FY 2017 Certified Business Utilization Report Tommy Wells

FY 2017 Certified Business Utilization Report Tommy Wells, Chairman 1

DC Water Local Small Business Enterprise and EPA Fair Share Programs OUR POLICY The District of Columbia Water and Sewer Authority (DC Water) is committed to promoting economic and business development in the District of Columbia and the region it serves. DC Water actively encourages and supports the participation of certified local businesses, local small business enterprises, and disadvantaged (minority and women-owned) business enterprises in its contracting and procurement activities. OUR MISSION To enhance participation, growth and development of the local, small, minority and women-owned business communities. 2

DC Water Local Small Business Enterprise and EPA Fair Share Programs Acronyms and Definitions Ø Certified Firms: For the purposes of this report, certified firms collectively refers to LBEs, LSBEs, MBEs and WBEs. Ø CFR: Code of Federal Regulations. Ø DBE – Disadvantaged Business enterprise: An entity owned or controlled by a socially and economically disadvantaged individual. Ø EPA – Environmental Protection Administration. Ø Exempt Awards – Non Competitive purchases and awards as identified in Section 5332 of the DC Water Procurement Regulations. Ø Fair Share Objective – Amount of funds reasonably commensurate with the total project funding and the availability of qualified MBEs and WBEs taking into account experience on EPA-assisted projects and other comparable projects in the area. Ø LBE –Local Business Enterprise - A business enterprise as defined by the District of Columbia or a user jurisdiction. Ø LSBE – Local Small Business Enterprise - A business enterprise as defined by the District of Columbia or a user jurisdiction. Ø MBE - Minority Business Enterprise - For the purpose of the federal mandated program and fair share objectives, a Disadvantaged Business Enterprise (DBE) other than a Small Business Enterprise (SBE), a Labor Surplus Area Firm (LSAF), a Small Business in Rural Areas (SBRA), or a Women's Business Enterprise (WBE). Ø P Card Purchase – Purchases made through the Authority’s Purchase Card Program. Ø Small Purchase – Purchase made in size ranging from $25, 000. 00 – $99, 999. Ø User Jurisdiction – DC Water’s user jurisdiction consisting of the District of Columbia, Fairfax County, Loudoun County, Montgomery County, Prince George’s County. Ø WBE – Women Owned Business Enterprise: for the purpose of the federal mandated program and fair share objectives, a business which is certified as such by a state, federal agency, or a business which is at least 51% owned by a woman or women, who also controls and operates it. 3

DC Water Local Small Business Enterprise and EPA Fair Share Programs FY 2017 Participation Summary Total Current Value of Active Projects in FY 2017 - $128. . 22 M Report is divided into five (5) sections: I. Simplified Acquisitions Total Awards - $19. 25 M LSBE Participation – $3. 03 M Total Participation of firms within the User Jurisdiction -5. 47 M Total DC Firm Participation- 2. 59 M II. Goods and Services Total Awards - $53. 51. M Total LSBE Awards - $14. 48 M Total Participation of firms within the User Jurisdiction -17. 98 M Total DC Firm Participation -4. 77 M III. EPA Construction Projects Total Awards - $47. 42 M Total WBE Awards - $2. 78 M GI Construction Projects Total Awards - $8. 04 M Total CBE Awards-$7. 20 M Total Participation of firms within the User Jurisdiction -38. 13 M Total DC Firm Participation-26. 63 M 4

Section I Exempt Awards 5

DC Water FY 2017 Procurement Report Exempt Procurement Awards/Expenditures: Ø DC Water Purchase Card Expenditures Ø Procurement awards issued for: o Utilities (Electric Power, Telephone Service) o Legal Services o Specialty Parts and Components o Rider Contracts with entities other than DC Water (GSA/COG contracts) o Sole Source Contracts These actions are not subject to the Business Development Plan. 6

DC Water FY 2017 Procurement Report FY 2017 Procurement Results – P Card Purchases Ø Ø Total Purchased: $2. 2 M Total Number of Transactions: 9272 o Total Number of Vendors: 966 Transactions by Location: Location Amount District of Columbia $761, 957. 09 Prince George’s County $331, 854. 68 Montgomery County $20, 638. 10 Fairfax County $90, 952. 28 Loudoun County $5, 540. 54 Outside User Jurisdiction $991, 901. 84 7

