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HomeMy WebLinkAbout2018 Diversity Purchasing ReportAnnual Diversity Purchasing Report CITY OF SOUTH BEND Inclusive Procurement Program OFFICE OF DIVERSITY AND INCLUSION FY 2018 2 EXECUTIVE SUMMARY BACKGROUND In accordance with Ordinance No. 10081‐11, adopted April 23, 2011, this 2018 Annual Inclusive Procurement Program report is filed January 14, 2019 with the City of South Bend Common Council, and copies submitted to Mayor Pete Buttigieg, the City Controller, and the MBE/WBE Utilization Board. The Diversity Development Program in its eighth year of operation has continued to work towards building strong and sustainable procurement program that continually provides equal opportunities and inclusion to local, regional and national minority and woman‐owned business enterprises. The Diversity Utilization Board along with the Diversity and Inclusion and Compliance Officer, Director of Purchasing, Legal Department, and the Board of Public Works are the groups primarily accountable for the operation and management of the program. RESULTS Procurement of Goods, Services and Professional Services The City of South Bend spent $50,566,203.13 on 7,189 on goods, services and professional service purchase orders for fiscal year 2018. Of the total amount spent, $592,097.72or 1.17% was awarded to MBE firms, and $832,342.59 or 1.65% of the total procurement spend amount was awarded to WBE firms. Combined, the total MBE/WBE spend amount of $1,425,269.11 accounts for 2.81% of the total procurement spend. The City of South Bend had a total of 1,808 vendors. A total of 6 certified MBE’s, and 9 uncertified MBE’s were awarded contracts across four quarters, with only two firms, DLZ, and Colette Holt and Associates posting spend amounts in the “greater than” $75,000 spend matrix band in at least one of the four quarters. Seven of the fifteen MBE firms were located in Indiana. The City of South Bend awarded 22 certified WBE’s and 15 uncertified WBE’s across four quarters with the majority posting spend amounts in the “less than” $2,500 spend matrix band. However, WBE firms had representation in all spend matrix bands, including “greater than” $75,000 in quarter four represented by Dudeck Roofing &Sheet Metal and Ritschard Bros.While 47% of the MBE firms were located in Indiana, 33% came from both regional and national locations. According to IDOA, the number of offered MBE commodities by South Bend firms increased slightly, gaining four Hispanic (1 in 2017 to 5 in 2018) and decreased slightly by losing four African American commodities (twelve in 2017 to eight in 2018), while increasing the number of WBE commodities for Caucasians by forty-five (104 in 2017 to 149 in 2018). Additionally, there may be a number of MBE/WBE firms that are currently not certified through IDOA, but doing business with the City of South Bend. Upon review and analysis of FY ’18 data, we highlight one such minority owned firm—Ortiz Concrete. Based on our data analysis, roughly 52% of all vendors are located within Indiana, but 48% of all awarded vendors are regional or national vendors. As such, we may have an opportunity to identify MBE/WBE’s that are registered through other certifying agencies like Mid‐States Minority Supplier 3 Development Council, SBA 8(a), SBA‐WBE, SBA‐MBE, SBA HUBzone, SBA‐VBE, National LGBT Chamber of Commerce, WBENC, City of Indianapolis, and other regional and national certifying agencies that have vetted and approved those firms to do business at the local, state or national level. Construction Contracting The City of South Bend spent $50,130,137.73 on construction contracts in 2018 through 46 total bids. Of the 46 total bids awarded, 37 bids included MBE and or WBE subcontracts totaling $3,433,310.46 or 6.85% of contracting spending. For each of the 47 bids, the City of South Bend prime contractors on average spent 13.97% of each bid with an MBE or WBE subcontractor or was itself a WBE prime contractor like Dudeck Roofing or Ritschard Brothers in quarters 3 and 4. Dudeck Roofing and Ritschard are the only WBE “prime” contractors for 2018, with $128,820.00 spends for Dudeck on project 118-080A, and a total of $464,773.00 for Ritschard on projects 118-307 and 118- 074D. The Future The Diversity, Inclusion and Compliance Officer continues to work with the Director of Purchasing to further support the goals and vision of the Ordinance, Mayoral Executive Order, and Diversity Utilization Board recommendations. Internally, the City of South Bend Purchasing Department continues to investigate opportunities to revise the spend matrix thresholds for Board of Public Works review, and finalize an organizational redesign to centralize bulk purchases for better pricing and process efficiency; reducing the number of city “buyers”vacross departments and units from over 150 individuals to fewer than 25. The City of South Bend has commissioned a disparity study for its utilization of Minority and Women/Business Enterprises (MWBEs) due for completion in quarter 3 of 2019. The research will examine whether firms have equal access to contracting opportunities on the City of South Bend’s prime contracts and associated subcontracts and recommend strategies to ensure inclusion in future City contracting. We continue to refine and perfect our ability to track City spending by department to develop and maintain a spending forecast report that could assist small local businesses, especially minority and women