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The University of Minnesota strongly supports purchasing from women, minorities and people with disabilities as a method of stimulating economic growth in the communities served by the University. Economic growth in the communities directly affects University funding and enrollment.

Disparity studies completed by the state of Minnesota established the reality at the University of under utilization of businesses owned, operated and controlled by minorities, women and persons with disabilities. This is in direct opposition to the University's desire to stimulate economic growth.

Accordingly, the University will proactively provide services and support to both the vendor community and the University staff involved in collegiate and departmental procurement. Provosts, Chancellors, the Director of Purchasing Services, Coordinate Campus Business Officers, the President of University Hospital Health Systems, college deans and department heads will actively seek to increase the volume of contract awards to such businesses by incorporating goals for businesses owned by minorities, women, and people with disabilities into their overall business plan.

By actively increasing the volume of contract awards to businesses owned by women, minorities and people with disabilities, the University is fulfilling an important part of its Outreach & Public Service mission. By complying with Regents Policy and State guidelines, the University will benefit from a positive relationship women and minority groups while avoiding unnecessary legal fees and loss of funding.

• Purchasing Goods & Services

Detailed procedures are currently included in the Small Business Program Plan manual, available from the Small Business Coordinator (See the Contacts section of this policy).

There are no forms for this policy.

Subject	Contact	Phone	Fax/Email
Primary Contact	Craig Taylor	612-624-0530	taylo103@umn.edu
Small Business Process	Small Bus. Coordinator	612-624-2095	612-626-0366
Compliance Process	Compliance Coordinator	612-624-9547	612-624-5223
TGB Certification	Minnesota Department of Administration	612-296-2600
Small Business Certification TGB Purchasing Procedures	Small Business Office	612-624-0575
Purchasing Process	Purchasing Services Office	612-624-2828	612-626-0366

Affirmative Action:

Affirmative Action is a specific goal-oriented activity designed to enhance employment and business opportunities for minorities, women and disabled persons.

Affirmative Action Plan:

Written, results-oriented narrative plan designed to remedy the effects of underutilization and past discrimination and meet the requirements of applicable regulations. First, a contractor or subcontractor conducts a self-analysis of all phases of its employment system to determine any discriminatory effects in employment practices. Then, they establish goals, timetables and other measures as appropriate.

Area Report:

Report sent to super users by Purchasing Services stating activity with all vendors including business enterprises owned by women, minorities and persons with a disability.

Certification:

The process whereby businesses are verified as legitimate Targeted Group Businesses or Economically Disadvantaged Businesses by the state of Minnesota, as small businesses by the University of Minnesota, or as businesses owned by women, minorities and people with disabilities which are certified as such by other governing agencies, peer institutions, or other agencies approved by the Equal Opportunity Affirmative Action office.

Enterprise Financial System (EFS):

Accounting System used at the University of Minnesota. This system serves as the basis for tracking payments to Targeted Group Businesses, Economically Disadvantaged Businesses, Small Businesses, and other business enterprises owned by women, minorities, and people with disabilities.

Compliance:

The determination that a contractor is adhering to the University's affirmative action and nondiscrimination requirements.

Disabled Person:

For purpose of this program, any person having a substantial physical disability.

Economically Disadvantaged Business (EDB):

Small Minnesota business located in a labor surplus area as designated by the U.S. Department of Labor or in a county where the median income for married couples is less that 70% of the Statewide median income for married couples, or is a rehabilitation facility or work activity program. EDBs are certified as such by the State Department of Administration.

Equal Employment Opportunity (EEO):

A condition or state of the workplace. Federal and state statutes guarantee all people the right to apply and be fairly evaluated for job opportunities based on their skills and job qualifications, not based on irrelevant factors such as their race or sex.

Minorities:

For purpose of this program, minorities are persons of color who are African-American (Black), Hispanic, American Indian/Alaskan Native, and Asian/Pacific Islander.

Non-Compliance:

Determination that a contractor is not adhering to the University's affirmative action and nondiscrimination requirements.

Preference:

Procedure which allows the awarding of bids to other than the lowest qualified bidder. Minnesota Statute 137.35 specifically allows the University of Minnesota to use this awarding procedure. University of Minnesota Purchasing policy states that all bid awards are subject to a 6% preference to certified Targeted Group Businesses and a 4% preference to certified economically disadvantaged businesses.

Second Tier Contracting:

Participation by businesses owned by women, minorities, and persons with disabilities as subcontractors on large University contracts.

Set Aside:

Method of bidding which allows for exclusive participation by certified Targeted Group Businesses. Minnesota Statute 137.35 specifically allows the University of Minnesota's use of this bidding procedure when there are 3 or more TGBs available to participate in the bidding. Set Asides are used sparingly, and are allowed for only Targeted Group Businesses.

