards driving down the cost of doing business. While looking to reduce our costs we safeguard our ongoing efforts to ensure supplier diversity in our acquisition of goods and services by making certain that the SLMBE Office is a member of every SST. Early SLMBE Office involvement guarantees that SLMBE firms are not overlooked in the Strategic Sourcing process and in fact deliberate emphasis and attention is provided to our SLMBE community as we develop sourcing strategies. Supplier Diversity The Strategy That Keeps On Giving Success Stories for the SLMBE Program One SST acquired specialized vehicles needed for our sewer rehabilitation and repair program. The SST identified potential suppliers and conducted special outreach to the SLMBE community. Ultimately a supplier bid to supply WSSC five specialized vehicles at a cost of 1740755. The successful bidder proffered 27.36 or 476271 to a qualified and certified MBE. Without the outreach and the special attention afforded SLMBE firms by the SST it is unlikely that any portion of this 1.7 million contract would have flowed to the SLMBE community. This is just one example of WSSCs efforts to include SLMBE firms in our supplier pool and to identify both prime and sub-contractors early in the Strategic Sourcing process. Strategic Alliance Success Certification Agencies WSSC makes certification easier for SLMBE firms by strategically working with and recognizing five certification agencies that SLMBE firms can use to gain the needed credentials when bidding on WSSC contracts as SLMBE firms. These agencies have formed lasting working relationships with WSSC that benefit the entire business community. They are the 1. Maryland Department of Transportation MDOT 2. Prince Georges County Supplier Development Diversity Division SDDD 3. D.C. Department of Small and Local Business Development DSLBD 4. Capital Region Minority Supplier Development Council CRMSDC 5. Women Presidents Education Organization WPEO Maintaining a strategic alliance with WSSCs SLMBE Office that yields results is just the way Prince Georges County Supplier Development Diversity Division SDDD does business. Combining our respective strengths to achieve a compatible objective is a win-win for Prince Georges County WSSC and the SLMBE communities. Sharon Moore Jackson Acting Executive Director Prince Georges County Supplier Development Diversity Division WSSC SLMBE Performance Results I 16 Success Story First-Time SLMBE Prime Awardees The aspiration of the SLMBE Program is to support the growth and development of MWBE and SLBE firms seeking to do business with WSSC. We are especially supportive of businesses awarded first-time contracts. The success in winning our business is an indicator of likely success in delivering the contracted goods and services and also provides evidence that these firms are building capacity to continue competing on WSSC contracts. We congratulate 58 of our first-time contract award recipients and encourage each of these firms to grow their relationship with WSSC by delivering excellent service teaming with other experienced primes and subs and participating in the many supplier education programs offered each year through the WSSC Procurement and SLMBE Offices. First-Time SLMBE Prime Awardees by Location Figure 19 First-Time SLMBE Prime Awards by Location during the period May 1 2011 to June 30 2015. First-time awardees are considered vendors that have not been awarded a contract within the last five fiscal years. Maryland Other 16.65 Montgomery County 41.55 Out of State 12.87 Prince Georges County 19.96 Washington SMSA 5.19 Baltimore SMSA 3.78 For more information on our Success Stories including First Time SLMBE Prime Awardees please visit our website at www.wsscwater.comSLMBE 17 I WSSC SLMBE Performance Results A public-private partnership including MBE firms Ideal Electric CSI Engineering BITH Energy Shah Associates and RCS Construction Company is reducing WSSCs carbon footprint and saving ratepayers an estimated 3.5 million over a 20 year contract period. Its success has led to a similar effort which will continue into FY 2016 and is expected to save WSSC and our ratepayers an additional 4.8 million over the 20-year contract period. The Solar PhotoVoltaic PV Power Purchase Agreement PPA Contract achieved 30 indirect MBE payments during the first phase of this project a significant achievement in a non-traditional area of business. WSSCs leadership and staff did not cede this opportunity to engage the SLMBE community in this nontraditional market place. The marketplace suppliers urged the Commission to lower its 20 MBE subcontracting requirement to 