An innovative new program is opening up opportunities for historically under-utilized businesses (HUBs) to do more business with Cape Fear Valley Health System.
Through a groundbreaking partnership with Cumberland Regional Improvement Council (CRIC), Cape Fear Valley has already awarded more than half a million dollars in contracts to HUBs as of mid-July.
As a result, the CRIC recognized Cape Fear Valley in September as the recipient of its Community Business Partner of the Year Award for 2006.
The HUB program was developed under the transfer agreement between Cape Fear Valley and Cumberland County when the health system became a private, community not-for-profit organization in 2005.
The transfer agreement requires that Cape Fear Valley make good-faith efforts to increase utilization of HUBs to levels consistent with the representation of those businesses in the broader community.
Historically under-utilized businesses are those owned at least 51 percent by one or more minorities or socially and economically disadvantaged individuals. The latter category consists of individuals who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a particular group.
The goals of the program are as follows:
· 25 percent increase in vendors certified to participation as HUBs
· 20 percents increase in informal and formal bids received from HUBs
· 10 percent increase in amount of total bids awarded to HUBs
Since launching the program in January, Cape Fear Valley has notified all its vendors, totaling more than 2,000, of the new program. Cape Fear Valley and the CRIC have held monthly information sessions that have attracted more than 200 participants from the local business community.
Of 150 potential HUBs contacted by the Improvement Council, 120 (80 percent) have become certified to participate as HUBs. In addition, some existing health system vendors have elected to become certified. Vendors are certified through the state of North Carolina’s certification process.
As of July 14, a total of 13 of 15 HUBs have responded to Requests for Proposals on projects greater than $90,000. Of those, five HUB vendors have been awarded $452,000 out of a potential $1.4 million in awards. Another $11,000 has been awarded to HUBs through informal bids (below $90,000).
Cape Fear Valley and the CRIC continue to publicize the program through monthly education sessions on "Doing Business With Cape Fear Valley." Contract opportunities are posted on the health system’s Website at www.capefearvalley.com. Technical assistance is available for business at the CRIC office at 1207 Murchison Rd.
For more information about the program, please call the CRIC at 483-6439.
