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Compliance Performance of District Agencies and Public-Private Projects in the Utilization of Certified Small Business Enterprises and Certified Business Enterprises

Thursday, December 6, 2012

Compliance Performance of District Agencies and Public-Private Projects in the Utilization of Certified Small Business Enterprises and Certified Business Enterprises

Testimony of William O. Howland Jr, Director, DPW
Government of the District of Columbia
DC Department of Public Works
Testimony of William O. Howland Jr., Director

Public Oversight Roundtable

“Compliance Performance of District Agencies and Public-Private Projects in the Utilization of Certified Small Business Enterprises and Certified Business Enterprises”

Committee on Small and Local Business Development, Vincent Orange, Chair

John A. Wilson Building
Room 500
1350 Pennsylvania Avenue, NW
Washington, DC 20004

December 6, 2012

Testimony of William O. Howland Jr.

Director, DC Department of Public Works

Public Oversight Roundtable on “Compliance Performance of District Agencies and Public-Private Projects in the Utilization of Certified Small Business Enterprises and Certified Business Enterprises”
Committee on Small and Local Business Development

December 6, 2012 / 9 am / Room 500

Good morning, Chairman Orange, members of the Committee on Small and Local Business Development and members of the Council.

I am William O. Howland Jr., Director of the Department of Public Works. I will present testimony regarding the Department’s compliance with the requirements for expendable budget spending with certified small business enterprises in both FY 2012 and FY 2013.

I would like to note that the audited numbers for FY 2012 are unavailable until the Comprehensive Annual Financial Report for FY 2012 is released next year; therefore, my testimony will cite the best available information for FY 2012 spending.

Question 1:  What was your expendable budget in FY12?

The approved DPW expendable budget (minus exclusions) in FY 2012 was $10,346,844.33.

Question 2:  Are you aware that 50% must be spent with SBEs?  Did your agency spend at least 50% of its FY 2012 expendable budget with SBEs?  If not, why not?

Yes, I am aware of this requirement. The approved CSBE goal for DPW was $5,173,422.16. Actual expenditures that were paid prior to October 1 have been entered in the DSLBD database. Note that FY12 invoices received after September 30th are not included in the number. As of September 30, 2012, DPW spent $4,596,954.29 of which $1,811,611.49 was spent with SBEs. An additional $150,096.78 was spent with CBEs, for a total amount of $1,961,708.27 spent with CBEs.

The CSBE expenditures as a percentage of CSBE Goal are 35% ($1,811,611.49/$5,173,422.16). DPW’s total CBE expenditures as a percentage of total expenditures were 43% ($1,961,708.27/$4,596,954.29). After reviewing the year-end totals, additional exclusions should have been requested for expenditures such as EZ Pass, vehicle rental, fuel station maintenance, the fleet reservation system, trash can maintenance, parking boots, and document destruction services. DPW still contends that postage and advertising expenses should have been approved exclusions. If these additional exclusions were permitted, the percentage of CBE expenditures to total expenditures would have increased to 48%.

An analysis of our spending shows that additional opportunities for CSBE spending are in areas such as apparel, office supplies, staffing services, facility maintenance services, and pcard transactions. All DPW Administrators were provided a suggested list of CBE vendors to use, reminded that procurements under $100K are to be set aside to CBEs and that all pcard purchases must be made with CBEs.

Question 3:  What is your expendable budget for FY13?

The estimated amount for FY13 is $9,547,710 pending  final review of submitted exclusions. The proposed exclusions include personnel expenses, snow related expenses, sand bags, IT proprietary systems, training and membership fees, IT  assessment, settlement/judgment fees, vehicle rental, EZ Pass fees, document destruction services, fuel tank maintenance, auto leasing, waste disposal and hauling services, trash can maintenance, fleet reservation system and management analysis of data for the solid waste operation. The reduction in our expendable budget when FY13 is compared to FY12 is a result of an increase in the dollar amount of excluded items.

Question 4:  Do you plan to meet the 50% requirement for FY 2013?  If not, why?  If yes, how?

DPW plans to meet our 50% requirement for FY 2013 by placing more contracting opportunities in the sheltered market.

Question 5:  Will you commit to meeting the 50% requirement for FY 2013?

Yes.

Question 6:  Who is your Compliance Officer?

Our Compliance Officer is Gena Johnson, Deputy Administrator, DPW Office of Administrative Services.

Thank you for this opportunity to present testimony. I am available to respond to any additional questions.