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

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

3. 2, 500 CONTRACTS & MODIFICATIONS ANNUALLY
ABOUT DPS
EQUAL OPPORTUNITY
2, 500 CONTRACTS & MODIFICATIONS ANNUALLY
$10,000 TO $150 MILLION IN SIZE

4. STRONG FOUNDATION

5. 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

6. 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

7. 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

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

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

10. 2019 VISION
MOVING THE NEEDLE
Strategic
Partnership
Industry
Focused Areas
Removing
Hurdles

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

12. 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.

13. 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

14. 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

15. 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

16. 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: Fax:
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.
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