Division of Finance and Administration Supplier Diversity Program Procurement Services. Tallahassee, Florida
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1 Division of Finance and Administration Supplier Diversity Program Procurement Services Tallahassee, Florida
2 12 Month Operating Plan Table of Contents I. Introduction A. Background Information.. B. Mission, Vision and Commitment.. C. About Florida State University (FSU) Supplier Diversity Program (SDP). D. Highlights of Program Activities II. Proposed Outreach Activities III. Planned Educational Activities IV. Summary Addressing Past Contracting Including a Breakdown of Contracting with Minority, Veteran and Women Owned Businesses SMV/WBE V. Subcontracting Reporting. 9 VI. Steps for Internal Implementation of the Plan.. VII. Accountability for Implementation of Plan FSU Regulation Supplier Diversity Program (SDP) FSU Supplier Diversity Brand and Logo List of Charts Chart A. Primary Activities within Each Key Strategy for FSU s Plan...5 Chart B. Depiction of FSU Organizational Implementation Schematic for the SDP...10 List of Tables Table 1. FSU Minority Vendor Activity Three-Year History.. 7 Table 2. FSU Minority Vendor Activity by Spending Category Three-Year History.7 Table 3. FSU Annual Small/Minority Business Expenditures Report
3 I. INTRODUCTION A. Background Information The Supplier Diversity Program (SDP) is administered by Procurement Services in partnership with Facilities Design & Construction. The mission of Procurement Services is to serve the University community by procuring commodities and services required to carry out the University s mission of education, research and service. Within the venue of public service, the focus of the SDP is to invest in small businesses located within and beyond the communities in which we live, work and do business. B. Supplier Diversity Mission, Vision and Commitment Mission: To expand relationships and enrich economic opportunities for businesses, including small, minority, veteran and women-owned business enterprises as required fulfilling the University's mission of education, research and service. Vision: To have a supplier base that reflects the broad diversity of our students, faculty, staff, and communities while providing the highest quality support services that are consistent with a world-class status the University seeks to achieve. Commitment: To develop relationships and increase our business participation with small, minority, veteran and women owned business enterprises in a fiscally responsible manner. C. About the FSU SDP 12-Month Operating Plan FSU continues to implement its efforts in an inclusionary manner aimed at enhancing the participation of qualified small businesses in state contracting to include minority, veteran and women owned business enterprises. This document reflects the University s market-driven approach toward continued development for a broadened level of business participation. Through educational and outreach activities the University will enhance its commitment of equity in contracting and procurement. D. Highlights of Program Activities FSU SDP theme is: Begin Building Relationships that Enrich Economic Opportunities Key accomplishments for the previous year are as follows: Submitted a Small Business Participation Plan for year to the Florida Department of Management Services Office of Supplier Diversity (OSD). Submitted Quarterly Small Business Expenditure Reports to OSD followed by an end of the year total expenditure report. Completed the pilot program with the College of Medicine to increase awareness of diverse spending, while encouraging small acts of inclusion by its buyers that yielded a 235% spend increase with diverse businesses during FY 13/14. Continued member relationship with the FSU Diversity & Inclusion (D&I) Community Relations committee that recognizes internal diversity and inclusion activities while highlighting and promoting 3
4 current university successes. An executive partner with the Alliance of Entrepreneur Resource Organizations (AERO), based in Tallahassee, a coalition of public agencies and community nonprofit organizations united to provide current and new businesses with resources to aid in their success. Captured second tier expenditures from construction prime contracting firms and large vendor firms to include Office Depot, Aramark, WW Grainger, and VWR. Maintained the use of the Supplier Diversity Webpage to inform viewers of FSU s commitment to investing in the communities in which we not only work and live but also educate, research, and deliver a myriad of services. A small, minority, veteran and women business enterprise (SMV/WBE) was spotlighted on the SDP website every two months. Collected 2 nd tier spend data as reported by prime contracting firms on their subcontract utilization of SMV/WBE. Continued external outreach to SMV/WBEs through participation in the 21 st Annual Big Bend Minority Enterprise Development (MED) Week activities; the 31 st Annual Small Business Week activities and the Fourth Annual Tallahassee Regional MatchMaker Conference. Held one-on-one office meetings with small business firms to educate them on our SDP and on how to do business with FSU. Recruitment of small business owners while attending the OSD Northeast Florida Regional Matchmaker event held in Jacksonville. Participated in one-on-one sessions with businesses interested in doing business with FSU. II. Proposed Outreach Activities Coordinate meet & greet events between small business owners and major contracting firms that are