Small Business Enterprise Utilization Report JULY JUNE FY 2012 YEAR END
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1 Small Business Enterprise Utilization Report JULY JUNE FY 2012 YEAR END Small Business Opportunity Program City of Charlotte 600 East Trade Street Suite 300 Charlotte NC
2 The City of Charlotte is committed to creating a business environment for small businesses that fosters growth and sustainability, which in turn creates economic development in our communities. The City s Small Business Opportunity (SBO) Program is one vehicle that works to develop the educational and business opportunities of our small businesses. In Fiscal Year 2012 (FY12), total informal and formal discretionary spending equaled $414.9 million, with City-certified Small Business Enterprises (SBEs) making up $29.2 million of the total. The $29.2 million spend with City certified SBEs surpasses the 5% goal established by the City for spending with SBEs by 2.05 percent. One of the most significant SBO Program outcomes in FY12 was Council s decision on June 25, 2012 to accept and adopt the findings and analyses in MGT of America, Inc. s 2011 City of Charlotte Disparity Study Update Report*. The Disparity Study Update Report, which analyzed the City s utilization of Minority and Women-owned Business Enterprises (MWBEs), found significant disparities in some industry segments. As a result, on June 25, 2012 Council also directed staff to draft a Small Business Enterprise/Minority Women Business Enterprise (S/MWBE) Program that will incorporate race and gender conscious measures in the City s existing SBO Program. City staff, in collaboration with the City Council created Disparity Study Advisory Committee, anticipates presenting the new S/MWBE Program to Council for consideration in Spring Other significant SBO Program highlights for FY12 include: Negotiated six (6) SBE and/or MWBE Participation Goals for the following Public-Private initiatives: Mosaic Village; Knights Baseball Stadium; Ballantyne; Carson/South Boulevard; Elizabeth Avenue; and Double Oaks. On May 24, 2012 hosted the Inaugural Crowns of Enterprise Awards to recognize excellence in diversity and inclusion of small, minority and women owned businesses. Staff provided compliance services for 78 City construction contracts that met the established SBE Goal. Staff recommended five (5) bid rejections for SBO non-compliance. All were upheld by City Council. Payments to Minority and Women-owned Businesses totaled $53.9 million Subcontracting dollars to Minority and Women-owned Businesses increased for the third consecutive year to $14.6 million in FY12, up from $9.5 million in FY10 and $12.7 million in FY11 respectively. 110 new SBEs were added to the existing SBE roster and 113 SBEs successfully recertified. The City invested $10,000 in SBE training and development under the Advance Your Business initiative. Fiscal Year 2013 promises to be a busy year for the SBO Program as we work to ensure greater diversity and inclusion by designing a new Program that incorporates MWBE goals. We look forward to working with the Disparity Study Advisory Committee and all of our partners to ensure that Charlotte continues to engage and equip our small businesses for future success. Pat Mumford Director Neighborhood & Business Services Nancy Rosado Manager Small Business Opportunity Program 2
3 Small Business Enterprise (SBE) Citywide Total Spending For FY2012, the City established a 5% combined SBE Utilization Goal. During this reporting period, citywide informal and formal spending combined equaled $414,956,608; of this amount, $29,267,749 (7.05%) was spent with City certified SBE firms. DEPARTMENT Combined Informal & Formal Spending Combined SBE Utilization ($) Combined SBE Utilization (%) Aviation $68,260,705 $1,477, % Budget & Evaluation 1,439,498 2, % Business Support Services 19,786, , % Charlotte Area Transit 1 24,512, , % Charlotte Dept. of Transportation 39,309, , % Charlotte Fire Department 3,106, , % Charlotte-Mecklenburg Police 22,352, , % Charlotte-Mecklenburg Utilities 100,059,255 9,112, % City Attorney's Office 58,273 6, % City Clerk's Office 53, % City Manager's Office 3,615, , % Engineering & Property Management 107,741,486 14,462, % Finance 4,911, , % Human Resources 2,018,088 59, % Mayor's Office 75,803 14, % Neighborhood & Business Services 13,168,311 1,011, % Planning 357,416 8, % Solid Waste Services 4,128, , % Citywide $414,956,608 $29,267, % In FY12, CATS 1 experienced limited SBE opportunities with more than half of the locally funded discretionary expenditures being on core business purchases such as vehicles (transit bus/rail), transit vehicle/rail parts, gases, tires and fuel. 3
