House Bills 2140-2149 aims to level the playing field for small, minority, women and disadvantaged-owned businesses-PA

Friday, January 29, 2010

Bills support participation of diverse firms

Philadelphia Business Journal - by Athena D. Merritt Staff writer

A bipartisan package of bills introduced this month in Harrisburg aims to level the playing field for small, minority, women and disadvantaged-owned businesses competing for state contracts.

Efforts are already under way to push the 10 House bills through by the time the state’s budget is passed, which under the state’s constitutional deadline must be done by June 30.

The bills (House Bills 2140-2149) would implement 16 sets of recommendations made by the House Select Committee on Minority, Women, and Disadvantaged Business Enterprise Inclusion in September to improve diversity in state contracts and purchasing. Legislators will be able to vote on the package as a whole under House Bill 2140, which contains all but one measure, or individually, state Rep. Jake Wheatley Jr., D-Allegheny, said.

“It’s kind of a strategy we feel could be effective, say the majority of members don’t want the whole package they get a chance to vote on the individual ones,” said Wheatley, who chaired the committee and sponsored H.B. 2140. “Our hope is the whole package will be selected [because] you’re going to need all of the recommendations to make the type of change we really hope for.”

The recommendations grew out of testimony collected at five public hearings held over the course of last year, including one in Philadelphia. The most common barrier cited by businesses was access to capital, Wheatley said. Slow payment by prime contractors, lack of capacity and access to contracts have also served as obstacles, which are among the issues the bills seek to address, Wheatley said. Getting the legislation adopted is only the first step in changing a system that is failing, said Wheatley and others, including Della Clark, president of the Enterprise Center in West Philadelphia.

“Legislation is a start, but you also need enforcement and you need someone who can be a true leader for the change,” Clark said. “You can’t just put a law in place and expect people are going to follow that law.”

Included in the package are bills that would establish a mentor/protégé program for small businesses, create a statewide bonding program and cut the length of time prime contractors have to pay subcontractors from 14 to five days. Also included is a measure that would set a goal of sending 25 percent of procurement and construction dollars to disadvantaged businesses in all state contracts and grants. The 25 percent goal would not be the floor, but the expectation, said Wheatley, who would like to see an even higher level of participation.

“A lot of what we are talking about is an attempt to try and shift the mindset and culture of how they look at minority and women-owned businesses,” Wheatley said. “They see it as a giveaway of business, this is not they case. They are very successful and good at what they do. They are just not given the same opportunity to do it.”

Last year, minority and women-owned businesses combined secured 8.85 percent or $53.7 million of the more than $606 million in contracts awarded by the state. Angelo Perryman, president and CEO at Perryman Building and Construction Services, who testified at the Philadelphia hearing is among those who hope to see improvement.

“I think everybody right now understands what disadvantaged business means but the procurement officers,” Perryman said. “What we are saying is, there are businesses that are ready, willing and able and just not given the opportunity to grow their business.”

Wheatley said the package of House bills have been referred to the state government committee. The legislation has also been introduced in the Senate, he said.

Pa. Bills Highlights

A snapshot of some of the bills included in the House legislative package aimed at increasing diversity in state contracts and purchasing.

H.B. 2141 Changes the Definition of Small Business, by increasing the permitted employee limit from 100 to 250 and adding a gross revenue limit of up to $45 million.
H.B. 2142 Creates Statewide Bonding Program to enable small businesses and disadvantaged businesses to build capacity and competitively bid on state and other public contracts. The Department of General Services would be appropriated $5 million annually for the program.
H.B. 2144 Establishes Secretary of Minority & Women Business Development, a cabinet-level position
H.B. 2145 Establishes Mentor/Protégé Program to assist, support, and enable small businesses to successfully compete for prime and subcontract awards by partnering with large companies (mentors) in state contracts.
H.B. 2147 Establishes Small Business Reserve to increase economic opportunities for small businesses to bid on state government contracts without competing with larger businesses. Each state agency would set aside 10 percent of their procurement dollars beginning at $25,000 up to $5 million into its Reserve fund.
H.B. 2148 Prime Contractors’ Performance would require prime contractors to provide documentation of a good faith effort at meeting the state’s disadvantaged business subcontractor participation requirements.

http://philadelphia.bizjournals.com/philadelphia/stories/2010/02/01/story10.html?b=1265000400^2804211

SBA Launches New Online Training Course for Women Entrepreneurs

SBA Launches New Online Training Course: Winning Federal Contracts - A Guide for Women Entrepreneurs
Wed Oct 14, 2009 11:45am EDT

WASHINGTON--(Business Wire)-- Women who own small businesses will be able to use a new online U.S. Small Business Administration training course to learn how to identify and take advantage of federal contracting opportunities. The new training course, Winning Federal Contracts: A Guide for Women Entrepreneurs, is part of an ongoing government-wide initiative to promote opportunities for women-owned businesses in the area of government contracting. 

