91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study By Jesse Moore Director Office of Supplier Diversity Development Purdue University

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study OUTLINE Background Program overview Program evaluation

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study BACKGROUND Substantial underutilization of many MBE/WBE groups Underutilization in construction, professional services, and procurement Purdue University disparity study, December 2010

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Overall Availability Results by Group Race, ethnicity and gender African American-owned3.8 % Asian-Pacific American-owned1.2 Subcontinent Asian American-owned2.2 Hispanic American-owned1.0 Native American-owned0.3 Total MBE8.5% WBE (white women-owned)9.3 Total MBE/WBE17.8% Majority-owned 82.2 Total100.0% Utilization benchmark (availability %) Purdue’s Response to the 2010 Indiana Disparity Study Note: July 2006 – June 2009

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Overall Utilization Results by Group Race, ethnicity and gender MBE/WBEs African American-owned1.0% Asian-Pacific American-owned0.4 Subcontinent Asian American-owned0.3 Hispanic American-owned0.6 Native American-owned0.2 Total MBE2.5% WBE (white women-owned)8.5 Total MBE/WBE 10.9% Majority-owned 89.1 Total 100.0% Certified MBE/WBEs African American-owned0.8% Asian-Pacific American-owned0.1 Subcontinent Asian American-owned0.2 Hispanic American-owned0.2 Native American-owned0.0 Total MBE certified1.3% WBE (white women-owned) 5.2 Total MBE/WBE certified6.6% Non-certified 93.4 Total 100.0% Utilization % Purdue’s Response to the 2010 Indiana Disparity Study Note: July 2006 – June 2009

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study Overall Disparity Results Native American Hispanic American Subcontinent Asian American Asian-Pacific American African American WBE MBE/WBE Note: July 2006 – June 2009

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study Board Resolution- May 2011 Develop program of policies to encourage MBE/WBE utilization Necessary and proper actions to carry out Resolution’s purpose and intent

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study ACCESS Program Advocating Consistent Contracting to Engage Small businesses for Success

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study ACCESS Program Purdue University recognizes the importance of equal opportunity and supplier diversity in the University’s contracting and procurement processes. The University has developed the Advocating Consistent Contracting to Engage Small Businesses for Success (ACCESS) Program to encourage the utilization of small businesses, including minority- and women-owned businesses. Through the Program, Purdue aims to increase the utilization of all small businesses, including minority- and women-owned businesses, in its contracting and procurement, while preserving the integrity of the University’s competitive and public contracting and procurement processes.

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study ACCESS Program Tracks Track 1 Year 1 = Evaluation Year 2 Year 3 Track 2 (if necessary) Track 3 (if necessary)

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study Track 1—Outreach, mentoring, data collection Can be implemented quickly with no legislative changes More information about business opportunities o Conexus Indiana o Advertising opportunities in centralized location on Purdue website More information about utilized and interested businesses  Bidders list  Improved contract and vendor data  Subcontractor commitment data  Subcontractor payment data

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study Track 1—Outreach, mentoring, data collection Increased mentoring, technical assistance  Development of task force  Certification guidance Increased small business utilization  Notify all small businesses about procurement opportunities  Unbundle large construction contracts into smaller elements  Small business considerations as part of “lowest and best” Race and Gender Neutral

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study Track 2—Contract requirements and awards May require some legislative changes Invoked if, based on evaluation of Track 1, Purdue determines that: Further measures still needed to encourage small business utilization MBE/WBEs still underutilized Provide bonding assistance Partially or fully subsidize bonding for small businesses Limited to certain, small construction contracts

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study Track 2—Contract requirements and awards Small business goals program  Goals for small business participation  Subcontracting commitments or good faith efforts  Limited to certain construction and professional services contracts Explore the use of construction managers  Large construction contracts with multiple contract elements  Letting contracts, budget and timeline, and contract compliance Race and Gender Neutral

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study Track 3—MBE/WBE goals Race and Gender Specific MBE/WBE goals program May require more extensive legislative changes Invoked if, based on evaluation of Tracks 1 and 2, Purdue determines that MBE/WBEs underutilized Program will be “narrowly tailored:”  Necessity of program and determining eligible groups  Flexibility and duration of program, including waivers  Relationship of goals to labor market  Impacts on the rights of third parties

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study Track 3—MBE/WBE goals Overall annual aspirational goals  Based on availability and other information  Monitoring and assessment tools Contract-specific goals  Contract-by-contract basis  Subcontracting commitments or good faith efforts  Limited to certain construction and professional services contracts MBE/WBE certifications

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study PROGRAM EVALUATION Evaluation critical to success of the program  Degree of small business participation  Underutilization of any MBE/WBE groups  Whether next track of program measures necessary Comprehensive analysis and evaluation  Quarterly basis  Efficacy of tracks and individual measures  Small business and MBE/WBE utilization  MBE/WBE disparities  Monitoring and assessment tools

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study PROGRAM EVALUATION Semi-annual report  Measures that Purdue used  Efficacy of individual measures  Overall program efficacy  Any challenges implementing specific tracks, measures  Recommendations for additional tracks, measures Continued participation in disparity studies

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Purdue’s Response to the 2010 Indiana Disparity Study THANK YOU QUESTIONS AND ANSWERS