City of Virginia Beach

Minority Business Council

2013 Annual Report

November 26, 2013 Presented by Carla Bailey, MBC Chair

PURPOSE

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The MBC serves as an advisory

agency to the City Manager and

the City Council with respect to

the City's procurement policies

and procedures.

VISION & MISSION

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Our Vision: To be the leading influence in connecting

contractor resources with City opportunities and beyond.

Our Mission: To advance and facilitate an environment

of business opportunities, focusing on increasing

expenditures to minority and woman-owned businesses

by the City of Virginia Beach as a means to further the

City's economic development and vitality.

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We Meet:

• 2nd Friday of the month

• 3:00pm - 4:30pm

• Economic Development's office located at 222 Central Park

Avenue, 10th Floor, Suite 1000, Armada Hoffler Tower

• The public is invited to attend.

What We Do: The MBC provides information, guidance and

programs that enable business owners to understand how to

work with the City of Virginia Beach. Additionally, you may find

useful information relevant to contracting with other government

agencies.

When, Where & What

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Percent of Total Expenditures to Minority Firms

1.8%

3.0% 4.1%

3.1%

3.2%

1.8% 2.0%

3.4%

3.4%

5.4%

7.3%

6.6% 5.9%

5.2%

5.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Note:

Data Includes Minority

Women-Owned Firms

Top Priority By City Council 8/04 Retreat

A.D. 6.09 Adopted 8/07

10% Resolution Adopted 5/08

6/11 - Bond Waiver Program

9/11 - Small Business Enhancement Program

Expenditures: Minority: $2.3 $3.0 $4.9 $4.5 $5.5 $4.3 $5.3 $8.1 $7.6 $12.2 $14.1 $14.8 $13.5 $12.5 $12.9 Millions

Total: $123.0 $95.5 $119.8 $142.9 $171.5 $239.2 $265.4 $238.7 $224.3 $224.7 $193.3 $225.0 $227.6 $242.3 $240.4 Millions # of Firms: 53 44 122 144 127 138 143 160 135 141 167 140 131 135 105

FY 2013 – 94.6% of total expenditures to non-minority owned businesses

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Expenditure Data – Goods and Services

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

FY09 FY10 FY11 FY12 FY13

9.57% 9.19%

8.40%

8.97% 9.37%

Percentages of Expenditures to Minority Vendors Non-CIP Expenditures (Goods and Services)

Minority $ 10.3M 9.7M 8.9M 10.3M 10.8M Total $ 107.5M 105M 106.5M 114.7M 115.3M

FY 2013 – 90.63% of total Goods and Services expenditures to non-minority owned businesses

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Expenditure Data Construction/Capital

Improvement Projects (CIP)

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

FY09 FY10 FY11 FY12 FY13

4.48% 4.25% 3.74%

1.75% 1.68%

Percentages of Expenditures to Minority Vendors

CIP Expenditures (Construction/Capital Improvement Projects)

Minority $ 3.8M 5.1M 4.5M 2.2M 2.1M

Total $ 85.8M 120M 121.1M 127.6M 125.1M

FY 2013 – 98.32% of total Construction/CIP expenditures to non-minority owned businesses

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0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

African American American Indian Asian American Hispanic American

25.61%

1.15%

64.58%

8.66%

FY 2013 Minority Expenditures by Ethnicity

Total $3.3M $148,822 $8.3M $1.1M

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FY 2013 Bond Waiver Program Awards

Awarded Projects

Vendor

Contract

Amount

Rudee Loop Walkway Phase I Quality Enterprises USA, Inc. $227,646

Radio Site Prep at the Westin – Town Center E & P Electrical Contracting Inc. $143,500

Elevator Repairs at Building #18 Mosley General Contracting

(woman-owned)

$132,750

Virginia Aquarium Upland River Room Renovation Sussex Development Corporation $335,800

Fire Administration Bldg. Brick and Porch Repairs Mosley General Contracting

(woman-owned)

$97,500

Reheat Coils and Piping Replacement at Bldg. #18 Comfort Systems (woman-owned) $134,000

Judicial Center Air Handling Unit (AHU) Mosley General Contracting

(woman-owned)

$107,500

Tier 2 - Priority 3 Quick Connection Installation Best Repair Company $230,625

Tier 2 – Priority 2 Quick Connection Installation Four C Construction $201,410

ASC for Expansion Joint Sealant Repairs T.J. Crooks $358,850

Total Awards FY 2013 $1,969,581

Ordinance adopted by City Council on June 28, 2011

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FY 2013 Small Business Enhancement Program (SBEP) Implemented on August 6, 2012

Project

Prime Contractor

Total Bid

Amount

Modernization of Bow Creek Recreation Center

(Date awarded – June 12, 2013)

McKenzie Construction

Corporation and

Miracle Pools, Inc., A

Joint Venture

$21,569,193

Total Subcontracting Amount

$19,252,966

Total Number of Proposed SWaM-Certified

Subcontractors

32

Total SWaM-Certified Subcontracting Amount

(6 woman-owned firms and 26 small firms)

$14,620,655

Ordinance adopted by City Council on September 27, 2011

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Small Business Enhancement Program (SBEP)

Project

Prime

Contractor

Total Bid

Amount

Blackwater Fire & EMS Station Design/Build

(Date awarded – September 9, 2013)

RRMM Design Build

$4,097,902

Total Subcontracting Amount

$3,157,980

Total Number of Proposed SWaM-Certified

Subcontractors

28

Total SWaM-Certified Subcontracting Amount

(1 minority-owned, 4 woman-owned, 23 small-owned

businesses)

$2,634,807

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FY 2013 Urban Construction Initiative (UCI)

• There are about 20 active projects with shared

responsibility between VDOT and City.

