NBCC Procurement Outreach

BACKGROUND –

Black businesses account for the fastest growing segment of the American economy. When the NBCC was founded in 1993 there were 300,000 Black owned businesses (per US Census Bureau) doing $33 billion in annual sales. Today, there are 1.9 million Black owned businesses doing more than $138 billion in annual sales. This growth has not come from government legislation or programs and private sector interaction. It has basically come from Black firms linking with their respective communities and ingenuity. At the beginning of the Civil Rights Act of 1964, the federal government was doing less than 1% with Black firms. Today, as of Fiscal Year 2010 the federal government is doing 0.3% with Black owned firms. Fortune 1000 firms have done no better. There has been a lot of public relations and expositions but true competitively won contracts remain rare and few. The global market, especially Africa, is the future for Black owned firms based in America.

However, there is a positive side to this history. There are more competent Black owned firms in America today than ever before. You won’t find the majority of these firms divulging their fiscal data through magazines. You will also find that they are bored with organizations that claim to assist them while really covering the legal backsides of private firms who must prove that they are not discriminating within federal programs. Some of the most exclusive Fortune 1000 firms are long standing members with diversity procurement associations. Still, our stronger Black firms survive and are growing by leaps and bounds.

In 1989 an experiment was done in Indianapolis, IN by NBCC President/CEO Harry C. Alford. In his capacity as Deputy Commissioner for Minority Business Development at the State of Indiana he ventured where no one had gone before. He inventoried the minority firms within the state and categorized them by industry and capacity level. Then, he approached every procurement agent in the state (first time that was ever done) and asked them to participate in the outreach for the sake of increased competition and eventual lower costs for the state taxpayers. Every procurement included competition from minority vendors. Also, minority construction, construction management, architecture and engineering firms were asked to participate in every bid proposal as any “funny business” would be checked from here on.

The results came in and it was overwhelming. In just 18 months, the state minority business participation level went from 1% to 6%. While the minority business community became motivated the majority elected officials, including the governor, felt pressured and embarrassed. But, the “genie” was out of the bottle. The fact was that most of the state’s procurement was based on cronyism and exclusion of total competition. We opened it up and the “Jackie Robinsons” came running in to compete and win a sizeable number of contracts.

Realizing the answer to the long unsolved problem, Harry Alford took the model to all segments of the state. He left State Government and formed the Hoosier Minority Chamber of Commerce. From there the doors of school systems, cities, counties and private corporations would be slung open. Major construction firms were put on notice that their local subcontracting record would be broadcast to mayor, city councils and governors throughout the nation and may have an impact on invitations they would receive outside of the state. Within two years Indianapolis which had a contracting capacity of Black owned businesses of $200 million per year would mushroom to over a $1 billion annually. One of the most challenging markets became one of the most outstanding markets through pure exposure. It wasn’t smooth and the “road” was quite rocky but the point was made. That model lives today.

MISSION

We want to provide a proven model for procurement inclusion to local governments and private corporations that have a sincere intent to integrate their procurement activity to ensure lowest costs and an opportunity for diversity amongst its suppliers, consultants and contractors. This is for corporations and local governments who sincerely and seriously want to maximize the amount of business they do with Black owned firms. Our track record is 100% in terms of improvement. Also, we have found that participants can expect increased margins in their operations as procurement costs will decrease with the activity of increased competition. It is free market at its best.

EXAMPLES –

  1. A European firm asked the NBCC to assist in finding a Black firm that was a qualified CPA Forensics that was willing to work in Afghanistan. We ran it through our database and found 100 firms. From there we recommended thirty of the firms to the corporation. They hired two of them (one of which was already in place working in Afghanistan).
  2. An Asian group wanted to meet Black owned firms who produced aerospace parts and based in Los Angeles, CA. Within 24 hours we supplied them with contact information for 9 such firms. They were amazed.
  3. An airlines corporation wanted to find Black owned firms with experience performing contracts at airports. This was simple. In fact, we provided several firms who have built, from conception, airport terminals, control towers and baggage areas.

CHALLENGES –

There are many who want to cling to the status quo. They would rather claim “We can’t find them” as opposed to doing a due diligence search. We can assist and will gladly be held accountable. Success would mean ending an institution of failure. There are institutions that will resist any positive change, the truth must be told and progress must be made. Organizations that make their living of failing to provide answers to this quest will rebel.

There will be lobbyists for competing companies that will attack corporations and local governments who seek diversity. They will bring political pressure on them and admonish their noble efforts. CEO’s and administrators who resolve to change the routine must be strong and resolute as the enemies will indeed attack.

There are corporations, naively or not, who proclaim great numbers of minority procurement. However, these are magical numbers via brokering, title switches, and fascination. Example, a “billion dollars in procurement” via four or five procurements manufactured by various principles but stamped with the final seal by a minority consultant, this is simply window dressing.

HOW IT WORKS –

An entity contacts the NBCC via This e-mail address is being protected from spambots. You need JavaScript enabled to view it and requests a search for vendors in a specific North American Industrial Code, NAIC, and also request specific geography (state by state). The NBCC puts out a search through our database (over 60,000 Black owned businesses) and analyzes our findings. Thus, we submit the summation of our findings to the requesting firm. Further action belongs to them.

OUR COMMITMENT –

We charge no fee for this process. We don’t ask for donations or fees from members of our database. We don’t expect fees from corporations or local government wishing to partake. The NBCC is a 501©3 nonprofit and nonpartisan corporation. We receive our funding from willing members and do not take any federally funded monies.

 
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