DC Water FY 2017 Procurement Report FY 2017 Procurement Results – P Card Purchases Ø Total Purchased: $2, 202, 844. 53 Ø Total Eligible: $1, 117, 253. 11* Transactions by Type (Category): Fleet Total Purchased: $30, 490. 19 LSBE Participation: $0. 00 Food and Catering Govt, Special Purchases, Memberships Total Purchased: $86, 737. 42 LSBE Participation: $82, 485. 19 Total Purchased: $733, 542. 81 LSBE Participation: $23, 484. 04 Industrial Supplies IT Supplies Office Products Total Purchased: $681, 170. 56 LSBE Participation: $38, 084. 27 Total Purchased: $67, 153. 12 LSBE Participation: $4, 331. 04 Total Purchased: $603, 750. 43 LSBE Participation: $283, 855. 08 Ø Total Purchased with Certified LSBE firms: $408, 755. 58 (28%) o Total Number of Certified LSBE firms: 46 Ø Increase in LSBE Spending from FY 2016 o FY 2016 Participation: 270 k (23% of eligible spend) *Consideration of LSBE participation excludes Category 3: Government Purchases, Memberships, and Special Purchases 8

DC Water FY 2017 Procurement Report FY 17 Active Procurements Categorical Exemptions, Legal Services, Riders, Sole Source, Utilities Ø Total Number of Active Projects: 56 o Total Value: $322, 391, 678 FY 17 Active Procurements Exempt Actions # Ø Total Award DC 13 $ 24, 405, 882. 33 PGC 4 $ MC 1 $ 282, 000. 00 FC 7 $ 1, 370, 736. 00 LC 0 $ - Outside User Jurisdiction (OUJ) 43 $ 296, 333, 060. 61 UJ OUJ 13 43 $ 26, 058, 618. 33 $ 296, 333, 060. 61 Total LSBE Participation: $23, 583, 862 (7. 0%) - 9

Section II Simplified Acquisitions 10

DC Water FY 2017 Annual Report Simplified Acquisitions: Ø Limited Competition o Purchases not on contracts. Ø Purchases not exceeding $100, 000. o Quotations must be obtained from at least two qualified sources. These actions are not eligible for preference points under the Business Development Plan. 11

DC Water FY 2017 Annual Report FY 2017 Procurement Results – Small Purchases (less than $100 k) Ø Ø Ø Total Value of Purchase Orders Issued: $7, 340, 758. 24 Total Number of Purchase Orders: 449 Total Spent: $5, 432, 161. 10 (74% of the PO value) Location # of PO's Value of PO's Total Spent DC 21 $823, 299. 63 $602, 250. 07 PGC 90 $573, 501. 18 $430, 124. 58 MC 6 $257, 308. 74 $194, 312. 70 FC 9 $195, 904. 49 $145, 621. 40 LC 1 $61, 918. 59 $38, 192. 56 $5, 428, 825. 61 $4, 021, 659. 79 Out of UJ 322 12

DC Water FY 2017 Annual Report FY 2017 Procurement Results – Small Purchases (less than $100 k) Ø Total Eligible Purchases: 449 Ø Total Value of Purchase Orders Issued to LSBE: $1, 145, 158. 29 (16%) o Total Number of Purchase Orders: 132 Ø Total Spent with LSBE: $814, 824. 17 Ø Increase in LSBE Spending from FY 2016 o FY 2016 Participation: 11% of Small Purchases

Section III Discretionary Awards Local Small Business Enterprise Participation 14

DC Water FY 2017 Annual Report Program Overview Ø Program applies to discretionary competitive awards. o Large Goods and Services o Construction (non federal) 15

DC Water FY 2017 Annual Report FY 2017 Procurement Results – Active Eligible Discretionary Awards 16

DC Water FY 2017 Annual Report FY 2017 Procurement Results – Discretionary Awards Large Goods and Services Ø Total Number of Active “Eligible” Awards: 176 o Total Value: $352, 990, 192 FY 17 Active Procurements Large Goods and Services # Total Award DC 51 $ 59, 295, 727. 69 PGC 7 $ 3, 384, 814. 48 MC 10 $ 21, 199, 816. 18 FC 23 $ 55, 082, 521. 76 LC 2 $ 15, 832, 437. 22 Outside User Jurisdiction (OUJ) 83 $ 198, 194, 874. 97 UJ OUJ Ø 93 83 $ 154, 795, 317. 33 $ 198, 194, 874. 97 Total Awards with LSBE Participation: 75 o Total Value: $75, 791, 446. 58 (21. 5%) 17