 This free online tutorial is a practical and easy to use guide that walks a woman-owned small business through the contracting process. SBA is committed to ensuring that women-owned businesses receive at least 5 percent of federal contracts and believes better training opportunities are central to meeting this government-wide goal. 

 "Federal contracts can provide unique opportunities for women entrepreneurs and small business owners to grow their businesses and create jobs, particularly during these tough economic times," Administrator Karen Mills said. "It`s also a win for federal agencies, by contracting with women-owned small businesses; they are working with some of the most innovative and dynamic companies in the country." 

 The SBA`s Office of Women`s Business Ownership oversees a national network of more than 100 Women`s Business Centers (WBCs) that provide education and training to help women start and grow small businesses. In addition, the SBA has 68 district offices and other resource partners throughout the country available to train and counsel women-owned small businesses and entrepreneurs seeking government contracts. 

 "This online training course makes critical information and training available to an even wider array of women entrepreneurs and small business owners," said Ana Harvey, assistant administrator for SBA`s Office of Women`s Business Ownership. "SBA wants to help ensure they have the tools and resources they need to compete for and win federal contracts." 

 The Winning Federal Contracts course is designed to help women entrepreneurs learn about the federal procurement process and to prepare them to compete for contracting opportunities. The self-paced guide uses audio and script to provide information about contract rules, how to sell to the government and where to find contracts. 

 The Winning Federal Contracts course is available on SBA`s Web site at www.sba.gov or directly at www.sba.gov/fedcontractingtraining. It is indexed by subject matter, and includes direct links to additional contracting resources. 

 Release Number: 09-71  U.S. Small Business Administration Cecelia Taylor, 202-401-3059 Internet Address: http://www.sba.gov/news

http://www.reuters.com/article/pressRelease/idUS151739+14-Oct-2009+BW20091014  

Congressman Forbes to Host Free Government Contracting Seminar for Minority-Owned and Women-Owned Businesses in Chesapeake, VA

Washington, D.C., May 13 -Congressman J. Randy Forbes (VA-04) is hosting a free Government Contracting Seminar for minority-owned and women-owned businesses to be held at the Lifestyle Center at the Chesapeake Regional Medical Center on June 8th, 2009 at 9:00 a.m. The seminar is free and open to any minority-owned and women-owned business person in the Fourth District who is interested in gaining insight and information into contracting to the federal government.

WHO: Congressman Randy Forbes, all interested representatives of minority-owned and women-owned businesses in the Fourth District, representatives from the Hampton Roads Procurement Assistance Center, the Small Business Administration, and a successful small business owner.

WHAT: "Government Contracting Seminar for Minority-Owned and Women-Owned Businesses." A seminar to provide minority-owned and women-owned businesses who contract to the government with an overview of the federal registration process, including, small business regulations and Central Contractor Registration; an overview of small business programs, including 8A, Small Disadvantaged Business, HUBZone and Mentor Protege; information on tools to use in government contracting and on how to look for opportunities in the federal government.

WHEN: Monday, June 8, 2009 from 9:00 a.m. - 12:00 noon. Check-in will begin at 8:45 a.m.

WHERE: The Lifestyle Center at the Chesapeake Regional Medical Center

800 Battlefield Blvd N.

Chesapeake, Virginia 23320

Any minority-owned or women-owned small business person who would like to participate should register online at http://chesapeakegovcontracting.eventbrite.com/. They may also visit http://forbes.house.gov/ConstituentServices/chesapeakegovcontracting.htm for more information, including directions and an agenda, or may call Congressman Forbes' Chesapeake office at 757-382-0080. To ensure an adequate amount of resources are available for our participants, RSVPs are required for this event.

