METROPOLITAN NASHVILLE BOARD OF EDUCATION May 8, 2012 MNPS Diversity Business Enterprise (DBE) Program 1

2 Introductions History of DBE at MNPS GCA Contract (DBE content) DBE Outreach & Vendor Information Future Plans & Considerations

3 Ken Murdock – MNPS Director of Facility Planning & Construction (FPC) Gary Appenfelder – MNPS Director of Purchasing Akeela Christian – FPC Administrative Assistant Gwen Sims Davis – Sims Strategic Diversity Consultants Michelle Lane – Director of Metro Business Assistance Office (BAO)

4 Consolidated report on the activities and data for both Construction and non-Construction purchases June 2002 – FPC contracts Sims Associates (Gwen Sims Davis) to create and manage a DBE Program The critical components of the program, including a Diversity Policy, were developed and implemented. These include the following:

5 Policy Statement of FPC DBE Program: It is the policy of the Metropolitan Nashville Public Schools department of Facility Planning and Construction (FPC) that Minority Business Enterprise firms, Women Business Enterprise firms, and Small Business Enterprise firms (collectively MWSBE) shall have the maximum opportunity to participate in performance contracts awarded for the construction and renovation of public schools in Nashville and Davidson County.

6 The FPC encourages and promotes equal business opportunities for Minority, Women, and Small Business Enterprises (MWSBE) to participate in the district’s capital improvement projects. The FPC does not exclude any person or business from participation in and/or otherwise discriminate against anyone in connection with the award and performance of any contract on the basis of race, color, sex, national origin, or any other basis prohibited by law.

7 In administering the Diversity Business Enterprise (DBE) Program, the FPC will not, directly or through contractual or other arrangements, use criteria or other methods of administration that shall have the effect of defeating or impairing the objectives of the Diversity Business Enterprise (DBE) Program with respect to individuals of a particular race, color, sex, or national origin. The FPC procurement practices shall be non-discriminatory and shall promote equal procurement opportunity to all.

8 Key Activities of the FPC DBE Program: Create and maintain a web site to communicate upcoming projects, and provide all DBE forms and processes Create and maintain database of identified Minority, Women, and Small Business Enterprises (MWSBE) Attend pre-bid meetings to ensure that prime contractors and consultants are aware of and follow the DBE requirements

9 Key Activities of the FPC DBE Program (cont.): Conduct meetings, conferences, and communications with MWSBE’s, business associations, and other agencies to inform these groups of opportunities to provide construction, services, and materials Monitor and report quarterly to Metro BAO on DBE participation levels

– Contract with Sims Associates ends. Ms. Davis had joined the State of Tennessee as Commissioner of General Services 2007 – FPC contracts 3H Management (Rob Horton) to manage the MNPS DBE Program as created by Sims Associates MNPS voluntarily adopts the Metro Procurement Non-Discrimination Program (PNP) requirements for RFP’s

11 PNP requirements for bidders/proposers – Obtain a current listing of registered Minority/Women- owned Business Enterprises (MWBE) from the Metro BAO – Reach out to (contact) at least 3 MWBE vendors in a “good faith” effort to investigate subcontracting opportunities BAO monitors bidder/proposer compliance Bidders/proposers are given additional award evaluation points for Small Business content

– contract terminated by 3H Management 2011 – pending future capital funding and construction activity, FPC manages the DBE Program in-house (Akeela Christian) 2012 – anticipating new capital project funding, FPC recommends new contract award to Sims Strategic Diversity Consultants (Gwen Sims Davis) to manage the DBE Program moving forward

13 MNPS Consolidated DBE Spend History FY08-09FY09-10FY10-11FY11-12 Minorities$5.4M$9.8M$14.2M$9.3M 2.7% 3.4% 5.1% 5.7% Women-owned$11.3M$6.8M$14.4M$7.5M 5.6% 2.4% 5.2% 4.5% Small$5.0M$20.1M$32.0M$24.0M 2.5% 7.0% 11.5% 14.6% Total$21.7M$36.6M$60.6M$40.8M 10.7% 12.7% 21.7% 24.8% FY11-12 data is through first 3 qtrs

14 The contract with GCA for custodial and groundskeeping services contains specific requirements for MWBE subcontractor participation: Year 1 – $.91M (4%) met Year 2 – $1.25M (5.5%) on track to exceed Year 3 – $1.59M (7%) Year 4 – $1.93M (8.5%) Year 5 – $2.27M (10%) Total$7.95M

15 MWBE partners currently subcontracted by GCA: Devmar Products – custodial supplies Building Maintenance & Consulting Services – custodial supplies Diversified Chemical & Supply – custodial supplies Reynolds & Reynolds – custodial services (Amqui ES, Bailey MS, Bordeaux ES, Maplewood HS) Bestway Janitorial – custodial services (Buena Vista ES, Kirkpatrick ES)

16 DBE Event Participation by MNPS Metro BAO Annual Business Symposium Annual Unified Vendor Diversity Day Nashville Alliance of Diversity Business Coordination (NADBC) Mayor’s Minority Business Advisory Council

17 Information Available to DBE Vendors MNPS Construction Web Site – Bid calendar – Current projects – DBE registration forms, instruction, database – Historical statistics on DBE purchases MNPS Purchasing Web Site – Current solicitations for bids/proposals – Instructions for registering to receive notification of solicitations – Historical statistics on DBE purchases

18 Update DBE Strategy, Policies and Procedures Review identification process for DBE firms Verify MNPS DBE database is accurate and inclusive Reach out to DBE firms through networking & communication Consider Mentoring & Training programs

19 Audit compliance and reporting data submitted by contractors Evaluate the Construction Delivery Method to maximize DBE participation to prime contractors Standardize DBE reporting between construction and non-construction contracts/purchases Broaden scope of services from Sims Strategic Diversity Consultants to include management of all MNPS DBE efforts

20 Q&A

21 Construction DBE Spend History FY08-09FY09-10FY10-11FY11-12 Minorities$1.6M$.7M$.5M$.1M 4.3% 1.2% 1.7%2.5% Women-owned$6.3M$1.7M$.9M$3.9M 16.8% 3.1% 3.0%11.6% Small$2.8M$2.2M$3.3M$1.3M 7.7% 3.9% 11.1%3.7$ Total$10.7M$4.5M$4.7M$5.3M 28.8% 8.2% 15.8%15.5%

22 Non-Construction DBE Spend History FY08-09FY09-10FY10-11FY11-12 Minorities$3.9M$9.1M$13.7M$9.2M 2.8% 3.9% 5.5%7.1% Women-owned$4.8M$5.1M$13.5M$3.6M 3.4% 2.2% 5.4%2.7% Small$4.4M$17.9M$28.7M$22.7M 3.1% 7.7% 11.5%17.4% Total$13.0M$32.1M$55.9M$35.5M 9.3% 13.8% 22.4%27.2%