Howard County Conducted More Than 28% of All Purchasing in FY 2015 With MBEs

Quote from County Executive Allan H. Kittleman

“Inclusiveness is a core value that makes Howard County such a desirable place to live. In fiscal year 2015, the County conducted more than 28 percent of all purchasing with Minority Business Enterprises (MBEs), Women Business Enterprises (WBEs) and Disabled Business Enterprises (DBEs). Mahesh’s continued work with minority business owners has been essential to making sure there are opportunities for everyone in Howard County,” said County Executive Allan H. Kittleman.


Mahesh Sabnani Bio

Question # 1
Tell us about your job description, duties and who you report to? How long have you been in this position?
I currently serve as the Equal Business Opportunity (EBO) Program Coordinator for Howard County Government and have been in this position for about 5 years. I report to the County Purchasing Administrator. In this capacity, I am tasked with implementing various strategic business development initiatives to help create a diverse and inclusive contracting environment, by expanding economic opportunities for minority business enterprises.  

Some of my job duties are listed below:
• Prepare quarterly and annual minority utilization reports, waiver reports, and certification reports
• Responsible for data collection, data analysis and presentation to key stakeholders relating to minority utilization within the County
• Prepare and present EBO reports to the Howard County EBO Commission
• Educate and assist the minority business community on the procurement process and equal business opportunity initiatives of the County
• Responsible for planning and coordinating outreach activities to include; event management, advertising, partnering with allied organizations, planning workshops and designing outreach materials
• Represent the County on panels, in speaking opportunities, at outreach trade shows and in the minority business communities on matters relating to supplier diversity
• Create and implement strategies to identify businesses eligible for EBO certification and encourage them to get certified with the County
• Review applications for Howard County EBO certifications and maintain a vendor database
• Review subcontracting participation plans on contracts and evaluate good faith efforts prior to approving subcontracting goal waivers
• Conduct contract compliance audits on prime contractors for EBO subcontracting payments and participation
• Make recommendations regarding policies and procedures to further advance the goals of the EBO Program

      
Question # 2
As Equal Business Opportunity Program Coordinator what type of projects do you come in contact with?
Howard County is committed to creating a more diverse and inclusive business environment. With the support of our top leadership, the Equal Business Opportunity Program serves as a key business imperative and is firmly embedded within our procurement practices.

To this effort, most of the projects and initiatives I undertake are strategically aligned with the program’s goals and objectives. These span across various elements of a supplier diversity program; ranging from program management, program policy analysis, statistical data analysis, certification, contract compliance audits and developing outreach programs.


Question # 3
Please discuss how minority business goals and any other disadvantage business group that may be affected, are set by the county? Also discuss if there are minimum and maximum spending goals?
Howard County Code Section 4.122 established an Equal Business Opportunity (EBO) program to foster overall equity and fairness to all citizens in relation to business enterprises conducting business with the County. The EBO program regulates that 15% of the County's total dollar amount of all contracts be awarded directly to MBE/WBE/DBE firms during each fiscal year. This includes consulting services, construction, professional services, and other procurements for goods and services. The Program also sets a subcontracting goal of 10% when a contract value is $50,000 or more annually. This requirement is applicable to bidders who are themselves MBE/WBE/DBE owned firms. The subcontracting percentage requirement may vary if the contract is funded by a federal or state agency.

Question # 4
Should prime contractors seek a waiver to spending with the disadvantage business, how is that handled when the bids are submitted?
One of my key responsibilities is to determine whether a bidder/offeror who has not met the 10% EBO subcontracting goal can document adequate good faith efforts. In such instances, I work with prime contractors to identify any potential subcontracting opportunities; considerations are given to the scope of work, estimated contract value and availability of certified EBO firms. If opportunities are identified, the prime contractor is encouraged to make attempts to meet the goal.
A full or partial waiver is only approved based on the justification that either no subcontracting opportunities exist on the contract or evidence of genuine documented good faith efforts has been provided. While evaluating waiver requests, considerations are given to the quality, quantity, and intensity of the different kinds of efforts that the bidder/offeror has made.

Question # 5
Once a project has commenced and the prime contractor through your compliance tracking is not meeting their subcontracting goals and or at that period seeks a waiver, how is that dealt with?
After a contract is awarded, prime contractors are required to report any changes made to their subcontracting plan. Also, our compliance reporting forms include a mandatory section for the prime contractor to completely document their reasons for not meeting the subcontracting goal and state their strategy for meeting the goal going forward. Based on the reasons stated and by assessing various additional factors such as the duration of the project, scope of work and availability of EBO firms, assistance is provided to the prime in identifying certified EBO firms, if needed, and remedying any problems of compliance.

