Hillsborough County Public Schools Information and Technology
Information Item

DATE: Tuesday, August 23, 2005
TO: School Board Members
FROM: MaryEllen Elia, Superintendent

SUBJECT / RECOMMENDATIONS

Recognize a New Initiative Developed Between the Office of Supplier Diversity and the Tampa Bay Black Business Investment Corporation to Provide a Pilot Accounts Receivable Line of Credit between Encouragement Program Registered Subcontractors, the District’s Construction Management Firms, and the Tampa Bay Black Business Investment Corporation.

EXECUTIVE SUMMARY

The Office of Supplier Diversity has been approached by a number of registered firms regarding a continuing challenge. Subcontractors that work on new schools and major renovation projects often experience financial hardship due to the timeframe between project pay requests and payment by the construction management firm. The process requires the subcontractor to pay all payroll and material/supply costs, prior to submittal of their pay request, then wait a minimum of 30 – 45 days after submittal before payment for services rendered is ultimately received.

As a result of discussions between the Office of Supplier Diversity staff, Tampa Bay Black Business Investment Corporation staff, Loan Committee, and its Board of Directors, a pilot program has been developed that replicates a traditional line of credit. The features of the program allow the eligible firm to draw down up to Twenty Thousand ($20,000) dollars, at a rate of prime plus two percent. The customer must be registered by the Office of Supplier Diversity, and all approvals must be confirmed by the construction manager in order to participate in the program. The agreement will be between the construction manager, the eligible subcontractor, and the Tampa Bay Black Business Investment Corporation.

ANNUAL DISTRICT GOAL(S) AND CRITICAL SUCCESS FACTOR(S)

FINANCIAL IMPACT (Budgeted: No)

EVALUATION

SUBMITTED BY: Henry Ballard, Office of Supplier Diversity Manager



Jack E. Davis
Chief Information and Technology Officer
(813) 272-4600
F 4.01
Hillsborough County Public Schools (Florida) * Mtg.#20050823_150 * Section F Item# 4.01