#DAL1234#

Forbes to Host Free Government Contracting Seminar for Minority-Owned and Women-Owned Businesses in Chesapeake www.tradingmarkets.com

Turner awards record $1.4B to MWBEs

Tuesday, March 10, 2009, 11:31am EDT
Turner awards record $1.4B to MWBEs
Orlando Business Journal


Turner Construction Co. broke another company record last year in awarding contracts to businesses owned by minorities and women.

The New York-based general contractor, which has had an office in Orlando since 1984, awarded a record 2,850 contracts totaling $1.4 billion to minority- and women-owned businesses in 2008.

This is the fourth year in a row that Turner Construction has given more than $1 billion worth of contracts to minority- and women-owned enterprises, according to a news release.

“Our long-standing record of achievement in expanding economic opportunities for minority and women-owned contractors across the country is critical to the success of Turner and of our industry,” said Hilton Smith, senior vice president of community affairs, in a prepared statement.

Turner Construction is one of the leading general builders in the United States. The firm, which completed $9.6 billion in construction projects in 2007, is a subsidiary of German construction company Hochtief (FWB: HOT).

http://www.bizjournals.com/orlando/stories/2009/03/09/daily16.html

Round 3 Hampton, VA: Minority contractors faring worse since Hampton disparity study in 2006

Earlier articles:

http://sistersinthebrotherhood.blogspot.com/2009/02/minority-report-hampton-vashameful.html

http://sistersinthebrotherhood.blogspot.com/2009/02/rebuttle-hamptons-record-on-minority.html

Minority contractors faring worse since Hampton disparity study in 2006
By Matthew Sturdevant 247-7874
March 8, 2009

HAMPTON - — Minority-owned businesses have received a smaller and smaller percentage of city contracts in recent years, even after a report was released in January 2006 with recommendations on how to even out the disparity.

Hampton hired a consultant five years ago to analyze trends in city purchasing and procurement during the four-year period between fiscal years 1999 and 2003. The report revealed that Hampton's spending of taxpayer funds mostly left out minority-owned and women-owned businesses, which were a small fraction of companies available to do business.

For example, black-owned construction companies accounted for 4.38 percent of all prime contractors in the area, and received 1.05 percent of Hampton's construction spending for prime contractors during the four-year period.

Since the report came out, minority-owned businesses have fared worse, not better.


The percentage of Hampton's spending with minority-owned businesses decreased each year since fiscal year 2006. Businesses owned by blacks, Hispanics, Asian-Americans and other minorities received 1.63 percent of Hampton's spending in fiscal year 2008, which ended June 30. The city's record of spending with women-owned businesses fluctuated in recent years — as low as 1.11 percent in fiscal year 2005 and as high as 3.89 percent in 2007.

Even though the numbers reflect an under-representation of minorities and women, few of the business leaders who were interviewed for the disparity study — 6 percent of those surveyed — believed that discrimination was a factor.

Hampton's record of doing business with minority- and women-owned companies was better than the commonwealth of Virginia's by most measures, according to the disparity study. However, Hampton trailed in most categories behind other cities it was compared to in the study, including Charlotte, N.C.; Tallahassee, Fla.; Orange County, Fla.; and Columbia, S.C.

Sometime soon, likely in April, the City Council will hear a new round of recommendations from Jessica R. Spencer, the Economic Development Department's minority business coordinator, and from the Finance Department's procurement office.

Spencer is relatively new to the job. She was hired last year. She has 14 years experience and was director of the Business Opportunity Workforce Development Center for the Virginia Department of Transportation.

What aren't new are Hampton's efforts to improve representation by minority- and women-owned businesses. The city has had a Small and Minority Business Loan program since 1986 and a nondiscrimination ordinance since 1991.

The disparity report that came out a few years ago commended the city for having programs that make loan money available for small businesses and businesses owned by woman or minorities. The report also commended Hampton for "providing management and technical assistance through its support for local (business) incubators."

Hampton's efforts to help build minority businesses have had some success. Recently, the Economic Development Department welcomed three businesses owned by minority women: Java Junkies coffee shop at 768 Settlers Landing Road in downtown; KingsWay Physical Therapy at 208 Fox Hill Road, Suite B; and Soapalooza, a homemade soap shop at 3411 Old Armistead Ave.