4 Small Business Enterprise (SBE) Informal Spending The City distinguishes City purchases as either Formal or Informal based on purchase type, dollar size, or solicitation method. The table below denotes all informal spending, which consists of all goods or service purchases less than $100,000 and construction contracts less than $200,000. During this reporting period, citywide informal spending equaled $183,744,267; of this amount, $14,712,825 (8.01%) was spent with City certified SBE firms. DEPARTMENT Informal Spending Informal SBE Utilization ($) Informal SBE Utilization (%) Aviation $18,762,788 $1,075, % Budget & Evaluation 418,894 2, % Business Support Services 9,082, , % Charlotte Area Transit 14,678, , % Charlotte Dept. of Transportation 15,037, , % Charlotte Fire Department 2,270, , % Charlotte-Mecklenburg Police 13,210, , % Charlotte-Mecklenburg Utilities 40,361,616 3,666, % City Attorney's Office 58,273 6, % City Clerk's Office 53, % City Manager's Office 3,004, , % Engineering & Property Management 49,204,620 6,761, % Finance 4,074, , % Human Resources 667,337 59, % Mayor's Office 75,803 14, % Neighborhood & Business Services 10,729, , % Planning 263,256 8, % Solid Waste Services 1,791,014 49, % Citywide $183,744,267 $14,712, % 4
5 Small Business Enterprise (SBE) Formal Spending The table below denotes all Formal purchases for goods or services more than $100,000 and construction contracts more than $200,000. During this reporting period, citywide formal spending equaled $231,212,339; of this amount $14,554,922 (6.30%) was spent with City certified SBE firms. DEPARTMENT Formal Spending Formal SBE Utilization ($) Formal SBE Utilization (%) Aviation $49,497,917 $402, % Budget & Evaluation 1,020, % Business Support Services 10,704,056 13, % Charlotte Area Transit 9,834, , % Charlotte Dept. of Transportation 24,272, , % Charlotte Fire Department 836,391 2, % Charlotte-Mecklenburg Police 9,142, , % Charlotte-Mecklenburg Utilities 59,697,639 5,445, % City Attorney's Office City Clerk's Office City Manager's Office 610, , % Engineering & Property Management 58,536,865 7,700, % Finance 837, % Human Resources 1,350, % Mayor's Office Neighborhood & Business Services 2,438, , % Planning 94, Solid Waste Services 2,337,832 88, % Citywide $231,212,339 $14,554, % 5
6 Minority / Women Business Utilization Citywide informal and formal spending totaled $414,956,608; of this amount, $53,969,160 (13.01%) was spent with minority and/or women-owned businesses. Work Category Target* Utilization (%) Utilization ($) Total Category Spend Architecture & Engineering % $3,170,757 $46,551,861 Construction % 7,326, ,716,971 Construction under $30K % 341,987 2,650,096 Goods & Supplies % 28,650,014 73,249,831 Other Services % 12,886, ,622,531 Professional Services % 1,593,799 12,165,318 Total 13.01% $53,969,160 $414,956,608 *Target derived by 2003 Disparity Study. Minority / Women Business Utilization Construction Subcontracting Utilization* Citywide spending for subcontracting dollars totaled $53,501,052; of this amount $14,601,340 (27.29%) was spent with minority and/or women-owned firms as subcontractors. Ownership Target** Utilization (%) Utilization ($) Asian American % $716,949 African American % 4,827,698 Non-Minority Female % 7,595,329 Hispanic/Latino % 803,186 Native American % 658,178 Total 27.29% $14,601,340 *Construction subcontracting utilization data reported by Engineering & Property Management, Charlotte-Mecklenburg Utilities, and Aviation. **Target derived by 2003 Disparity Study. 6
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