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GOAL STATEMENT

GOAL STATEMENT. Improve the contributions of certified minority, women, and socially and economically disadvantaged small businesses to the Washington State economy through their increased utilization in public contracting and procurement. GMAP Initiative

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GOAL STATEMENT

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  1. GOAL STATEMENT Improve the contributions of certified minority, women, and socially and economically disadvantaged small businesses to the Washington State economy through their increased utilization in public contracting and procurement

  2. GMAP Initiative Work with state agencies to increase purchases from minority and women owned firms by facilitating access to opportunities and increasing the capacity of certified firms

  3. Issue #1: Low participation of minority and women-owned businesses in public contracting Lack of genuine outreach, opportunity, and inclusion continues to be a problem for ethnic communities and the state economy

  4. Certified firms doing business with the state

  5. Certified firms doing business with the state (cont.) Approximately 8% of certified firms actually did business with state agencies in FY05 WBE MBE

  6. Certified firms doing business with the state (cont.) (Breakdown of MBE’s into specific ethnic groups) Women Asian American Hispanic Black American Indian

  7. CHART 3 M/WBE Expenditures and Goal Achievement By Class of Contract

  8. Strategies: • Collaborate with Governor’s Policy Office, General Administration, and Capital Projects Advisory Review Board • Identify Opportunities • Conduct Genuine Outreach • Set project goals

  9. Issue #2: Prime Contractor Planning and Reporting It is difficult to plan for and measure the usage of OMWBE certified firms

  10. Revenue earned by certified firms (in millions) FY04: MBE – 0.71% WBE – 0.96% FY05: MBE – 0.70% WBE – 1.13%

  11. Best Strategies for Public Owners: • Improved quality control • Drive costs out of construction • Enterprise risk management

  12. Issue #3: Prompt payment of vendors and contractors Small businesses need cash flow to survive and grow

  13. Strategy: • Subcontracts should be paid when the work is done

  14. Issue #4: Right size contracts and subcontracts for small businesses Size of contracts/subcontracts determines the ability of small businesses to bid and be successful

  15. Strategy: • When possible, unbundle state contracts

  16. Issue #5: Waive or reduce performance bonds and insurance requirements Maintaining bonds and insurance is cost prohibitive

  17. Strategies: • Waive or reduce bonding for low risk subcontracts • Reduce insurance requirements and insurance costs

  18. BEST PRACTICES – PROCESS FAIRNESS • Opportunities must be Real • Competitive and Fair Bidding Process • Open and Honest Communications

  19. “… the need for economic prosperity for minority businesses is critical to the Washington State economy.” Governor Christine Gregoire “Accountability… for delivering the best results that are most important to citizens.”

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