Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 322015 Disparity Study Background The WSSC 2015 Disparity Study is a five-year retrospective evaluation of procurement procedures for the Fiscal Years 2010-2014. This Study assesses WSSC’s procurement activity on women-owned and minority business enterprises. This study was conducted independently by MGT of America, Inc. (MGT) on behalf of WSSC. MGT collected data and anecdotal testimony and public and private comments about WSSC’s Minority Business Enterprise (MBE) Program for independent analysis and review as part of the 2015 Disparity Study. Participation by the WSSC vendor community was encouraged and privacy was ensured. The 2015 Disparity Study was finalized and the results of the study were presented at Public Meetings held in June 2016. A Public Comment period commenced for thirty (30) days beginning June 16, 2016. The findings of the Study determined that “statistically significant” disparity still exists in the WSSC geographical market area, and establishes a “factual predicate” that supports continuation of the WSSC’s MBE Program. A disparity study quantifies the difference between the availability of M/WBE firms in a government agency’s market and the utilization of those firms by the agency. This analysis is typically regarded as the key factual support for a M/WBE Program’s race- and/or gender-conscious remedies or preferences. The WSSC 2015 Disparity Study closely examined WSSC-funded contracts from July 1, 2009 to June 30, 2014 (study period). The current MBE Program, referred to as SP MBE 11-01, at the present time is up for reauthorization and will “sunset” on July 1, 2017. As WSSC moves forward to seek approval of the reauthorization of the MBE program in 2017, the 2015 Disparity Study serves as a legal basis for the continuation of WSSC’s SLMBE Program. Key Objectives 1. The primary objective is to assess, quantify, and evaluate the prevalence, magnitude, and extent of marketplace discrimination, if any, against minority and women business enterprises (M/WBEs). 2. Determine whether WSSC, either in the past or currently, engages in discriminatory practices in the solicitation and award of contracts in Architecture and Engineering, Construction, Goods and Services and Professional Services to minority and women owned business enterprises (M/WBEs). 3. Determine if a legally justified need exists for the establishment of an M/WBE program in accordance with the guidelines set forth by the Supreme Court and relevant subsequent cases. Key Findings In determining whether there was a disparity between M/WBE availability and utilization, MGT evaluated five distinct racial, ethnic and gender groups, which together constitute M/WBEs including: African- Americans, Asian-Americans, Hispanic-Americans, Native-Americans and non-minority WBE firms. MGT also analyzed the utilization and availability of contract awards to non-M/WBE firms. The full 2015 Disparity Study can be found on the WSSC website at www.wsscwater.com/disparitystudy. “MGT of America commends WSSC on their dedication to increasing the utilization of minority- and women-owned businesses in WSSC’s contracting opportunities. Our findings identified in the 2016 Disparity Study recommend that WSSC continue its efforts by setting project specific goals and expanding the collection of subcontractor data to include non-MWBE firms.” Reggie Smith Vice President, Disparity Research MGT of America WSSC SLMBE Program Performance Results Report FY 2016 21