SAVANNAH-CHATHAM COUNTY PUBLIC SCHOOL SYSTEM · 2019. 5. 17. · RWA Availability Miller3 Consulting, Inc. November 7, 2012 17 Summary Table - RWASM Availability Level 3 vs Census

SAVANNAH-CHATHAM COUNTY PUBLIC SCHOOL SYSTEM DISPARITY STUDY FINAL PRESENTATION

Miller3 Consulting, Inc., Atlanta, GA November 7,

2012

Acknowledgements

Miller3 Consulting, Inc.

November 7, 2012

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Miller3 Consulting, Inc. wishes to acknowledge the

leadership and commitment of

SCCPSS

Purchasing Department

who have accepted the challenge of participating in the

Disparity Study process in the best interest of those

whom they serve.

Disparity Study Project Team


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Custom Research Associates

MJNH Consulting


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The Leader in MWBE Analysis and Design

Disparity study in Hillsborough County in 1988 foreshadowed Croson decision in

1989

Conducted disparity studies for more than 121 public sector entities

Conducted MBE Analysis in 75 Cities for MBDA

Headquarters

M3 Consulting

Research Studies

M3 Consulting

Disparity Studies

DEFINITION AND LEGAL FRAMEWORK OF A DISPARITY STUDY

Purpose of the Disparity Study


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Address recent court standards

Provide guidance on utilization of race-conscious and race-neutral techniques in procurement activity design to increase MWBE participation

Legal Framework


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Richmond v. Croson requires:

• Building a factual predicate

• Considering race-neutral alternatives

• Designing a narrowly tailored program

Adarand v. Pẽna set standard for federal programs

MILLER3’S METHODOLOGY MEETS THE STANDARDS OF CROSON AND ITS PROGENY

DISPARITY STUDY STATISTICAL FINDINGS

SCCPSS Disparity Study Methodology


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Industry Analysis

Legal Analysis Procurement and M/WBE Program

Operational Analysis

Statistical Analysis

Relevant Market

Availability Analysis

Utilization Analysis

Disparity Ratios

Regression and Capacity Analysis

Market Analysis

Anecdotal and Survey Analysis

Race-Gender Neutral Analysis

Private Sector Analysis

Conclusions Finding of discrimination, passive or active, if

any Identification of barriers to M/WBE

participation

Recommendations Race conscious and race neutral

recommendations Post study support and

implementation

What is the Relevant Market


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Relevant Market Definition

Geographical area encompassing most of a public entity’s commercial activity

Miller3 focuses on where 70-75% of the commercial activity occurs

Relevant Market Determination


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Procurement Type Relevant Market

Architecture & Engineering 12-Counties

Construction 12-Counties

Material Equipment & Supplies Nationwide

General Services Nationwide

Professional Services Nationwide

Source: M³ Consulting


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Bidders & Subbidders

Prime & Sub Awardees

Vendors

Certified DBEs

SCCPSS RWASM Availability

SCCPSS RWASM

Other Public Entities’

Vendors, Prime Bidders

and Subbidders,

Prime & Sub Awardees

DBEs

Public Sector Availability

Census

Dun & Bradstreet

Reed Construction Data

Marketplace Availability


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M³ Consulting’s RWASM Model

Premise: Those firms who are Ready, Willing and Able to do business with the SCCPSS

• Ready—firms that exist

• Willing—firms understand the requirements of the work being requested and want to perform the work

• Able—firms with the capacity to do the job

Difference Between Actual and Potential Availability


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Actual

Potential

R W A

R

W

A


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M3 Consulting

Availability

Model

SCCPSS-Specific RWASM Availability

1. Prime and subbidders by contract category for each year of study period

2. Prime and subbidders by contract category for fewer years

3. Prime bidders, subawardees, prime awardees (informal purchases) for each year of study period

4. Prime bidders, subawardees, prime awardees (informal purchases) for fewer years period

5. Prime bidders, subawardees, prime awardees (informal purchases) + Vendors + certified DBEs

for fewer years period

RWA Availability


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Summary Table - RWASM Availability Level 3 vs Census by Relevant Market

Savannah-Chatham County Public School System

Ethnicity

A&E Construction Professional

Services

Non-professional

Services Goods & Supplies

LEVEL 3 Census LEVEL 3 Census LEVEL 3 Census LEVEL 3 Census LEVEL 3 Census

% % % % % % % % % %

Non-minority 54.55 - 68.33 89.01 88.49 72.94 79.62 66.73 91.26 74.34

American Indian 0.00 - 0.00 0.26 0.00 0.22 0.32 0.00 0.22 0.10

Native Hawaiian and

Other PacificIslander - - 0.07 - 0.00 - 0.00 - 0.00

Asian American 0.00 - 0.83 0.00 2.20 2.98 2.87 10.60 1.08 8.39

Black American 13.64 - 15.00 2.96 3.21 4.81 6.69 3.37 1.29 2.03

Hispanic American 4.55 - 0.00 1.95 0.00 1.08 0.96 3.22 0.38 1.15

Non-designated MBE 0.00 - 0.00 - 0.00 - 0.00 - 0.11

MBE 18.18 - 15.83 5.25 5.41 9.09 10.83 17.19 3.07 11.66

WBE 18.18 - 14.17 5.74 5.58 17.97 9.55 16.07 5.29 13.99

Non-designated M/WBE 4.55 - 0.83 - 0.34 - 0.00 - 0.11 -

M/WBE 40.91 - 30.83 10.99 11.34 27.06 20.38 33.27 8.47 25.66

DBE 4.55 - 0.00 - 0.17 - 0.00 - 0.22 -

SBE 0.00 - 0.83 - 0.00 - 0.00 - 0.05 -

Total 100.00 - 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Source: SCCPSS Bid and Award data; AP/PO Vendors; M3 Consulting.


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Definition:

The actual procurement award or purchasing activity

of the SCCPSS.

Data Sources:

Contracts Data

Payments Data

Accounts Payable and Purchase Orders

Utilization Analysis


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Federal and non-Federal activity

Procurement categories

Competitive and non-competitive thresholds

Race gender and ethnicity

Prime and subcontractor utilization (separately)

Regional relevant market activity

Specialties

Utilization Activity Measured by…

Utilization by Industry


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Summary Table - Utilization by Relevant Market

SCCPSS

Relevant Market; FY 2004 – 2008

Ethnicity


Services

Non-professional


%

%

%

%

%

Non-minority 29.55 21.68 97.98 98.76 97.48

American Indian 0.00 0.00 0.00 0.00 0.01

Asian American 0.00 0.34 0.07 0.02 0.26

Black American 31.72 6.67 0.08 0.72 0.07

Hispanic American 0.00 0.00 0.01 0.00 0.00

Non-designated MBE 0.00 0.00 0.00 0.00 0.00

MBE 31.72 7.01 0.16 0.74 0.34

WBE 38.73 63.12 0.14 0.32 2.13

Non-designated

M/WBE 0.00 0.00 0.06 0.00 0.03

M/WBE 70.45 70.13 0.36 1.06 2.56

DBE 0.00 8.19 1.65 0.17 0.02

Total 100.00 100.00 100.00 100.00 100.00

Source: Source: SCCPSS Purchase Order Data, Accounts Payable Data and Contract Award data;;M3 Consulting

Miller3 Consulting Disparity Ratio© Calculation


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The ratio of the percentage of M/WBEs in the market

(availability) compared to the proportion of dollars spent with

those businesses (utilization)

D =

A

U


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Miller3 Disparity Ratio Concept©…

A

U Non Significant

Underutilization

Non Significant Overutilization

Significant

Overutilization

Significant

Underutilization

1.00

RWA Statistical Disparity


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D = U

A

* = Statistical significance

SCCPSS Disparity Ratios


Services

Non-professional


Asian American ND Under Under** Under** Under**

Black American Over* Under Under** Under** Under**

Hispanic American Under ND ND Under** Under**

American Indian ND ND ND Under Under**

WBE Over* Over* Under** Under** Under**

DISPARITY STUDY QUALITATIVE FINDINGS

Procurement Analysis


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SCCPSS Self-certification impacts accurate M/WBE reporting

No Comprehensive

outreach, matchmaking or

technical assistance

Does not use race neutral

methods or race conscious goals

to achieve MWBE participation No buyer

evaluations on efforts to include

M/WBEs

No forecasting of opportunities

Consortium-wide Anecdotal Analysis


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White male firms viewed goals as set-asides and feel they are forced to use MWBEs for work they could do themselves.