10 citing a lack of Ready Willing and Able RWA MBE firms in our marketplace to support the contract-specific subcontracting requirement. As a result WSSCs SLMBE Office and Energy Manager did a great deal of research to identify potential subcontracting opportunities within the projects scope of work and reached out to the localregional market for certified MBE firms and WSSC-approved SLBE firms. In order to support potential consultants for this project to identify locate and meet RWA MBEs and SLBEs WSSC hosted a special outreach event. As of May 2015 the Joint Venture of Standard Solar Inc.Washington Gas made payments to their diverse sub-team of 9424109 or 30 of total payments. Having our local MBEsSLBEs engaged and utilized in this non-traditional area of business for WSSC was imperative because it helped MBEsSLBEs increase their aptitude capabilities and revenue stream in an energy business that would support the growthscale of these local businesses in our community while also increasing their customer base and ability to compete in a national and global marketplace. Success Story SLMBE Solar Power ECO-Green Diversity To broaden its use of alternative energy WSSC added 4 megawatts MW of solar photovoltaic power at its Seneca and Western Branch Wastewater Treatment Plants. WSSC had no out-of-pocket capital expenses. Moving into the second phase the scope of services enabled WSSC to assign a 25 MBE participation goal. The development of this innovative part- nership is a direct result of WSSCs leader- ship and the SLMBEOffice challenging the market to do better in promoting eco-green supplier diversity opportunities. Towanda Livingston Director SLMBE Office WSSC SLMBE Performance Results I 18 WSSCs SLMBE Office continues to deliver an array of outreach and educational activities designed to facilitate suppliers bidding successfully on WSSC contracts. We also provide supplier advocacy resources to WMBEs in both Montgomery and Prince Georges counties to assist suppliers in building capacity to enhance their competitiveness and effective networking with prime contractors. Outreach Tools Weekly E-Alerts provide vendors with timely contracting opportunities supplier events and pertinent information for navigating the procurement process. Dedicated Mailbox The SLMBE Office maintains two mailboxes for customer feedback and correspondence. SLMBE Website for more information www.wsscwater.comSLMBE SLMBE Mailbox customer services inquiries provide personalized communication with suppliers via Web-Based Compliance Mailbox personalized for contract and compliance issues Strategic Partnerships relationship building with key community partners for increased supplier support. The SLMBE Office continues to actively participate on leadership boards and committees of supplier diversity organizations to remain connected to the best and current practices in supplier development and to provide expertise on administering a successful MBE Program. The SLMBE Office also maintains memberships and support for local and national council chambers associations and other like-minded organizations. These organizations include Women Presidents Educational Organization WPEO and The Capital Region Minority Supplier Development Council CRMSDC. The SLMBE Office continued to support numerous regional minoritydiversity business development groups based in WSSCs community. These groups represent various ethnic population segments as well as specific interests in the public and private sectors of the WSSC region. Figure 20 FY 2015 SLMBE Outreach Efforts by Organization Extensive Outreach Number Organization Type of Events Chamber of Commerce 5 Non-Profit Organizations 3 Private Corporations 2 State and Local Government 7 WSSC ContractIndustry Specific Workshops 35 Capitol Region Minority Supplier Development Council 4 Womens President Education Organization WBENC 5 ORGANIZATION MD Hispanic Business Bronze Supporter Conference Appreciation Women Business Owners Recognition Award of Prince Georges County Womens Presidents Recognition Award Educational Organization WPEO Maryland Washington Minority Recognition Award Companies Association MWMCA Figure 21 SLMBE Outreach Accomplishments AWARD 19 I WSSC SLMBE Performance Results The Road Ahead Since the inception of WSSCs Minority Business Enterprise MBE Program in 1978 WSSC has contin- ued to find ways to expand access to minority and women-owned businesses. The Commission seeks highly skilled diverse suppliers whose fresh perspec- tives and innovation meet the ongoing business chal- lenges of delivering quality water and wastewater serv- ices. The SLMBE Offices affirmative