HomeMy WebLinkAboutIR 9631 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9631
To the Mayor and Members of the City Council April 8, 2014
Page 1 of 2
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SUBJECT: CITY DEPARTMENTAL EXPENDITURES WITH MINORITY, WOMEN
rF AND SMALL BUSINESS ENTERPRISES
Purpose:
The purpose of this Informal Report is to provide City Council information on City departmental purchases
utilizing Minority and Women Owned Business Enterprise (M/WBE) and Small Business Enterprise (SBE)
vendors.
Background:
The Housing & Economic Development Department was asked to conduct an analysis of the current level
of City departmental expenditures with M/WBE and SBE vendors. The Business Diversity Enterprise
(BDE) Ordinance No. 20020-12-2011 approved on December 13, 2011 established the following goals;
Construction MBE 25%, Professional Services 15% and Small Business Enterprise 15%. For FY13,
spending goals on Professional Services and Small Business vendors for expenditures over $50,000 were
met. However, the Construction goal was not met due primarily to unforeseen outcomes associated with
the implementation of the revised BDE ordinance. The new ordinance increased the MBE contract
thresholds from $25,000 to $50,000 and decreased the number of counties in the marketplace from 9 to 6.
These revisions have resulted in an overall decrease in the number of available sub-contractors for
construction opportunities, while the overall goal was not reduced from the previous ordinance. The table
below details the FY13 M/WBE, MBE, and SBE participation expenditures for contracts $50,000 and over.
CONSTRUCTION NO. AWARDED $ M/WBE/MBE $ %
TOTAL CONTRACTS: 205 $204,184,617.23 100.00%
TOTAL M/WBE/MBE PRIME 21 $8,727,203.57 4.27%
CONTRACTS:
TOTAL M/WBE/MBE SUB 479 $28,190,566.23 13.81%
CONTRACTS:
CONSTRUCTION TOTALS: $204,184,617.23 $36,917,769.80 18.08%
PROFESSIONAL SERVICES NO. AWARDED $ M/WBE/MBE $
TOTAL CONTRACTS: 13 $45,872,127.50 100.00%
TOTAL M/WBE/MBE PRIME 4 $230,418.00 0.50%
CONSULTANTS:
TOTAL M/WBE/MBE SUB 22 $9,227,882.00 20.12%
CONSULTANTS:
PROFESSIONAL TOTALS: $45,872,127.50 $9,458,300.00 20.62%
SMALL BUSINESS ENTERPRISE NO. AWARDED $ SBE $ %
TOTAL CONTRACTS: 36 $14,320,197.08 100.00%
TOTAL SBE PRIME CONTRACTS: 4 $1,324,450.00 9.20%
TOTAL SBE SUB CONTRACTS: 79 $2,988,628.00 20.90%
SBE TOTALS: $14,320,197.08 $4,313,078.00 30.10%
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9631
To the Mayor and Members of the City Council April 8, 2014
Page 2 of 2
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SUBJECT: CITY DEPARTMENTAL EXPENDITURES WITH MINORITY, WOMEN
rF AND SMALL BUSINESS ENTERPRISES
After an internal review with several City departments, staff has determined that the technology does not
exist in the current systems to accurately capture a breakdown of M/WBE procurements under $50,000,
the M&C threshold. In order to capture the type of information to produce the type of reports requested,
the City will have to either implement a centralized purchasing software system with the capabilities to
directly conduct this type of analysis or alter the current purchasing process at the department level to
track the efforts of every purchase made under $50,000. The current information available to staff does
not allow for reports that can accurately be queried to break out purchases that have an opportunity for
M/WBE contracting versus those that do not. Although M/WBE purchases can be identified, a comparison
against the whole universe of available expenditures cannot be identified.
MBE staff is in the process of working with the Finance Department to determine the most efficient and
effective way to potentially alter the current purchasing process and systems so that the required
information can be captured as the new ERP system is implemented. Staff's goal is to begin capturing this
information in FY15.
For further information please contact Jay Chapa at 817-392-5804 or at
Jesus.Chapa @FortWorthTexas.gov.
Tom Higgins
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS