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    5.    
INTERNAL OPERATIONS COMMITTEE
Meeting Date: 10/11/2021  
Subject:    Small Business Enterprise & Outreach Program and Local Bid Preference Program Reports for Jan-Jun 2021
Submitted For: Brian M. Balbas, Public Works Director/Chief Engineer
Department: Public Works  
Referral No.: IOC 21/1; 21/4  
Referral Name: Small Business Enterprise and Outreach Programs; Local Bid Preference Program
Presenter: Cynthia Shehorn, Purchasing Services Manager Contact: Cynthia Shehorn (925) 957-2491

Information
Referral History:
Contra Costa County values the contributions of small business and has developed programs to assist in soliciting and awarding contracts to the SSE community. The Board of Supervisors adopted these programs to enable small and local businesses to compete for a share of the County's purchasing transactions.

The Board of Supervisors has set a goal of awarding at least 50% of eligible product and service dollars to small businesses. The Small Business Enterprise (SSE) Program applies to: (1) County-funded construction contracts of $100,000 or less; (2) purchasing transactions of $100,000 or less; and (3) professional/personal service contracts of $100,000 or less.

The objective of the program is to award at least 50% or more of the total eligible dollar base amounts to SBEs. A Small Business Enterprise, as defined by the California Government Code, Section 14837, Chapter 3.5 must be:
  • Independently owned and operated business, which is not dominant in its field of operation;
  • The principal office of which is located in California, the officers of which are domiciled in California, and which together with affiliates, has 100 or fewer employees;
  • And have average annual gross receipts of fifteen million dollars ($15,000,000) or less over the previous three tax years, or a manufacturer with 100 or fewer employees.

Reporting Requirements
It is the responsibility of each County department to track and compile the data on these purchasing activities so a countywide report can be provided to the Board of Supervisors.

The Internal Operations Committee has responsibility for evaluating the semi-annual reports and making recommendations to the Board on program policies and reporting. The Board receives reports in six-month increments, with the last report submitted to the Board for the period ending December 31, 2020. Attachment A constitutes the report due for the time period January 1 - June 30, 2021.
Referral Update:
Summary Findings
The table below summarizes the attached department activity on a countywide basis.

January – June 2021


ACTIVITY TYPE:
Total # of ALL Contracts Total # of SBE Contracts SBE Percent of Total Total Dollar Value of ALL Contracts Total Dollar Value of SBE Contracts SBE Percent of Total
Professional/Personal Services 246 107 43.5% $10,149,053 $3,745,269 36.9%
Purchasing Transactions 1,162 353 30.4% $29,025,823 $8,475,032 29.2%
Construction Contracts 0 0 0% $0 $0 0%


While the County did not achieve the 50% goal, this information shows the County directed more than $12.1 million in qualifying transactions to SBE firms during the six-month reporting period, achieving a 43.5% award rate for professional/personal services transactions and a 30.4% award rate for purchasing transactions. No construction contracts were reported in this period.

It is worth noting that the SBE participation goals of surrounding agencies are typically in the 20-25% range. By that measure, Contra Costa County’s reported activity is below that threshold for professional/personal services, and above that range for purchasing transactions. The following departments are commended for achieving 50% or more program compliance this reporting period:
  • Professional/Personal Services: Animal Services, Conservation & Development, Fire Protection District, Health Services, and Public Works
  • Purchases: Agriculture, Clerk Recorder-Elections, Conservation & Development, County Counsel, District Attorney, Employment & Human Services, and Veterans Services

Of particular note, Animal Services is commended for achieving a 100% award rate for qualifying professional services contracts.