procurement initiatives are an integral part of WSSCs mission which are to provide world-class services to the com- munity. Looking forward to FY 2016 WSSCs comprehensive supplier diversity strategy will focus on the following in order to meet FY 2016 goals Improve and Implement the following Small Contract Rotation Program Mentoring Protg Program Graduation of SLMBE Firms In FY 2015 WSSC initiated a Disparity Study of procurement procedures for Fiscal Years 20102014. This study will assess the results of a fact-finding process about WSSCs procurement activity on women-owned and minority business enterprises and possible additional classifications such as businesses owned by veterans and Americans with disabilities. The purpose of the Study is to evaluate how well WSSCs current procurement policies promote equal opportunity in the award of its contracts evaluate the business market in this region and determine if a significant statistical disparity exists in awarding WSSC contracts to woman-owned and minority firms relative to the availability of such firms in the market. It is important that we make this information available to our ratepayers our business community policy makers as well as other interested stakeholders. The goals of the study include WSSC factual predicate for assessing future programs Goal Setting Goal setting for MWBE and SLMBE vendors to determine participation rates in WSSC contracts for goods services architecture engineering professional services and construction Recommendations as to how the SLMBE Office may be best structured to ensure proper implementation of any resulting Standard Procedures andor business policies Implementation Plan to address any new recommendations For more information visit www.wsscwater.comdisparitystudy In FY 2016 WSSCs SLMBE ProgramOffice will continue to focus its efforts and resources on the following 1 Completing the FY 2015 Disparity Study and modernize policies as needed 2 Developing SLBE Program on-line application process 3 Developing and publishing an approved Graduation Process Standard Procedure for SLMBE Programs as codified in MBE SP 11-01 and SLBE SP 12-01 4 Developing a recognition program that acknowl- edges internal stakeholders and WSSC prime suppliersvendors 5 Supporting MBE or SLBE subcontractors with building their capacity or scale to reach prime status with WSSC Moving Forward To WSSC a Strategic Partner is one who knows understands and shows their support of our core strategies and can help sustain our core values. A Strategic Partner is agile innovative can grow with us and has posi- tioned themselves to bring us value by par- ticipating in our efforts to deliver cost-effec- tive solutions with our customer in mind. -T.R. Livingston WSSC SLMBE Performance Results I 20 Mary Hopkins-NaviesGene Counihan 2015 WSSC Leadership WSSC Board of Commissioners FY 2015 Omar M. Boulware Chair Adrienne A. Mandel Vice-Chair Chris Lawson Dr. Roscoe M. Moore Jr. Jerry N. Johnson General ManagerCEO 21 I WSSC SLMBE Performance Results 2015 SLMBE Team Tracey Edwards Program Specialist Towanda R. Livingston SLMBE Director Beverly Perry Administrative Assistant III O. Dalila Perla Compliance Specialist Lisa Malone Compliance Specialist Guy Durant SLMBE Project Manager WSSC SLMBE Performance Results I 22 Glossary of Terms Appendix ASection in WSSC solicitations describing the SLMBE participation requirements potential subcontracting opportunities good faith efforts evaluation test standards determining commercially useful function and applicable SLMBE Program forms. AwardThe final selection of a bidder or offeror for a specified prime contract or subcontract dollar amount. Contract awards are made by the Commission to prime contractors or suppliers and by prime contractors or suppliers to subcontractors or sub-suppliers usually pursuant to an open Invitation for Bid IFB a Request for Proposal RFP or an Architecture Engineering Qualifica- tion process. Contract awards reflect anticipated dollar amounts which may be different from eventual payments. BidderA firm submitting a price or proposal in response to an Invitation for Bid. Centralized Bidder Registration System CBRAn automated web-based system where prospective bidders register to provide goods or services to WSSC. Commission or WSSCThe Washington Suburban Sanitary Commission. ComplianceAssuring that what is promised is what is paid. Also for the SLMBE Office reviewing and reporting data to provide an accurate picture of how the SLMBE Program is performing. ContractorAny person having a contract with WSSC. Contract TypeAreas within WSSC that contract for goods and professional