Lloyd W. Fernald, D.B.A. Professor Emeritus University of Central Florida

1. Review of Orange County M/WBE Certification Process Lloyd W. Fernald, D.B.A. Professor Emeritus University of Central Florida

2. Overview • Findings & Recommendations • Staffing & Processing Standards • M/WBE Ordinance Provisions • Policies & Procedures Manual • Processing Statistics & Comparisons • Processing Delays • Causes for Denial • Forum Comments • Recommendations • Conclusions

3. Staffing & Processing Standards Applications Received Backlog caused by venues: New Arena, Performing Arts, Citrus Bowl Percentage Processed within 60 days

4. M/WBE Ordinance Provisions • “A business acting or that will act as broker, front, conduit, or pass-through shall not be certified or re-certified as an M/WBE…” • Minority Programs Historical Perspective • “Contract awards will count towards M/WBE subcontract participation only for subcontractors who are certified in a specific line of work or business for which a defined scope of work is sought at the time of bid or proposal opening.”

5. M/WBE Ordinance Provisions • At Least 51% Ownership/ Actual Day-to-Day Management & Control • Operates Separately From Non-Minority or Woman-Owned Firm • Located in Relevant Market Area: Orlando MSA • Legally Organized • Demonstrates Capability to Perform Specific Line of Business/Provides Commercially Useful Business Function • Net Worth < $750K* *Revised to $2.3M on 8/26/09

6. M/WBE Ordinance Provisions • Roles of the M/WBE Advisory Committee: • Provide Advice to Compliance Officer and Board • Act As Appeals Committee * • Appeals Committee Deficiencies: • Lack of Formality (Structure, Procedure, Responsibilities) • Membership Criteria/Training/Oversight? • Meeting Cancellations *As Provided for in Certification Guidelines Implementing this Ordinance and Other Policies

7. Policies & Procedures Manual • Implements the Ordinance • Comprehensive & Detailed • Currently Being Updated • County Attorney Legal Review

8. Processing Statistics and Comparisons • Compared Statistics with: • City of Orlando • Miami-Dade County • Palm Beach County • State of Florida • Processing Goals Vary from 30 - 90 Days • Annual Approval Percentage 75% to 85% Average for All Agencies

9. Processing Delays • Major Causes for Delays in Processing: • Staffing/Outside Contractor • Failure by Firm to Submit • Financial Information • Articles of Incorporation and/or Organizational Structure • Other Documentation • Verifying That Firm is • “Owned” by Minority or Woman • Capability /Location

10. Causes for Denial • Major Causes for Denial: • Submission Lacked Required Documentation • Determining Business Ethnicity/Ownership • Not in Orlando MSA • Lacked Capability/Qualifications • Review Confirmed Validity of Denials

11. M/WBE Forum Comments • Three Most Common Suggestions: • Omit Qualifications/Capacity to Perform a Specific Line of Business • Reciprocity Between Government Organizations • Be More Proactive in Helping Firms Actually Obtain Contracts • Also Mentioned: • Eliminate Verification of Business Location • Need to Streamline/Simplify Process

12. Staffing Recommendations • Current Staffing is Marginally Adequate • Senior Contracts Administrator • Compliance Officer • Program Specialist (Part-Time Clerical) • Train Other Staff to Perform Certification Duties

13. Processing Standards Recommendations • Continue Current Processing (Time Frame) Standard • Workshops: • Hold More Frequently • Post Videotape Workshops on Website • Mandatory Attendance Prior to Application • Active in Business Minimum of Six Months

14. M/WBEProceduresManual Recommendations • Update the Current Procedures Manual • Adopt the October 2009 Draft Procedures Manual as an Administrative Order, or • Approve Manual and Change Ordinance to Authorize the Compliance Officer “to Act as Provided for in Certification Guidelines Implementing this Ordinance and Other Policies”

15. M/WBE Advisory Committee Recommendations • Advisory Committee Should Fulfill its Advisory Role Function • Improve Attendance of Committee Members at Meetings • Establish Separate M/WBE Appeals Committee with Voting members Comprised Entirely of Certified M/WBE Firms

16. Qualifications and Ability to Perform/Market Area Recommendations • Continue Requirements: • Qualifications and Capability to Perform a Specific Line of Business • Certifying Only M/WBEs within Local Area (OMSA)

17. Reciprocity Recommendation • Differing Requirements Among Various Agencies: • OMSA • Net Worth • Qualifications and Capability to Perform • Schedule Review After Majority of Approved Recommendations are Completed

18. Simplification and Streamlining Recommendations • Continue Current Efforts to Improve Web Site • Application Status Log • “FAQ” Section • “What’s New” Section • “M/WBE of the Month” Section • Review Web Site on a Monthly Basis • Favorably Consider Adoption of an Interactive Certification Application Process

19. Conclusions • Processing Time Adversely Affected by Sudden Increase in Applications • Ordinance and Manual Essentially Effective • Retain Requirements Re Ability to Perform & Location • Implement Legal Review Recommendation • Processing Goal (60 Days) Reasonable • Causes of Denial Appear Valid

20. Conclusions • Mandatory Workshops/Active Business • Advisory Committee Changes Essential • Reciprocity • Technology/Web Site Changes/Interactive Program Will Favorably Simplify/Streamline Process

21. Staffing & Processing Standards • Backlog (March 2009) • Venues: new arena, performing arts, Citrus Bowl • Outside Consultant: Jun 2008-May 2009 • Staff Workload • Processing Goals and Statistics