County Counsel should also to be commended for achieving a 100% award rate for qualifying purchasing transactions.
Department/Activity Total # of ALL Contracts Total # of SBE Contracts SBE Percent of Total Total Dollar Value of ALL Contracts Total Dollar Value of SBE Contracts SBE Percent of Total
Agriculture
Purchasing Transactions 7 5 71.4% $85 $54 63.5%
Animal Services
Professional/Personal Svcs 1 1 100.0% $3,500 $3,500 100.0%
Clerk Recorder - Elections
Professional/Personal Svcs 14 5 35.7% $354,724 $199,424 56.2%
Purchasing Transactions 19 8 42.1% $270,071 $138,958 51.5%
Conservation & Development
Professional/Personal Svcs 5 4 80.0% $249,500 $149,500 59.9%
Purchasing Transactions 7 6 85.7% $110,974 $109,549 98.7%
County Counsel
Purchasing Transactions 1 1 100% $871 $871 100%
District Attorney
Purchasing Transactions 14 8 57.1% $225,789 $118,163 52.3%
Employment & Human Services
Purchasing Transactions 78 35 44.9% $1,129,511 $754,822 66.8%
Fire Protection District
Professional/Personal Svcs 5 3 60.0% $136,000 $76,000 55.9%
Health Services
Professional/Personal Svcs 105 55 52.4% $4,589,014 $2,538,218 55.3%
Public Works
Professional/Personal Svcs 9 6 66.7% $239,347 $134,448 56.2%
Veteran Services
Purchasing Transactions 6 4 66.7% $12,121 $11,840 97.7%


E-Outreach Report
In order to encourage the use of small, local, and disadvantaged businesses, the County's E-Outreach Program requires bids and Request for Proposals greater than $10,000 to be solicited online. For this period, there were 60 bids totaling $24,850,352 that fell within the parameters of the program.

The data specific to electronic solicitations is developed and provided by the Purchasing Division of the Public Works Department, and reflects outreach to small, women-owned, minority-owned, local, disabled veteran-owned, and disadvantaged business enterprises. During this reporting period, 60 bids were conducted using the BidSync e-outreach site. Notifications were sent to 354,580 businesses, of which 31.3% are considered small, local, or disadvantaged business enterprises.
E-Outreach January 1, 2021 – June 30, 2021
Number of Solicitations 60
Total Notifications 354,580
Dollar Value $24,850,352
BUSINESS CATEGORY Notifications Percentage of Total
MBE - Minority Business Enterprise 21,241 6.0%
WBE - Women Business Enterprise 17,421 4.9%
SBE - Small Business Enterprise 55,195 15.5%
LBE - Local Business Enterprise 2,710 0.8%
DVBE - Disabled Veteran Business Enterprise 630 0.19%
DBE – Disadvantaged Business Enterprise 13,358 3.9%
Total 110,555 31.3%

Local Business Preference
For opportunities exceeding $25,000, the Local Business Preference Program allows for local businesses to submit a new offer if within 5% of the lowest bidder. There were no instances of the Bid Preference utilized in this reporting period.

Dollar Value Awarded to Local and Bay Area Businesses
The dollar value of Purchase Orders issued for the period was $23,846,811. The dollar value awarded to Contra Costa County businesses was $3.6 million. The value awarded to other Bay Area businesses was 19.8% or $4.7 million. This represents Contra Costa County’s contribution to the local economy.
Contra Costa County $3,616,158 15.1%
Other Bay Area Counties $4,709,872 19.8%
Other $15,520,781 65.1%
Total $23,846,811 100.0%


Conclusion
The County has demonstrated continued commitment to achieving the 50% goal for participation by SBE firms in contract and purchasing activities. While the data for some departments is below this threshold, departments are showing some interest in increasing the percentage of awarded contracts. Instruction is being provided on the search features of the purchasing system, to assist in identifying businesses in the small, local, women, minority, veteran and disadvantaged business categories
Recommendation(s)/Next Step(s):
ACCEPT the Small Business Enterprise, Outreach, and Local Bid Programs Report, reflecting departmental program data for the period January 1 - June 30, 2021
Fiscal Impact (if any):
None. This is an informational report.
Attachments
Attachment A: SBE Report Jan-Jun 2021

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