Iowa State University Purchasing - Vendors: Vendor Diversity Initiative

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Vendor Diversity Initiative

The Vendor Diversity Initiative was implemented to ensure that all vendors have better access to and knowledge of the University’s procurement system. This initiative supports the University’s commitment to diversity being applied to purchasing decisions with the objective of achieving and fostering greater minority-owned and women-owned business participation. It is our belief that inclusion of these businesses in the economic mainstream improves the economic stability and vitality of our community, state and nation.

State Program

The Targeted Small Business Program was created in 1986 to promote the growth, development, and diversification of small Iowa businesses owned by women, minorities and disabled persons. A Targeted Small Business is defined as a small business which is fifty-one percent (51%) owned, operated, and actively managed by one or more women, minority persons, or persons with a disability and meets all of the following requirements: 1) located in Iowa; 2) operated for profit; and (3) has an annual gross income of less than 3 million dollars, averaging the three preceding fiscal years (gross income means the total sales less cost of goods sold plus any income from investments and from incidentals or outside operations or sources).

Board of Regents policy and the Code of Iowa establish a minimum goal of making at least ten percent (10%) of the University’s purchases from certified Iowa Targeted Small Businesses (TSB’s). To assist the University in attaining this goal, the Purchasing Department maintains and distributes a condensed listing of Certified Iowa Targeted Small Businesses. The Purchasing Department will include TSB’s in bid solicitations, whenever a TSB exists that offers the product or service being bid. Departments making purchases through delegated procurement authority (such as Purchasing Cards and Professional Service Agreements) are encouraged to utilize TSB vendors.

Federal Program

The Federal guidelines for inclusion of minority-owned and women-owned businesses are set forth in Office of Management and Budget Circular A-110, Section .44 Procurement procedures, paragraph b, which states:
Positive efforts shall be made by recipients to utilize small businesses, minority-owned firms, and women’s business enterprises, whenever possible. Recipients of Federal awards shall take all of the following steps to further this goal.

Ensure that small businesses, minority-owned firms, and women’s business enterprises are used to the fullest extent practicable.
Make information on forthcoming opportunities available and arrange time frames for purchases and contracts to encourage and facilitate participation by small businesses, minority-owned firms, and women’s business enterprises.
Consider in the contract process whether firms competing for larger contracts intend to subcontract with small businesses, minority-owned firms, and women’s business enterprises.
Encourage contracting with consortiums of small businesses, minority-owned firms and women’s business enterprise when a contract is too large for one of these firms to handle individually.

These Federal guidelines are general in nature and Federal agencies, such as EPA, NIH, NSF, or ONR may have stricter guidelines for utilization of small businesses, minority-owned firms, and women’s business enterprises.

The Federal Government, through Section 129 of Public law 100-590, Small Business Administration (SBA) Reauthorization Act of 1988, has provided the following guidelines for certification of small businesses, which will facilitate participation in federal programs and bidding for government funded contracts.

Small Business: a business concern that is organized for profit, is independently owned and operated, is not dominant in the field of operation in which it is bigger, and meets size standards as prescribed by SBA (13 CFR Part 121).
Woman-Owned Business: a business that is 1) at least 51% owned and operated by a woman or women, or, in the case of publicly owned business at least 51% of the stock is owned by one or more women; and 2) whose daily business operation are managed and directed by one or more of the women owners. “Operated” means actively involved in the data to day management.
Minority-Owned Business: a business that is 1) at least 51% owned and operated by one or more minority individuals, or, in the case of publicly owned business at least 51% of the stock is owned by one or more minority individuals; and 2) whose daily business operation are managed and directed by one or more of the minority owners. “Operated” means actively involved in the data to day management.

Minorities include the groups with the following ethnic origins: African, Asian Pacific, Asian Subcontinent, Hispanic, Native Alaskan, Native American, and Native Hawaiian.
Rural Small Business: a small business as described above, where the principal place of business, production, or manufacture occurs in a rural area or rural small town as identified by the SBA.

EPA

The United States Environmental Protection Agency requires each state to establish Minority Business Enterprises/Women Business Enterprises (MBE/WBE) “Fair Share” goals. All EPA assistance agreement recipients must be able to document their efforts to achieve the “Fair Share” goals approved for the state of Iowa.

	MBE	WBE
Supplies	0.6%	5.6%
Equipment	2.5%	10.4%
Services	2.5%	11.3%
Construction	1.7%	2.2%

The following actions are recommended to utilize small, minority and women’s business enterprises for procurement of supplies, equipment, construction or services:

Inclusion of MBEs/WBEs on solicitation lists.
Assure MBEs/WBEs are solicited once they are identified.
Where feasible, divide total requirements into smaller tasks to permit maximum MBE/WBE participation.
Where feasible, establish delivery schedules which will encourage MBE/WBE participation.
Encourage use of the services of the US Department of Commerce’s Minority Business Development Agency (MBDA) and the US Small Business Administration to identify MBEs/WBEs.
Require that each party to a sub-grant, sub-agreement, or contract award take these actions outlined.

For help in identifying minority and women’s business enterprises, contact the Purchasing Department and/or indicate on any requisitions that these funds are subject to MBE/WBE “Fair Share” goals.

Vendor Diversity Initiative PoliciesThe Purchasing Department, within the published policies and procedures of Iowa State University and the Board of Regents, will:

Increase departmental awareness of the Vendor Diversity Initiative objectives and opportunities;
Educate vendors regarding how to conduct business with the University;
Give every reasonable business opportunity to businesses owned by minorities, women and persons with disabilities to participate as direct suppliers, contractors, and subcontractors at Iowa State University.

The Purchasing Department directs and supports the University’s ongoing commitment to encouraging business opportunities and diversity among its vendors.