General Overview / Presentation

North Carolina Statewide Purchasing Conference

Presented by:Presented by:Sheryl Cromedy, Lead Certification SpecialistSheryl Cromedy, Lead Certification Specialist

Lena Robertson-Ridley, Outreach and Certification SpecialistLena Robertson-Ridley, Outreach and Certification Specialist

Overview of Office for Historically Underutilized Businesses (HUB Office)

Statewide Uniform Certification (SWUC) Program

Application and Certification Process

HUB Reporting of Goods and Services

HUBSCO Reporting Requirements

Questions and Answers

To promote economic opportunities for historically underutilized businesses in

state government contracting and procurement that will foster growth and

profitability.

Certification Program

Training:HUBSCO, How to Do

Business

Construction Monitoring& Outreach

Program Compliance & Reporting

Outreach ProgramAdvocacy

Policy Development & Implementation

N.C.G.S.143-48.4 and 143-128.4 (Formerly Senate Bill 320)

Passed & Signed during the 2007 Legislative Session

Implemented in July 2009 Provided Secretary of Administration

Authority to: Develop and administer a program for the

certification of a HUB firms as defined in N.C.G.S. 143-128.4

Create a single database of certified HUB firms

Adopt rules and procedures

Collaborative development to:reduce redundancybest practices and processesincrease overall efficiency of

system development

Firms that are at least 51% owned, operated and controlled

By a minority, woman, disabled (person with a disability), Disadvantaged (socially and economically individuals)

HUB Eligibility Criteria (N.C.G.S. 143-128.4 and 143-48.4)

Minority: Black, Hispanic, Asian American, American

Indian Female Disabled - Person with a Disability Disadvantaged-Socially and Economically

Go to HUB Office’s Website: www.doa.nc.gov/hub Click “Certification” Click “Request HUB Certification” Click “Vendor Registration / HUB

Certification”

Streamlined certification process of minority, women, disabled, and disadvantaged owned businesses

Uniform standards and procedures for certification

Annual Status Update and four-year reapplication cycles

Single database to be used by all state departments, agencies, institutions, political subdivisions, and local municipalities

GOVERNOR’S EXECUTIVE ORDER 13 – SUPPORT FOR HISTORICALLY UNDERUTILIZED BUSINESSES

Signed by Governor Perdue on May 7, 2009

Includes a 10% Aspirational Goal

Equal Opportunities to participate in State procurement and contracting

Each executive branch agency should strive to increase the total amount of goods and services acquired by it from HUB firms, whether directly as principal contractors or indirectly as subcontractors or otherwise.

GOVERNOR’S EXECUTIVE ORDER 13 – SUPPORT FOR HISTORICALLY UNDERUTILIZED BUSINESSES

It is expected that each agency will issue an aspirational goal of at least ten percent (10%), by dollar amount, of the State’s purchases of goods and services that will be derived from HUB firms.

The HUB Office should assist each agency in developing a plan and should provide technical assistance to reach the recommended objectives related to the purchases of goods and services.

GOVERNOR’S EXECUTIVE ORDER 13 – SUPPORT FOR HISTORICALLY UNDERUTILIZED BUSINESSES

All State agencies shall continue to implement guidelines and procedures that compel contractors to comply with federal and state equal employment opportunity and nondiscrimination requirements or their equivalents.

The Board of Governors of the University of North Carolina System, the State Board of Community Colleges, local boards of education, and each head of the Council of State agencies are encouraged and invited to participate in this Executive Order

(G.S. 143-48)

(a) Policy. - “…..to encourage and promote the use of small, minority, women and physically impaired in State purchasing of goods and services. All State agencies, institutions and political subdivision shall cooperate with DOA..to achieve the purpose of this Article.

(b) Reporting. – Every governmental entity required by statute to use the services of DOA in the purchase of goods and services, every local school administrative unit, and every private, nonprofit corporation other than an institution of higher education or a hospital that receives an appropriations of $500,000. or more during a fiscal year from the General Assembly shall report to the DOA annually…”

(G.S. 143-48)

(b) Reporting. – ………The same governmental entities shall include in their report what percentage of the contract bids for such where from such purchases. The DOA shall provide instructions to the reporting entities concerning the manner of reporting and the definitions of the businesses referred to in this act…”

NC DOA HUB Office, Raleigh

Cabinet Agencies (10)

Council Agencies (9)

Supporting Agencies (13)

Community Colleges (58)

Public Schools (115)

State Universities (19)

Adobe Acrobat Document

Complete the Quarterly HUB Purchasing Report:

http://www.doa.nc.gov/hub/documents/HUBReportForm.xls

Submit the completed form by Email (preferred), or fax (919-807-2335).

Signed form may also be mailed to:

HUB Office Address:N.C. Department of Administration

Office for Historically Underutilized Businesses1336 Mail Service CenterRaleigh, NC 27699-1336

Period Dates Report Due

1st QuarterJuly 1 to September 30

October 30

2nd Quarter

October 1 to December 31

January 30

3rd QuarterJanuary 1 to March 31

April 30

4th QuarterApril 1 to June 30

July 30

Does your organization have a HUB Procedure?

Does your organization have a HUB Outreach Plan?

Does your organization have HUB Coordinator/Liaison to work with HUBs to increase their participation?

Where are HUB Coordinators/Liaisons located in your organizational structure?

Does the HUB Coordinator/Liaison participate in contract award decisions?

