General Overview / Presentation North Carolina Statewide Purchasing Conference Presented by: Sheryl Cromedy, Lead Certification Specialist Lena Robertson-Ridley, Outreach and Certification Specialist

 Overview of Office for Historically Underutilized Businesses (HUB Office)  Statewide Uniform Certification (SWUC) Program  Application and Certification Process  HUB Reporting of Goods and Services  HUBSCO Reporting Requirements  Questions and Answers

To promote economic opportunities for historically underutilized businesses in state government contracting and procurement that will foster growth and profitability.

Advocacy Policy Development & Implementation

 N.C.G.S and (Formerly Senate Bill 320)  Passed & Signed during the 2007 Legislative Session  Implemented in July 2009  Provided Secretary of Administration Authority to:  Develop and administer a program for the certification of a HUB firms as defined in N.C.G.S  Create a single database of certified HUB firms  Adopt rules and procedures

 Collaborative development to:  reduce redundancy  best practices and processes  increase overall efficiency of system development

 Firms that are at least 51% owned, operated and controlled  By a minority, woman, disabled (person with a disability), Disadvantaged (socially and economically individuals)  HUB Eligibility Criteria (N.C.G.S and )

 Minority:  Black, Hispanic, Asian American, American Indian  Female  Disabled - Person with a Disability  Disadvantaged-Socially and Economically

 Go to HUB Office’s Website:  Click “Certification”  Click “ Request HUB Certification”  Click “ Vendor Registration / HUB Certification”

 Streamlined certification process of minority, women, disabled, and disadvantaged owned businesses  Uniform standards and procedures for certification  Annual Status Update and four-year reapplication cycles  Single database to be used by all state departments, agencies, institutions, political subdivisions, and local municipalities

GOVERNOR’S EXECUTIVE ORDER 13 – SUPPORT FOR HISTORICALLY UNDERUTILIZED BUSINESSES  Signed by Governor Perdue on May 7, 2009  Includes a 10% Aspirational Goal  Equal Opportunities to participate in State procurement and contracting  Each executive branch agency should strive to increase the total amount of goods and services acquired by it from HUB firms, whether directly as principal contractors or indirectly as subcontractors or otherwise.

GOVERNOR’S EXECUTIVE ORDER 13 – SUPPORT FOR HISTORICALLY UNDERUTILIZED BUSINESSES  It is expected that each agency will issue an aspirational goal of at least ten percent (10%), by dollar amount, of the State’s purchases of goods and services that will be derived from HUB firms.  The HUB Office should assist each agency in developing a plan and should provide technical assistance to reach the recommended objectives related to the purchases of goods and services.

GOVERNOR’S EXECUTIVE ORDER 13 – SUPPORT FOR HISTORICALLY UNDERUTILIZED BUSINESSES  All State agencies shall continue to implement guidelines and procedures that compel contractors to comply with federal and state equal employment opportunity and nondiscrimination requirements or their equivalents.  The Board of Governors of the University of North Carolina System, the State Board of Community Colleges, local boards of education, and each head of the Council of State agencies are encouraged and invited to participate in this Executive Order

(G.S )  (a)Policy. - “…..to encourage and promote the use of small, minority, women and physically impaired in State purchasing of goods and services. All State agencies, institutions and political subdivision shall cooperate with DOA..to achieve the purpose of this Article.  (b) Reporting. – Every governmental entity required by statute to use the services of DOA in the purchase of goods and services, every local school administrative unit, and every private, nonprofit corporation other than an institution of higher education or a hospital that receives an appropriations of $500,000. or more during a fiscal year from the General Assembly shall report to the DOA annually…”

(G.S )  (b) Reporting. – ………The same governmental entities shall include in their report what percentage of the contract bids for such where from such purchases. The DOA shall provide instructions to the reporting entities concerning the manner of reporting and the definitions of the businesses referred to in this act…”

NC DOA HUB Office, Raleigh Cabinet Agencies (10) Council Agencies (9) Supporting Agencies (13) Community Colleges (58) Public Schools (115) State Universities (19)

 Complete the Quarterly HUB Purchasing Report:   Submit the completed form by (preferred), or fax ( ).  Signed form may also be mailed to: HUB Office Address: N.C. Department of Administration Office for Historically Underutilized Businesses 1336 Mail Service Center Raleigh, NC

PeriodDatesReport Due 1st Quarter July 1 to September 30 October 30 2nd Quarter October 1 to December 31 January 30 3rd Quarter January 1 to March 31 April 30 4th Quarter April 1 to June 30 July 30

 Does your organization have a HUB Procedure?  Does your organization have a HUB Outreach Plan?  Does your organization have HUB Coordinator/Liaison to work with HUBs to increase their participation?  Where are HUB Coordinators/Liaisons located in your organizational structure?

 Does the HUB Coordinator/Liaison participate in contract award decisions?  Are there periodic reports at staff meetings?  Who in your organization is responsible for the HUB report?  Do you receive and review HUB participation reports?

