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    7.    
INTERNAL OPERATIONS COMMITTEE
Meeting Date: 09/13/2021  
Subject:    Small Business Enterprise & Outreach Program and Local Bid Preference Program Reports for Jul-Dec 2020
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: Cindy Shehorn, Purchasing Services Manager Contact: Cindy 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 June 2020. Attachment A constitutes the report due for the time period of July 1 - December 31, 2020.
Referral Update:
The table below summarizes the attached department activity on a countywide basis.

July – December 2020


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 391 152 38.9% $76,013,460 $6,217,403 8.2%
Purchasing Transactions 1,008 293 29.1% $20,008,707 $5,342,257 26.7%
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 $11.5 million in qualifying transactions to SBE firms during the six-month reporting period, achieving a 38.9% award rate for professional/personal services transactions and a 29.1% 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: Clerk Recorder-Elections, Conservation and Development, County Administrator - Clerk of the Board, District Attorney and Probation
  • Purchases: Agriculture, Clerk Recorder-Elections, County Counsel, and Treasurer-Tax Collector

Of particular note, the following Departments are to be commended for achieving a 100% award rate for qualifying professional services contracts: Clerk of the Board and District Attorney.

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
Clerk Recorder - Elections
Professional/Personal Services 14 5 35.7% $230,398 $164,711 71.5%
Purchasing Transactions 31 13 41.9% $385,285 $260,173 67.5%
Conservation and Development
Professional/Personal Services 8 6 75% $310,945 $190,945 61.4%
County Administrator - Clerk of the Board
Professional/Personal Services 2 2 100% $146,080 $146,080 100%
District Attorney
Professional/Personal Services 1 1 100% $88,943 $88,943 100%
Probation
Professional/Personal Services 37 14 37.8% $314,407 $158,137 50.3%
Agriculture
Purchasing Transactions 10 5 50% $133 $80 60.2%
County Counsel
Purchasing Transactions 1 1 100% $5,902 $5,902 100%
Treasurer – Tax Collector
Purchasing Transactions 13 4 30.8% $125,321 $71,025 56.7%


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 27 bids totaling $12,771,923 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, 27 bids were conducted using the BidSync e-outreach site. Notifications were sent to 121,984 businesses, of which 30.4% are considered a small, local, or disadvantaged business enterprises.

E-Outreach July 1, 2020 – December 31, 2020
Number of Solicitations 27
Total Notifications 121,984
Dollar Value $12,771,923
BUSINESS CATEGORY Notifications Percentage of Total
MBE - Minority Business Enterprise 7,084 6.2%
WBE - Women Business Enterprise 6,424 5.3%
SBE - Small Business Enterprise 20,369 14.5%
LBE - Local Business Enterprise 1,140 0.7%
DVBE - Disabled Veteran Business Enterprise 116 0.1%
DBE – Disadvantaged Business Enterprise 6,083 3.6%
Total 41,216 30.4%


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 $20,008,707. The dollar value awarded to Contra Costa County businesses was $3.6 million. The value awarded to other Bay Area businesses was 23.1% or $4.6 million. This represents Contra Costa County’s contribution to the local economy.

Contra Costa County $3,683,089 18.4%
Other Bay Area Counties $4,631,222 23.1%
Other $11,694,396 58.5%
Total $20,008,707 100%


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 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 July 1 through December 31, 2020.
Fiscal Impact (if any):
None. This is an informational report.
Attachments
Attachment A: SBE Report Jul-Dec 2020

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