goals program background...goals program background & timeline november 2014: boe adopts...

Goals Program Background & Timeline

November 2014: BoE adopts Equitable and Inclusive Contracting Policy (ACE) after Disparity Study found justification to implement a narrowly tailored program targeted at increasing participation of Minority and Women owned business (MWBE) suppliers for construction and construction-related professional services.

February 2015: MGT releases final report; Board of Education adopts aspirational goal of 24% participation; DPS hires staff and launches goals program.

What is an MWBE firm?• DPS accepts MWBE certification from several agencies including the City and County of

Denver. They must meet criteria for business size, ownership, time in business, and personal net worth.

• For example, to qualify with CCD, the business must be owned by individuals who belong to designated disadvantaged groups, with a net worth less than $1.32 million (excluding a primary residence) and the business must have annual revenue of less than $23.98 million.

Note that DPS has contractors who are owned by individuals in the designated groups, but who own companies that are larger than the cap.

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**Disparity index is the ratio of actual spend with MWBE firms divided by the available MWBE firms multiplied by 100. A disparity index score of 100 indicates no disparity. A disparity index score below 80 indicates a substantial level of disparity.

Contract Category MWBE Disparity Index**

Construction Prime Contractors 56.74

Construction Subcontractors 54.28

Architect & Engineer Prime Contractors 80.86

Architect & Engineer Subcontractors 84.63

MWBE Utilization: January 2009- December 2013

Contract Category Dollars Spend

Construction Prime Contractors 8.20%

Construction Subcontractors 24.20%

Architect & Engineer Prime Contractors 13.77%

Architect & Engineer Subcontractors 23.58%

A&E showed no material disparity per 3rd party study

Because contract categories have different expertise, disparity differs by prime, sub, architects, and general contractors based on availability of MWBE firms in the respective market.

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Disparity Report Results

Activities since Policy ACE passed in November 2014

Pursuant to Board policy, DPS staff has taken the following steps: • Established DPS Goals Committee and Program• Set district Aspirational Goals at 24% participation of MWBE firms- BoE

approved in February 2015. As of Fall 2015, exceeding aspirational goals (see pages 7 and 8).

• Updated bid documentation to include MWBE commitment, Letter of Intent process.

• Hired Compliance Coordinator and Compliance Analyst(2 new FTEs to support program efforts)

• Implemented computerized system to track data (B2G ) • Goals set on over 75 projects, beginning in February 2015• $25.5 million paid out on projects which had goals established, $6

million remaining on those projects and with additional projects coming.

• Initial analysis of 2015 project MWBE utilization above aspirational goal of 24%.

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Goals Committee(Established February 2015)

Goals Committee Members –Nine (9) member goals committee of external stakeholders in construction or architectural/engineering services • 3 MBE: Michael Roybal (The Roybal Corp.), Raymond Garcia (DRG Construction),

Jeffrey Knight (JKS Industries)• 3 WBE: Rebecca Arisitizabal-Sandstrom (Sandstrom Architects), Janelle Martinez

(NM Industrial), Heather Noyes (Studio CPG) • 3 Majority: Gary Constant (GH Phipps), Tom Stone (Adolfson & Peterson), Julie

Witecki (Swinerton) Staggered 2-year and 3-year terms

Goal Setting Process –Goals Committee receives project scope breakdown and data showing market availability –Senior Construction Services staff member presents project scope breakdown and any special requirements during Goals Committee meeting –Goals Committee member motions for project goal, majority vote to recommend goal –Recommended project goals and disclosure of Committee member interest in projects are documented –Committee Chair (Trena Deane) records and approves recommended goal –The Project Manager has opportunity to request/justify amendment of goal to Chair

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Example: Swansea goals project

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RFP to marketGoal Committee

sets 50% goal

DPS reviews packages and

scores bids

Bring in highest scoring bids for

interview

Project Awarded. Committed 70%

utilization.

Architect RFP to market

Goal Committee sets 70% goal

DPS reviews packages and

scores bids

Bring in highest scoring bids for

interview

Project Awarded. Committed 70%

utilization.