businesses prepare for upcoming procurement and contracting opportunities within the City for the upcoming fiscal year. The Office of Diversity and Inclusion in partnership with Administration and Finance, and Innovation and Technology are identifying software solutions to collect and maintain accurate procurement and contracting data, as well as compliance data. The City of South Bend continues to establish new partnerships with local organizations like the Alpha Kappa Alpha Sorority to co-host annual Minority Business Fairs, and create and maintain a comprehensive listing of all local minority owned businesses. The City of South Bend will continue to partner with the Westside Small Business Resource Center at Project Impact to serve as a local resource that encourages the creation, development and scaling of 4 local minority entrepreneurs. Other partners like IDOA, Latin American Chamber of Commerce, North Central Indiana Small Business Center at Indiana University South Bend, the SPARK Program at Saint Mary’s College, Mid-States Minority Supplier Diversity Council, Women’s Business Enterprise National Council (WBENC), SCORE of Michiana, Indiana Small Business Administration (SBA), and the North Central Indiana Business Conference for Minority and Woman‐Owned Small Businesses which provides local and regional business owners exposure to best practices, networking with procurement leadership from major organizations, and financial resources for business stabilization and scaling. South Bend will explore opportunities to identify other certifying agencies within our geographic marketplace whose vetting requirements meet or exceed IDOA requirements and thus expand our list of viable MBE/WBE firms for local, regional and national invitations to bid, quote or otherwise contract for procurement opportunities with the City of South Bend. DEFINITIONS "Award" means contracts approved by the Board of Public Works for award to a particular vendor in accordance with City of South Bend purchasing policy. “Bidder” means any person, partnership, corporation, limited liability company, association or Joint Venture seeking to be awarded a City contract. “City” means the City of South Bend, Indiana. “City’s Marketplace” means the location of the City’s current contractors, including the metropolitan statistical areas of South Bend/Mishawaka, Elkhart/Goshen, Indianapolis, and Chicago. “Contractor” means any person, partnership, corporation, limited liability company, association or Joint Venture that has been awarded a City Contract. “Emergency contract” shall mean a contract that is awarded on an emergency basis due to a threat of harm to person or property or threat of disruption of governmental services. “Minority‐Owned Business Enterprise (MBE)” means a sole proprietorship, partnership, corporation, limited liability company, Joint Venture or any other business or professional entity: a) Which is at least 51% owned by one or more Minority Individuals, or in the case of a publicly owned business, at least 51% of all classes of the stock of which is owned by one or more Minority Individuals; and b) Whose management, policies, major decisions and daily business operations are independently managed and controlled by one or more such more Minority Individuals; “Minority Individual” means a person who is a member of one of the following groups: 5 a) “Black Americans,” which includes persons having origins in any of the Black racial groups of Africa; b) “Hispanic Americans,” which includes persons of Mexican, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race; c) “Native Americans,” which includes persons who are enrolled members of a federally or State recognized Indian tribe, Alaska Natives, or Native Hawaiians; d) “Asian‐Pacific Americans,” which includes persons whose origins are from Japan, China, Taiwan, Korea, Burma (Myanmar), Vietnam, Laos, Cambodia (Kampuchea), Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, the U.S. Trust Territories of the Pacific Islands (Republic of Palau), Republic of the Northern Marianas Islands, Samoa, Macao, Fiji, Tonga, Kirbati, Tuvalu, Nauru, Federated States of Micronesia, or Hong Kong; Or e) “Subcontinent Asian Americans,” which includes persons whose origins are from India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal or Sri Lanka. "MWBE" means a business that has been certified as both a minority business enterprise and as a women business enterprise through a certifying agency recognized by the City of South Bend. “Ordinance” means City of South Bend Ordinance Number 10081‐11. "Spend" means total dollars paid to certified MBEs and WBEs, or to all City vendors, less Exclusions. “Subcontractor” means any person entering into a Contract with a Contractor to directly furnish services or supplies toward the Contract. “Woman” means a person of the female gender. “Woman‐Owned Business Enterprise (WBE)” means a Local Small Business Enterprise, including a sole proprietorship, partnership, corporation, limited liability company, Joint Venture or any other business or professional entity: a) Which is at least 51% owned by one or more Women, or in the case of a publicly owned business, at least 51% of all classes of the stock of which is owned by one or more Women; and b) Whose management, policies, major decisions and daily business operations are independently managed and controlled by one or more such Women. 