CHIEF PROCUREMENT OFFICER CITY OF CHICAGO SHANNON E. ANDREWS CHIEF PROCUREMENT OFFICER CITY OF CHICAGO National Organization of Minority Engineers (NOME) December 10, 2018

…are our guiding principles. INTEGRITY PUBLIC TRUST LAW …are our guiding principles.

2, 500 CONTRACTS & MODIFICATIONS ANNUALLY ABOUT DPS EQUAL OPPORTUNITY 2, 500 CONTRACTS & MODIFICATIONS ANNUALLY $10,000 TO $150 MILLION IN SIZE

STRONG FOUNDATION

23 LOCAL PROGRAMS AND INCENTIVES LOCAL MANUFACTURING ORDINANCE LOCAL BUSINESS PREFERENCE ORDINANCE PROJECT AREA SUBCONTRACTOR INCENTIVE VETERAN’S PREFERENCE BID INCENTIVE BEPD INCENTIVE DIVERSITY CREDIT PROGRAM ALTERNATIVELY POWERED VEHICLE ORDINANCE

MBI - I MBI - II SBI - I SBI - II SMALL & Mid-SIZED BUSINESS INITIATIVE CREATING A PIPELINE FOR SUCCESS 2x SBA size standards or smaller $10-20 million MBI - I TO DATE: 51 PROJECTS OVER $92 MILLION Upcoming: 40 projects MBI -I 8 MBI-II 15 SBI-I 9 SBI-II 8 1.5x SBA size standards or smaller $3-10 million MBI - II SBA size standards or smaller $2-3 million SBI - I One of the local programs we are most proud Small Business Initiative: The Small Business Initiative (SBI) is a program that creates jobs and opportunities in our neighborhoods. It provides a level playing field for small local businesses to compete in the construction realm, an area in which larger companies are often at an advantage. The program is race and gender neutral and exclusive to small businesses construction opportunities valued at $3 million and under. These opportunities are available for bid only to local firms meeting size standards set by the Small Business Administration (SBA). But we are always learning, and always open to feedback. We listen closely to our Assist Agencies and learned that a wide range of businesses can be classified as “small.” So, what if you are “very small?” How do you compete? In response to feedback from the small business community, the program has been divided into two tiers, SBI I and SBI II. This tiered system establishes standards that provide even greater opportunities for smaller businesses to compete for work. The first tier, SBI I, is for projects that are $3 million or less in total cost and can be bid by firms that do not exceed size standards of the Small Business Administration (SBA) per area of specialty. The second tier, SBI II, is for projects that are $2 million or less in total cost and can be bid on only by firms that do not exceed one half of the SBA size standards. Since the program began, we have awarded 51 contracts valued at over $92 million to small local businesses, where they are gaining experience as prime contractors. DPS works closely with our user departments to continually develop new SBI projects, which are featured in our Quarterly Buying Plan. The MBI Program was enhanced this year to significantly increase the number of opportunities available to small and mid-sized local businesses. Like the SBI Program, the MBI Program now has two tiers. MBI-1 projects are those with an estimated value of between $10 and $20 million. Bidding is limited to firms that are no greater than two times the SBA size standards. MBI-2 projects are $3-10 million in size and bidding is limited to contractors that are no greater than one and a half times the SBA size standards. In 2018, the City expanded its programs for small and mid-sized local businesses by creating a new Non-Construction Mid-Sized Business Initiative (NMBI) program. The NMBI program provides opportunities for mid-sized, local businesses that have exceeded the MBE/WBE certification size standards by up to 1.5x, to have the exclusive right to bid on certain non-construction projects valued between $3 million and $10 million. This creates a more level playing field for mid-sized local firms because they will be competing with similarly-sized firms when bidding on or submitting proposals for non-construction projects. This benefits both small and mid-sized local businesses, including MBEs, WBEs, and VBEs, since they will have increased opportunities to grow their businesses by acting as prime contractors on non-construction contracts awarded by the City.   ½ SBA size standards or smaller Under $2 million SBI - II

MENTOR PROTÉGÉ PROGRAM Additional 0.5% credit up to 5% utilization 1% bid incentive Encouraging Businesses to Help Each Other Mentor M/WBEs Subcontractors Mentor M/WBEs

EMPLOYMENT PROGRAMS AND INCENTIVES EQUAL EMPLOYMENT OPPORTUNITY PROJECT AREA RESIDENT ORDINANCE APPRENTICE UTILIZATION BID PREFERENCE EX-OFFENDER APPRENTICE UTILIZATION

APPRENTICE UTILIZATION RETURNING CITIZENS UP TO 1% FUTURE BID CREDIT CPS HIGH SCHOOL GRADUATES CONSTRUCTION TECHNOLOGY TRAINING PROGRAM

2019 VISION MOVING THE NEEDLE Strategic Partnership Industry Focused Areas Removing Hurdles

Transforming Government through Collaboration “While it’s early, there’s still a great deal to be learned from the efforts Chicago has made.”

COLLABORATIONS WITH ASSIST AGENCIES Funds to assist agencies to provide training and related assistance to current or prospective MBEs and WBEs Approximately 260 hours of training 50 unique training sessions Topics covered includes: Certification Application Preparation Core business skills such as business plans Financial coaching and bond-readiness OSHA training These efforts are paying off. To date, have assisted over 300 businesses.

MAKING THE CONNECTIONS We have goals on our programs, based on data, and mandated by ordinance. These goals include: MBE/WBE Construction: 26 % MBE/6 % WBE Non-Construction: 25% MBE/5 % WBE more than 50% City residents MINORITY BUSINESS ENTERPRISE WOMEN BUSINESS ENTERPRISE DISADVANTAGED BUSINESS ENTERPRISE BUSINESS ENTERPRISE owned by PEOPLE WITH DISABILITIES VETERAN BUSINESS ENTERPRISE AIRPORT CONCESSIONS DISADVANTAGED BUSINESS ENTERPRISE

MAKING THE CONNECTIONS CONSOLIDATED BUYING PLAN: 15 month forecast of hundreds of upcoming opportunities to help businesses plan Includes City of Chicago and 12 additional government agencies Directory of Assist Agencies with programs for local, small, minority, and women-owned businesses

E-procurement/MODERNIZATION STREAMLINE PROCUREMENT FROM TOP TO BOTTOM Digital Solicitations & Contracts Bidding & Evaluation Online Dedicated Microsite With Resources & FAQs In-Person and Online Training

Chief Procurement Officer, City of Chicago Shannon E. Andrews Chief Procurement Officer, City of Chicago Department of Procurement Services 121 N LaSalle Street, Rm. 806, Chicago, IL 60602 Phone: 312-744-9750 Fax: 312-744-0010 Please be assured that we are committed to providing competitive, fair, and transparent procurement services for the City of Chicago. There is no better time than now for the citizens of Chicago to grow their businesses and build a better future. We look forward to supporting all who are working to make that future a reality. Thank you. facebook.com/ChicagoDPS @ChicagoDPS youtube.com/ChicagoDPS cityofchicago.org/dps