City Of Atlanta Diversity Programs Overview City of Atlanta Mayor’s Office of Contract Compliance Presentation Agenda * OCC Role in The Procurement Process * Elements of the Current Programs * OCC Program Administration Duties * Questions 1

Office of Contract Compliance Business Process Overview Office of Contract Compliance Business Process Overview The Office of Contract Compliance ("OCC") plays an important role in the City of Atlanta’s procurement process. The Office of Contract Compliance ("OCC") plays an important role in the City of Atlanta’s procurement process. OCC administers the City’s Small Business Enterprise (SBE), Equal Business Opportunity (EBO) and Federal Disadvantaged Business Enterprise (DBE) programs. OCC administers the City’s Small Business Enterprise (SBE), Equal Business Opportunity (EBO) and Federal Disadvantaged Business Enterprise (DBE) programs. The primary objective of the City’s inclusion programs is to ensure that non-discriminatory efforts are made to utilize small, minority, female owned, and disadvantaged firms on City projects at a level consistent with their availability. The primary objective of the City’s inclusion programs is to ensure that non-discriminatory efforts are made to utilize small, minority, female owned, and disadvantaged firms on City projects at a level consistent with their availability. Prime contractors receive utilization credit for subcontracting with companies that are certified by OCC or G-DOT (depending on program administered). Prime contractors receive utilization credit for subcontracting with companies that are certified by OCC or G-DOT (depending on program administered). 2

Office of Contract Compliance Business Process Overview Office of Contract Compliance Business Process Overview Diversity Programs must be supported by a legal disparity study Diversity Programs must be supported by a legal disparity study The City’s latest disparity study was completed in the 4 th quarter of 2009 along with the ratification of recommended changes to the City’s EBO ordinance The City’s latest disparity study was completed in the 4 th quarter of 2009 along with the ratification of recommended changes to the City’s EBO ordinance The current ordinance went into effect January 1, 2010 and includes a new race neutral SBE program. The current ordinance went into effect January 1, 2010 and includes a new race neutral SBE program. The ordinance and program changes did not affect projects that were active or in process prior to the implementation of the current program. The ordinance and program changes did not affect projects that were active or in process prior to the implementation of the current program. The previous program categorized projects into four (4) main groups: The previous program categorized projects into four (4) main groups: 1) General Construction 1) General Construction 2) Heavy Construction 2) Heavy Construction 3) Construction Related Professional Services 3) Construction Related Professional Services 4) Non-construction related Professional Services & Other Commodities 4) Non-construction related Professional Services & Other Commodities 3

Elements of Current COA EBO & SBE Programs Based on the 2009 disparity study which forms the basis for our current program, small, minority and female owned firms availability in the Atlanta market place has been classified into category I, II, or III type projects in the following areas: MBE Goal FBE Goal SBE Goal MBE Goal FBE Goal SBE Goal Construction (AABE Only) Up to 35% Professional, Scientific, & Tech Svcs (AABE/APABE/HABE) 8.30 Up to 35% Finance and Insurance (AABE Only) 8.30 Up to 35% Admin Suppt, Waste Mgt, & Remed. Svcs (AABE ONLY) 4.70 Up to 35% Information (AABE Only) 8.30 Up to 35% Manufacturing (AABE/HABE) 6.10 Up to 35% Transportation and Warehousing (AABE/HABE) 0.00 Up to 35% Wholesale Trade N/A N/A Up to 35% Retail Trade N/A N/A Up to 35% Arts, Entertainment, and Recreation N/A N/A Up to 35% Other Services (Except Public Admin) N/A N/A Up to 35% 4

Elements of Current COA EBO & SBE Programs Projects are categorized based on the North American Industry Classification System (NAICS) codes of the dominate trade necessary to complete the given project. The NAICS code of the dominate trade indicates if a project will be classified as a category 1, category 2, or category 3 type of project. Projects are categorized based on the North American Industry Classification System (NAICS) codes of the dominate trade necessary to complete the given project. The NAICS code of the dominate trade indicates if a project will be classified as a category 1, category 2, or category 3 type of project. 5 Category For Contracts Valued NAICS CODESNAICS Description Threshold Value Below Threshold At or Above Threshold 23Construction25 MillionCategory 3Category Manufacturing10 MillionCategory 3Category 2 42Wholesale TradeN/ACategory Retail TradeN/ACategory Transportation and Warehousing10 MillionCategory 3Category 2 51Information10 MillionCategory 3Category 2 52Finance and Insurance10 MillionCategory 3Category 2 53Real Estate and Rental and LeasingN/ACategory 1 54Professional, Scientific, and Tech Services10 MillionCategory 3Category 2 55Management of Companies and EnterprisesN/ACategory 1 56Admin Support, Waste Mgt, and Remediation Services10 MillionCategory 3Category 2 62Health Care and Social AssistanceN/ACategory 1 71Arts, Entertainment, and RecreationN/ACategory 1 72Accommodation and Food ServiceN/ACategory 1 81Other Services (Except Public Admin)N/ACategory 1

Project Development or other pre-planning meetings The new program makes it necessary for a representative of OCC to attend project development meetings User departments must ensure that OCC is in attendance. The new program makes it necessary for a representative of OCC to attend project development meetings User departments must ensure that OCC is in attendance. In order to craft the appropriate Appendix “A” requirements document for inclusion in the bid solicitation, OCC must obtain the following information during the pre- planning meeting: In order to craft the appropriate Appendix “A” requirements document for inclusion in the bid solicitation, OCC must obtain the following information during the pre- planning meeting: a) The dominant trade and work scopes for the project b) Funding source for the project (any Fed funds?) c) Project duration d) Any sole source equipment or special circumstances 6

