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Target Market Program Symposium

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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  1. Target Market Program Symposium March 3, 2011

  2. Overview of Legislation Don Kupferschmid Special Assistant to the Office of the Secretary

  3. Overview of Legislation • Senate Bill 51 • Public Act 96-0795 • Effective July 1, 2010 • Creates 20 ILCS 2705/2705‑600

  4. 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 . . .”

  5. 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

  6. 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

  7. IDOT’s Target Market Program Implementation Bill Grunloh Chief Procurement Officer

  8. 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

  9. 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

  10. 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:

  11. 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

  12. 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

  13. Target Market Projects Christine Reed Director, Division of Highways

  14. 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)

  15. 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

  16. TMP Legislation Ellen Schanzle-Haskins Chief Counsel

  17. TMP Legislation • Concerns with existing Legislation • Proposed New Legislation (SB1923)

  18. TMP Suggestions Audience

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