DC Water FY 2017 Annual Report FY 2017 Procurement Results – Discretionary Awards Construction Ø Total Number of Projects: 3 o Total Base Value: $56, 001, 854 o Total Current Value of Awards: $51, 800, 791 Ø Total LSBE Participation: $51, 800, 791 (100%) o Total Number of Certified LSBE firms: 12 • Total Number of Projects with LSBE Primes: 3 Ø Total Paid to LSBE firms: $26, 037, 038 18

DC Water FY 2017 Annual Report FY 2017 Procurement Results – Discretionary Awards Combined: Goods and Services & Construction Ø Total Value of Active Discretionary Projects: $404. 7 M Ø Total LSBE Awards: $127. 5 M Ø LSBE Achieved: 31. 5% o Up from 28. 4% in FY 16 19

Section III EPA Eligible (Not funded) Non-Discretionary Awards 20

DC Water FY 2016 Annual Report FY 2017 Procurement Results – EPA Eligible Participation Total Number of Active Eligible Projects: 28 Ø Total Original Value of Eligible Projects: $613. 5 M o Total Paid: $192. 3 M Though not actually funded, these projects were solicited as being subject to the EPA Fairshare Objectives 21

DC Water FY 2017 Annual Report FY 2017 Procurement Results – EPA Eligible Participation Eligible Design Projects (4) Total Value: $17, 992, 198 WBE Utilization MBE Utilization Ø Avg MBE Goal (as indicated on the Fact Sheets): 28. 1% Ø Range: 28. 6% Highest Goal/ 28% Lowest Goal Actual WBE Participation Actual MBE Participation DCW MBE Award $ 4, 969, 432. 49 Ø Avg WBE Goal (as indicated on the Fact Sheets): 5. 1% Ø Range: 8. 5% Highest Goal/ 4% Lowest Goal % 27. 6% Number of Projects Meeting (Expected to Meet) the MBE Goal: 3 DCW WBE Award $ 1, 363, 099. 86 % 7. 6% Number of Projects Meeting (Expected to Meet) the WBE Goal: 4 Four (4) projects were awarded as Design Build. There were separate goals on the design and construction portions of the project. For the purposes of this report, the design and construction components are analyzed separately.

DC Water FY 2017 Annual Report FY 2017 Procurement Results – EPA Eligible Participation Eligible Construction Projects (28) Total Value: $525, 620, 679. 29 WBE Utilization MBE Utilization Ø Avg MBE Goal (as indicated on the Fact Sheets): 29. 3% Ø Range: 35. 1% Highest Goal/ 0% Lowest Goal Actual WBE Participation Actual MBE Participation DCW MBE Award $ 107, 172, 790. 83 Ø Avg WBE Goal (as indicated on the Fact Sheets): 5. 5% Ø Range: 6. 2% Highest Goal/ 0% Lowest Goal % 20. 4% Number of Projects Meeting (Expected to Meet) the MBE Goal: 22 DCW WBE Award $ 21, 879, 195. 03 % 4. 2% Number of Projects Meeting (Expected to Meet) the WBE Goal: 26

Section IV EPA Fair Share Objective Awards and Expenditures 24

DC Water EPA Fair Share Program Nondiscretionary Procurement Awards Federal (EPA) Assisted Projects Ø EPA requires “Fair Share” objectives for capital projects o M/WBE Goal for A/E Services: 32% Overall o M/WBE Goal for Construction: 38% Overall 25

DC Water FY 2016 Annual Report FY 2016 Procurement Results – EPA Assisted Projects Total Number of Projects: 4 Ø Total Original Value of Eligible Projects: $66. 9 M o Total Paid: $62. 3 M These projects are subject to the EPA Fairshare Objectives 26

DC Water FY 2017 Annual Report FY 2017 Procurement Results – EPA Assisted Projects (4) Total Value: $66, 979, 319 MBE Utilization WBE Utilization Ø MBE Annual Goal: 32% Ø WBE Annual Goal: 6% Actual WBE Participation Actual MBE Participation DCW MBE Award $ 18, 469, 625. 86 % 27. 6% Number of Projects Meeting (Expected to Meet) the MBE Goal: 2 DCW WBE Award $ 4, 377, 746. 11 % 6. 5% Number of Projects Meeting (Expected to Meet) the WBE Goal: 4