NOME Leadership Summit Chief Procurement Officer Presentation to NOME Leadership Summit Jamie L. Rhee Chief Procurement Officer City of Chicago www.cityofchicago.org/dps

DPS OVERVIEW CERTIFICATION & COMPLIANCE CONTRACTING AUTHORITY FOR THE CITY OF CHICAGO • Administers an open bid and solicitation process • Over 2,500 contract awards and modifications • Contracts range from less than $10,000.00 to $140,000,000.00 CERTIFICATION & COMPLIANCE • Manages new, renewed and ongoing certifications for 2,750 certified firms which include MBE, WBE, DBE, ACDBE and BEPD • Reciprocity with Cook County • 33% M/WBE participation (2015) • Nearly 300 site visits in 2015

Project Area Subcontractor Incentive Bid incentive for utilizing small local contractors from project area 77 Chicago Community Areas -Latest of the Bid incentives -Passed in City Council on April 15, 2015 Up to 2% bid incentive off the contract base price for prime contractors utilizing subcontractors whose facility and workforce is located within the Project Area of a City-funded construction job. -applied on a sliding scale The more project area subcontractors are utilized, the greater the bid preference. -1 to 16 percent of the total dollar value of work performed by project area subcontractors, a 0.5 percent bid reduction is applied to the contract base bid -17 to 32 percent =1 %bid preference -33 to 49 percent =1.5 % preference, -50 percent or more provides a 2 %preference.

Veteran’s Preference Bid Incentive 5 % bid incentive off the contract base price to joint ventures between small local businesses (many of which are also certified MBEs or WBEs) and veteran-owned businesses -Most aggressive Bid incentive in City’s history -5% bid incentive off the contract base price to joint ventures between small local businesses (many of which are also certified minority and women-owned businesses) and veteran-owned businesses.

M/WBE Mentorship Program MBE/WBE Initiatives M/WBE Mentorship Program  Established contractors willing to enter into a mentor/protégé relationship will be awarded  up to 5% additional utilization credit  November 2012, an established contractors willing to enter into a mentor/protégé relationship will be awarded  up to 5% additional utilization credit. 

DIVERSITY CREDIT PROGRAM MBE/WBE Initiatives Private sector firms obtain up to 5% utilization credit on a City contract for work performed by a certified firm on a prime’s private sector contracts $1 of credit will be issued for every $3 earned by the MBEs and WBEs on the private sector contract. MBE/WBE Initiatives Rewarding Businesses Who Do Work with Minority & Women Businesses Outside of Government Contracts October 2011, private sector firms obtain up to 5% utilization credit on a City contract for work performed by a certified firm on a prime's private sector contracts. $1 of credit will be issued for every $3 earned by the MBEs and WBEs on the private sector contract. One company in review with DPS Legal.

Government Procurement Compliance Forum Over 60 participants from 30 government entities and Non-for-profit assist agencies representing business

Government Procurement Compliance Forum Research practices of procurement, certification and compliance organizations Assemble best practices Make recommendations based on research and assessment of procurement environment Important to have participation from Assist Agencies in order to have feedback from the vendor community Creating opportunities for businesses to grow and thrive has been a top priority for Mayor Emanuel’s administration from Day One. Building on a series of efforts to create universal procurement, certification and compliance standards, we convened representatives from all levels of government, members of the Affirmative Action Advisory Board as well as non-profits representing the vendor community to address the key issues in government contracting.   This 60-member working group has evolved into the GPC Forum, with the mission to Drive bold, cross-agency improvements to make our region the benchmark for procurement, certification, and compliance processes that are streamlined, standardized, equitable, and transparent. Focus on: -Contract boilerplate -Payment processes -Standardizing certification & compliance rules

Procurement Reform Task Force - REPORT 31 recommendations Immediate (end of 1Q2016) Mid-Term (end of 4Q2016) Long-Term (2017 and beyond) Increase transparency for the public and reduce administrative burden Lower barriers to entry for small, local businesses and increase competition Delivered 1st quarterly status on April 15, 2016 Delivering annual progress report to City Council City’s Inspector General will make an annual independent evaluation of progress Available for download at www.cityofchicago.org/prtf

Publications-Consolidated Buying Plan 15 month forecast Hundreds of upcoming opportunities for 12 agencies

DPS Alerts DPS “On the Road” Nearly 10,000 subscribers learn about bid opportunities, and new programs weekly DPS “On the Road” Over 100 workshops and events in the community annually

DPS PUBLIC WORKSHOPS 18 different classes on procurement and certification related issues free to the public 3 new classes: How to Navigate City Auctions Intro to eProcurement Contract Payment Tracking: What You Need to Know Taught Wednesday afternoons at City Hall Livestreamed on YouTube

www.youtube.com/ChicagoDPS Additional transparency to the procurement process Livestreaming capability Broadcast all City of Chicago bid openings Broadcast all workshops Educational videos about topics related to procurement, certification and compliance