Procedures For Utilization of Minority-Owned,  Women-Owned and
Small Businesses

1. PURPOSE

   To establish guidelines for the utilization of minority-owned, women-owned and small businesses in the procurement activities of Virginia Commonwealth University.

2. OVERVIEW:

   Virginia Commonwealth University is committed to the establishment, preservation and strengthening of small, women- and minority-owned businesses. These businesses will be solicited and encouraged to participate in the procurement activities of the University and records will be maintained documenting such solicitation efforts and participation. Further, the University will encourage its contractors to provide for the participation of small businesses and businesses owned by women and minorities through partnerships, joint ventures, subcontracts and other contractual opportunities

   Small Business Enterprise

   For the purposes of classification and reporting, a small business enterprise is an independently owned and operated business which, together with affiliates, has 250 or fewer employees, or average annual gross receipts of $10 million or less averaged over the previous three years. Nothing in this definition prevents a program, agency, institution or subdivision from complying with the qualification criteria of a specific state program or a federal guideline to be in compliance with a federal grant or program. For the purpose of the SWAM Program, the definition of small business enterprise shall be interpreted to include all certified woman-owned and minority-owned businesses.

   Women-owned Business

   For the purposes of classification and reporting, a woman-owned business is defined as a business concern which is at least 51 percent owned by one or more women who are U.S. citizens or legal resident aliens, or in the case of a corporation, partnership or limited liability company or other entity, at least 51 percent of the equity ownership interest in which is owned by one or more women, and whose management and daily business operations are controlled by one or more of such individuals.

   Minority-owned Business

   For the purposes of classification and reporting, a minority-owned business is defined as a business concern which is at least 51 percent owned by one or more minorities or in the case of a corporation, partnership or limited liability company or other entity, at least 51 percent of the equity ownership interest in which is owned by one or more minorities and whose management and daily business operations are controlled by one or more of such individuals.

3. PROCEDURES FOR PROVIDING BUSINESS OPPORTUNITIES:

   Procurement and Payment uses the Virginia Department of Minority Business Enterprises (DMBE) database to identify certified SWAM businesses

   Procurement and Payment's procedure for increasing bidding opportunities for SWAM businesses requires the buying staff to solicit these firms as defined below:
   
   

   • quotations obtained under $5,000 may be made noncompetitively and should include SWAM businesses to the extent practicable;;
      
     • departments have delegated authority to make purchases up to $5,000 (noncompetitive threshold) and are encouraged to involve SWAM businesses in their procurement activities;
        
   • solicitations between $5,000 and $50,000 must include a minimum of four SWAM businesses, provided there is adequate registration by commodity;
      
   • solicitations over $50,000 must include a minimum of six SWAM businesses, provided there is adequate registration by commodity.
      

   Any solicitation wherein the aforementioned number of SWAM businesses will not be solicited requires advance written approval from the Supplier Diversity Champion or his/her designee.

   All formal RFPs and Statement of Interest applications must be advertised/posted in the:

   • Richmond Times-Dispatch
   • Richmond Free Press (a local minority-owned newspaper)
   • Richmond Voice (a local minority-owned newspaper)
   • Commonwealth of Virginia's Electronic Procurement System (eVA)
   • Procurement & Payments' website located at
     http://www.vcu.edu/procurement/bid_rfps.htm

   All IFBs must also be advertised in the:

   • Richmond Times-Dispatch (FMD-Construction Management issued projects only)
   • Richmond Free Press (a local minority-owned newspaper)
   • Commonwealth of Virginia's Electronic Procurement System (eVA)
   • Procurement & Payments' website located at
     http://www.vcu.edu/procurement/bid_rfps.htm

   A copy of all IFBs, RFPs and Statement of Interest Applications must be mailed to the following organizations:

   • Central Virginia Business & Construction Association (CVBCA)
      
   • Metropolitan Business League (MBL)
      
   • Virginia Department of Minority Business Enterprises (DMBE)
      
   • Virginia Minority Supplier Development Council (VMSDC)
      

   Procurement and Payment staff will participate in trade fairs and other events that focus on developing business relationships between governmental agencies/institutions and SWAM businesses. These staff members will meet with representatives of SWAM businesses to encourage them to certify through DMBE and to educate these firms on the University's procurement policies and procedures. SWAM firms are invited to address the buying staff and provide information on the firm's area of expertise.

   The University coordinates and hosts an annual SWAM Expo as a part of the University's ongoing outreach efforts and to achieve diversity in procurement.

   The buying staff will encourage all vendors, through negotiations and or through explicit procurement diversity goals stated in the solicitation, to establish partnerships and/or subcontracts with small, women- and minority-owned businesses. All formal solicitations require a contractual commitment for utilization of SWAM firms.

   User departments at the University are encouraged to support procurement diversity using their $5,000 delegated purchasing authority. This encouragement/education is provided to departments through formal fiscal training classes and regularly scheduled departmental visits conducted by the buying staff. Small, women- and minority-owned businesses are encouraged to establish business relationships with user departments that may require products and or services from their firm.

4. GOAL SETTING, MONITORING, AND REPORTING:

   The University's goal is to be a leader among the Commonwealth's institutions of higher education in supplier diversity. The University's goal for FY 2006 is to increase its SWAM expenditure percentage by 5% compared with the prior fiscal year.

   Contracts wherein prime contractors have made SWAM commitments will be recorded in a database. The University will send a letter on a quarterly basis to each prime contractor that made a second-tier commitment. The letter will require the prime contractor to provide information regarding its expenditures to second-tier SWAM businesses that were utilized on the specific contract. The prime contractor must provide the name of the second-tier firm, business classification of the firm (e.g. minority-owned), and the dollar amount paid. The reported information will be compared with the prime contractor's commitment to determine whether the prime contractor is fulfilling its contractual obligations. Prime contractors that fail to report information on a timely basis will have invoice payments withheld until such time the information is reported. Prime contractors that do meet their SWAM commitments may be held in contractual default.

   Expenditures with SWAM businesses will be calculated on a monthly basis and reported to the Virginia Department of Minority Business Enterprises (DMBE) on a quarterly basis. The University's Diversity Champion will compare the University's SWAM expenditures with the University's specific SWAM goals, and report progress on a monthly basis to the University's senior management. SWAM expenditure calculations will include direct payments, purchases from SWAM businesses using the Corporate Purchasing Card, and second-tier SWAM reporting provided by prime contractors.