Are there periodic reports at staff meetings?

Who in your organization is responsible for the HUB report?

Do you receive and review HUB participation reports?

Take ControlSmall Purchases ($5,000 and less)Procurement Card PurchasesTerm Contracts

OutreachAttend Trade Shows & Procurement ConferencesConduct Vendor Workshops Inform Vendors of your needs and opportunities Utilize your Web-Site Advertise for potential vendors

•

Overview of Informal & Formal Thresholds

Who is Required to Report & What to Report?

Good Faith Efforts

Statutes and House Bill for Reporting Contracts

Senate Bill 914, Session Law 2001 - 496, December 6, 2001

G.S. 143-128.2 – Minority Participation GoalsG.S. 143-128.3 – Minority Business

AdministrationG.S. 143-131 – Informal bidding, effective date:

January 1, 2002G.S. 143-129 – Formal bidding, effective date:

January 1, 2002

House Bill 73, Session Law 2007-446 Threshold changes, effective date: August 23,

2007

State percentage goal

Local Government percentage goal

Good Faith Efforts

Reporting Administration

Specific Project Information

Report Format

Advisory Board Appointment

Formal Construction Projects>= $500,000

Informal Construction Projects>= $30,000 < $500,000

No requirement to formally advertise bids.

Lowest responsible, responsive bidder with contract

Required to maintain a record of minority contractors solicited and of all recruitment efforts

Performance and Payment bonds for each contract over $50,000; that is a part of a project cost over $300,000.

Construction or repair projects costing over $300,000 must use only Single Prime, Separate Prime, Dual bidding, construction manager at risk, or alternative methods.

G. S. 143-128.2 sets out Goals for local governments to encourage HUB Participation

GFE 1: 10 points. Contacting minority businesses that reasonably could have been expected to submit a quote and that were known to the contractor or available on State or local government maintained lists at least 10 days before the bid or proposal date and notifying them of the nature and scope of the work to be performed. 

GFE 2: 10 points. Making the construction plans, specifications and requirements available for review by prospective minority businesses, or providing these documents to them at least 10 days before the bid or proposals are due.

GFE 3: 15 points. Breaking down or combining elements of work into economically feasible units to facilitate minority participation.

GFE 4: 10 points. Working with minority trade, community, or contractor organizations identified by the Office for Historically Underutilized Businesses and included in the bid documents that provide assistance in recruitment of minority businesses.

GFE 5: 10 points. Attending any pre-bid meetings scheduled by the public owner.

GFE 6: 20 points. Providing assistance in getting required bonding or insurance or providing alternatives to bonding or insurance for subcontractors.

GFE 7: 15 points. Negotiating in good faith with interested minority businesses and not rejecting them as unqualified without sound reasons based on their capabilities.  Any rejection of a minority business based on lack of qualification should have the reasons documented in writing.

GFE 8: 25 points. Providing assistance to an otherwise qualified minority business in need of equipment, loan capital, lines of credit, or joint pay agreements to secure loans, supplies, or letters of credit, including waiving credit that is ordinarily required.  Assisting minority businesses in obtaining the same unit pricing with the bidder's suppliers in order to help minority businesses in establishing credit.

GFE 9: 20 points. Negotiating joint venture and partnership arrangements with minority businesses in order to increase opportunities for minority business participation on a public construction or repair project when possible.

GFE 10: 20 points. Providing quick pay agreements and policies to enable minority contractors and suppliers to meet cash-flow demands.

Currently Reporting Entities - 340

ALL PUBLIC ENTITIES (Including)

State Agencies (15)

Universities (21)

Community Colleges (58)

All Local Government Entities

Municipalities (95) Counties (53) Public School Districts (67) and Other special purpose local governments (31)

With respect to each building project:

Verifiable Percentage Goal Type of Project Minority business utilization by category Trade Total dollar value of contracts Total dollar amount of project

(construction and design) Applicable Good Faith Efforts Achieved

Web based application

Formal and informal construction projects.

Visit our website at http://www.doa.state.nc.us/hub/

Print out and complete HUBSCO Access Form http://www.doa.state.nc.us/hub/hubscofm.doc

Fax the completed Access Form to Mathew Idiculla at 919-807-2335.

Access will be granted to the training site with a user ID and a password.

Mail original Access form including all signatures and you will be granted access to the live production site.

HUB Office Address:N.C. Department of Administration

Office for Historically Underutilized Businesses1336 Mail Service CenterRaleigh, NC 27699-1336

Registered to HUBSCO System

95 Municipalities 53 Counties 67 Public School System 21 UNC General Administration & Universities

and UNC TV

2010 -11 Minority Business Participation 21.01% Total Construction Contract $741,801,663 Total Minority Participation $155,818680

Bridget Wall-Lennon, Director

Management & Office AdministrationPatricia Jones, Office ManagerTraci Fleming, Office Assistant

Compliance SectionMathew Idiculla, Compliance Specialist

Jerry Ryan, Statistician

Outreach & Certification SectionSheryl Cromedy, Lead Certification Specialist

Cassandra Herndon, Certification/OutreachLena Robertson-Ridley, Outreach Coordinator

Grover Burthey, Construction Coordinator

Web: www.doa.nc.gov/hub email: huboffice.doa@doa.nc (919) 807-2330 Phone (919) 807-2335 Fax

We Are Here to Assist YOU!