6 “Utilization” means the best use of available certified MBE/WBE within the city’s marketplace. Methodology To measure the purchasing and contracting for the City of South Bend, this Annual Report relied on data collection from Naviline, the City’s vendor tracking system from January 1, 2018 to December 31, 2018, FY 18. As in previous Annual Reports, we have compared MBEs and WBEs, but to also highlight the DBEs and VBEs, we used IDOA data to identify the vendors for each category if they were not listed within the Cities database. The City wanted to highlight the purchasing and contracting amount for MBEs, WBEs, and DBES, because on the national level the US Small Business Association no longer lists MBEs on the website and has shifted the focus to providing more resources for WBEs and DBEs. The rationale for disaggregating the date to highlight contract amounts is to tell the full comparative story for the COSB within the areas of procurement for all MBEs, DBEs, WBEs, VBEs doing business with the City. City of South Bend Vendors The City of South Bend utilized a total of 1,808 vendors in fiscal year 2018. The majority of the vendors 52%, are located within Indiana state limits. Regional vendors from Illinois, Michigan, Ohio, and Kentucky make up 20%, with the remaining 28% coming from a nationwide pool of vendors stretching from California to Florida to Maine. 7 Source: Naviline Purchasing Report, January 2019. Other Indiana … South Bend 25%I… MI 5% OH 3% CA 3% National 25% FY 2018 Vendor Location 8 This graphic compares the location of all vendors from FY ‘18 to the vendor location of MBE and WBE firms. Six MBE firms are located in South Bend, others are located in Rochester, Rolling Praire, and Indianapolis Indiana, and the remaining firms were located nationally from Florida, California, and New Jersey. Twelve WBE firms were located within South Bend city limits, with the remaining firms located in other Indiana cities, regional cities or cities outside our Midwest region. Source: Naviline Purchasing Report, January 2019. 503 452 201 96 64 46 446 17 11 2 4 1 3 10 2 5 3 5 IN SOUTH BEND IL MI OH CA NATIONAL VENDOR LOCATION COMPARISON Count of VENDOR NAME Count of WBE Count of MBE 9 MBE UTILIZATION The City of South Bend utilized a total of 6 certified MBE firms during the 2018 FY. However, based on a review of the 1808 total vendors, there may at least 9 non-certified minority‐owned firms that do business with the City of South Bend, but currently are not certified through IDOA. This report includes several firms like Sanco Distributing, and Ortiz Concrete, as an example in the MBE utilization by quarter spreadsheet below. In fiscal year 2018, COSB utilized two MBE firms in the greater than $75,000 spend matrix, one MBE firm in the “$25,000 to $74,999” spend matrix band, one MBE in the $10,000 to $24,999, with four firms represented in the $2,500 to $9,999 spend matrix band. The largest spend band with MBE representation came in the less than $2,500 spend matrix 0 1 2 3 4 5 6 7 8 9 >$75,000 $25,000-$74,999 $10,000-$24,999 $2,500-$9,999 <$2,500 MBE Vendors by Spend Matrix Q1 '18 Q2 '18 Q3 '18 Q4 '18 10 This data list the 6 certified MBE firms that were awarded contracts this fiscal year, and roughly 9 examples of a non‐certified firms that are minority‐owned with which the city contracted in 2018. MBE Q1 '18 Vendor Vendor City Vendor State PO/Contract Amount Gender/Race DLZ Indiana South Bend IN $ 30,590.00 MBE-AIN Total Amount $ 30,590.00 MBE Q2 '18 Vendor Vendor City Vendor State PO/Contract Amount Gender/Race JACKSON SERVICES Rochester IN $ - MBE-AFA DIAMOND WIPES INTERNATIONAL IN Chino CA $ 500.41 MBE-AIN ALL AMERICAN POLY Piscataway NJ $ 1,263.00 MBE-AIN NEAT BRANDS LLC Chatsworth CA $ 5,165.98 MBE-HIS COLETTE HOLT & ASSOCIATES Oakland CA $ 275,000.00 MBE-AFA Jevelyn Consulting South Bend IN $ 25,000.00 MBE-AFA Antonius Northern South Bend IN $ 10,000.00 MBE-AFA Total Amount $ 316,929.39 MBE Q3 '18 Vendor Vendor City Vendor State PO/Contract Amount Gender/Race JCI JONES CHEMICALS INC Sarasota FL $ 6,656.50 MBE-AIN NCEPTION SOLUTIONS South Bend IN $ 450.00 MBE-AFA Total Amount $ 7,106.50 MBE Q4 '18 Vendor Vendor City Vendor State PO/Contract Amount Gender/Race ORTIZ CONCRETE South Bend IN $ 300.00 MBE-HIS SANCO DISTRIBUTING INC South Bend IN $ 655.00 MBE-AFA MID STATES MINORITY SUPPLIER Indianapolis IN $ 3,000.00 MBE-AFA DA DODD INC Rolling Praire IN $ 7,416.83 MBE-AIN Seven Generations Architecture Kalamazoo MI $ 19,800.00 MBE-AIN DLZ INDIANA LLC South Bend IN $ 203,900.00 MBE-AIN Jevelyn Consulting Services South Bend IN $ 2,400.00 MBE-AFA Total Amount $ 237,471.83 Total Q1-Q4 Spend $ 592,097.72 11 WBE Utilization The City of South Bend utilized a total of 22 certified WBE firms during the 2018 FY, and 15 non-certified WBE firms. Based on a review of the 1,808 total vendors, there may be additional woman‐owned firms that do business with the City of South Bend, but currently are not certified through IDOA. During quarter one of this year, COSB utilized zero WBE firm in the “greater than $75,000” spend matrix band, but had seven firms represented in the “less than” $2,500, four firms represented in $2,500 to $9,999, three firms in $10,000 to $24,999, and one firm in $$25,000 to $74,999 spend matrix bands. Quarter two posted twelve firms represented in “less than” $2,500, six firms in $2,500 to $9,999, two firms in $10,000 to $24,999, and one firm above $25,000 spend. However, quarter four posted eight firms represented in “less than” $2,500, three firms in $2,500 to $9,999, one firm in $25,000 to $74,999 and two firms represented in “greater than” $75,000. Dudeck Roofing & Sheet Metal and Ritschard Brothers posted the largest WBE spend amounts during the 2018 fiscal year. Source: Naviline Purchasing Report. January 2018 Q1 '18 Q2 '18 Q3 '18 Q4 '18 <$2,500 7 12 15 8 $2,500-$9,999 4 6 5 3 $10,000-$24,999 3 2 2 0 $25,000-$74,999 1 1 0 1 >$75,000 0 0 0 2 0 5 10 15 20 25 Number of VendorsWBE VENDORS BY SPEND MATRIX 12 WBE Q1 '18 Vendor Vendor City Vendor State PO/Contract Amount Gender/Rac e BOLT DOCUMENT MANAGEMENT Elkhart IN $ 2,090.00 WBE-CAU FLOSOURCE INC Martinsville IN $ 9,734.20 WBE-CAU STANZ FOOD SERVICES INC South Bend IN $ 28,454.25 WBE-CAU AMERICAN SAFETY Osceola IN $ 1,879.39 WBE-CAU FIGMENT GROUP INC LaPorte IN $ 595.00 WBE-CAU GRIPP INC Westfield IN $ 1,376.64 WBE-CAU DUDECK ROOFING & SHEET METAL I South Bend IN $ 11,665.00 WBE-CAU SC SUPPLY COMPANY South Bend IN $ 16,255.60 WBE-CAU CARPET SERVICE OUTLET INC South Bend IN $ 1,057.40 WBE-CAU AFC INTERNATIONAL INC DeMotte IN $ 2,833.41 WBE-CAU CLARK SAFETY INC Greenwood IN $ 3,000.00 WBE-CAU ENVIROSOLUTIONS INC Westland MI $ 12,160.00 WBE-CAU RESCUEGEAR INC Austin TX $ 2,496.93 WBE-CAU SAFETY SERVICES INC Kalamazoo MI $ 8,367.70 WBE-CAU SUMMIT SUPPLY Durango CO $ 1,693.17 WBE-CAU Total Amount $ 103,658.69 WBE Q2 '18 Vendor Vendor City Vendor State PO/Contract Amount Gender/Rac e FLOSOURCE INC Martinsville IN $ 437.00 WBE-CAU PERFORMANCE PLUS CO INC Hackettstow n NJ $ 1,875.00 WBE-CAU STANZ FOOD SERVICES INC South Bend IN $ 3,100.00 WBE-CAU BOLT DOCUMENT MANAGEMENT Elkhart IN $ 4,180.00 WBE-CAU AMERICAN SAFETY Osceola IN $ 558.60 WBE-CAU AFC INTERNATIONAL INC DeMotte IN $ 1,634.51 WBE-CAU CLARK SAFETY INC Greenwood IN $ 2,000.00 WBE-CAU KERAMIDA ENVIRONMENTAL INC Indianapolis IN $ 4,700.00 WBE-CAU SC SUPPLY COMPANY South Bend IN $ 8,640.00 WBE-CAU MCCORMICK ENGINEERING LLC South Bend IN $ 20,000.00 WBE-CAU GRIPP INC Westfield IN $ 22,631.00 WBE-CAU DUDECK ROOFING & SHEET METAL I South Bend IN $ 25,993.25 WBE-CAU FUN BY THE YARD South Bend IN $ 240.00 WBE-CAU LINDCO EQUIPMENT SALES INC Merriville IN $ 307.44 WBE-CAU RESCUEGEAR INC Austin TX $ 1,838.13 WBE-CAU SUMMIT SUPPLY Durango CO $ 420.75 WBE-CAU NUTOYS LEISURE PRODUCTS LaGrange IL $ 976.00 WBE-CAU KABELIN ACE HARDWARE Michigan City IN $ 2,900.46 WBE-CAU SAFETY SERVICES INC Kalamazoo MI $ 5,902.40 WBE-CAU DIAMOND WIPES INTERNATIONAL IN Chino CA $ 500.41 WBE-AIN Total Amount $ 108,834.95 13 WBE Q3 '18 Vendor Vendor City Vendor State PO/Contract Amount Gender/Rac e AMERICAN SAFETY Osceola IN $ 994.23 WBE-CAU GRIPP INC Westfield IN $ 6,082.50 WBE-CAU DUDECK ROOFING & SHEET METAL I South Bend IN $ 2,450.00 WBE-CAU BOLT DOCUMENT MANAGEMENT Elkhart IN $ 16,058.00 WBE-CAU PERSONNEL PARTNERS South Bend IN $ 5,908.50 WBE-CAU FLOSOURCE INC Martinsville IN $ 112.65 WBE-CAU AFC INTERNATIONAL INC Demotte IN $ 737.95 WBE-CAU CLARK SAFETY INC Greenwood IN $ 588.45 WBE-CAU PREMIUM CONCRETE SERVICES INC Elkhart IN $ - WBE-CAU STANZ FOOD SERVICES INC South Bend IN $ 907.10 WBE-CAU KABELIN ACE HARDWARE South Bend IN $ 3,519.42 WBE-CAU VALLEY SCREEN PROCESS CO INC Mishawaka IN $ 446.66 WBE-CAU ALEXANDER CHEMICAL CORP Peru IL $ 23,006.95 WBE-CAU KNOX COMPANY Phoenix AZ $ 2,201.00 WBE-CAU POWELL TOOL SUPPLY INC South Bend IN $ 487.53 WBE-CAU MOBILE CONCEPTS BY SCOTTY INC Mt. Pleasant PA $ 52.93 WBE-CAU STAR UNIFORM Portage IN $ - WBE-CAU SUMMIT SUPPLY Durango CO $ 553.00 WBE-CAU WHITETAIL ACRES NURSERY & LANDSCAPING INC Brookville IN $ 1,583.00 WBE-CAU COMMUSA Escondido CA $ 3,827.00 WBE-CAU NUTOYS LEISURE PRODUCTS LaGrange IL $ - WBE-CAU SAFETY SERVICES INC Kalamazoo IL $ 278.00 WBE-CAU Total Amount $ 69,794.87 WBE Q4 '18 Vendor Vendor City Vendor State PO/Contract Amount Gender/Rac e Jevelyn Consulting Services South Bend IN $ 2,400.00 WBE-AFA AMERICAN SAFETY Osceola IN $ 29.55 WBE-CAU STANZ FOOD SERVICE INC South Bend IN $ 357.90 WBE-CAU SC SUPPLY COMPANY South Bend IN $ 1,255.10 WBE-CAU GRIPP INC Westfield IN $ 1,850.00 WBE-CAU CLARK SAFETY INC Greenwood IN $ 2,114.25 WBE-CAU KERAMIDA ENVIRONMENTAL INC Indianapolis IN $ 2,350.00 WBE-CAU ALEXANDREA ROWELL PRODUCTIONS South Bend IN $ 3,000.00 WBE-CAU FLOSOURCE INC Martinsville IN $ 3,535.65 WBE-CAU AFC INTERNATIONAL INC Demotte IN $ 7,376.13 WBE-CAU BOLT DOCUMENT MANAGEMENT Elkhart IN $ 25,784.00 WBE-CAU DUDECK ROOFING & SHEET METAL I South Bend IN $ 128,820.00 WBE-CAU RITSCHARD BROS INC South Bend IN $ 371,181.50 WBE-CAU Total Amount $ 550,054.08 14 Total Q1-Q4 Spend $ 832,342.59 DBE Utilization Disadvantaged Business Enterprises are business that have been socially or economically disadvantaged. During quarter one of this year, the City of South Bend utilized one DBE firm in the “greater than $75,000” spend matrix band, and had eight firms represented in the “less than” $2,500, three firms represented in $2,500 to $9,999, three firms in $10,000 to $24,999, and two firms in $25,000 to $74,999 spend matrix bands. Quarter two posted twelve firms represented in “less than” $2,500, five firms in $2,500 to $9,999, four firms in $10,000 to $24,999, and three firms in the “greater than $75,000: spend matrix. However, quarter four posted seven firms represented in “less than” $2,500, five firms in $2,500 to $9,999, one firm in $25,000 to $74,999 and zero firms represented in “greater than” $75,000. Alliance Architects and Colette Holt and Associates posted the largest DBE spend amounts during the 2018 fiscal year. Q1 '18 Q2 '18 Q3 '18 Q4 '18 <$2,500 8 12 15 7 $2,500-$9,999 