Small Business:

A business located in Minnesota that is organized for profit, and is 51% owned, operated and controlled by citizens of the United States whose total gross revenue per year falls within the lower 25% of its given category. The Standard Industrial Classifications (SIC) are used to define the category of each business. The gross revenue limit for any category will not be less than $1 million. The Small Business Office certifies small businesses for the University.

Small Business Office:

The Office within Purchasing that administers all Small Business programs including purchasing from TGBs. This office consists of Administrative Service and Contract Compliance.

Standard Industrial Classification (SIC):

The statistical classification standard used to classify businesses by industry according to the composition and structure of the economy.

Targeted Group Business:

Small businesses, at least 51% owned, operated and controlled on a daily basis by minorities, women, or persons with a substantial physical disability as designated by the Minnesota Commissioner of Administration. Must meet the definition of a TGB as defined in Minn. Stat. Sect. 137.35 and have its principle place of business in Minnesota.

Targeted Group Business Goals:

Dollar or percentages of anticipated awards to Targeted Group Businesses which are incorporated into University, college and department business plans in accordance with University policy and Minnesota Statute Section 137.35.

Underutilization:

Proven disparity in the awarding of procurement contracts to certain businesses or class of businesses.

WMDBE:

Businesses (not necessarily small businesses according to Minnesota definition) certified by agencies other than the State of Minnesota and approved by the EOAA office. WMDBE includes Targeted Group Businesses, which are the focus of this program. However, incidental purchases from WMDBEs will be counted towards the overall goal since departments often purchase from these businesses. Reports will show breakdown between Targeted Group Businesses and WMDBEs. Often large contractors located outside of Minnesota will do second tier contracting with WMDBEs in their own areas.

President:

Approve annual WMDBE purchasing goals.

Sr. VP for Finance & Operations:

Recommend annual WMDBE purchasing goals.

General Counsel:

Advise Small Business Coordinator on defensibility of standing or pending policies and practices of the Small Business Program.

Vice Presidents/Provosts/Chancellors:

Be familiar with the Targeted Group Business program and policies.

Promote Small Business program throughout unit.

Assistant Vice President for University Services:

Overall responsibility for meeting TGB program objectives.

Director of Purchasing:

Direct all purchasing activity including purchases from WMDBEs. Insure support and compliance of the Small Business Program by the Purchasing Services staff. Direct vendor relations including relations with WMDBEs. Insure that vendor access to University purchase awards is widely and equitably available to all vendors, including WMDBEs. Coordinate Second Tier Purchasing.

Director of Materials Services, University Health Systems:

Insure support and compliance of the Small Business Program by the entire Materials Services staff. Avail staff of opportunities for training through the Small Business Office. Set goals for overall TGB/WMDBE participation by the University Health Systems. Make reasonable efforts to attain goal. Report quarterly to the Small Business Coordinator on purchase awards to WMDBEs

Coordinate Campus Business Officers:

Be familiar with the Targeted Group Business program and policies. Actively seek to increase the volume of contract awards to businesses owned by women, minorities, and people with disabilities. Avail themselves of services offered by the Small Business Office. Support the University's position on diverse purchasing and WMDBE access to purchase awards.

President of University Hospital Health System:

Incorporate strategy for purchasing from women, minorities and people with disabilities into business plan. Be familiar with the Targeted Group Business program and policies. Actively seek to increase the volume of contract awards to businesses owned by women, minorities, and people with disabilities. Be responsible for an equitable portion of the overall goal being met by the purchases of the Hospital and Clinics. Support the University's position on diverse purchasing and WMDBE access to purchase awards.

University Deans & Department Heads:

Establish departmental process to purchase from WMDBEs with main focus on TGB participation. Incorporate process into business plan.

Appoint departmental WMDBE coordinator. Establish WMDBE goals and monitor progress. Be responsible for department's total involvement in the purchase of goods and services from WMDBEs. Be responsible for the department's support of the University's position on diverse purchasing and WMDBE access to purchase awards. Communicate with the super user about progress of departmental goals. Avail themselves of assistance provided by the Small Business Office.

Small Business Coordinator / Small Business Office:

Administer all aspects of the Small Business Program. Submit as required by the Regents and by statute other reports on WMDBE awards. Work closely with Capital Planning and Project Management (both the Purchasing division and project management) to encourage, support, train, and make recommendations as to the participation of TGBs in construction and other facilities purchases. Follow up on all construction projects, following award, to track compliance of subcontracts. Publish, a directory of Targeted Group Businesses, a manual of Small Business information and a newsletter. Conduct orientations for Targeted Group Businesses. Include community members when seeking advice on program. Plan product shows to be held for departments and Targeted Group Businesses.

