2016 Supplier Diversity Campus Conversation INSPIRE. INNOVATE. IMPACT. Darryl A. Peal, Executive Director Office for Business and Community Economic Development April 27, 2016 BUSINESS & COMMUNITY ECONOMIC DEVELOPMENT

The mission of the Office for Business & Community Economic Development (BCED) is to contribute to the economic growth, development and prosperity of Minnesota’s urban communities. BCED is a social enterprise whose purpose is to leverage the assets and resources of the University to create programs and services that provide innovative solutions to real-world social-economic problems that impact urban communities. Office for Business and Community Economic Development (OBCED) INSPIRE. INNOVATE. IMPACT.

Community Health Initiative (CHI) CHI, in partnership with Medica, provides paid internships and consulting projects focused on health care disparities of minorities U of M graduate students. enrolled in the Medical School, CHI awards scholarships to students who aspire to be healthcare professionals or who are currently enrolled in the Medical School, School of Social Work or School of Public Health. Technology Empowerment Center (TEC) TEC provides opportunities for economically disadvantaged individuals and families to get desktops or laptops for their homes. TEC provides over 300 free computer classes a year (ranging from introductory IT to advanced software utilization and cyber security). INSPIRE. INNOVATE. IMPACT.

A proactive business process that encourages the use of historically underutilized women, minority & disabled owned businesses enterprises (WMDBE) for the purchase of goods or services. Supplier Diversity is a business strategy designed to provide diverse suppliers equal access to purchasing opportunities It is a best practice that creates competition, cost savings, economic growth and innovation What is Supplier Diversity? INSPIRE. INNOVATE. IMPACT.

In November 1996, the Board of Regents adopted a policy governing University purchases from businesses owned and operated by underrepresented minorities, women, and disabled persons (targeted businesses). Central to the Implementation of the policy OBCED was created to provide vision, leadership, monitoring and reporting. This policy reaffirmed that the University should act aggressively both to promote the utilization of these targeted businesses and to prevent discriminatory practices against such firms. In a letter to the campus community on February 16, 2016, President Kaler stated “I am asking each of you to renew your commitment to this policy and to support the efforts of OBCED so it may continue to successfully implement the goals and objectives of this program throughout the University”. Supplier Diversity at U of M INSPIRE. INNOVATE. IMPACT.

Reduction of poverty and unemployment in the urban community is of vital interest to the University and part of its outreach and public service mission. The University should foster economic growth in the urban communities of which it is a part. The University shall take advantage of opportunities, presented by its construction projects and its contracts for goods and services, to promote the training and employment of urban community residents in skilled trades and professions. Board of Regents Policy INSPIRE. INNOVATE. IMPACT.

The Targeted Business Program requires that a contractor, as a condition of bidding on any construction contract where the aggregate project sum exceeds $100,000, and on goods and service contracts where the project sum exceeds $50,000, present objective evidence demonstrating: (1) its past record and continuing commitment to achieve meaningful levels of participation of targeted businesses as subcontractors and suppliers (2) its commitment to achieve meaningful levels of employment of minorities, women and disabled persons. Targeted Business Program INSPIRE. INNOVATE. IMPACT.

The Urban Community Economic Development program requires, as a condition of any construction contract where the aggregate project sum exceeds $100,000, that the contractor: (a) employ meaningful numbers of residents of urban communities, such communities designated by the administration based upon levels of poverty and unemployment (b) collaborate with the University in the development, funding and implementation of programs designed to train residents of such urban communities and to increase the number of such urban residents who are skilled and union-certified in building trades to participate in construction projects at the University and elsewhere. The state of Minnesota requires 35% Diverse Workforce Utilization. Urban Community Economic Development Program “Diverse Workforce Utilization” INSPIRE. INNOVATE. IMPACT.

Monitoring The Board further directs that the administration monitor, and take all reasonable actions necessary to ensure, compliance with the policy and programs. Reporting The president shall report to the Board annually regarding the implementation of this policy, and shall recommend additional actions that may be necessary to achieve its purposes. Oversight INSPIRE. INNOVATE. IMPACT.

After analyzing the University of Minnesota goods and services spend data, the Office for Business and Community Economic Development (OBCED), in partnership with Purchasing, recommended that we: Reduce the thresholds from $500,000 to $50,000 to increase the number of contracting opportunities for WMDBEs. Designed and implemented a process to identify and track WMDBE firms on MBid sourcing tool. Purchasing to add additional WMDBE suppliers and is also flagging WMDBE content in U Market. Created a “dashboard” to track each unit’s spend data and provide analysis to identify opportunities for increased targeted supplier spend. Partnered to host a matchmaking event to introduce WMDBEs to University decisions makers and external partners. As a result of the matchmaker in November, 2015 the number of WMDBEs registered in MBid System have increased by 300 businesses. New Focus on Spend INSPIRE. INNOVATE. IMPACT.

Cascade President Kaler’s Supplier Diversity message down through your organization Work with OBCED to identify WMDBEs when requesting three bids for purchases under $50,000 Be willing to utilize or incorporate new brands and products when making purchasing decisions Don’t automatically renew existing purchase agreements without creating a competitive process that includes discussions with WMDBEs Participate in University Matchmaker/Expo and other WMDBE recruitment and networking events Register to compete in the University of Minnesota (OBCED) Awards Incentive Recognition (AIR) program What you can do to increase WMDBE Utilization INSPIRE. INNOVATE. IMPACT.

Q&A INSPIRE. INNOVATE. IMPACT.