QUESTION
Council Member Won Explores Z-Score Methodology in MWBE Procurement Assessment
3:23:33
·
4 min
Council Member Julie Won explores the Z score methodology's implementation for assessing agency success in Minority and Women-Owned Business Enterprises (MWBE) procurement. Charlotte Hamamgian, Deputy Comptroller for Contract and Procurement, explains adopting this model for fair comparison across agencies with diverse contracting portfolios, detailing the classification of agencies based on value categories. The discussion underscores the model's potential as a management tool to improve agency performance in MWBE engagement.
Speaker 2
3:23:33
My last question is, can you speak to the Z score methodology or offices using the year to measure agency success of the year when it comes to MWD procurement.
3:23:44
In the past, there was a general percentage used for the best and worst performing agencies like an a a to f score.
3:23:51
How's the z score model difference?
3:23:55
If you could just simplify it because it's it's a lot harder than looking at abcdf.
3:24:03
It is.
3:24:03
Yeah.
Speaker 20
3:24:06
Yeah.
3:24:06
Sure.
3:24:07
Absolutely.
3:24:08
This was, you know, from a my prior professional life having been at 4 contacting agencies, under and 4 contacting agencies that have had vastly different scopes, but also contracting portfolios.
3:24:25
It's not easy to compare a small agent see that has a very specific mission and therefore very specific procurements to support that mission with a large agency that maybe has a variety of industries.
3:24:43
For which it needs to procure contracts.
3:24:47
And so the intent here was to still hold agencies accountable and to still report on what are they doing with the budget or the scope of projects that they procure, but to not compare the DDCs, with the lot apartments of the world.
3:25:05
And so it is it is still holding them accountable for what are they spending based on their volume and value with a slight weight on value, but they have instead been bucketed into 4 different groups.
3:25:20
So the groups are large value, medium value, small value, and micro value, and their values were based on a 4 year look back to see how much they spent with MWDEs during that 4 year look back.
3:25:36
And again, comparing not just volume, but value.
3:25:41
And so the the methodologies details a little bit more in the report, but that was it was really just to help make a little bit more apples to apples when agencies themselves are looking to my earlier point so that they can see is is another agent that does something similar to me in the same sort of scope doing better, and how can I reach out to them and learn best lessons learned could also be support for OMWDB Mocks, and SVS as they are providing oversight to those agencies?
Speaker 17
3:26:09
And I just wanna underline this point.
3:26:11
I mean, part of the goal was to deliver a management tool and dead of a political
Speaker 2
3:26:18
Right.
Speaker 17
3:26:18
Yet, I guess, the the prior report, you know, had the letter grades, and those were easy to understand, but they just You know?
3:26:25
And they attracted good like media attention, but then there was a lot of fighting, and it wasn't a useful management tool or at least it didn't get used.
3:26:33
This is just out now.
3:26:34
So whether it'll get used as a management tool as TBD.
3:26:38
But this thing with a real transparent, you know, what are you being measured on and, like, looking at agencies, we think can be used by the administration to really hold agencies accountable and drive specific change.
Speaker 2
3:26:50
Now that you explain it, it sounds like it's a much more fair process, and the agencies should be grateful.
3:26:56
Thank you.
3:26:57
Okay.
3:26:58
I have no further questions.
Speaker 20
3:26:59
Okay.
3:27:00
Chair, I just wanna also add, while most of the agency specific most of the detail on each of the agencies is in the agency specific section.
3:27:09
There are two sections in the report where we did sort of one pagers that you can easily see agency versus agency comparison in instances where maybe that sort of apples to oranges isn't as applicable, and that's really data to retroactivity as well as I think what you were all referencing earlier when you were discussing DOTs.
3:27:30
Noncompetitive small purchase amount, their average value as well as the number of unique vendors that they contract with.
3:27:36
So that's sort of an easy snapshot to see them all in one place.
Speaker 1
3:27:43
Thank you so much.
Speaker 17
3:27:45
Thank you.
Speaker 1
3:27:46
Thank you, Ashley.
Speaker 3
3:28:04
Thank you.
