More Than Checking the Box: Understanding the Impact of Supplier Diversity and Project Utilization Goals
Posted by StarChapter on Jan. 16, 2024 / Program Recap / Subscribe 0
More Than Checking the Box: Understanding the Impact of Supplier Diversity and Project Utilization Goals
In the 1980s, Congress created the first Disadvantaged Business Enterprise (DBE) program. Forty years later, supplier diversity programs have evolved, yet we still have the same questions about how we meet our client’s diversity goals (and mean it).
What are some of those diversity programs and goals that our clients aim to achieve?
Ultimately, it depends on the client and the entity, but here are the most common ones:
- Minority-Owned Business Enterprises (MBEs)
- Women-Owned Business Enterprises (WBEs)
- Historically Underutilized Businesses (HUB)
- Service-Disabled Veteran-Owned Small Businesses (SDVOSBs)
- Small, Women, and Minority-Owned) Businesses (SWaM)
Clients may focus on one or many of these goals or even have sub-goals within these overarching goals (i.e., a client may have a goal of 30% M/WBE goal with at least 12% being Hispanic or African American-owned and at least 2% being Asian-owned). Texas clients often use HUB goals whereas Virginia looks at SWaM goals.
Why is this important?
Historically, the A/E/C industry and business, in general, have overlooked small business enterprises or businesses owned by socially and economically disadvantaged individuals – minorities and women. Multiple programs have been created to advocate and support these firms to reduce, if not eliminate, the potential loopholes for discriminatory acts in the bidding or pursuit process for public and government projects. Our industry is extremely competitive, but everyone should have a chance to showcase their talents to perform quality work; and these programs are here to help level the curve and the playing field, create equitable experiences, and create opportunities to teach and train.
Finding Teaming Partners
In Markendium Domain 4 - Proposals, it states, “Assembling the right team can make the difference between success and failure when pursuing new markets, clients, and projects or when expanding opportunities with existing clients.” Finding the right people, internally and externally, to be on your team is critical! Our clients want to see themselves in their project team, so who you showcase in your deliverables or bring to the interview should be considered and evaluated heavily.
The Markendium also gives a step-by-step process to build your team for your proposals.
- Identify your team and consider exclusivity. (**Note of caution here: exclusivity is not always possible, especially with consultants who work with a variety of engineers or architects. Some firms don’t want to break relationships with other firms for the sake of one job.**)
- Present a solid team when you submit your RFP/RFQ
After you and your pursuit development team do this exercise, you can start to map out your team. Do your research and analyze each firm/option you have for your team. Some of the things my firm looks at are:
- Past relationship with the client (and make sure it was a positive experience)
- The partner firm’s expertise and experience
- Any peer recommendations or company/personal awards and accolades
- DBE status, if applicable (and make sure those certificates and credentials are current!
- Non-current certifications are grounds for disqualification or non-compliance.
Things to Pay Attention to As the Proposal Lead
- What is the required percentage for the client DBE goal?
a. It’s not always in the same place as the submittal requirements. Read the proposal to confirm you understand what’s needed.
a. Do you need to provide proof of certification? Do you need to have NAICS numbers or other codes? Do you know what you must fill out for each line or page of the form?
a. In most cases, you only need to provide this if you cannot meet the client’s goals. The items required are, but are not limited to, email chains, call logs, names, etc. This can be a very labor-intensive and cumbersome task just because you couldn’t find a disadvantaged business partner. Rule of thumb: if you can’t meet the goal, don’t waste your time pursuing it and begin building up your network!
b. There are cases where clients want you to show your good faith effort regardless of whether you can or cannot meet the goal. Be aware of those requirements!
a. Be aware of this! You can’t change who is in your firm, but speak up to your proposal opportunity owner if your team does not quite match your client’s profile.
b. Know what’s important to the client. If the donor of the project is providing funds to try to bring more women into STEM fields, having a female project manager or female lead should emphasized throughout your proposal.
Some Great Resources and Tools for Your Firms
o It is broken down by each of our SMPS regional groups and shows federal, state, and local government-administered certifications and privately issued/administered and nationally recognized certifications.
o A Mentor-Protégé program helps eligible small businesses (proteges) gain capacity and win government contacts through partnerships with more experienced companies (mentors).
- Use client websites, especially if they have specific DBE requirements.
Briana Carter, CPSM, Marketing Strategist
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