awarded major construction projects to expand relationships and provide subcontracting opportunities. Inform businesses about development and contract opportunities with FSU when attending community outreach events. Serve on the planning committee for the Big Bend MED Week, the Small Business Week celebrations and the Annual Tallahassee Regional MatchMaker Conference. Participate in local and statewide vendor regional matchmaker events and conferences, round-table discussions, seminars, and one-on-one sessions with current and prospective vendors to promote inclusive business utilization (building strategic alliances, doing business at FSU, etc.). Continue participation with AERO, a partnership with the FSU School of Business Jim Moran Institute and other local organizations providing services to entrepreneurial and small business owners while providing a single source website of information about each partner organization. Plan and coordinate the 2015 FSU vendor show to include Spearmart vendors and diverse contract suppliers. 4
5 Chart A. Primary Activities within Each Key Strategy for FSU s Plan KEY STRATEGIES ONGOING OBJECTIVES I. Leadership, Faculty & Staff Involvement II. Education & Outreach III. Benchmarking & Best Practices IV. Communication V. Reporting/ Development VI. Monitoring A pilot initiative with FSU Housing to extend Small Acts of Inclusion with SMV/WBEs and to raise awareness with staff members that requisition to procure goods and services Facilitate the SDP Small Business Participation Council (SBPC) with the Associate Director of Procurement Services as chair. Continue to participate in forums, workshops, SMV/WBE networking events and meetings with various partners and University personnel to expand awareness of the FSU SDP. Ensure Construction Management firms host a meet & greet events with SMV/WBE to increase subcontract opportunities on major construction projects. Attend the NAEP semi-annual Supplier Diversity Institute while networking with universities from across the USA. Participate in monthly working group meetings with OSD and periodically attend other contracting professional association conferences to benchmark progress and best practices. Serve on the FAMU Small Business Development Center Advisory Board. Communicate university-wide plan of inclusionary procurement and contracting processes that are tied to the University s vision, mission, goals and objectives. Participate in area and regional SDPs such as matchmakers and seminars for ongoing external outreach and internal awareness among vendors and buyers. Visit with campus requestors and approvers to encourage increased use of small businesses in the procurement of goods and services. Provide updates to the SDP webpage and promote its accessibility to small businesses and staff internal to FSU. Partner with Facilities to encourage prime contracting firms to host one-on-one network meetings with small businesses and to obtain second tier spending information with SMV/WBE. Work closely with supply chain partners to strengthen the data retrieval process on expenditures with second- and thirdtier suppliers. Work closely with the Procurement Services staff, Facilities staff and major contracting firms to ensure inclusionary considerations are extended to SMV/WBEs in the procurement process. Increase actual spend with SMV/WBE to reflect fiscal year results of 14.3 percent. 5
6 Procurement Services will lead FSU s SDP and facilitate this initiative in partnership with Facilities, Design and Construction. III. Planned Educational Activities As opportunities arise, the University will continue to conduct various activities and educational programs to meet its objectives. Activities, in broad terms, are noted below: Pilot initiatives with colleges/departments to extend Small Acts of Inclusion with SMV/WBEs and to raise awareness with staff members who requisition the procurement of goods and services. Encourage prime contractors to conduct workshops (meet & greet events) for sub-contractors to expand relationships while developing strategic alliances, joint ventures and partnerships, as well as increase participation in FSU contract and procurement opportunities. Participate in the new vendor orientation presentation that s available on Procurement Services website. Continuous meetings with internal Procurement Services staff to provide insight on available small businesses, and the use of the bidder/vendor directories to ensure a pool of diverse vendors for consideration. IV. Summary Addressing Past Contracting Including a Breakdown of Contracting with Minority, Veteran and Women Owned Businesses FSU seeks to award contracts to small businesses, including minority, veteran and women owned business enterprises. The University will continue to implement its program with a focus on its key strategies: Leadership, Faculty, Staff Development & Involvement, Education/Outreach, Benchmarking & Best Practices, Communication, Reporting/Data Management and, Monitoring In addition, FSU will continue to develop all required reporting elements, and utilize its Enterprise Resource Planning system to retrieve required data on procurement and payment related activity. Below is a summary of FSU s spending including both certified and non-certified minority, veteran and women-owned business enterprises. FSU continues to expand relationships through-out the State of Florida while enriching economic opportunities greater than the year before for SMV/WBE. During FY 13-14, the University spent a total of $229,637,094 with all vendors and suppliers, large and small, compared to $218,296,442 spent during FY and $248,638,522 spent during FY This represents a 5.2% increase in total spending between FY & FY and a decrease of 7.6% over FY Spending with minority firms during FY increased to 9.1%, compared to FY at 7.3% and to FY at 6.3%. See tables below for actual spend. 6
