Subject
title
Work session - MFD-V and Local Preference Program
end
Department
CMO - Procurement
Recommendation
Staff recommends that the Mayor and Council accept the presentation, ask any questions pertaining to the work involved, and share any reactions to the questions posed.
Discussion
The requested feedback from the body is:
1. Does the Mayor and Council want to conduct a Disparity Study for the City of Rockville or alternatively expand upon current City outreach practices.
2. Does the Mayor and Council want to expand or maintain its local preference policies?
3. Does the Mayor and Council want to expand or maintain its environmental and social based procurement practices?
Mayor and Council History
In 2012, the Mayor and Council had a discussion regarding local vendor preference. As a result, an ordinance was adopted to amend Chapter 17 of the Rockville City Code to allow for award to a local (Rockville) firm in the event of a tie bid between a local and non-local firm.
In 2014, the Mayor and Council had a discussion regarding establishing a formal Minority, Female, and Disabled (MFD) program. As a result, the informal MFD outreach program was established.
Fiscal Impact
If the Mayor and Council would like to conduct a disparity study and pursue implementation of a formal MFD-V program, staff would submit funding requests to cover initial costs and ongoing costs associated with maintaining the program. Initial costs are estimated at $300,000 and above for the disparity study and approximately $37,440 for temporary personnel to assist with data gathering while the study is being conducted. Funding would also be requested for a 1.0 FTE to operate the program which includes conducting outreach, compliance monitoring, reporting, etc.
Once a program is implemented a new disparity study would need to be periodically conducted, possibly every five years which is also estimated at $300,000 and above.
If the Mayor and Council would like to expand its local preference policies, staff would conduct an analysis to better assess the overall budget impact to implement and maintain the program to include consideration of additional resources required.
Next Steps
If the Mayor and Council provides direction that results in a change to the current Procurement policies, practices, or programs, staff will develop a plan and will proceed with addressing the necessary changes.