DEPARTMENT: Transportation and Capital Improvements
DEPARTMENT HEAD: Mike Frisbie
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Professional Services Contract for Small Minority & Women Owned Business Enterprises (SMWBE).
SUMMARY:
An Ordinance authorizing the negotiation and execution of two (2) professional services contracts with Event Professional Services, LLC and Sams Contracting Consulting and Training, LLC, each in the amount not-to-exceed $75,000.00 per year, to provide one-on-one management and technical assistance and training to enhance the capacity of targeted small construction businesses seeking to contract with the City of San Antonio as prime contractors or subcontractors. Each contract is for a term of one year, with four additional one-year extension options, at $75,000.00 per annual extension.
BACKGROUND INFORMATION:
After scores of stakeholder meetings enlisting the energies and ideas of numerous community, corporate and civic representatives from the National Association for the Advancement of Colored People (NAACP), Alamo City Chamber of Commerce, Alamo Area Asian Chamber of Commerce, San Antonio Hispanic Chamber of Commerce and various community professionals and leaders, City Council approved a 5-Year Contracting Diversity Action Plan on January 11, 2013.
An important strategy of the 5-Year Contracting Diversity Action Plan is to build capacity and encourage small, minority, and women-owned businesses (SMWBEs) to participate on City contracts as prime contractors and subcontractors. In support of this strategy, City Council approved funds in the FY 2014 Budget to pilot a SMWBE Management & Technical Assistance Initiative.
The City has supported training and technical assistance to SMWBEs for years through the Economic Development Department's Mentor/Protégé and Bonding Assistance Program. However, ongoing discussions with community stakeholders and partner organizations indicate there is a need to provide an alternative method of support to targeted SMWBEs. The pilot SMWBE Management & Technical Assistance Initiative will allow the City to assist targeted small businesses in the construction trade with a higher level of one-on-one service with clearly articulated goals and measurable results.
A Request for Proposals (RFP) for SMWBE Management & Technical Assistance Services was released in December 2013. The RFP was advertised in the San Antonio Express News and on the City's website. A Pre-Submittal conference was held on January 15, 2014 and responses were due on January 31, 2014. Eight (8) firms responded and submitted proposals. A selection committee, made up of City staff from the Transportation and Capital Improvements Department and representatives from the San Antonio Chapter of the Associated General Contractors (AGC), San Antonio for Growth on the Eastside (SAGE) and NAACP evaluated and scored the proposals based on the published evaluation criteria, which included experience, qualifications and proposed plan. Commitment to the Small Business Economic Development Advocacy (SBEDA) policy also was taken into consideration and scored. The selection committee recommends that contracts be awarded to Event Professional Services, LLC and Sams Contracting Consulting and Training, LLC.
This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program, which requires contracts be reviewed by a Goal Setting Committee to establish a requirement and/or incentive unique to the particular contract in an effort to maximize the amount of small, minority, and women-owned business participation on the contract. The Goal Setting Committee applied the Small and Minority/Women-Owned Business Enterprise Prime Contract Program with twenty (20) evaluation preference points awarded to Event Professional Services, LLC and Sams Contracting Consulting and Training, LLC, as they are certified SBE and M/WBE firms located within the San Antonio Metropolitan Statistical Area. Additionally, the Goal Setting Committee also set a 17% M/WBE subcontracting goal and Event Professional Services, LLC and Sams Contracting Consulting and Training, LLC have committed to 17% M/WBE subcontractor participation.
In accordance with the Local Preference Program, Sams Contracting Consulting and Training, LLC received 10 points for being headquartered within the incorporated San Antonio city limits and Event Professional Services, LLC received 5 points for having a local office in the incorporated San Antonio city limits for the requisite time period, and the requisite number of employees.
The Veteran-Owned Small Business Preference Program does not apply to this contract since it was solicited prior to January 15, 2014, the effective date of the program.
ISSUE:
An ordinance authorizing the negotiation and execution of professional services contracts with Event Professional Services, LLC and Sams Contracting Consulting and Training, LLC, each in the amount not-to-exceed $75,000.00 per year. Each contract is for a term of one year, with four additional one-year extension options, at $75,000.00 per annual extension. The allocated budgeted amount will also cover marketing expenses, trade organization dues (Chamber of Commerce memberships, etc...) and any other cost associated with the operation of the program.
The selected consultants will provide one-on-one mentoring and technical assistance to targeted SMWBEs in the construction trade through a pilot SMWBE Management & Technical Assistance Initiative.
This initiative would cover an array of business development skills which will help grow and strengthen participating small businesses and help them achieve success on City contracts. In the first year, up to ten small businesses (five per consultant) in the construction field are anticipated to participate in this effort. Detailed business consulting services and training may include business development, financial assistance, management, procurement assistance, construction industry assistance, technology and building sustainable partnerships.
In April 2014, the Transportation and Capital Improvements Department (TCI) initiated a call for applications to SMWBEs registered in the City's Central Vendor Registry. Instructions for completing the application and needed forms is mailed or emailed to all interested SMWBEs that meet minimum requirements and work in the construction trade.
A selection review panel will begin evaluating applications from interested SMWBEs in May 2014. Along with City staff, the panel will include NAACP, SAGE, and AGC representatives. Consultants selected for this contract award will also assist in the final selection of program participants. Beginning in June 2014, the consultants will conduct needs assessments and develop work plans for participating SMWBEs. Upon receiving approval to proceed, consultants will then begin executing approved management and technical assistance plans, with regular progress reports submitted to the City.
ALTERNATIVES:
As an alternative option, the City could release a new RFP for these services; however, this action will result in delaying management and technical assistance to targeted small businesses in the construction trade.
A separate alternative is to eliminate the pilot initiative and continue offering small businesses assistance through existing programs; however, this will allow the gap in management and technical assistance support to SMWBEs in the construction trade to persist.
FISCAL IMPACT:
This action authorizes the negotiation and execution of two (2) professional services contracts with Event Professional Services, LLC and Sams Contracting Consulting and Training, LLC, each in the amount not-to-exceed $75,000.00 per year.
Funds for these contracts are available from the Transportation and Capital Improvement Department's FY 2014 Operating Fund. Funding for annual extensions is subject to and contingent upon funding by City Council. The City will make no minimum guarantee pertaining to the volume of work that each may be expected from each consultant.
This is a budget initiative included in the adopted FY 2014 Budget.
RECOMMENDATION:
The authorization to negotiate and execute a professional services agreement with Event Professional Services, LLC and Sams Contracting Consulting and Training, LLC, each in an amount up to $75,000.00 per year to provide one-on-one management and technical assistance and training to enhance the capacity of targeted small construction businesses seeking to contract with the City as prime contractors or subcontractors.