Item Coversheet

NEW BUSINESS  13.

COMMITTEE MEMORANDUM

TO: Finance and Economic Resiliency Committee Members


FROM:
Jimmy L. Morales, City Manager


DATE: November 13, 2020


SUBJECT:DISCUSSION ON CREATING A DATABASE AND TRACKING THE USAGE OF SMALL AND DISADVANTAGED BUSINESSES AS CERTIFIED BY MIAMI-DADE COUNTY

HISTORY:

On July 29, 2020, the City Commission approved Resolution 2020-31342 directing the Administration to create a database of LGBT firms certified by the National Gay and Lesbian Chamber of Commerce (NGLCC). The resolution requires the Administration to track the usage of LGBT certified businesses in the procurement of goods and services for the City. 

 

On October 14, 2020, pursuant to agenda item C4D, the City Commission referred to the Finance and Economic Resiliency Committee a discussion on expanding the tracking currently applicable to LGBT certified firms to include small and disadvantaged businesses as certified by Miami-Dade County.

ANALYSIS:

In order to establish a supplier diversity tracking program, it is first important to identify the agency that will act as the certifying agency. For example, when considering the previously approved LGBT tracking program, it was determined that the NGLCC would act as the certifying agency for program purposes. This is, in part, because NGLCC is the largest agency with a certifying program which would provide the largest pool of certified vendors. Similarly, Miami-Dade County is the largest local agency with a supplier diversity certifying program which would yield the largest number of certified vendors. Miami-Dade County's program is also race and gender neutral which avoids Legal challenges seen in other programs that are based on race or gender. While there are other certifying agencies locally, including some municipalities, the pool of available bidders would not be as large as the pool available through the Miami-Dade County program. Accordingly, it is recommended that, if this tracking program is approved, that it be based on supplier diversity certifications issued by Miami-Dade County. Miami-Dade County has established certification programs for small businesses in the following categories.

 

Small Business Enterprise – Architectural & Engineering. A gender and race neutral program specifically for firms that are defined as architectural and engineering companies.

 

Small Business Enterprise – Construction. A gender and race neutral program specifically for firms that are defined as construction companies. This category also includes trades (e.g., electrical, painting, plumbing, etc.).

 

Small Business Enterprise – Goods and Services. A gender and race neutral program specifically for firms that supply goods and services other than construction, architectural or engineering services.

 

Disadvantaged Business Enterprise. This program is specific to small businesses in transportation contracting markets, and promotes increased participation in federally funded contracts by small, socially and economically disadvantaged businesses, including minority and women owned enterprises.

 

Miami-Dade County also has a certification program for firms it refers to as local developing businesses. However, this category would not apply to the City’s tracking efforts because it is specific to small businesses that have permits to provide general aeronautical services to commercial airlines and aircraft operators at Miami International Airport. 

 

Miami-Dade County certifications are valid for a three year period, requiring an annual continuing eligibility affidavit.

CONCLUSION:

The Administration supports a program to track the utilization of small and disadvantaged businesses as certified by Miami-Dade County in the City's procurement activities. This program is not only consistent with the City’s commitment to equity and inclusion, it also helps the City’s practices be consistent with a number of federally funded and other agency grants that require recipients to make efforts towards the utilization of these firms.

 

If the Committee and, ultimately, the City Commission are agreeable to this item, staff recommends that a process similar to the tracking of LGBT businesses, pursuant to Resolution 2020-31342 (attached), be approved.

Applicable Area

Not Applicable
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
No No