Question # 6
Please discuss the various disadvantage business certification indexes that the county accepts? And do you certify disadvantage companies as well? If so what is the process?
Howard County conducts a vendor certification program to verify that self-identified MBE/WBE/DBE firms meet the definition of such enterprises. To this end, the County in conjunction with the Equal Business Opportunity Commission (EBOC) manages and maintains a formal certification process to substantiate the legitimacy of the firm’s ownership and control as an MBE/WBE/DBE firm.

In order to be certified; the firm’s ownership by a minority, woman or disabled individual must be real, substantial and continuing, going beyond proforma ownership as reflected in the ownership and business structure documents, the firm must be in good standing with the Maryland State Department of Assessments and Taxation. It is expected that the minority, woman or disabled owner(s) have some experience and technical competence in the industry to which certification is sought, show that basic decisions pertaining to the daily operations of the business can be independently made and, have the ability to make independent and unilateral business decisions needed to guide the future and destiny of the business. Howard County EBO certification is valid for a period of two years per application cycle with an opportunity to renew and remain certified.

In addition to its certification program, Howard County recognizes businesses certified by the State of Maryland, certain other states and municipalities whose certification requirements are similar to Howard County and, certain federal agencies when that agency is the grantor for a County project.

Question # 7       
Please discuss the importance of the subcontracting plan as the bid proposal is submitted and is it required across the board on all submittals?
The County’s EBO Program provides an effective platform for minority-owned businesses and prime contractors to form commercially beneficial relationships through the means of subcontracting. If a contract is estimated to be more than $50,000 annually, there is a 10% subcontracting goal, and prime contractors are required to submit a subcontracting plan.

The subcontracting goal aids in creating opportunities for firms that do not themselves bid directly on County solicitations, to participate in the role of material suppliers, subcontractors or subconsultants to prime contractors.  The subcontracting plan serves as a credible and reliable means of identifying that certified and bonafide MBE/WBE/DBE firms are being utilized towards the EBO subcontracting goal. It lists pertinent information on the description of work that each firm will perform and the participation percentages. Most importantly, it serves as a written and signed documentation of commitment by the prime contractor.

Question # 8
What repercussions or penalties will a prime contractor face if they fail to meet the goals?
The County’s EBO program is a voluntary supplier diversity program, the program goals are aspirational. As such there are no repercussions for a prime contractor that fails to meet these goals. However, the County continues to encourage firms that are awarded County contracts to adhere to the program’s goals and support the program’s mission.

Question # 9
Can you discuss the basis for establishing and importance of maintaining a disadvantage business program?
As someone who has spent more than 10 years of my career supporting equal opportunity and promoting supplier diversity within the public sector, I have witnessed first-hand the positive impact such programs create.

Any procurement activity, be it at a global, national, regional or local level, initiates an economic reaction. It reignites entrepreneurial spirit, brings innovation, sustains and creates jobs and helps the growth of the local and national economy.  However, the economic benefits of any sourcing activity can only be felt by all in the community if the sourcing policies and procedures are inclusive. The essence of Supplier diversity is opportunity. Supplier diversity promotes opportunities for inclusive business development and is one of the most important facets of a public procurement policy.

Supplier diversity programs encourage participation from all members of society, including underrepresented groups such as minority and women-owned business enterprises, thereby creating opportunities which they otherwise wouldn’t have. It ensures that commercial opportunities in the public sector are accessible by all businesses willing to compete, regardless of their size or location, and the background of their owners’ race or gender. Leveraging the core values of fairness and equal opportunity, it attempts to level the playing field in the government contracting environment.

Question # 10
Can you provide historical data on actual dollars spent with disadvantage businesses over the last five years?
With a determined and dedicated approach, we have exceeded our EBO Program goals over the last five years. Each year, we have strengthened our commitment to inclusive procurement practices. The dollar amounts and participation percentages for the previous five fiscal years are summarized below. These amounts represent the business the County did with Minority Business Enterprises (MBEs), Women Business Enterprises (WBEs) and Disabled Business Enterprises (DBEs), and includes direct purchases and subcontracting arrangements.
• FY 2011 - $51,266,153 (28.13%)
• FY 2012 - $64,594,389 (30.11%)
• FY 2013 - $47,488,467 (24.77%)
• FY 2014 - $66,579,713 (31.14%)
• FY 2015 - $62,241,830 (28.35%)

Question # 11
On private projects that received an enhancement from the county in the form of infrastructure improvement, grant, county loan or lease, do you apply the same disadvantage business goal setting? If not, why not?
The Equal Business Opportunity program policy is applicable to all solicitations conducted through our Office of Purchasing. These include all goods and services obtained with County funds and all other procurements obtained through grants funded by Federal agencies and the State of Maryland.