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Target Market Program Symposium. March 3, 2011. Overview of Legislation. Don Kupferschmid Special Assistant to the Office of the Secretary. Overview of Legislation. Senate Bill 51 Public Act 96-0795 Effective July 1, 2010 Creates 20 ILCS 2705/2705‑600. Overview of Legislation.

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Target Market Program Symposium

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Target Market Program Symposium

March 3, 2011


Overview of Legislation

Don Kupferschmid

Special Assistant to the Office of the Secretary


Overview of Legislation

  • Senate Bill 51

  • Public Act 96-0795

    • Effective July 1, 2010

    • Creates 20 ILCS 2705/2705‑600


Overview of Legislation

  • Purpose –

    “In order to achieve all diversity goals,

    the Department’s Chief Procurement Officer shall develop and coordinate

    a target market program . . .”


Overview of Legislation

  • Para 1 – Estimating Target Market Program $

    • In January, CPO estimate $ value of all IDOT contracts for calendar year

    • Multiply estimated $ by Minority-Owned & Women-Owned (M/O & W/O) target market percentages to establish TMP $

    • Allocate contracts equal to TMP $

  • Para 2 – Establish Target Market Contract Letting

    • CPO and IDOT identify TMP Contracts

    • Segment Contracts into Feasible Lettings with Varying Projects

  • Para 3 – Determine M/O & W/O Participation

    • Require at least 3 Interested, Qualified M/O or W/O firms for contact inclusion

    • If necessary, require M/O and W/O training to participate


Overview of Legislation

  • Para 4 – Participation Inclusions

    • Limited to M/O and W/O businesses or Joint Ventures consisting of M/O, W/O or both.

    • Prime Contractor may sub 50% of $ to non M/O or W/O firms

  • Para 5 – Federally Funded Contracts

    • IDOT may vary eligibility to comply with Federal Requirements

  • Para 6 – TMP Contracts with Insufficient Bids

    • Reallocate funds to other TMP contracts when insufficient bidding occurs

  • Para 7 – Special Considerations

    • Chief Procurement Officer may:

      • Expedite payments

      • Reduce Retainages

      • Advance Contractor start-up and mobilization costs


  • IDOT’s Target Market Program Implementation

Bill Grunloh

Chief Procurement Officer


TMP Implementation

Goal –

Create a program to assist Minority-Owned and Women-Owned firms to achieve additional construction projects:

  • Establish the Target Market Program

  • Maximize the 2011 Construction Season


TMP Implementation

Target Market Program Amount

  • OP&P and CPO

  • Reviewed FY2011 Annual Program identifying state funded construction projects

  • Assumed Calendar Year and Fiscal Year would be equal amounts


Eligible funds for Target Market Program:

TMP Implementation

Target Market Program Amount (Cont)

  • Added district specific projects representing funded state funds:

    • District Specific Projects $40,000,000

  • Total Target Market Eligible Dollars:


Eligible funds for Target Market Program:

TMP Implementation

Target Market Percentages

  • Chief Counsel and CPO

  • Reviewed IDOT aspirational goals (22.77%)

  • Set Target Market Percentage to 30%

  • Target Market Dollars:

    $103,536,000 * 30% = $31,060,080


TMP Implementation

Target Market Split

(Minority-Owned & Women-Owned)

  • Chief Counsel and CPO

  • Based on: Business Enterprise for Minorities, Females and Persons with Disabilities Act for the State of Illinois

    (30 ILCS 575/4)

        Sec. 4. Award of State contracts.  (b) In the case of State construction contracts, the provisions of subsection (a) requiring a portion of State contracts to be awarded to businesses owned and controlled by persons with disabilities do not apply. Not less than 10% of the total dollar amount of State construction contracts is established as a goalto be awarded to minority and female owned businesses, and contracts representing 50% of the amount of all State construction contracts awarded to minority and female owned businesses shall be awarded to female owned businesses.

  • The Split:

    $31,060,080 * 50% = $15,530,400


Target Market Projects

Christine Reed

Director, Division of Highways


TMP Projects

  • Division of Highways and CPO

  • Projects Selected based:

    • Feasibility and Variety

    • Available Minority-Owned and Women-Owned Firms

    • Varied Locations throughout State

  • 13 Projects (Districts 1, 4, 8)

  • 7 Minority-Owned ($1,810,000)

  • 6 Women-Owned ($1,785,000)

  • Total ($3,595,000)


TMP Implementation

Initial Target Market Letting

  • February 25, 2011

  • Projects:

    • Item 2 withdrawn due to Construction Conflicts

    • Received Bids of 4 items

      • Item 1 (District 1 – Minority-Owned, Drainage) – 4 bidders

      • Item 11 (District 8 – Women-Owned, Deck Sealing) – 1 bidder

      • Item 12 (District 8 – Minority-Owned, Demolition) – 3 bidders

      • Item 13 (District 8 – Minority-Owned, Concrete Work) – 2 bidders

  • Award pending Bid Analysis


TMP Legislation

Ellen Schanzle-Haskins

Chief Counsel


TMP Legislation

  • Concerns with existing Legislation

  • Proposed New Legislation (SB1923)


TMP Suggestions

Audience


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