1 GOAL STATEMENT Improve the contributions of certified minority, women, and socially and economically disadvantaged small businesses to the Washington State economy through their increased utilization in public contracting and procurement

2 GMAP Initiative Work with state agencies to increase purchases from minority and women owned firms by facilitating access to opportunities and increasing the capacity of certified firms

3 Issue #1: Low participation of minority and women- owned businesses in public contracting Lack of genuine outreach, opportunity, and inclusion continues to be a problem for ethnic communities and the state economy

4 Certified firms doing business with the state

5 Certified firms doing business with the state (cont.) WBE MBE Approximately 8% of certified firms actually did business with state agencies in FY05

6 Certified firms doing business with the state (cont.) Women Asian American Hispanic Black American Indian (Breakdown of MBE’s into specific ethnic groups)

7 CHART 3 M/WBE Expenditures and Goal Achievement By Class of Contract

8 Strategies:  Collaborate with Governor’s Policy Office, General Administration, and Capital Projects Advisory Review Board  Identify Opportunities  Conduct Genuine Outreach  Set project goals

9 Issue #2: Prime Contractor Planning and Reporting It is difficult to plan for and measure the usage of OMWBE certified firms

10 FY04: MBE – 0.71% WBE – 0.96% FY05: MBE – 0.70% WBE – 1.13% Revenue earned by certified firms (in millions)

11 Best Strategies for Public Owners:  Improved quality control  Drive costs out of construction  Enterprise risk management

12 Issue #3: Prompt payment of vendors and contractors Small businesses need cash flow to survive and grow

13 Strategy:  Subcontracts should be paid when the work is done

14 Issue #4: Right size contracts and subcontracts for small businesses Size of contracts/subcontracts determines the ability of small businesses to bid and be successful

15 Strategy:  When possible, unbundle state contracts

16 Issue #5: Waive or reduce performance bonds and insurance requirements Maintaining bonds and insurance is cost prohibitive

17 Strategies:  Waive or reduce bonding for low risk subcontracts  Reduce insurance requirements and insurance costs

18 BEST PRACTICES – PROCESS FAIRNESS Opportunities must be Real Competitive and Fair Bidding Process Open and Honest Communications

19 “… the need for economic prosperity for minority businesses is critical to the Washington State economy.” Governor Christine Gregoire “Accountability… for delivering the best results that are most important to citizens.”