Architect & Engineering Bidding Process*

General Contractor Bidding Process**

Mentor/Protégé Program

*A&E Engineers Estimate: $660,000**GC Engineers Estimate: $10.6 million

2015 Results

76 goals set as of 11/11/15• 56 Construction Related Professional Services

(Architects & Engineers- A&E)• 20 Construction General Contractors (GC)

As of 10/31/15• 33.54%* of 2012 Bond-funded Construction Project

Dollars from projects with goals established (2/2/15-10/31/15) went to MWBE firms.

• Accounts for $8.55 million

*Note: We expect this % to vary over time based upon the type of work being performed, and will continue to target and track against the aspirational goal of 24%.

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Aspirational Construction Goals Progress

18.60%24.00%

33.54%

9.70%

8.90%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

MGT RecommendedAspirational Goals by Category

MGT RecommendedAspirational Goal

DPS Aspirational Goal 2015 Utilization to Date

Aspirational Construction Goals & Actual Spend

MWBE MBE WBE

$8.55 million to M/WBE firms* for Bond financed goals projects

Utilization: Payments to MWBE contractors divided by total payments.Anticipate exceeding aspirational goal after

projects close out. *From 2/2/15- 10/31/158

2015 Goals ProjectsPayment distributions to date (10/31/15)

MWBE certification revenue threshold, result in primes outgrowing market.

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MWBE Sub-Contractor31%

MWBE Prime2%

Non-MWBE Sub17%

Non-MWBE Prime50%

2015 GOALS PROJECT PAYMENT SHARE $25,506,78036 CONSTRUCTION BOND FUNDED GOALS PROJECTS

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Next Steps

• Gather data and analyze MWBE supplier participation since the inception of the 2012 bond.

• Continue to evaluate processes and gather feedback from stakeholders

• Standardize reporting – BOE, BDOP, community• Evaluate other program improvement opportunities (e.g.,

workforce development).• Continued communication with supplier community on

upcoming events• Annual report out planned for February 2016

Appendix A- B2G Data Transparency (continued)*To Date (As of 10/31/2015)

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Original Contract Value

Current Contract Value

Original Goal

Adjusted Goal

Prime ContractorMWBE

Total Payments

Payments to MWBEs

MWBE Utilization

Payment Progress

TOTALS $29,924,819 $31,346,237 28.84% 27.53% $25,506,780 $8,554,437 33.54% 81.37%George

Washington HS Pool Reno

$247,600 $320,853 10.00% 7.72% Calahan Construction Services

$165,990 $43,145 25.99% 51.73%Aquatic Chemical Solutions

Diamond PlumbingSkyline Lighting & Electric

West HS - Wood Flooring

$416,550 $416,550 10.00% 10.00% RMA Group

$383,512 $53,508 13.95% 92.07%Acierno & Company

Ex-Cel ElectricGorilla Demolition

Lowry Elementary School Additions

$3,761,600 $3,860,815 50.00% 48.72% Bassett and Associates

$3,319,854 $1,142,516 34.41% 85.99%

Academic SpecialtiesADP Lemco

Aggregate Industries (WCR Denver)Allstate Sweeping

AMERICAN FENCE COMPANYArapahoe Roofing and Sheet Metal

Avant Datacomm SolutionsB-W Masonry

Children's Playstructures & RecreationColorado Carpet Center

Diversified UndergroundDivision 7

dvh Company .Dynamic Specialties

Eastco InteriorsFlatirons

Fort Collins Pre-CastFront Range Commercial Windows &

DoorsG&G Contractors.

Gary Leimer,


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Original Goal

Adjusted Goal


Total Payments

Payments to MWBEs

MWBE Utilization

Payment Progress

TOTALS $29,924,819 $31,346,237 28.84% 27.53% $25,506,780 $8,554,437 33.54% 81.37%Lowry Elementary School Additions

(continued)