• Lesner Bridge: first locally managed UCI project:

− Advertised on 9-22-13

− Mandatory pre-bid conference 10-16-13

− Bids due 12-17-2013

− Award anticipated mid to late 2014

− 8% DBE subcontractor requirement

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Significant Milestones • Creation of the region's first Minority Business Council ("MBC")-1995

• Establishment of a 10% aspirational goal for minority participation in

City contracts-2008

• De-bundling of City contracts

• Access to a comprehensive database of SWaM businesses

• City AD 6.09 requires solicitation of SWaM and SDV businesses

• MOU with Virginia Dept. of Minority Business Enterprises (DMBE)

• Creation of 3 positions to support minority programs (Minority

Business Coordinator, SWam Business Development Manager and

Title VI Civil Rights Coordinator)

• Adoption of the Bond Waiver Program

• Adoption of the Small Business Enhancement Program (SBEP)

• Locally administered UCI program

Examples of Regional Activities where

Virginia Beach represented

• 7 Cities in 7 Months Business Community Workshop -

Hampton Roads Messenger

• Civil Rights/UCI Annual Meeting - VDOT

• MBC Fall Expo 2012 & 2013 – Minority Business Council

• Minority/WBE Policy Forum – Portsmouth Public Schools

• Procurement and Purchasing Oversight Committee

(PPOC) – City of Hampton

• Small Business Seminar - Department of Business

Assistance

• Smart Thinking Seminar - City of Hampton and Hampton

Roads Messenger

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Summary 15

• Participation in Goods & Services - Not Bad Minority Business Expenditures $10.8M 9.4%

Women-Owned Expenditures $5.1M 4.4%

Service Disabled Veteran Expenditures $.4M .3%

Total Minority, Women & SDV Expenditures $16.3M 14.1%

Total Non-Minority and Non-Woman Owned Businesses $99.0M 85.9%

• Participation in Construction - Not Very Good

Minority Business Expenditures $2.1M 1.7%

Women-Owned Expenditures $8.6M 6.9%

Service Disabled Expenditures $.3M .2%

Total Minority, Women & SDV CIP Expenditures $11.0M 8.8%

Total Non-Minority and Non-Woman Owned Businesses $114.1M 91.2%

• Potential Future Impacts

Small Business Enhancement Program - subcontractors

UCI Program with defined DBE subcontractor participation

− Lesner Bridge Project – 8% DBE requirements

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Conferences and Expos

• Guest Speaker – Mark Cartwright – Special Assistant to the Governor for Supplier Diversity and Procurement Compliance

• 270 Attendees • Workshops

• “Financing Options for Small Businesses” • “Strategic Planning for Small, Woman and Minority Owned Businesses”

• Small Business Awards • Johnson, Mirmiran & Thompson, Inc.

• Outstanding Diversity Champion Business Award • MICOR Enterprises, Inc.

• Outstanding Minority-Owned Business Award • Global Martial Arts

• Outstanding Small-Owned Business • Homeland Contracting Corporation

• Outstanding Woman-Owned Business Award • Virginia Beach Parks and Recreation – Landscape Management

• Outstanding Exceptional Achievement Award

‘Going for the Gold – Your Competitive Advantage’

MBC 2012 Conference and Expo

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Minority Business Council

Conferences and Expos

• Guest Speaker – Floyd E. Wilson, Jr. • President/Owner of Floyd E. Wilson, Jr. & Associates

• 280 Attendees • Small Business Awards

• Grice Consulting • Outstanding Minority-Owned Business Award

• Manley Landscaping • Outstanding Small-Owned Business

• Mega Office Furniture • Outstanding Woman-Owned Business Award

• Virginia Beach Police Department • Outstanding Exceptional Achievement Award

MBC 2013 Conference and Expo

‘Removing the Barriers – Closing the Gap’

MINORITY BUSINESS COUNCIL

City Council Liaisons

Councilman Glenn Davis

Councilman Bob Dyer

School Board Liaison

Mrs. Jobynia Caldwell

Members

Carla Bailey– Chair

Sheila Johnson– Vice Chair

Amma Guerrier – Financial Counselor

Linda Bright – Secretarial Officer

Kelvin Arthur

Harshad Barot

Michael Lancaster

Justo Manglicmot

Delceno Miles

Ferdinand Perez

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