Recently, I was asked by the Pennsylvania Black Caucus of State Legislators to come and testify about good minority business programs. They are diligently trying to improve their current program and sought suggestions. We at the National Black Chamber of Commerce were more than happy to respond to their request. It is rare and special when elected officials are focused on this key issue. The interest displayed by our state legislators in Pennsylvania is dearly appreciated. Here are the key elements of our testimony.
The most effective way to manage a viable minority procurement program is to make it centralized with serious authority and accountability. There should be one (1) office that reports directly to the Chief Executive, i.e. the Governor. The performance of this office should reflect on the record of the Governor. Likewise, the cooperation of each state agency in its response to working with this office should also reflect on the record of each cabinet member, administrator, director, etc. The executive of this office should represent the Governor in his/her administrative actions and carry out the intent of the legislature in the daily duties of the office.
All agencies and departments must submit reports (created and structured by the Minority Procurement Office) to this office on a quarterly basis. The data will be edited, audited and compiled by the Office and reported to the Governor and Legislature on a quarterly basis and with one annual report. The agencies should not have any sub-offices or departments for minority business. All minority business direction should come from this one office. Sub-offices will provide nothing but confusion and lessen the importance of the program. Direct management should be between the Minority Procurement Office and the procurement staffs (per the direction of cabinet officials) of all agencies and departments.
In regards to key procurements, the Executive has the authority to veto any procurement decision that is counter to the program or the intent of Title VI of the Civil Rights Act. The only veto override can come from the Governor. Such was the case at the US Department of Housing and Urban Development (HUD). As a result HUD minority participation exponentially increased under Secretary Alphonso Jackson and led the federal government in every area. We strongly think this should be emulated.
It would be important that the Executive of the Minority Procurement Office has the following staff structure within his office:
Administration:
The department would be responsible for compiling, editing and auditing all participation reports. All data collection would arrive here. Also, the official certification process for businesses who are eligible (small and disadvantaged) should be performed here. The minority and women business directory should be a living document with daily updates and maintained at this office.
Construction:
This department would be responsible for all bid specifications related to the minority procurement program for construction activity. Compliance and verification will be key issues as corruption and misrepresentation runs rampant in this industry.
General Procurement:
This department would be responsible for proper bid specifications, bidding, quotes and historical review for basic goods and services that are competed. There should be much interaction with all procurement offices and this department.
Professional Services:
This department would be responsible for key areas that are often overlooked in regards to minority participation. MD’s, dentists, sociologists, psychiatrists, attorneys, law firms, architects, engineers, accountants, actuarial services, insurance, staffing firms, nursing, IT, financial services, stenographers, construction management, etc. provide significant opportunities for inclusion in these professions if they are allowed equal opportunity. Keep in mind that this type of procurement is not a low bid situation but a subjective decision. If minority participants are adequately included in the mix there should be no excuse for exclusion.
Technical Support and Marketing:
This department would perform workshops giving bidding assistance, advice and resources such as lending agencies, Small Business Administration, pro bono consultants, etc. to businesses enrolled in the minority procurement database. It would provide networking between businesses and procurement offices and be an information source for all bidding news and updates. It would publish an eBLAST or electronic newsletter as well as help produce an electronic bidding process for all applicable bidders. This office would also recruit viable minority businesses from outside the state and assist in their relocation. Targets of this recruitment would be businesses in industries that lack current minority involvement within the state.
The Select Committee on Minority and Women Business Enterprise received the above testimony well. In fact, they said it was the first time that someone brought forth a suggestion of how to create a program as opposed to just criticize. Please keep in mind that this is a model for state government. It could also be adapted to a large city or county program if the budgeting exists. Good luck!