3 5 3 5 $10,000-$24,999 3 4 2 1 $25,000-$74,999 2 0 0 1 >$75,000 1 3 0 0 0 5 10 15 20 25 30 DBE Vendors by Metrix 15 DBE Q1 '18 Vendor PO/Contract Amount JADE SCIENTIFIC INC $ 569.22 HYDRONIC & STEAM EQUIP CO INC $ 10,491.40 BUSINESS FURNSIHINGS $ 930.57 KOORSEN FIRE & SECURITY INC $ 24,304.24 OFFICE INTERIORS INC $ 6,794.45 CAROTHERS PRINTING CO $ 1,921.50 ALLIANCE ARCHITECTS INC $ 193,208.00 YOGA DIRECT $ - OFFICE 360 $ 1,249.60 RACO INDUSTRIES LLC $ 285.00 LOOKOUT SOFTWARE $ 1,652.70 RUBBERFORM RECYCLED PRODUCTS L $ 8,188.15 TROYER GROUP INC $ 36,251.73 BOLT DOCUMENT MANAGEMENT $ 2,090.00 FLOSOURCE INC $ 9,734.20 STANZ FOOD SERVICES INC $ 28,454.25 ENVIROSOLUTIONS INC $ 12,160.00 RESCUEGEAR INC $ 2,496.93 Total Amount $ 340,781.94 DBE Q2 '18 Vendor PO/Contract Amount COLETTE HOLT & ASSOCIATES $ 275,000.00 RESCUE SOUTH $ 14,587.93 KIESLER POLICE SUPPLY INC Jeffersonville IN $ 13,223.79 PRO AIR MIDWEST $ 23.00 OFFICE INTERIORS INC $ 276.76 CAROTHERS PRINTING CO $ 736.50 LEWIS PAPER INTL INC $ 753.26 OFFICE 360 $ 799.42 HOOSIER CRANE SERVICES CO $ 903.00 COMMUNICATION COMPANY OF SOUTH BEND INC $ 3,151.00 BUSINESS FURNISHINGS $ 7,656.50 FITNESS & EXERCISE SOLUTIONS $ 9,140.00 UNDERGROUND PIPE & VALVE INC $ 15,246.00 KOORSEN FIRE & SECURITY INC $ 17,387.72 TROYER GROUP INC $ 90,920.00 ALLIANCE ARCHITECTS INC $ 895,292.00 ALL AMERICAN POLY $ 1,263.00 FLOSOURCE INC $ 437.00 PERFORMANCE PLUS CO INC $ 1,875.00 16 STANZ FOOD SERVICES INC $ 3,100.00 BOLT DOCUMENT MANAGEMENT $ 4,180.00 FUN BY THE YARD $ 240.00 LINDCO EQUIPMENT SALES INC $ 307.44 RESCUEGEAR INC $ 1,838.13 Total Amount $ 1,358,337.45 DBE Q3 '18 Vendor PO/Contract Amount RESCUE SOUTH $ - JADE SCIENTIFIC INC $ - BOLT DOCUMENT MANAGEMENT $ 16,058.00 FLOSOURCE INC $ 112.65 STANZ FOOD SERVICES INC $ 907.10 STAR UNIFORM $ - WHITETAIL ACRES NURSERY & LANDSCAPING INC $ 1,583.00 NCEPTION SOLUTIONS $ 450.00 ORTMAN DRILLING INC $ - HOOSIER CRANE SERVICES CO $ 316.25 W A JONES $ 118.68 KOORSEN FIRE & SECURITY INC $ 723.10 COMMUNICATION COMPANY OF SOUTH BEND INC $ 108.00 AQUATIC TECHNOLOGY INC $ 596.80 PSA LABORATORY FURNITURE $ 5,682.32 SAVANT LEARNING SYSTEMS INC $ 14,160.00 TROYER GROUP INC $ - AUTOMATIONDIRECT COM INC $ 4,512.75 UTILITY ASSOCIATES INC $ 3,500.00 MUNICIPAL EMERGENCY SERVICES $ 100.00 Total Amount $ 48,928.65 DBE Q4 '18 Vendor PO/Contract Amount HYDRONIC & STEAM EQUIP CO INC $ 4,791.00 BUSINESS FURNSIHINGS $ 17,211.89 KOORSEN FIRE & SECURITY INC $ 4,801.90 OFFICE INTERIORS INC $ 6,339.29 CAROTHERS PRINTING CO $ 135.70 LINDCO EQUIPMENT SALES INC $ 624.74 OFFICE 360 $ 335.46 BOLT DOCUMENT MANAGEMENT $ 25,784.00 FLOSOURCE INC $ 3,535.65 STANZ FOOD SERVICES INC $ 357.90 17 RESCUEGEAR INC $ 2,774.70 PRO AIR MIDWEST $ 8.40 HOOSIER CRANE SERVICES CO $ 1,144.06 PERFORMANCE PLUS CO INC $ 1,875.00 Total Amount $ 69,719.69 Total Q1-Q4 Spend $ 1,817,767.73 VBE Utilization During quarter one of this year, the City of South Bend utilized one VBE firm in the “greater than $75,000” spend matrix band, and had one firm represented in the “less than” $2,500, zero firms represented in $2,500 to $9,999, one firm in $10,000 to $24,999, and zero firms in $25,000 to $74,999 spend matrix bands. Quarter two posted two firms represented in “less than” $2,500, zero firms in $2,500 to $9,999, two firms in $10,000 to $24,999, and one firm in the “greater than $75,000 spend matrix. However, quarter four posted one firm represented in “less than” $2,500, two firms in $2,500 to $9,999, zero firms in $25,000 to $74,999 and zero firms represented in “greater than” $75,000. Petroleum Traders Corporation and Aquitas Solutions Inc. posted the largest VBE spend amounts during the 2018 fiscal year. Q1 '18 Q2 '18 Q3 '18 Q4 '18 <$2,500 1 2 1 1 $2,500-$9,999 0 0 1 2 $10,000-$24,999 1 2 0 1 $25,000-$74,999 0 0 0 0 >$75,000 1 1 0 0 0 1 2 3 4 5 6 VBE Vendors by Matrix 18 VBE Q1 '18 Vendor PO/Contract Amount HYDRONIC & STEAM EQUIP CO INC $ 10,491.40 BROWNELLS INC $ 2,099.44 PETROLEUM TRADERS CORPORATION $ 124,699.84 Total Amount $ 137,290.68 VBE Q2 '18 Vendor PO/Contract Amount RECREONICS INC $ 271.08 PETROLEUM TRADERS CORPORATION $ 19,878.95 AQUITAS SOLUTIONS INC $ 105,319.00 KIESLER POLICE SUPPLY INC Jeffersonville IN $ 13,223.79 LIQUID ENGINEERING CORPORATION $ 1,950.00 Total Amount $ 140,642.82 VBE Q3 '18 Vendor PO/Contract Amount BROWNELLS INC $ 4,164.91 LIFESAVING SYSTEMS CORPORATION $ - Total Amount $ 4,164.91 VBE Q4 '18 Vendor PO/Contract Amount HYDRONIC & STEAM EQUIP CO INC $ 4,791.00 BROWNELLS INC $ 3,048.64 PETROLEUM TRADERS CORPORATION $ 20,573.14 LIFESAVING SYSTEMS CORPORATION $ 1,751.21 Total Amount $ 30,163.99 Total Q1-Q4 Spend $ 312,262.40 19 MBE AND WBE BUSINESS DEVELOPMENT, OUTREACH AND ENGAGEMENT The Diversity, Inclusion and Compliance Officer continues to work with the Director of Purchasing to further support the goals and vision of the Ordinance, Mayoral Executive Order, and Diversity Utilization Board recommendations. The City of South Bend Purchasing Department continues to conduct “Doing Business With the City” outreach sessions with local women and minority business organizations. We will focus on tracking the number and type of WBE/MBE organization sessions we conduct and outcomes—which businesses are successfully awarded bids with the City, and the amount of each award based on the spend matrix. The Office of Diversity and Inclusion, City Controller, Director of Purchasing, and the Legal Department continue to review and revise internal procurement and contracting policy