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Overview - Office of Equal OpportunityMission, Purpose, Processes

Prepared for Living Cities Peer to PeerFebruary 7, 2012

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Priorities

OEO Mission:To advance equal economic benefit for Clevelanders by ensuring compliance with contractor goals & requirements, by providing development and support activity for target groups & by advocacy, with commitment to excellent public service.

How? Effective administration, monitoring and enforcement of the City’s minority andfemale-owned business enterprise programs; the new programs for smaller, local businesses; and Fannie M. Lewis Cleveland Resident Employment Law programs.

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OEO PrioritiesCosts/benefits of business-government relations.

1. Increase the pool of M/F/CSB businesses seeking contracting opportunities from the City of Cleveland

2. Increase the average number of bidders on major contracts

3. Increase the number and dollar amount of M/F/CSB that receive contracts with the City of Cleveland

4. Ensure the contracting workforce of City contractors is representative of the demographic composition and diversity for the City of Cleveland; and

5. Adopt green building standards into capital projects to reduce operating costs and improve the environmental performance of city facilities and infrastructure.

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Ordinances

OEO implements and enforces on three Codified Ordinances:187 Cleveland Small Business187A Local Producer Sustainable Business188 Cleveland Resident Employment

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2010Entered contract with NERA for Disparity Study

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“Self Help”: invest locally/employ locallyGoal: to sustain Cleveland’s economy

How?Promote entrepreneurial parityInclusionGrowth firms/sustainable growthContract unbundlingWealth creationReject bids that do not reflect acceptable participation levels.

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Types of Contracts

Professional Services: specialized services (Architects, Engineers, Attorneys, Surveys, Strategic Planning, ect)

– Example: Feasibility Study and Strategic Plan for Burke Airport

Public Improvement: construction contracts that include labor, supplies and materials.

– Example: Renovation of the 668 Euclid BuildingRequirements Contract: the purchase of goods & services over a fixed timer period or up to a maximum dollar amount based on quantity.

– Example: Salt

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CERTIFICATION

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Certification Types

OEO certifies contractors in the followingdesignations:

Minority Business Enterprise (MBE)Female Business Enterprise (FBE)Cleveland-Area Small Business (CSB)LPESUBEStorefront Renovation Program

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Cleveland-Area Small Business (CSB)

A Business Enterprise is eligible for certification as a CSB:

City of Cleveland Small Business” or “CCSB” means a CSB that has its principal office located physically within the municipal boundaries of the City.Cleveland Contracting Market” or “Contracting Market” means the geographic market area consisting of Cuyahoga County, Ohio, or the geographic market area identified in a disparity study.

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Minority Business Enterprise (MBE)

A business enterprise is eligible for certification as a Minority Business Enterprise if:

The Business Enterprise is owned, operated and controlled by one or more Minority Persons who have at least 51% ownershipThe Minority Persons who own the Business Enterprise have operational and managerial control, interest in capital, and earnings commensurate with the percentage of ownershipThe Business Enterprise is located and doing business in the Cleveland Contracting Market

Ch. 187.05(a)

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Female Business Enterprise (FBE)

A Business Enterprise is eligible for certificationas a Female Business Enterprise if:

The Business Enterprise is owned, operated and controlled by one or more Females who have at least 51% ownershipThe female owners have operational and managerial control, interest in capital, and earnings commensurate with the percentage of ownershipThe Business Enterprise is located and doing business in the Cleveland Contracting Market

Ch. 187.05(b)

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Local Producer Sustainable Business

Local Producer ~ LPECompanies headquartered in the 5 county region (Cuyahoga, Geauga, Lake, Lorain and Medina) and supply goods or services in the region; as well as growers or producers of food that are headquartered in a wider fifteen-county region (the above counties as well as Erie, Huron, Richland, Ashland, Wayne, Holmes, Stark, Summit, Portage and Tuscarawas); Certified through OEO.

Eligible for a 2% BID DISCOUNT or 2 EVALUATION CREDITS

Sustainable Business ~ SUBECompanies headquartered in the 5 county region (Cuyahoga, Geauga, Lake, Lorain and Medina) which are certified as sustainable businesses through approved programs*; Certified through OEO.Eligible for a 2% BID DISCOUNT or 2 EVALUATION CREDITS

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Certification Registry

The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.

NAICS was developed by Office of Management and Budget (OMB), and adopted in 1997 to replace the Standard Industrial Classification (SIC) system.