Write and update training materials. Present training classes with EOAA. Publicly announce progress towards goals. Hold memberships in community organizations who are stakeholders, and in which membership would be of benefit to the University. Attend training sessions and conferences that will enable the University to make improvements in the program.

Office of Equal Opportunity / Affirmative Action:

Monitor contract compliance to ensure that Purchasing Services, departmental buyers, and contractors/vendors who have an agreement with the University of Minnesota meet the requirements of federal/state statutes and regulations (see addendum) and University policies regarding contract compliance.

Targeted Group Business (TGB):

Obtain state certification. Provide quality goods and services to the University at competitive prices, as requested, in a timely manner.

State of Minnesota:

Certify TGBs. Provide current directories of Targeted Group Businesses to the Small Business Office.

Administrative Information Services (AIS):

Work with Small Business Office to develop necessary reports of purchasing from TGBs/WMDBEs, EDBs, and Small Businesses.

Capital Planning and Project Management:

Incorporate TGB program into all construction projects. Submit TGB bidding instructions to architects.

Architect:

Submit all construction project bidding instructions to the Small Business Office.

Project Manager:

Ensure that architects submit all bidding instructions to the Small Business Office prior to letting.

Contract Compliance Coordinator:

Ensure EOAA compliance of contractors who are awarded more than $50,000 and have employed more than 20 full time employees on a single working day in the previous year. Review the State Certificate of Compliance and/or an Affirmative Action Plan as well as monthly utilization reports, including those of subcontractors, through the term of any given project. Request from the contractors, as necessary, evidence of persistent and prolonged efforts to increase the number of minority, women, disabled, disabled veteran and Vietnam era veteran employees. Act as liaison with TGBs. Prepare compliance reports for the Director of EOAA and the Senior Vice President for Finance & Operations. Determine, from the provided information, businesses who will not be acceptable vendors. Monitor departmental progress and report a summary to University Administration. Provide super users with reports twice a year enabling departments to establish reasonable TGB /WMDBE procurement goals. Investigate and resolve complaints related to the program. Conduct training sessions for employees to provide technical information and to stress the University's commitment to the program and the importance of individual responsibility to an effective program. Provide a compliance and certification form annually as required by federal and state statutes to contractors and vendors who bid to the University of Minnesota.

Buyers (Purchasing Services):

Provide the Small Business Office with information about prospective Targeted Group Businesses. Include TGBs/WMDBEs in bidding practices whenever practicable. Specify Second Tier Contracting on Requests for Proposals in excess of $250,000. Communicate the policy of the Targeted Group Business program to vendors and seek their support.

Super Users:

Receive the area reports from AIS which state dollar amounts awarded to WMDBEs for a specified area and time period. Determine from reviewing the area reports an appropriate goal for department to work towards in its purchases from WMDBEs. Area manager may need to make adjustments in the area report if there are items included which are not actual purchases from outside vendors such as reimbursements or other non-invoiced items. Area Managers may want to concentrate their efforts by working with a few TGBs for several repetitive orders rather than attempting to use many TGBs for many smaller orders. Discuss departmental goal setting with department managers or directors Review area reports which will be received twice a year, to track progress towards goal. Discuss progress towards goal with appropriate area staff. Avail themselves of assistance provided by the Small Business Office in the areas of vendor directories, vendor trade fairs, newsletters, problem solving, and other inquiries. Support the University's position on diverse purchasing and WMDBE access to purchase awards.

All Employees:

All employees should be aware that the University:

• has established a program which ensures opportunity for WMDBEs including Targeted Group Businesses to provide services and goods to the University.
• will establish an overall yearly goal for awarded dollars to WMDBEs.
• expects each department to likewise establish a yearly goal in dollars or percentages that they will endeavor to attain in purchases from WMDBEs.
• expects its employees to support the University position on diverse purchasing and WMDBE access to purchase awards.

There are no appendices for this policy.

There are no frequently asked questions for this policy.

• Board of Regents Policy: Diversity, Equal Opportunity, and Affirmative Action
• Board of Regents Policy: Purchasing
• Minn. Statutes 137.31 and 137.35 & TGB/EDB Rules
• Small Business Program Plan (Small Bus. Office - SBO)
• Croson vs Richmond 1989 - Supreme Court decision

Amended:

July 2008 - Updated to reflect Enterprise Financial System (EFS) rollout.

Amended:

April 2005 - Facilities Management changed to Capital Planning and Project Management.

Effective:

October 1999

To obtain a copy of a historical policy, e-mail the U Policy Librarian at policy@umn.edu or call 612-624-4372.