Proposed Amendments to the SBEDA Ordinance City Council B Session April 27, 2016

PURPOSE OF SBEDA & LEGAL STANDARDS 2 To promote the use of small, minority and women-owned businesses on City contracts. City of Richmond v. J.A. Croson Co. (1989):  Statistical evidence of disparities in the market area  Anecdotal evidence of barriers to full & fair inclusion  Remedies must be “narrowly tailored” to that evidence

2015 DISPARITY STUDY: KEY POINTS 3  Minority and women-owned businesses make up nearly 43% of all available firms  Disparities continue in the broader San Antonio marketplace  Anecdotal evidence supports findings  Findings recommend program continuation, with potential amendments

SBEDA ENHANCEMENTS 4  Certification by the SCTRCA M/WBE must be an SBE  Local Consideration HQ or Significant Business Presence in SAMSA  Goal Setting Committee Tools set on a contract-by contract basis  Capacity building programs  Central Vendor Registry Vendors indicate they are ready, willing and able to work with COSA  Monitoring Review of dollars paid to S/M/WBEs

SBEDA CONTRACT APPLICATION 5 Solicitation Review Low Bid (IFB) Evaluation Criteria: Price Evaluation Criteria: Price SBEDA Tools: Subcontracting Goals SBEDA Tools: Subcontracting Goals SBEDA Tools: Prime Evaluation Points and/or Subcontracting Goals SBEDA Tools: Prime Evaluation Points and/or Subcontracting Goals Evaluation Criteria: Experience, Qualifications, Price Evaluation Criteria: Experience, Qualifications, Price Discretionary/Best Value (RFP/RFQ)

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PRIME CONTRACT PROGRAM 7 Total Score: - SBEDA - Proposed Plan - Qualifications - Price S/M/WBE Prime  Provides up to 20 points to S/M/WBEs on “Best Value” solicitations  This tool helps S/M/WBE prime respondents be more competitive on City solicitations  Proposing S/M/WBEs to be eligible for the points in all industries Example Max Pts. Earned Pts

EMERGING PRIME CONTRACT PROGRAM 8  Emerging S/M/WBE ¼ size of S/M/WBE Defined by SBA  Provides up to 20 points on “Best Value” solicitation  Proposing Emerging M/WBEs to be eligible for the points in all industries

JOINT VENTURE PROGRAM 9  Provides up to 20 points to a Joint Venture Respondent per their S/M/WBE percent makeup on a contract 50% or greater – 20 points 40% to 49% – 15 points 25% to 39% – 10 points 10% to 24% – 5 points  Proposing expansion of tool to the Construction, Architecture & Engineering and Other Services Industries for S/M/WBEs

MENTOR PROTÉGÉ PROGRAM 10  Protégé must be S/M/WBE  Provides up to 5 points on “Best Value” solicitations to build a pool of mentors  Proposing Mentor Protégé Program be available in all industries  A&E pilot program for S/M/WBEs to get experience in different disciplines  Convene a workgroup to develop and evaluate enhancements

SUBCONTRACTING PROGRAM 11 Subcontracting Program  Allow up to 40% of contract value to be subcontracted to S/M/WBEs  Proposing Subcontracting Program be eligible in all industries Segmented Subcontracting Program  Allows subcontracting goals to be set for M/WBE segments like AABEs  Annual identification of which M/WBE segments are eligible for subcontracting goals

DISTRIBUTORSHIP DEVELOPMENT PROGRAM 12  Provides manufacturers incentives to establish new authorized distributorships with S/M/WBE suppliers ( i.e. added contract option years)  Proposing tool be added to the Goods & Supplies Industry

PRIME SELF-PERFORMANCE OF SUB GOALS 13 Current Process Sub Goal: 30% M/WBE 5% AABE Prime: M/WBE 70% M/WBE AABE 15%10%5% Proposed Process Sub Goal: 30% M/WBE 5% AABE Prime: M/WBE 95% AABE 5%

SBEDA ORDINANCE AMENDMENTS TIMELINE 14 DateEvent April 27 th SBEDA Amendment Briefing – City Council (B Session) May 2 nd – 9 th SBAC Votes to Recommend Proposed Amendments to City Council May 9 th Conclude Meetings with Key Stakeholders May 19 th SBEDA Amendment Adoption – City Council (Tentative)

Proposed Amendments to the SBEDA Ordinance City Council B Session April 27, 2016