services in certain indus- tries Architectural Engineering Construction Goods and Services and Professional Services. ConstructionThe process of building altering repairing improving or demolishing any public facility including structures buildings pipelines plants infrastructure or other public improvements to real property. It does not include the routine operation routine repair or routine maintenance of these facilities. Construction materials and supplies may be part of a construction purchase if procured by the contractor. If construction materials and supplies are purchased directly by WSSC they are classified as goods purchases. Disparity StudyA statistical analysis of WSSC prime contractors and subcontractors. The most recent disparity study covered the period July 1 2003 to June 30 2009 and considered purchase orders and direct payments from several WSSC data sources. DollarsDollars paid to primes subcontractors and suppliers for WSSC contracted goods and services. Fiscal Year FYWSSCs fiscal year is July 1 through June 30. GoalEither a desired annual target or a contract- specific subcontracting requirement. Annual targets are aspirational they are not applicable to individual contracts but are intended to serve as benchmarks against which to measure the effectiveness of the SLMBE Program in increasing participation of ready willing and able SLMBEs in WSSC contracting opportunities. Good Faith EffortsActions taken by a bidder respondent or prime contractor as established by reliable documentation of the bidders intent to comply with the SLMBE Program goals and procedures. Good faith efforts go beyond due diligence and include but are not limited to all specified requirements. GoodsSupplies equipment materials and all tangible personal property excluding real property. GraduationAn MBE or SLBE firm permanently graduates from WSSCs SLMBE Program when it meets the criteria stated in SP MBE 11-01 effective May 1 2011 and SP SLBE 12-01 effective August 26 2011 respectively. MBEMBE is used in two ways in this report 1 When used to describe an official WSSC program or policy MBE refers to any legal entity except a joint venture that is organized to engage in com- mercial transactions is certified as being at least fifty-one percent 51 owned managed and controlled by one or more socially and economi- cally disadvantaged minority or woman individuals as defined in Article 14-301 of the State Finance 23 I WSSC SLMBE Performance Results Procurement Article of the Maryland Annotated Code and is ready willing and able to sell goods or services that are purchased by the WSSC. In this use MBE includes women-owned business enterprises and is limited to firms that have obtained MBE certification in accordance with the provisions of Section VII.A. 2 When used in conjunction with graphs and tables in this report it includes only minority-owned businesses and does not include women-owned businesses. MWBE PercentageThe award payments made to certified minority and women business enterprises divided by the total awardspayments majority plus MWBE. Note that it is possible to have a lower MWBE payment percentage in a given year even if the total amount paid is higher depending on the total dollar amount of all contract payments. PaymentsDollars actually paid to prime contractors subcontractors or suppliers for WSSC-contracted goods and services. Procurement Card P-CardA credit card used by Commission employees to purchase items under 5000. These expenditures are not currently included in the MWBE payment data. Procurement OfficeThe office that obtains goods and professional services Commission-wide. ProfferTo include in an offer. When a bidder or proposers offer is accepted with subcontracting participation WSSC states that the bidder or pro- poser has proffered subcontracting on the contract. ServicesLabor time or effort not involving the delivery of a tangible material product other than reports incidental to the required performance. The term includes consulting personal professional technical and advisory services. It does not include employment agreements and collective bargaining agreements. Sheltered Market ProgramA program that gives MWBE and SLBE firms the opportunity to compete in smaller vendor pools. Small Local Business Enterprise SLBEAn independently owned and operated business regardless of race ethnicity or genderthat is located in Prince Georges County or Montgomery County or 25 percent of whose employees live in one or both counties. Small Local and Minority Business Enterprises SLMBEDefined in accordance with Sections 20-304 of the Public Utilities Code Md. Code Ann. and