$3,761,600 $3,860,815 50.00% 48.72% HD Communications LLC

$3,319,854 $1,142,516 34.41% 85.99%

Herr Construction Services.K&S EnterprisesKelry Installation

Powers Products COPrecise Striping LLC

Recreation Plus, Ltd.Rocky Mountain Blueprint & Supply

Co.SignWorks

Southwest Mechanical ManagementSuperior Steel Connectors Corporation

United Supply & Sales Co. .Waste Management of Colorado

East HS $1,784,236 $2,073,613 62.00% 53.35% Mark Young Construction

$1,966,080 $1,168,543 59.44% 94.81%

AGLASCOColorado Specialties

Construction Design AssociatesDler Stage EquipmentFire & Safety Solutions

Independent Construction LLPJCOR Mechanical

Laboratory Design & ConstructionMike's Specialties

N & NNational Coatings

New ElectricWenger Corporation


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Original Goal

Adjusted Goal


Total Payments

Payments to MWBEs

MWBE Utilization

Payment Progress

TOTALS $29,924,819 $31,346,237 28.84% 27.53% $25,506,780 $8,554,437 33.54% 81.37%Centennial

Roofing$114,500 $114,500 0.00% 0.00% RMA Group

$59,813 $0 0.00% 52.24%

Centennial Renovations


$125,660 $28,743 22.87% 90.52%Decor

Lord & Reynolds Electrical ServiceNM Industrial Services

Schenck $408,592 $408,592 30.00% 30.00% Calahan Construction Services

$357,890 $118,448 33.10% 87.59%ASA Door Tech

Colorado Fire and SecurityDiamond Plumbing

Lord & Reynolds Electrical ServiceHill MS $2,140,107 $2,140,107 30.00% 30.00% Gerald H Phipps

$1,924,962 $1,031,885 53.61% 89.95%

Colorado Design . Tile & TerrazzoColorado Doorways

Contemporary PaintingCustom Restoration LLC.

Cutting Edge GlassD & D RoofingGary Leimer,

Independent Construction LLPIron Hammer

ISEC Co.MV Power Solutions

NM Industrial ServicesRademacher Masonry

Scherer Metals


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Original Goal

Adjusted Goal


Total Payments

Payments to MWBEs

MWBE Utilization

Payment Progress

TOTALS $29,924,819 $31,346,237 28.84% 27.53% $25,506,780 $8,554,437 33.54% 81.37%JFK -

Boiler/AC/Fire Alarm

$2,122,280 $2,387,636 20.00% 17.78% Mark Young Construction

$2,210,671 $939,337 42.49% 92.59%

A & M SteelAcademic SpecialtiesColorado Doorways

Gary Leimer,Independent Construction LLP

Mountain Top ElectricNM Industrial Services

Eagleton Reno $1,953,295 $2,142,114 15.00% 13.68% Ward Construction

$1,940,885 $0 0.00% 90.61%

All Area AcousticsColorado Carpet Center

Colorado DoorwaysCVK Electric.

Delta Dry WallDubworks Murphy MillFront Range Plumbing

M&M PaintingReeves Specialty Services

Skyline GlassSolargreen Technologies

Superior ContractorsWestern States Fire Protection-AZ

Pioneer Charter Renewal

Renovation


$392,323 $140,429 35.79% 95.00%

Arapahoe Roofing and Sheet Metal ASA Door Tech

NM Industrial ServicesSkyline Lighting & Electric

Western State Fire Protection (Colorado)

Grant MS Reno $358,222 $401,499 0.00% 0.00% Casey's Construction LLC $363,349 $0 0.00% 90.50%


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Original Goal

Adjusted Goal


Total Payments

Payments to MWBEs

MWBE Utilization

Payment Progress

TOTALS $29,924,819 $31,346,237 28.84% 27.53% $25,506,780 $8,554,437 33.54% 81.37%Place Bridge

Academy$1,404,274 $1,462,157 52.00% 49.94% Mark Young Construction

$1,363,039 $651,987 47.83% 93.22%Alpine Custom Concrete

DME Electric LLCGilbert Contracting

NM Industrial ServicesNorth High School

General Renovation

$1,679,607 $1,847,042 30.00% 27.28% Calahan Construction Services

$1,595,677 $592,133 37.11% 86.39%

Aquatic Chemical SolutionsH.E.S. Elevator Services

H.P. ConstructionMeridian Fire and Security

NM Industrial ServicesWestview Productions

JFK HS -Technology Lab

$133,820 $137,664 25.00% 24.30% Wilderness Construction Company

$130,781 $66,808 51.08% 95.00%

dvh Company .Gary Leimer,

Innov8 Solutions USAJ&M Cabinet Shop

Simpson & Simpson Sales & ServiceStandard Plumbing

FD COLUMBINE $121,985 $121,985 0.00% 0.00% Meridian Fire and Security $115,886 $0 0.00% 95.00%Barrett/PREP/