7 Table 1. FSU Minority Vendor Activity - Three-Year History VENDOR ACTIVITY % Change 12/13-13/14 % Change 11/12-13/14 Certified MBEs $10,924,605 $10,237,511 $13,510, % 23.7% Non-Certified MBEs $4,647,007 $5,599,341 $7,484, % 61.1% Non-Profit $7,397 $17,173 $7, % -0.8% Total Activity $15,579,009 $15,854,025 $21,002, % 34.8% Table 2. FSU Minority Vendor Activity by Spending Category - Three-Year History SPENDING CATEGORY % Change 12/13-13/14 % Change 11/12-13/14 Construction $6,368,647 $6,896,205 $12,198, % 91.5% Architecture/ Engineering $1,582,384 $1,111,855 $183, % -88.4% Commodities $5,306,712 $5,302,091 $5,620, % 5.9% Contractual Services $2,421,266 $2,543,874 $3,000, % 23.9% Total Spending $15,579,009 $15,854,025 $21,002, % 34.8% 7
8 Table 3. FSU Annual Small/Minority Business Expenditures Report Annual Small/Minority Business Expenditures Report FLORIDA STATE UNIVERSITY July 1, 2013 to June 30, 2014 CATEGORY MBE CODE CONSTRUCTION ARCH & ENG COMMODITIES SERVICES TOTAL NO. DOLLARS NO. DOLLARS NO. DOLLARS NO. DOLLARS NO. DOLLARS NON-MBE: NON-MINORITY A ,006, ,169,745 32,403 65,182,767 7,565 15,724,204 40,421 $111,082,935 SMALL BUS ST B ,192, ,654,362 8,152 8,839,256 5,896 8,766,018 14,445 $39,451,898 SMALL BUS FED C , ,232 2,635 8,673, ,541,357 3,635 $13,630,679 MBE FED D , , $17,577 GOV'T AGENCIES E 0 101, ,532 1,218 14,519, ,170,011 1,889 $18,828,865 NON-PROFIT ORG F ,352, ,583, $17,936,331 P.R.I.D.E. G , , $46,553 TOTAL NON-MBE: 553 $47,684, $4,892,280 44,777 $109,619,834 15,432 $38,797,461 61,088 $200,994,838 CMBE: AFRICAN AMERICAN H , , $387,573 HISPANIC AMERICAN I 6 34, , , $513,012 ASIAN AMERICAN J 2 2, , , $588,823 NATIVE AMERICAN K , $17,000 AMERICAN WOMAN M ,282, , ,331, , $11,987,186 TOTAL CMBE: 121 $10,320, $110, $2,416, $646, $13,493,595 NON-CMBE: 0 AFRICAN AMERICAN N , , $212,866 HISPANIC AMERICAN O 0 98, , , $824,490 ASIAN AMERICAN P , , $674,104 NATIVE AMERICAN Q , ,682 7 $14,261 AMERICAN WOMAN R 21 1,779, , ,001, ,684,511 1,843 $5,538,215 TOTAL NON-CMBE: 21 $1,877,818 2 $73,096 1,113 $3,047, $2,265, $7,263,936 NON-PROFIT: MIN BD DIRS S $0 MIN EMPLOYEES T $1,270 MIN COMM SERVED U , , $7,335 OTHER NON PROF V 3 288, , ,175, $2,196,469 TOTAL NON-PROF: 3 $288,143 0 $0 233 $736, $1,180, $2,205,074 OTHER CLASSIF: CERT SVC DISABLED VET W ,500 1 $16,500 NON-CERT SVC DISABLED VET Y , , $220,764 NO SELECTION Z , ,783, , $5,442,388 TOTAL OTH CLSSF: 0 $0 1 $48, $4,936, $694, $5,679, GRAND TOTAL: 698 $60,170, ,124,874 47, ,756,913 17,408 43,584,428 66,152 $229,637,094 SOURCE: Florida State University Procurement Services, Facilities, and OMNI/ERP 8
9 V. Subcontracting Reporting FSU schools and departments have a very good working relationship with major contracting firms. Upon request, each firm has provided a list and report of SMV/WBEs they subcontracted with and the amount of spending with these small businesses. The SDP Coordinator carefully reviews subcontractors utilized to determine whether or not businesses are certified with the State Office of Supplier Diversity, Federal SBA and/or a State of Florida governmental municipality. The spending, termed second tier, is included in FSU s expenditure reports provided to senior management and the State Office of Supplier Diversity. Prime construction contracting firms are requested to encourage their subprime contractors to report spending with SMV/WBE at the third tier" level for services rendered only on FSU projects. VI. Steps for Internal Implementation of the Plan The University will develop plans for capturing data that will more effectively identify contract bid invitations, responses and awards as it pertains to SMV/WBEs. Facilitate a pilot initiative with FSU Housing to extend Small Acts of Inclusion with SMV/WBEs and to raise awareness with staff members that requisition to procure goods and services Planned meetings with University staff (campus buyers) responsible for the department/college purchasing to encourage diversity purchasing and highlight opportunities for selection of diverse businesses. The SBPC will monitor and track the business plan progress while continuing to encourage full participation, effective outreach, and implementation of the FSU diversity initiative with SMV/WBE to diversify the University s supply base. Statistical reporting with charts is provided for each step listed above generating discussion about progress and strategies to expand relationships with small businesses while increasing economic opportunities. VII. Accountability for Implementation of the Plan The Procurement Services Director along with the Supplier Diversity Procurement Specialist will provide direction for the University s SDP. In addition, the University will receive direction from the established SBPC to successfully implement the 12-Month Operating Plan, chaired by Procurement Services Associate Director. The key purpose of the SBPC is to foster a diverse supply base, and in the process, improve its outcomes regarding expenditures with that diverse supply base. 9
10 Board of Trustees (BOT) Small Business Participation Council Chair: Supplier Diversity Program Karen Gibson, Associate Director Procurement Services Edward E. Acoff, Procurement Specialist 10
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