that more clearly reflects the Citywide goals for inclusive procurement and contracting in compliance with our ordinances. The Office of Diversity and Inclusion has partnered with the South Bend Housing Authority (SBHA) to revise the monthly resident survey. The new survey includes new construction or construction-related categories like lead worker or supervisor certifications. SBHA residents (Section 8 and Housing Authority) that give their permission, are added to a Section 3 Workforce database that captures contact information, information on individual resident skills, competencies, and education or training that may match work opportunities on City projects or bids. This list is updated biannually and may be made available to contractors and vendors looking for a local workforce by zip code to complete local projects. The Office of Diversity and Inclusion may also direct any SBHA residents interested in starting a business to local resources like the Westside Small Business Resource Center at Project Impact, where they could learn how to become a Section 3 Business Enterprise, and register to do business with the City. The Office of Diversity and Inclusion is partnering with Department of Community Investment Engagement and Economic Empowerment to research the possibility of becoming a Community Development Financial Institution (CDFI) Friendly City. The CDFI-Friendly designation would support the access to capital for local minority-owned businesses that struggle to finance business scaling, capital equipment purchases, or just staying afloat in a slow pay business environment. Internally, the City of South Bend Purchasing Department continues to refine an organizational redesign to centralize bulk purchases for better pricing and process efficiency; reducing the number of city “buyers” across departments and units from over 150 individuals to fewer than 25. The City of South Bend has commissioned a disparity study for its utilization of Minority and Women/Business Enterprises (MWBEs) due for completion in quarter 3 of 2019. The research will examine whether firms have equal access to contracting opportunities on the City of South Bend’s prime contracts and associated subcontracts and recommend strategies to ensure inclusion in future City contracting. We continue to refine and perfect our ability to track City spending by department to develop and maintain a spending forecast report that could assist small local businesses, especially minority and 20 women businesses prepare for upcoming procurement and contracting opportunities within the City for the upcoming fiscal year. The Office of Diversity and Inclusion in partnership with Administration and Finance, and Innovation and Technology are identifying software solutions to collect and maintain accurate procurement and contracting data, as well as compliance data. The City of South Bend continues to establish new partnerships with local organizations like the Alpha Kappa Alpha Sorority to co-host annual Minority Business Fairs, and create and maintain a comprehensive listing of all local minority owned businesses. The City of South Bend will continue to partner with the Westside Small Business Resource Center at Project Impact to serve as a local resource that encourages the creation, development and scaling of local minority entrepreneurs. Other partners like IDOA, Latin American Chamber of Commerce, North Central Indiana Small Business Center at Indiana University South Bend, the SPARK Program at Saint Mary’s College, Mid-States Minority Supplier Diversity Council, Women’s Business Enterprise National Council (WBENC), SCORE of Michiana, Indiana Small Business Administration (SBA), and the North Central Indiana Business Conference for Minority and Woman‐Owned Small Businesses which provides local and regional business owners exposure to best practices, networking with procurement leadership from major organizations, and financial resources for business stabilization and scaling. South Bend will explore opportunities to identify other certifying agencies within our geographic marketplace whose vetting requirements meet or exceed IDOA requirements and thus expand our list of viable MBE/WBE firms for local, regional and national invitations to bid, quote or otherwise contract for procurement opportunities with the City of South Bend. 21 A Look at City Spending by the Numbers: PROCUREMENT & PRIME CONTRACTING 2027 291 120 54 42 1648 198 92 36 43 1601 172 69 46 30 671 91 31 14 2 <$2500 $2500‐$9999 $10,000‐$24, 999 $25,000‐$74, 999 >$75,000 TOTAL NUMBER OF PO'S Q1 '18 Q2 '18 Q3 '18 Q4 '18 $1,213,123.25 $1,423,686.29 $1,909,555.52 $2,162,476.98 $36,388,998.73 $980,098.59 $941,605.97 $1,505,277.59 $1,437,931.45 $17,221,763.13 $923,347.08 $836,805.05 $1,182,961.37 $1,876,017.26 $10,166,139.28 $310,543.15 $424,695.79 $468,902.38 $605,849.63 $419,279.95 <$2500 $2500‐$9999 $10,000‐$24, 999 $25,000‐$74, 999 >$75,000 TOTAL SPEND AMOUNTS Q1 '18 Q2 '18 Q3 '18 Q4 '18 22 $598.48 $4,892.39 $15,912.96 $40,045.87 $866,404.73 $594.72 $4,755.59 $16,361.71 $39,942.54 $400,506.12 $576.73 $4,865.15 $17,144.37 $40,782.98 $338,871.31 $462.12 $4,666.99 $15,125.88 $43,274.97 $209,639.98 <$2500 $2500‐$9999 $10,000‐$24, 999 $25,000‐$74, 999 >$75,000 AVERAGE PO SPEND AMOUNT Q1 '18 Q2 '18 Q3 '18 Q4 '18 23 A Look at City Spending by the Numbers: PROCUREMENT (GOODS, SERVICES, PROFESSIONAL SERVICES) $592,097.72 $832,342.59 $50,566,203.13 $50,566,203.13 $- $10,000,000.00 $20,000,000.00 $30,000,000.00 $40,000,000.00 $50,000,000.00 $60,000,000.00 Total MBE Q1-Q4 Spend Total WBE Q1-Q4 Spend WBE/MBE Share of Procurement Spend Total Procurement Spend Amount of MWBE Spend $592,097.72 $832,342.59 1.17% 1.65% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% $- $100,000.00 $200,000.00 $300,000.00 $400,000.00 $500,000.00 $600,000.00 $700,000.00 $800,000.00 $900,000.00 Total MBE Q1-Q4 Spend Total WBE Q1-Q4 Spend MBE/WBE Procurement Spend Share Amount of MWBE Spend Share Percentage 24 A Look at City Spending by the Numbers: CONTRACTING (CONSTRUCTION, CONSTRUCTION-RELATED ACTIVITIES) $50,130,137.73 $3,433,310.46 Total MBE/WBE Contracting Spend Total Contracting Spend Total MBE/WBE Contracting Spend 46 37 Share of Contracting Bids Total Number of Bids Total Number of Bids with MBE/WBE Primes or Subs 25 $50,130,137.73 $3,433,310.46 100% 6.85% 0% 20% 40% 60% 80% 100% 120% $0.00 $10,000,000.00 $20,000,000.00 $30,000,000.00 $40,000,000.00 $50,000,000.00 $60,000,000.00 Total Contracting Spend Total MBE/WBE Contracting Spend Share of Contracting Spend Amount of Spend Share Percentage 26 TWO AND THREE YEAR COMPARISONS In order to assess the City of South Bend’s progress towards a more inclusive procurement process, this report reviews the two and three year comparisons of the number of available IDOA certified MBE and WBE firms within St. Joseph County, the total number of purchase orders issued in a fiscal year, the total spend amount in a fiscal year, and the total spend versus the MBE/WBE spend comparison. St. Joseph County saw a increase in the number of MBE business services, goods or consulting services certified through IDOA, with five or more Hispanic MBE/WBE commodities in 2018, and a decrease in African American MBE/WBE commodities from 12 in 2017 to 8 in 2018. However, according to IDOA, the number of Caucasian WBE commodities offered rose from 104 in 2017 to 149 in 2018 in St. Joseph County. 7161 5715 7189 0 1000 2000 3000 4000 5000 6000 7000 8000 Year 2016 Year 2017 Year 2018 Total Annual Purchase Orders Issued 27 $70,025,953 $101,702,744 $100,696,341 Year 2016 Year 2017 Year 2018 Total Annual Procurement and Contracting Spend 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% AFA APA CAU HIS NAM OTH TOTAL TWO YEAR IDOA COMMODITIES AVAILABLE COMPARISON 2017 2018 28 SECTION 3 WORKFORCE The Office of Diversity and Inclusion has partnered with the South Bend Housing Authority (SBHA) to revise the monthly resident survey. The new survey includes new construction or construction-related categories like lead worker or supervisor certifications. SBHA residents (Section 8 and Housing Authority) that give their permission, are added to a Section 3 Workforce database that captures contact information, information on individual resident skills, competencies, and education or training that may match work opportunities on City projects or bids. This list is updated biannually and may be made available to contractors and vendors looking for a local workforce by zip code to complete local projects. The Office of Diversity and Inclusion may also direct any SBHA residents interested in starting a business to local resources like the Westside Small Business Resource Center at Project Impact, where they could learn how to become a Section 3 Business Enterprise, and register to do business with the City. Section 3 Workforce Documents *NOTE: At the time of this report, the attachment of Section 3 Workforce Documents had not been submitted to or approved by H.U.D. This report is submitted by the Department of Community Investments in March of every calendar year. An amended Annual Inclusive Procurement Report will be submitted documenting those changes accordingly. Department of Community Investment James Mueller, Executive Director Pam Meyer, Director Community Development Alkeyna Aldridge, Director of Community Engagement Lory Timmer, Analyst II 29 SUMMARY OF PROCUREMENT PROCESS I. Summary of Purchasing Process II. Purchasing Matrix Guidelines III. City of South Bend Purchasing Policy IV. Invitation to Quote (Boilerplate) V. Invitation to Bid (Boilerplate) 30 CITY OF SOUTH BEND PURCHASING PROCESS SUMMARY The procurement of supplies, equipment and services is governed by the City of South Bend Purchasing Policy (attached). Pricing for supplies, equipment and services is obtained according to a matrix (Bid Matrix) of the total cost. The Bid Matrix (attached) dictates the quote or bid process to be followed and the approval levels required for purchasing approval. Exceptions are made for Special Purchases as defined by Indiana Statutes. An emergency purchase is an example of a Special Purchase situation. 1. Obtaining Quotes a. For purchases under $74,999, quotes are obtained from vendors specified by the City of South Bend Departments requiring the respective supplies, equipment or services. The following requirements apply; i. Purchases between $25,000 and $74,999 require a formal quote process which includes the completion of the Quote Package (attached) ii. Purchases under $25,000 requires a simple quote process as defined in the Bid Matrix. These written quotes can be obtained thru phone requests, email request of written requests. 