Oakland$386,027 $393,474 20.00% 19.62% Orion Environmental

$393,475 $275,431 70.00% 100.00%Orion Environmental

FD PHILLIPS $96,505 $96,505 0.00% 0.00% Meridian Fire and Security $91,680 $0 0.00% 95.00%Ash Grove, Blair,

Waller and Holms$286,493 $286,823 30.00% 29.97% EGC - Edstrom General Contracting

$286,823 $0 0.00% 100.00%

Accutrol Heating & Cooling .Long Mechnical SolutionsMeridian Fire and SecurityPACIFIC WEST PAINTING

Phoenix MasonrySignage

Team Electric


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Original Goal

Adjusted Goal


Total Payments

Payments to MWBEs

MWBE Utilization

Payment Progress

TOTALS $29,924,819 $31,346,237 28.84% 27.53% $25,506,780 $8,554,437 33.54% 81.37%FD ASH GROVE $124,000 $124,000 0.00% 0.00% COLORADO FIRE & SECURITY $62,510 $0 0.00% 50.41%

Cory and Merrill Renovation

$778,596 $800,735 15.00% 14.59% Interlock Construction Corp.

$750,999 $115,627 15.40% 93.79%

Colorado DoorwaysColorado Specialties

Croissant Custom FabricationsDiamond Plumbing

Flooring Design AssociatesGrandview Glass

KC StripingMechanical Solutions

Meridian Fire and SecurityNoble Electric Co.

South Valley DrywallTrujillo Special Coatings

United MaterialsEllis, Hamilton,

Roberts, Whittier and Howell

$659,910 $659,910 25.00% 25.00% RMA Group

$610,530 $129,481 21.21% 92.52%Abbey Environmental Management

Acierno & CompanyEx-Cel Electric

FD ELLIS $158,589 $158,589 0.00% 0.00% Meridian Fire and Security $150,660 $0 0.00% 95.00%Steele - Hallet Renovations

$1,456,661 $1,456,661 15.00% 15.00% Gerald H Phipps

$1,101,825 $464,221 42.13% 75.64%

Accent Electrical ServicesB2 Construction

Colorado Asphalt ServicesColorado Doorway

First Stage RenovationsNM Industrial ServicesRademacher Masonry


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Original Goal

Adjusted Goal


Total Payments

Payments to MWBEs

MWBE Utilization

Payment Progress

TOTALS $29,924,819 $31,346,237 28.84% 27.53% $25,506,780 $8,554,437 33.54% 81.37%Park Hill – Smith $699,227 $725,188 30.00% 28.93% Casey's Construction LLC

$684,808 $182,531 26.65% 94.43%

Aegis PlumbingCBA MECHANICAL LLC

Colorado DoorwaysJ&R Electric

Jackson Enterprises CorporationJohnson Controls – Dallas

Randolph & Manual

$1,133,097 $1,187,202 20.00% 19.09% Calahan Construction Services

$1,029,793 $805,000 78.17% 86.74%

All American Window TintingGary Leimer,

Lord & Reynolds Electrical ServiceNM Industrial Services

SignageSimplexGrinnell LP

Stark SolutionsDSA & Phillips $603,786 $610,506 33.00% 32.64% RMA Group

$554,110 $178,758 32.26% 90.76%

Abbey Environmental ManagementAcierno & CompanyColorado Doorways

Enhanced Mechanical Systems LLCEx-Cel Electric

Gorilla DemolitionH.P. Construction


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Original Goal

Adjusted Goal


Total Payments

Payments to MWBEs

MWBE Utilization

Payment Progress

TOTALS $29,924,819 $31,346,237 28.84% 27.53% $25,506,780 $8,554,437 33.54% 81.37%GALS @ DEL

PUBELO$3,808,000 $3,828,992 25.00% 24.86% PCL Construction Services

$1,730,779 $0 0.00% 45.20%

Academic SpecialtiesArlun Incorporated

Blue Ribbon ConcreteCentral Fire Protection Contractors

Civilex.Colorado Doorways

Colorado Specialties CorporationConstruction Designs

D&E Steel ServicesEngineered Demolition

Frontier MechanicalGen3 CO LLC

Interface CommunicationsKELLY UNDERGROUND CONSTRUCTION

MBR ElectricPowers Products CO

Rails Plus Starr Group

Stresscon CorporationSuperior Roofing .