Local firms being locked out

List MWBEs, but do not use

Creating and utilizing WBE fronts to meet goal requirements

Prime contractors utilize firms with whom they are familiar

Private Sector Analysis Based on City of Savannah Building Permits


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Based on Dollars

Based on Counts

$ % # %

Non-minority 1,000,754,741 95.74 8,112 88.70

American Indian 37,075 0.00 31 0.34

Asian American 2,958,502 0.28 55 0.60

Black American 4,035,516 0.39 543 5.94

Hispanic American 101,398 0.01 6 0.07

MBE 7,132,491 0.68 635 6.94

WBE 37,346,740 3.57 382 4.18

Non-designated

M/WBE 82,400 0.01 9 0.10

M/WBE 44,561,631 4.26 1,026 11.22

DBE 3,200 0.00 7 0.08

Total 1,045,319,572 100.00 9,145 100.00

Additionally, 27 public sector permits issued to white males; one permit valued at $33,000, 26 without values

SCCPSS OPPORTUNITIES TO BE CONSIDERED

Croson Requirements


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Race-conscious Programs

In conjunction with or following race neutral efforts

Sunset program

Graduation provisions

Flexible goals

Tied to MWBE Availability

Limit impact on third parties

Limited to groups which have suffered discrimination or have shown significant disparity

Race Neutral Program Options


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Race-neutral

Programs

(with or without race conscious programs)

Small business goals

Procurement adjustments

Non-discrimination policies

Flexible goals

Matchmaking

Outreach (not focused on MWBEs only)

Management, Technical and Financial Assistance

Race-conscious Goal-Setting Program Recommendations


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D = U

A

* = Statistical significance

A&E1 Construction1 Professional

Services2

Non-professional

Services2 Goods & Supplies2

Asian American No No Yes Yes Yes

Black American No Yes Yes Yes Yes

Hispanic American No No No Yes Yes

American Indian No No No No Yes

WBE No No Yes Yes Yes

Procurement Practice Suggestions


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Conduct annual budgeting and forecasting to facilitate matchmaking

Revamp vendor registry

Maximize discretion at informal level

Monitor contracts for concentration

Operational adjustments to increase accountability for MWBE participation

Utilize goal setting

Promoting MWBE at both the prime and subcontractor level

M/WBE Program Adjustments


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Develop an MWBE based on 6 essential elements

Outreach and Matchmaking

Certification

Technical Assistance

MWBE Inclusion in Bid Opportunities

Contract Award Review

Organizational Performance Review

MWBE Program for Large Construction and Development Projects

Maximize Race Neutral Programs

Sunset Clause

Nondiscrimination Policy

Post Study Support Services


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Program Design • Certification, Goal-Setting and ATM Formula, Technical Assistance,

Matchmaking, Enhancing MWBE & Business Development Initiatives, Bulk Purchasing, Non-Discrimination Policy

Communications Plan • Stakeholders, Community

Legal Defense • Litigation Support, Expert testimony

Monitoring & Tracking • Procurement Audits, Evaluation, Contract Compliance

On Behalf of the Team, Thank You!


November 7, 2012

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Custom Research Associates

MJNH Consulting

SAVANNAH-CHATHAM COUNTY PUBLIC SCHOOL SYSTEM DISPARITY STUDY FINAL PRESENTATION

Miller3 Consulting, Inc., Atlanta, GA November 7,

2012

Documents

SAVANNAH-CHATHAM COUNTY PUBLIC SCHOOL SYSTEM · 2019. 5. 17. · RWA Availability Miller3 Consulting, Inc. November 7, 2012 17 Summary Table - RWASM Availability Level 3 vs Census