Lloyd W. Fernald, D.B.A.Lloyd W. Fernald, D.B.A.Professor EmeritusProfessor Emeritus

University of Central FloridaUniversity of Central Florida

Review of Orange County M/WBE Certification Process

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OverviewFindings & Recommendations

Staffing & Processing StandardsM/WBE Ordinance ProvisionsPolicies & Procedures ManualProcessing Statistics & ComparisonsProcessing DelaysCauses for DenialForum CommentsRecommendationsConclusions

Staffing & Processing Standards

Backlog caused by venues:

New Arena, Performing Arts, Citrus Bowl

Percentage Processed within 60 days

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Applications Received

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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.”

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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

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M/WBE Ordinance Provisions Roles of the M/WBE Advisory Committee:

1. Provide Advice to Compliance Officer and Board2. 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

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Policies & Procedures Manual

Implements the Ordinance

Comprehensive & Detailed

Currently Being Updated

County Attorney Legal Review

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Processing Statistics and Comparisons

Compared Statistics with: City of OrlandoMiami-Dade CountyPalm Beach CountyState of Florida

Processing Goals Vary from 30 - 90 Days

Annual Approval Percentage 75% to 85% Average for All Agencies

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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

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Causes for DenialMajor Causes for Denial:

Submission Lacked Required Documentation

Determining Business Ethnicity/Ownership

Not in Orlando MSA

Lacked Capability/Qualifications

Review Confirmed Validity of Denials

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M/WBE Forum Comments

Three Most Common Suggestions:Omit Qualifications/Capacity to Perform a Specific

Line of BusinessReciprocity Between Government OrganizationsBe More Proactive in Helping Firms Actually Obtain

Contracts

Also Mentioned:Eliminate Verification of Business Location Need to Streamline/Simplify Process

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Staffing Recommendations

Current Staffing is Marginally Adequate

Senior Contracts Administrator

Compliance Officer

Program Specialist (Part-Time Clerical)

Train Other Staff to Perform Certification Duties

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Processing Standards Recommendations

Continue Current Processing (Time Frame) Standard

Workshops:Hold More FrequentlyPost Videotape Workshops on WebsiteMandatory Attendance Prior to Application

Active in Business Minimum of Six Months

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M/WBE Procedures Manual 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”

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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

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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)

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Reciprocity Recommendation

Differing Requirements Among Various Agencies:OMSANet WorthQualifications and Capability to Perform

Schedule Review After Majority of Approved Recommendations are Completed

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Simplification and Streamlining Recommendations

Continue Current Efforts to Improve Web SiteApplication 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

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ConclusionsProcessing Time Adversely Affected by

Sudden Increase in Applications

Ordinance and Manual Essentially EffectiveRetain Requirements Re Ability to Perform &

Location Implement Legal Review Recommendation

Processing Goal (60 Days) Reasonable

Causes of Denial Appear Valid

Conclusions

Mandatory Workshops/Active Business

Advisory Committee Changes Essential

Reciprocity

Technology/Web Site Changes/Interactive Program Will Favorably Simplify/Streamline Process

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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