the criteria adopted by WSSC in SP MBE 11-01 effective May 1 2011. Standard Metropolitan Statistical Area SMSA A geographical region with a relatively high population density at its core and close economic ties throughout the area. Strategic PartnersA business partner who understands and shows support of our core strategies lives up to our core values is agile and innovative can grow with us anticipates our needs and is able to deliver cost-effective solutions with our customers in mind. SubcontractorA firm that provides goods or services to a prime contractor in furtherance of the prime contractors performance under a contract or purchase order with WSSC. UnbundlingDividing an aspect of a contract such as a service into smaller parts usually in order to encourage competition by smaller bidders. WaiverApproval from the Procurement Office to put aside a requirement in a specific contract. Requests for waivers must be submitted in writing and supported by documentation that demonstrates a good faith effort to meet the requirement either pre- or post-award of a WSSC contract. Waivers are subject to approval by the SLMBE Director. Women-Owned Business Enterprise WBEAny legal entity except a joint venture that is organized to engage in commercial transactions and that is certified as being at least 51 percent owned managed and controlled by non-minority females. WSSC SLMBE Performance Results I 24 ContributorsEditors SLMBE Office Towanda Livingston Director Beverly Perry Administrative Assistant III Lisa Malone Business Analyst O. Dalila Perla Compliance Specialist Tracey Edwards Program Specialist Guy Durant Project Manager Linda Mann Project Manager Crystal Miller Buyer III Dexter Powell Intern ContributorsWriters WSSC Robert Taylor Energy Manager Carolyn White Employee Development Manager Todd Allen Director Human Resources Lynda Dorman Consultant Technical Review Strategic Systems Management Office Crystal Knight-Lee Director Tara Woods Administrative Assistant III F. Martin Rookard Sr. Strategic Management Advisor Production Support Communications Office Amy Wilson Graphics Design Specialist Debbie Donnelly Graphics Design Specialist Ronald Williams Photographer Ayoka Blandford Public Affairs Unit Coordinator General Support Services Robert Young Manager Brenda Hammond Reprographics Aide William Rowe Reprographics Specialist General Counsels Office Jerome Blask General Counsel Finance Office Janet Moskavich Accountant III Production Credits Xixi Yuan Intern Steve Yang Intern Anuoluwa Akinbosotu Intern Fatima Key Buyer I Keya Green Buyer I Brittney Dorsey Buyer I Arica Toms Buyer III Junther Montoya Buyer III The SLMBE Team wishes to thank the following who were instrumental in producing this FY15 SLMBE Results In a world with a rapidly changing and more diverse workforce acceptance of others ideas culture and mindsets in the WSSC workplace is more important than ever. Supplier diversity is a value that must be embedded within the values of WSSCs team of professionals. We come from diverse backgrounds cultures mindsets and life experiences and supplier diversity is supported by a paradigm that shifts todays contracting landscape and lifts the barriers of competition barriers which are lowered through initiatives such as WSSCs MBE program. These programs rest on an underlying principal we must ensure that fair and equitable business practices by all participants in the procurement and contracting process at WSSC is a shared and fundamental objective of our workforce. This past year WSSC launched a new training program for our entire workforce Differing Minds Produce Greater Results and Trust. The training initiative is a critical link in attracting and retaining a diverse and inclusive workforce and supplier market. Diversity just the way we do business WSSC and Diversity Differing Minds Produce Greater Results and Trust On behalf of the SLMBE Office we would like to say a special thank you to acknowledge the extraordinary leadership of Mr. Jerry N. Johnson. As a result of his efforts WSSCs supplier base has become more diverse and inclusive during his tenure. He recognized the importance of WSSC being an economic driver for our local community and he emphasized building relationships with our suppliers. Thank you Mr. Johnson for your commitment to WSSC our customers and our diverse community. Special SLMBE Acknowledgement to Mr. Jerry N. Johnson GMCEO 25 I WSSC SLMBE Performance Results Where Water Matters 14501 Sweitzer Lane Laurel MD 20707 301-206-8800 2015 Washington Suburban Sanitary Commission Register to do business today. Its quick easy and free. Visit www.wsscwater.comSLMBE