Supplier Diversity. Sub Committee. January 27, 2010
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1 Supplier Diversity Sub Committee January 27, 2010
2 SUPPLIER DIVERSITY MISSION To implement Best Practices that let the U of A to purchase from a diverse supplier base representative of our employees, students, and communities. The University of Akron is committed to making all contracts, services, benefits and opportunities available to businesses without discrimination on the basis of race, color, religion, sex, national origin, disability, age or ancestry.
3 CURRENT STATUS TOTAL 2008 SPEND TOTAL Total 2008 Spend Based on Paid Invoices. Over 300 Hundred spend categories. Approximately $183,000, Spend Includes approximately $464, Reimbursed to Employees. Ineligible Spend: Approximately $142,727, % of spend on Buildings, Medical/Life, Electricity. Credit Card Spend: Approximately $9,100,000.00
4 CURRENT BID AWARD PROCESS Bids > $25k posted to website. Bids < $25k credit card, sole source or competitive bids. Contact low bidder to verify the bid Review scope of work Create Bid Award Letter
5 CURRENT U OF A GUIDELINES Getting products/services specified Monitor The University of Akron website Contact appropriate buyer Must buy from lowest priced, qualified bidder. State Targets for EDGE and MBE.
6 EDGE ENCOURAGING DIVERSITY, GROWTH, AND EQUITY State program designed to facilitate access to government contracts and business services State EDGE certification only The EDGE program establishes goals for all state agencies for awarding contracts EDGE procurement contracts apply to: goods and services, professional services, information technology services, construction, architecture and engineering
7 MBE Minority Business Enterprise Designed to assist MBEs in obtaining state contracts through a set aside program for goods and services State MBE certification only Many don t apply
8 Where We Are? MBE/EDGE Business Participation Plan Outreach to qualified suppliers Host & attend EDGE forums EDGE Bids >$25,000 Tier 1 Spending Tier 2 Spending Working to identify MBEs for each spend category (300)
9 STATE SCORE CARD Governor s Executive Order Annual Performance Scorecard for all institutions of higher learning and cabinet agencies. Wide distribution of results EDGE goal = 5% of qualified spend MBE goal =15% of qualified spend
10 2Q2009 U of A state score card EDGE Second Quarterly Spend $11,290,132 w/o construction EDGE Purchases = $1,192,260 = 11% MBE Quarterly Spend $10,097,862 MBE Purchases = $3,938,166 = 39% NOTE: MBE score above has not been approved by state
11 Current Practices Corporations Discretionary spending Targets tend to be low < 3% Tier 1 & 2 spending Federal Reporting Ohio Institutions of Higher Learning governed by law & trustee rules Ohio Revised Code: Chapter 125:5 Board of Trustees: Some don t report (KSU & others) Programs w/o results
12 Recommendations Three Areas of Focus 1. Supplier Inclusion Develop a Web-based Process to Make Access Easier & More User Friendly 2. Community Engagement Engage the Diverse Business Community 3. Metrics Establish a Baseline Develop Milestones for Increased Participation in RFP Responses and Awards by Diverse-owned Businesses Improve the Perception of UA in the Community
13 Supplier Inclusion Increase the number of qualified suppliers by partnering with associations & economic development organizations Continue building relationships w/existing base Incorporate language in Bid Proposals & Procedures that provide EDGE/MBEs with increased opportunities for success Create a Strategy to Level the Playing Field EX: Matching fund, weighted system
14 Supplier Inclusion Create an on-line MBE supplier catalog for staff and faculty use 2009 <$25,000 Credit Card Spend = $9,100,000 Continue developing spend categories Continue developing Supplier Training On and off campus seminars Host Best Practices Forum for Institutions of Higher Learning
15 Community Engagement Expand UA Leadership Role in Community Supplier Diversity Conference May, 2010 Establish a Supplier Strategic Sourcing Outreach & Advisory Board Build U of A Brand Image as a Leader in Supplier Diversity EX; web site, reporting results, logos, recognition
16 METRICS Develop Metrics for Tier I & II Spending EX; Require Large Contractors to use Diverse Subcontractors Develop metrics to measure category spending Utilize electronic bid modules for on-line bidding and to monitor supplier inclusion data
17 Supplier diversity SUBCOMMITTEE Thank You Alan Parker John Myers Deborah Owens Zia Ahmed
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