The city also faces challenges in improving its record with minority businesses, which Spencer will explain in detail during a City Council workshop.

The real problem is the people who implement city policy, said Rudy Langford, president of the Coalition for Justice for Civil Rights, about the contract percentages.

"It's favoritism ... recommendations ain't worth a dime," he said.

On the other hand, former Councilman Charles Sapp, who is director of management services at REMSA, a minority woman-owned firm in Hampton, said he believes the low number of city contracts that go to minority- and women-owned businesses is not discrimination, but a problem with the city's process of soliciting bids and development proposals.

"That's an area we need to investigate — the processes and policies which raise barriers to small business," Sapp said.

http://www.dailypress.com/news/dp-local_minoritycontracts_0304mar08,0,2464279.story

REBUTTLE: Hampton's record on minority purchasing isn't bad

February 8, 2009

David Squires undoubtedly raised a few eyebrows with his Feb. 5 column, "The business minority report shames Hampton." A close reading of the report reveals evidence for commending the city of Hampton as well.

First, consider the magnitude of the problem. The most dramatic statistic, in Squires' column as well as in earlier Daily Press articles, is that Hampton's population is comprised of 48 percent African- Americans, yet only 1.6 percent of purchases and procurements are awarded to minority-owned companies. The study actually compared the city's procurement award percentage to "the percentage of minority-owned businesses in the relevant market area," which for African-American owned businesses varied from 1 to 5 percent, depending on the type of firm. While some disparity was found, it was not anywhere near the magnitude indicated.

Second, consider the nature of the problem. The primary assumption has been that whatever disparity exists is a result of racial and gender discrimination. When the City Council established the Purchasing and Procurement Oversight Committee in 1989, its mission was to remove legal, financial and other barriers to small business while encouraging "greater, fairness and broader representation of the community." Some 15 years later, the disparity study was explicitly tailored to look for evidence of discrimination to provide a basis for the establishment of "a remedial race- conscious program." This perspective is further reflected by the report's opening 37-page summary of the evolution of affirmative action in procurement.

So over the years the focus has shifted from small businesses in general to minority and women-owned businesses in particular. Yet, only 6 percent of firms surveyed reported that discrimination was a factor in their experience with the procurement process, and those incidents occurred post- award and reflected mostly issues between prime contractors and their subs.


It also must be remembered that during much of the period of the study (FY 1999-2003) the mayor, city manager and key managers in the financial and procurement chain of command were all African-Americans, as was the City Council representative to the Purchasing and Procurement Oversight Committee. As the city leadership considers its response to the findings of the study, those individuals should be able to provide some additional insight into the policies that constrained them from fixing the problem when they were in the seats of power.

But all of the findings did not condemn the city. In fact, the city was commended by the consultants for a variety of actions ranging from the establishment of the Purchasing and Procurement Oversight Committee to extensive outreach efforts to the business community. Furthermore, although some disparities were noted, the percentage of dollars spent with minority businesses was generally higher than the level of spending by the commonwealth of Virginia. In other words, the city outperformed the state.

So, this issue has been formally recognized for at least two decades, and a number of remedies have been put in place. Yet, the situation has proved intractable. When significant effort is spent trying to solve a problem and it won't go away, then it is time to try something different, like shifting the focus back to small businesses in general.

The study offered other states, such as North and South Carolina and Florida, as procurement systems to emulate. As a Dillon Rule state, Virginia's procurement policies drive the city's procedures to a great extent, and there may well be opportunities for improvement at the state level. With that end in mind, good ideas need to be harvested from the more successful jurisdictions and championed as part of the city's legislative agenda.

A close and critical look also needs to be taken at Hampton's internal procurement policies and processes. Indications are that there are still nondiscrimination-related "legal, financial and other barriers" to doing business with the city that have discouraged a broad range of companies, especially small businesses.

I have even more insight to offer but learned at a young age that things given away for free are rarely valued. I look forward to responding to the request for proposal.

Sapp, who was a member of the Hampton City Council from 2004 to 2008, is director of management services at REMSA, a minority woman-owned firm in Hampton. He may be contacted at charsapp@cox.net.

http://www.dailypress.com/news/opinion/dp-op_sapp_0208feb08,0,2321389.story

Minority Report: Hampton, VA...Shameful!