Workplace ELEMENTS LLCWest Digital

Pathways$605,360 $629,044 10.00% 9.62% Orion Environmental

$447,659 $313,361 70.00% 71.17%Orion Environmental

Place Bridge Academy Modular

$61,081 $51,908 20.00% 20.00% Wilderness Construction Company

$63,881 $10,382 16.25% 123.07%Choice Electric Corporation

Classic MetalsInlet Structures

J & L Pipeline Contractors


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Original Goal

Adjusted Goal


Total Payments

Payments to MWBEs

MWBE Utilization

Payment Progress

TOTALS $29,924,819 $31,346,237 28.84% 27.53% $25,506,780 $8,554,437 33.54% 81.37%Ashley, Asbury,

Fairmont Cooling Enhancements

$549,922 $549,922 10.00% 10.00% Gerald H Phipps$57,608 $0 0.00% 10.48%

Smedley $201,647 $223,191 20.00% 18.07% RMA Group$182,160 $51,026 28.01% 81.62%Abbey Environmental Management

Ex-Cel ElectricSteck Renovations $694,568 $727,720 30.00% 28.63% RMA Group

$640,858 $51,141 7.98% 88.06%Abbey Environmental ManagementEnhanced Mechanical Systems LLC

Ex-Cel ElectricHorace Mann

Cenpatico Program

$98,500.00 $98,500.00 20.00% 20.00% RMA Group

$0 $0 0.00% 0.00%

Abbey Environmental ManagementAcierno & Company

Ex-Cel Electric

West Gym Mechanical

$246,000 $246,000 10.00% 10.00% US ENGINEERING$145,808 $0 0.00% 59.27%

Long Building TechnologiesSwansea ES / McMeen ES

Modular

$103,430 $104,442 19.00% 18.82% Wilderness Construction Company$104,442 $0 0.00% 100.00%

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Appendix BProject Goals- General Contractors

Project Name Engineers EstimateRecommended

GoalApproved

GoalCommitted

GoalProgress

Lowry Elementary Phase 2 $4,045,600.00 25% 25% 50% 34.41%East HS $2,397,637.15 20% 20% 62% 59.44%Randolph & Manual $1,397,955.97 20% 20% 20% 78.17%North HS $1,633,821.00 30% 30% 30% 37.11%Ellis, Hamilton, Roberts, Whittier and Howell $295,131.00 25% 25% 25% 21.21%DSA and Phillips $420,750.00 33% 33% 33% 32.26%JFK - Boiler/AC/Fire Alarm $2,990,882.00 20% 20% 20% 42.49%Park Hill Smith $701,377.00 30% 30% 30% 26.65%GWHS Pool Renovations $320,000.00 10% 10% 10% 25.99%Pioneer Charter $590,000.00 30% 30% 30% 35.79%Place Bridge $1,190,000.00 35% 35% 52% 47.83%Multi Site - Ash Grove, Steck, Holm, Blair, Waller $647,601.00 30% 30% 30% 0%Steck (Rebid) $647,601.00 30% 30% 30% 7.98%Hill MS $1,500,000.00 30% 30% 30% 53.61%FD Columbine $346,019.00 0% 0% 0% 0%FD Philips $195,838.00 0% 0% 0% 0%FD Ash Grove $231,898.00 0% 0% 0% 0%FD Ellis $357,692.00 0% 0% 0% 0%Centennial Reroof (Under Warranty) $98,000.00 0% 0% 0% 0%JFK - Tech Lab $170,000.00 25% 25% 25% 51.08%GALS @ Del Pueblo $2,744,252.00 25% 25% 25% 0%Centennial $1,969,236.00 15% 15% 15% 22.87%Eagleton $940,738.00 15% 15% 15% 0%Schenck $220,000.00 30% 30% 30% 33.10%Cory - Merrill $826,803.00 15% 15% 15% 15.4%