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Benefits of Certification

Certification is your key to open doors to contracting opportunities with the City

Everything the City buys, from streets and sewers to toothpick and toilet paper, has subcontracting goals attachedYour certification makes you eligible to help prime contractors meet those goals

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Certification Process

Application ReviewApplication SubmissionInterviewsSite VisitsCertification Approval

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EVALUATION

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Evaluation – OEO Schedules

Schedule 1: Project Contact Information FormSchedule 2: Schedule of Subcontractor ParticipationSchedule 3: Statement of Intent to Perform as a SubcontractorSchedule 4: Subcontractor Unavailability/Impracticality

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Evaluation – Good Faith Effort

Opportunities for SubcontractingAvailability of CSB/MBE/FBE Potential SubcontractorsBidder’s Commitment to CSB/MBE/FBE SubcontractorsBidder’s Efforts to Subcontract to CSB/MBE/FBE Firms

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COMPLIANCE

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MBE/FBE/CSB Compliance

Chapter 187 – Cleveland-Area Business Code

Provides bid discounts to MBE/FBE/CSB prime biddersRequires that prime contractors make a good faith effort to contract with MBE/FBE/CSB subcontractors

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Cleveland Resident Employment Monitoring

Chapter 188 – Fannie M. LewisCleveland Resident Employment Law

20% of Construction Worker Hours done by Cleveland residents4% of the 20% (8 hours for every 1000 hours worked on the contract) done by low-income workers

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Resident Employment Law (Fannie Lewis Law)

Any public improvement contact in the amount of $100,000.

– Must place 20% construction hours for Cleveland residents.

– Must place 4% low income residents.

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C.O. 188 (Fannie M. Lewis Law)

Projects are subjected to a Five-part Significant Efforts test. If the contractor passes this test, they are deemed to have made a Significant Effort in obtaining Low Income Hours. The test points are as follows:1. Were any actions taken by the company to attempt compliance?2. Was contact made with OEO to discuss possible shortfalls before

or during the project & not after completion?3. Were there any special circumstances surrounding the project? 4. Was the Resident Hour requirement attained?5. Is the company routinely (>50%) non-compliant with Low Income

requirements?

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Monthly Reporting Affidavit (MRA)

Process:Contractors submit MRA each month, providing OEO with comprehensive data regarding payments made to MBE, FBE and CSB subcontractors, as well as Resident Worker Hour and Low-Income Worker Hour information where applicable.OEO provides training documentation to all contractors upon implementation of the MRA, and provides technical assistance to contractors on an as-needed basis.

Result/Outcome:Increases coordination between Contract Monitors and contractors in data collection and avoids data entry duplication.Flexible and user-friendly, allowing contractors to import workforce data from their own existing databases.Reduces paper consumption and physical file size by allowing contractors to submit some reports electronically.

NOTE: OEO is in the process of contracting with B2GNow, a real time contract compliance & diversity management software.

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City of Cleveland SpendComparison 2008, 2009, 2010

Year Annual Spend CSB CSBFBE

CSBMBE

CSBMBEFBE

FBE FBEMBE

MBE Total Participation

2008 $461,303.013.65 3.2% N/A N/A N/A 2.9% N/A 9.1% 15.2%

2009 $362,931,210.08 4.2% 5.1% 10.3% 1.1% 0.4% N/A 1.4% 22.5%

2010 $350,066,563.25 12.5%

3% 9% 0.9% 0.8% 0.7% 2% 28.9%

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OUTREACH

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Outreach - Certification

Working with all agencies to create a joint certificationEstablished working relationship with State of Ohio Edge Certification processConsistently partnering to identify joint opportunities for Technical Assistance.Working with Cleveland Clinic to ensure our Certification will maintain its value through there affirmative action programsEstablishing lasting partnerships with : NEORSD, SBA, CMHA, Cuyahoga County, State of Ohio, GRTA, GCP, Presidents Council, CAAO, WECO, MCBAP, SBDC Staff more visible at community events

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Attendance at Outreach EventsPartner with CMHA, Cuyahoga County, NEORSD, RTA, Urban League, HBA,Other

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2012 Major Tasks

Complete Disparity StudyImplementation of B2GNowDevelop Target markets programAlign OEO, WFD, EDPrevailing WageCSB PenaltyContracts Under $50,000Quarterly sub-contractor Meetings

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Q & A

Thank You