2. Evaluating Quotes a. Simple quotes are first evaluated for content to assure that they represent the items or services required at the correct terms and conditions specified by the department. Simple quotes are sorted by price and awarded to lowest price. b. The Formal Quotes are opened at a public Meeting by the Board governing the Department. Formal Quotes are evaluated by the City of South Bend Legal Department to assure the required forms are completed correctly. If the appropriate forms were not correct or were omitted, and/or quoting instructions were not followed, the quote is considered non- responsive. Responsible, responsive quotes are tabulated with the award given to the lowest cost. 3. Obtaining Bids a. Purchases of $75,000 or more require a formal bid process that includes public advertising of the items or project. A sample bid package is attached. 4. Evaluating Bids a. The bids are opened at a public meeting by the Board governing the Department. Bids are evaluated by the City of South Bend Legal Department to assure the required forms are completed correctly. If the appropriate forms were not correct or were omitted, and or bidding instructions were not followed, the bid is considered non-responsive. Responsible, responsive bids are tabulated with the award given to the lowest cost. 31 CITY OF SOUTH BEND PURCHASING MATRIX Purchase Order Dollar Value Approvals Required Method Mode Comments/ Additional Requirements Less than $2500 Department Approval Purchasing Approval Preferred Vendor or Open Market Phone, Fax, Mail Uses Central Services/Contract Vendor/State QPA/Purchasing Cooperative/Open Market – No Competitive Quote $2500 to $9999 Department Approval Purchasing Approval Preferred Vendor or Informal Quote on Open Market Phone, Fax, Mail Uses Central Services/Contract Vendor/State QPA/Purchasing Cooperative/Open Market – w 2 Informal Quotes $10,000 to $24,000 Department Approval Purchasing Approval Preferred Vendor or Informal Quote on Open Market Phone, Fax, Mail Uses Central Services/Contract Vendor/State QPA/Purchasing Cooperative/Open Market – w/ 3 Informal Quotes $25,000 to $74,999 Department Approval Purchasing Approval Approving Board Preferred Vendor or Formal Quote (Written) Quote Process Mailed at least Seven Days prior to Opening Requires Minimum of Three Written Responses. Opened, Read at Public Meeting. Award by Approving Board Special Purchase Over $49,000 Department Approval Purchasing Approval Approving Board Special Purchase of $50,000 or more requires Legal Review and Board Approval $75,000 or More Department Approval Purchasing Approval Approving Board Formal Bid Process w/ Legal Review and Formal Advertising Submitted to Clerk of Board of Public Works Formal Bid Process Board opens Responses and Makes Final Award or Rejection... NOTE: Purchases may not be artificially divided to avoid policy thresholds. Additional Reviews required for Capital and IT items. All purchases are limited by budget and appropriations. Approving Boards: Board of Public Works, Board of Parks Commissioners, Redevelopment Commission. 32 PURCHASING POLICY 33 IDOA CERTIFIED MBE/WBE FIRMS 34 Procurement Forecast Forms HOW TO USE THIS PROCUREMENT FORECAST TEMPLATE This forecast template should depict potential new contracting opportunities, to be let by the City of South Bend during Fiscal Year 2020, which runs from January 1, 2020 to December 31, 2020. The plan does not depict expected City spend against already existing agreements. The opportunities are listed by City department. Only City departments that anticipate expending public funds in Fiscal Year 2020 for new opportunities are listed. Departments that do not anticipate creating any new procurement or contracting opportunities are not listed here in this forecast. For the most up to date information about procurement processes and upcoming solicitations, visit the Bid Opportunities page found under the City’s Department of Purchasing website. _________________________________________________________________________________ 35 FY 2019 Annual Procurement Forecast Administration and Finance Commodity Code Project Description Estimated Value Estimated Term Target Ad Date Subcontracting Opportunities 36 Building Department FY 2019 Annual Procurement Forecast Commodity Code Project Description Estimated Value Estimated Term Target Ad Date Subcontracting Opportunities 37 Code Enforcement FY 2019 Annual Procurement Forecast Commodity Code Project Description Estimated Value Estimated Term Target Ad Date Subcontracting Opportunities 38 Community Investment FY 2019 Annual Procurement Forecast Commodity Code Project Description Estimated Value Estimated Term Target Ad Date Subcontracting Opportunities 39 Fire Department FY 2019 Annual Procurement Forecast Commodity Code Project Description Estimated Value Estimated Term Target Ad Date Subcontracting Opportunities 40 Innovation and Information Technology FY 2019 Annual Procurement Forecast Commodity Code Project Description Estimated Value Estimated Term Target Ad Date Subcontracting Opportunities 41 Legal Department FY 2019 Annual Procurement Forecast Commodity Code Project Description Estimated Value Estimated Term Target Ad Date Subcontracting Opportunities 42 Police Department FY 2019 Annual Procurement Forecast Commodity Code Project Description Estimated Value Estimated Term Target Ad Date Subcontracting Opportunities 43 Public Works FY 2019 Annual Procurement Forecast Commodity Code Project Description Estimated Value Estimated Term Target Ad Date Subcontracting Opportunities Sustainability Division 44 Venues, Parks and Arts FY 2019 Annual Procurement Forecast Commodity Code Project Description Estimated Value Estimated Term Target Ad Date Subcontracting Opportunities Parks and Facilities Division