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Appendix BProject Goals- General Contractors (continued)

Project Name Engineers Estimate Recommended GoalApproved

GoalCommitted

GoalProgress

Place Bridge Academy Modular $60,000.00 20% 20% 20% 16.25%West HS - Wood Flooring $282,500.00 10% 10% 10% 13.95%Grant MS Reno $545,095.00 0% 0% 0% 0%West HS - Digital Pathways $281,240.00 10% 10% 10% 70%Barrett/PREP/Oakland $389,623.00 20% 20% 20% 70%Columbine/Garden Place/ Harrington $853,355.00 18% 18% - -Recycled Water Conversions (6 Schools) $200,000.00 10% 10% - -Bryant Webster - Boiler Replacement $572,226.00 0% 0% - -Steele- Hallet Reno $943,263.00 15% 15% 15% 42.13%Skinner - Beach Court Cooling $326,850.00 15% 15% 15% -Cooling Enhance - Denison, Doull, Force, Gust $444,480.00 20% 20% - -CEC Digital Pathways $136,000.00 20% 20% - -1825 S. Federal - Gen. Reno $550,321.00 22% 22% 22% -Horace Mann - Cenpatico Prog. $60,000.00 20% 20% 20% -MLK Career Ed Tech $140,000.00 25% 25% - -Rishel/Valverde $339,638.00 10% 10% - -West HS Gym Mech. Unit Replacement $275,000.00 10% 10% 10% -Swansea ES/McMeen ES Modular $180,000.00 16% 16% 21% -Smedley $140,500.00 20% 20% 20% -East HS YCC $481,000.00 25% 25% 25% -Northfield Stapleon HS Commons $4,500,000.00 24% 24% - -Swansea ES Addition and Reno $660,000.00 70% 70% - -Ashley, Asbury, Fairmont Cooling $385,000.00 10% 10% 50% 0%Swansea CM/GC RFP $10,601,409.00 50% 50% - -Palmer & Holm ADA $113,939.00 40% 40% - -Blair ECE Center - Construction $4,312,500.00 40% 40% - -Randolph Turf Project $951,736.00 20% 20% - -Barnum, Remington & Teller Hood Duct Fire Protection $199,122.00 40% 40% - -

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Section A - Foundations and Basic Commitments Title- Equitable and Inclusive Contracting PolicyNumber- ACE Status- Active Legal Adopted- November 20, 2014

Pursuant to the Board of Education’s Resolution 3457, school district administrators and officials are to develop a policy to increase in the school district’s bond construction program and other construction related services the utilization and participation by minority and women owned businesses (“MWBEs”).

Accordingly, school district administrators and officials subsequently hired MGT of America to examine the school district’s procurement practices and determine whether any current school district policies and procedures have been, or are barriers to meaningful participation by MWBEs. The MGT disparity study presented to the School Board of Education identified that current practices contributed to the underutilization of ready, able and willing MWBEs in the construction industry operating in the Denver Metropolitan area.

The Board of Education, upon the receipt and acceptance of the MGT disparity study, authorizes the Superintendent or designated representative(s) to take all necessary and reasonable action required to ensure that all businesses, principally those identified as underutilized MWBEs, are afforded a fair and equitable opportunity to provide their construction and construction-related services and goods to the school district.The Board of Education directs the Superintendent or designated representative to modify, change or amend any existing policy, practice, and/or procedure that has been a barrier to participation by MWBEs, or that can increase the utilization of MWBEs.

The Board of Education hereby delegates to the Superintendent or designated representative(s) the authority to take all necessary and reasonable steps the law permits to ensure the full, equitable participation of any and all qualified MWBEs, and small, and local businesses.

This Policy shall apply only to the solicitation of construction and construction-related supplies, services, and contracts procured in accordance with the School Board purchasing and procurement policies and the applicable laws of Colorado. To the extent permitted by applicable state and federal laws, this policy is intended to address the implementation of construction and construction-related programs to remediate the disparity and underutilization of MWBEs by developing a race and gender goals program, as well as a race and gender neutral program.

Appendix CEquitable and Inclusive Contracting Policy

goals program background...goals program background & timeline november 2014: boe adopts...

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