 Take Control  Small Purchases ($5,000 and less)  Procurement Card Purchases  Term Contracts  Outreach  Attend Trade Shows & Procurement Conferences  Conduct Vendor Workshops  Inform Vendors of your needs and opportunities  Utilize your Web-Site  Advertise for potential vendors

 Overview of Informal & Formal Thresholds  Who is Required to Report & What to Report?  Good Faith Efforts

Statutes and House Bill for Reporting Contracts  Senate Bill 914, Session Law , December 6, 2001  G.S – Minority Participation Goals  G.S – Minority Business Administration  G.S – Informal bidding, effective date: January 1, 2002  G.S – Formal bidding, effective date: January 1, 2002  House Bill 73, Session Law  Threshold changes, effective date: August 23, 2007

 State percentage goal  Local Government percentage goal  Good Faith Efforts

 Reporting Administration  Specific Project Information  Report Format  Advisory Board Appointment

 Formal Construction Projects  >= $500,000  Informal Construction Projects  >= $30,000 < $500,000

 No requirement to formally advertise bids.  Lowest responsible, responsive bidder with contract  Required to maintain a record of minority contractors solicited and of all recruitment efforts

 Performance and Payment bonds for each contract over $50,000; that is a part of a project cost over $300,000.  Construction or repair projects costing over $300,000 must use only Single Prime, Separate Prime, Dual bidding, construction manager at risk, or alternative methods.  G. S sets out Goals for local governments to encourage HUB Participation

 GFE 1:10 points. Contacting minority businesses that reasonably could have been expected to submit a quote and that were known to the contractor or available on State or local government maintained lists at least 10 days before the bid or proposal date and notifying them of the nature and scope of the work to be performed.  GFE 2:10 points. Making the construction plans, specifications and requirements available for review by prospective minority businesses, or providing these documents to them at least 10 days before the bid or proposals are due.  GFE 3:15 points. Breaking down or combining elements of work into economically feasible units to facilitate minority participation.  GFE 4:10 points. Working with minority trade, community, or contractor organizations identified by the Office for Historically Underutilized Businesses and included in the bid documents that provide assistance in recruitment of minority businesses.

 GFE 5:10 points. Attending any pre-bid meetings scheduled by the public owner.  GFE 6:20 points. Providing assistance in getting required bonding or insurance or providing alternatives to bonding or insurance for subcontractors.  GFE 7:15 points. Negotiating in good faith with interested minority businesses and not rejecting them as unqualified without sound reasons based on their capabilities. Any rejection of a minority business based on lack of qualification should have the reasons documented in writing.

GFE 8:25 points. Providing assistance to an otherwise qualified minority business in need of equipment, loan capital, lines of credit, or joint pay agreements to secure loans, supplies, or letters of credit, including waiving credit that is ordinarily required. Assisting minority businesses in obtaining the same unit pricing with the bidder's suppliers in order to help minority businesses in establishing credit.  GFE 9: 20 points. Negotiating joint venture and partnership arrangements with minority businesses in order to increase opportunities for minority business participation on a public construction or repair project when possible.  GFE 10:20 points. Providing quick pay agreements and policies to enable minority contractors and suppliers to meet cash- flow demands.

 Currently Reporting Entities  ALL PUBLIC ENTITIES (Including)  State Agencies (15)  Universities (21)  Community Colleges (58)  All Local Government Entities  Municipalities (95)  Counties (53)  Public School Districts (67)  and Other special purpose local governments (31)

With respect to each building project:  Verifiable Percentage Goal  Type of Project  Minority business utilization by category  Trade  Total dollar value of contracts  Total dollar amount of project (construction and design)  Applicable Good Faith Efforts Achieved

 Web based application  Formal and informal construction projects.

 Visit our website at  Print out and complete HUBSCO Access Form  Fax the completed Access Form to Mathew Idiculla at  Access will be granted to the training site with a user ID and a password.  Mail original Access form including all signatures and you will be granted access to the live production site. HUB Office Address: N.C. Department of Administration Office for Historically Underutilized Businesses 1336 Mail Service Center Raleigh, NC

 Registered to HUBSCO System  95 Municipalities  53 Counties  67 Public School System  21 UNC General Administration & Universities and UNC TV  Minority Business Participation 21.01%  Total Construction Contract $741,801,663  Total Minority Participation $155,818680

Bridget Wall-Lennon, Director Management & Office Administration Patricia Jones, Office Manager Traci Fleming, Office Assistant Compliance Section Mathew Idiculla, Compliance Specialist Jerry Ryan, Statistician Outreach & Certification Section Sheryl Cromedy, Lead Certification Specialist Cassandra Herndon, Certification/Outreach Lena Robertson-Ridley, Outreach Coordinator Grover Burthey, Construction Coordinator Web: (919) Phone (919) Fax We Are Here to Assist YOU!