Introduces Availability and Utilization Study
Fort Wayne, Ind. – In his continuing effort to make government easier to use, more open and more cost effective, Mayor Tom Henry today announced a study that will allow the City of Fort Wayne to take stock of its program for purchasing goods and services. The research is an important step toward improving the City's procurement process and making Fort Wayne more welcoming to all businesses.
"In these tough economic times, I am especially committed to employing best practices to get the best value and the best response possible with every contract. Of equal importance, I want the City to be an innovator in its outreach to small business," said Mayor Henry.
An ordinance will be introduced to the Fort Wayne City Council on Tuesday August 28, 2012, called the "Availability and Utilization Study of Local and Small Business." The study's aim is to compare the number of small businesses – including those owned by minorities, women, veterans, or disabled persons – that are ready, willing and able to provide goods and services under contract against the numbers of these same business type that are actively participating in contracts with the City. The study includes looking at businesses that perform construction, provide professional services and produce goods.
For the purpose of the study, the City has defined small businesses as those independently owned and operated, which are not dominant in their local field of operation and which have annualized gross receipts not exceeding $5 million for two of the preceding three years. The businesses are also required to have been in their specific field of operation for 15 years or less.
According to 2011 data, the City spent about $77 million on services, supplies and public works construction projects. As noted by Mayor Henry, the magnitude of the City's purchasing power has created another nexus for the administration's ongoing process improvement initiative. Building upon the success of SmartGov, the Mayor is determined to transform every part of City government, better facilitating job creation efforts and more effective in delivering high-quality services to all residents.
"Small business is a mighty economic engine for our community and the biggest employer for our residents," said Mayor Henry. "The City's significant buying power gives us the ability to have a positive impact on the creation and support of small business through our purchasing practices. Having responsive, streamlined procurement processes is one way we can help."
The goals of the Availability and Utilization Study are as follows:
• Enhance vendor opportunity and increase response;
• Identify best practices;
• Promote cost savings;
• Create a welcoming atmosphere for small businesses;
• Drive economic development through job creation; and
• Stimulate the entrepreneurial spirit within the region.
"Our pledge is to cast the net broadly, deeply and openly in our search for top-notch vendors. We want our practices to reflect our commitment to inclusion, innovation and opportunity. It will promote more competitive pricing, and it will help our small businesses grow," said Mayor Henry.
The study will be done in two phases. The first phase will ascertain the availability and capacity of those businesses capable of providing the required work. A second phase will analyze the data to determine reasons for underutilization, along with recommendations on how to increase the City's use of these small businesses.
Mason Tillman Associates, LTD was awarded the bid, pending City Council approval, after a process that included negotiations with the two finalist companies. Community Development Block Grant funds, up to $100,000, will be used to fund Phase One of the project. The City's share of the first phase is $43,849.