Elements of Current COA EBO & SBE Programs OCC will administer the SBE program on all eligible projects classified as category 1 type. OCC will administer the SBE program on all eligible projects classified as category 1 type. OCC will administer the EBO program on all eligible projects classified as category 2 type. OCC will administer the EBO program on all eligible projects classified as category 2 type. OCC will administer the EBO and SBE programs on all eligible projects classified as category 3 type to achieve a minimum 60% - 40% ratio respectively. OCC will administer the EBO and SBE programs on all eligible projects classified as category 3 type to achieve a minimum 60% - 40% ratio respectively. 7

OCC Administration of Diversity Programs OCC engages in the following activities in the administration of the City’s diversity programs: OCC engages in the following activities in the administration of the City’s diversity programs: Manage the certification process for Small, Minority, and female owned firms (DBE handled by G-DOT) Manage the certification process for Small, Minority, and female owned firms (DBE handled by G-DOT) Attend Project Development or other pre-planning meetings Attend Project Development or other pre-planning meetings Craft “Appendix A” requirements documents for inclusion in BID/RFP documents Craft “Appendix A” requirements documents for inclusion in BID/RFP documents Attend Pre-proposal conferences to orally give program requirements and answer questions Attend Pre-proposal conferences to orally give program requirements and answer questions Respond to written EBO/SBE/DBE related questions from proponents prior to proposal due dates Respond to written EBO/SBE/DBE related questions from proponents prior to proposal due dates Evaluate submitted RFP proposals for program responsiveness to the applicable diversity requirements Evaluate submitted RFP proposals for program responsiveness to the applicable diversity requirements 8

OCC Administration of Diversity Programs Submit recommendation letters to DOP based on proposal evaluations Submit recommendation letters to DOP based on proposal evaluations Attend Post award meetings and verify program commitments and facilitate monthly reporting procedures Attend Post award meetings and verify program commitments and facilitate monthly reporting procedures Analyze monthly participation reports Analyze monthly participation reports Perform spot audits and implement corrective action as warranted Perform spot audits and implement corrective action as warranted Mediate contractor disputes Mediate contractor disputes Perform contractor community outreach Perform contractor community outreach 9

Elements of Current EBO/SBE Programs The City of Atlanta determines on a case by case basis if contracting opportunities will have a joint venture or mentor protégé requirement ($5 Million) The City of Atlanta determines on a case by case basis if contracting opportunities will have a joint venture or mentor protégé requirement ($5 Million) Companies involved in Joint Venture or Mentor Protégé arrangements must be of different race or gender ownership. Companies involved in Joint Venture or Mentor Protégé arrangements must be of different race or gender ownership. The Federal DBE program does not have a joint venture requirement The Federal DBE program does not have a joint venture requirement 10

Both EBO and SBE Certification processes requires the company to be located within the Atlanta region consisting of the following counties: Elements Of Current SBE and EBO Program Certification Requirements 11 Cherokee Fayette Clayton Fulton Cobb Henry Dekalb Gwinnett Douglas Bartow Rockdale Barrow CarrollCoweta ForsythNewton SpauldingPickens PauldingWalton

Elements Of Current SBE and EBO Program Certification Requirements EBO Program EBO Program The majority shareholder must have bona-fide racial or ethic membership as African-American, Female, Hispanic, Asian (Pacific Islander) The Native American ethnicity is no longer included in the program. The majority shareholder must have bona-fide racial or ethic membership as African-American, Female, Hispanic, Asian (Pacific Islander) The Native American ethnicity is no longer included in the program. Minority or female owner shall possess at least 51% of the business; such ownership shall be real and continuing and shall go beyond the mere indicia of ownership of the business reflected in the ownership documents. Minority or female owner shall possess at least 51% of the business; such ownership shall be real and continuing and shall go beyond the mere indicia of ownership of the business reflected in the ownership documents. Minority or female owner shall enjoy the customary incidents of ownership and shall share in the risk and profits commensurate with their ownership interests, as demonstrated by an examination of the substance, rather than of ownership arrangements. Minority or female owner shall enjoy the customary incidents of ownership and shall share in the risk and profits commensurate with their ownership interests, as demonstrated by an examination of the substance, rather than of ownership arrangements. 12

Elements Of Current SBE and EBO Program Certification Requirements SBE Program SBE Program The COA SBE program includes a self certification process for Small Business Enterprises. The COA SBE program includes a self certification process for Small Business Enterprises. All City of Atlanta SBE Self-Certification applicants must review the SBA (revenue or number of employees) size standards identified by the North American Industry Classification System (NAICS) All City of Atlanta SBE Self-Certification applicants must review the SBA (revenue or number of employees) size standards identified by the North American Industry Classification System (NAICS) The SBE program includes a “Sheltered Market” provision that allows the OCC director (in concert with the CPO) to designate certain procurements as available for competition among COA certified SBE firms only. The SBE program includes a “Sheltered Market” provision that allows the OCC director (in concert with the CPO) to designate certain procurements as available for competition among COA certified SBE firms only. 13

OCC Outreach Programs Staff members from the Office of Contract Compliance participate in numerous outreach sessions each year. These sessions are designed to encourage firms to participate in the City’s Programs. Staff members from the Office of Contract Compliance participate in numerous outreach sessions each year. These sessions are designed to encourage firms to participate in the City’s Programs. The Office of Contract Compliance continues to encourage firms to take advantage of the various training and development opportunities provided by local trade associations, alliances, colleges and universities. The Office of Contract Compliance continues to encourage firms to take advantage of the various training and development opportunities provided by local trade associations, alliances, colleges and universities. 14

Doing Business With The City Of Atlanta Questions ? 15