The business minority report shames Hampton
David Squires | Urban Affairs
February 5, 2009

Leaders in and around Hampton seem very cautious — defensive even — in discussing a recent revelation that the city does only 1.6 percent in purchases and procurements with minority-owned companies and only 2.39 percent with women-owned companies.

The population in the city of Hampton is 48 percent African-American. Besides that, Hampton has a nationwide reputation as a Mecca for the black middle class. As one associate said to me after finding out I'd moved here nearly five years ago: "Hampton is not the South." But 1.6 percent in purchases and services in such a diverse city — those numbers scream deep South.

People just expect much better from Hampton.

Such numbers lend weight to old-line civil rights warriors such as Rudy Langford, who says one should expect no better from Hampton's leadership, whom Langford characterizes as a bunch of "lightweights." And that's just the polite version of what Langford says.


A slight pass can be given to new council members such as George Wallace and Mayor Molly Joseph Ward, who are fresh in their seats and who have vowed to improve the numbers. While he was city manager, Wallace tried to bring some of his concerns to light, he and other insiders say. As a council member, he now has a vote and can do something about it.

Wallace can also be given praise for helping to bring the data to light by pushing the disparity study in Hampton that helped to crunch the numbers.

Apparently, Hampton is one of the few — if not the lone — city in Virginia to provide such a study. Why now? "Because it wasn't anybody's priority," Wallace said.

Councilwoman Angela Leary, on the council since 2004 questioned the validity of the numbers, saying she is "having a hard time reconciling" the figures.

Paige Washington, a councilman since 1996, understands the figures all too well.

Washington said the city's problems with being equitable to minority vendors stems from the 1970s when a Virginia Supreme Court ruling struck down minority set aside programs, which earmarked certain funds for minority and female contractors.

"It just became very frustrating, and some black businesses just gave up," Washington said.

In other cities, solid leadership and creative thinking have boosted numbers.

Tony Leverette, business development director for the Northern Ohio Minority Supplier Development Council, based in Cleveland, said: "If an organization has committed themselves to minority business development, the equity doesn't start until they show some type of increase year over year."

Wallace said Hampton is working on policies to bring about such increases.

He and others also point out that the city of Hampton has done other types of business with minority-owned companies. For instance, a public-private partnership led to the building of the $13.5-million Boo Williams Sportsplex, which will be a lasting legacy for former mayor turned council member Ross A. Kearney II.

Hampton University President William R. Harvey points out that the city also donated 51/2 acres of land for the university's Proton Therapy Institute, a cancer treatment center. The city also laid out $60,000 a year for the past three years — and $50,000 for each of the three previous years — for a business incubator at HU, he said.

The incubator will help nourish some of the types of businesses that will eventually be able to do business with the city, and Harvey said it is his plans for HU to forge a long-term partnership with the city.

But with HU just a stone's throw away from City Hall, and with Harvey building hotels and other businesses all across Hampton Roads, why hasn't HU and the city of Hampton been doing more business all along? Did you know that Harvey and HU are in the hotel business? The university has financed the Hilton Garden Inn in Virginia Beach and the Marriott at City Center in Newport News.

Harvey praised Hampton for identifying its problem. " ... they are the only city to put their money where their mouth is," Harvey said, explaining that some other Hampton Roads cities had not yet decided to fund a disparity study.

"I think the mayor and the city manager and city council pretty much have their eye on the ball."

Well, if that's the case, maybe Hampton's city leaders won't miss that giant football staring them straight in the face.

New NFL Hall of Fame inductee Bruce Smith and Virginia Hall of Fame inductee William Fuller have put forth a proposal to develop land at Buckroe Beach, one of the few locations they were allowed to swim in as kids. Fuller and Smith, both Norfolk natives who are African-American, say their parents also have fond members of coming to Buckroe during the days of segregation.

Now they have a multi-phase plan to bring housing, vibrancy and jobs to that area of Hampton — and they are a gift-wrapped opportunity to show that Hampton is not "the South." For some, this might be somewhat of a Hail Mary.

Now let's sit back and watch as Hampton drops this ball.

David Squires can be reached at 247-4639, by e-mail at dsquires@dailypress.com or via blog at dailypress.com/urbanblog.

http://www.dailypress.com/news/dp-local_squires_0205feb05,0,2667413.column