Doing Business With the Public Sector

Doing Business With the Public SectorTina Giles-PotterAdministrator, Small Business ProgramOrange County Transportation AuthorityDoing Business in the Public SectorMost agencies require registration in their databaseSome have programs that require a certification for participation to be counted (federal and state funds).CERTIFICATIONGOOD NEWS:You are in a directory/database = FREE MARKETINGBAD NEWS:Not all certifications are created equal.TYPES OF CERTIFICATIONSBASBEMINORITY/WOMENDBESMALL BUSINESS ADMINISTRATIONSBA certification is good for all of the U.S.Different programs-8(a)-Small Disadvantaged Business-HubZoneSTATE OF CALIFORNIAEstablished the Small Business Enterprise (SBE)Certification is good for the entire state Managed by the Department of General Services5% preferencePUBLIC UTILITIESMWBE Clearinghouse provides certification for minority and woman owned firmsCertification is good for 3 yearsWill accept certification from SBA and DOTCOUNTYCertification for Small Business Enterprise (SBE)Certification by county, may have reciprocity with other countiesCITYCertification for:-Minority Business Enterprise (MBE)-Woman Business Enterprise (WBE)-Community Business Enterprise (CBE)-Local Small Business Enterprise (LSBE)Certification is limited, may have reciprocity with other citiesDEPARTMENT OF TRANSPORTATION49 CFR Part 26 establishes the Disadvantaged Business Enterprise (DBE)Certification is good for the entire state of CaliforniaCertification is good for 3 yearsCertification can be used to obtain certification in other statesUNIFIED CERTIFICATION PROGRAMUCP provides One-stopshopping for applicantsOneapplication form, One process, One decision lets eligible firm participate anywhere in the StateCUCPAll U.S. DOT recipients participate in program-129 Transit Agencies, 20 Major Airports, 67 Auxiliary Airports, 1 Highway EntityState is divided into two regions, Northern and Southern ClustersSOUTHERN CALIFORNIA CLUSTERSouthern California firms seeking DBE certification can submit application to:Orange County Transportation AuthorityLos Angeles Metropolitan Transit AuthorityCity of Los AngelesCity of San DiegoSan Diego County Regional Airport AuthorityDISADVANTAGED BUSINESS ENTERPRISEProgram established by Department of Transportation to increase the participation of DBEs on contracts awarded using federal dollars.DEFINITION OF DBEA Disadvantaged Business Enterprise (DBE) is Any firm eligible to participate as a DBE in projects funded with U.S. DOT Assistance.A for-profit business that has demonstrated, by a preponderance of the evidence that it meets the certification standards of 49 CFR Part 26 with respect to:(1) Business Size(2) Group Membership or Individual Disadvantage(3) Ownership(4) ControlBUSINESS SIZEThe average gross receipts for the past three years for a firm (and its affiliates) must not exceed:General Contractors………..$17,420,000Specialty Contractors……….$ 7,000,000Engineering, Architectural….$ 4,000,000OWNERSHIPThe socially and economically disadvantaged individual applying for DBE certification must own at least 51% of the business.Ownership is acquired through real and substantial contributions of expertise, capital or other tangible personal assets.CONTROLThe disadvantaged individual(s) must independently exercise at least 51% control over the day-to-day operations of the business.The disadvantaged owner(s) must demonstrate sufficient expertise in the firm’s field of operation.Control must be demonstrated in both management and operation of the firm.PERSONAL NET WORTHEach disadvantaged owner’s personal net worth (excluding business ownership and primary residency) can notexceed $750,000.GROUP MEMBERSHIPThe disadvantaged individual must be a U.S. citizen or permanent resident.A member of a group presumed to be socially and economically disadvantaged:-Black American-Native American-Hispanic American-Women-Asian-Pacific American-Subcontinent Asian AmericanBENEFITSTargeted procurement outreach activitiesOn-line DBE directory –free local and statewide marketing for your firmPrompt payment provisionsHow to Do Business in the Public SectorProcurement Types:-Informal (Small and Convenient Procurement), less than $25,000-Formal over $25,000IFB –Invitation For BidsRFP –Request For ProposalsInvitation For BidsWritten sealed bid, award is based on:1. The lowest dollar amount2. Responsive-Forms-Information-Bond (if required)3. Responsible-Work RecordRequest For ProposalsNegotiated cost, evaluation committee scores:1. Qualifications of firm2. Staffing & Project Organization3. Work Plan4. Cost & Price5. DBE Goal (Federal projects)Request For ProposalsAward is based on:1. Firm’s score on items2. Oral interview3. Best and final offer -costWhy Do Business with OCTAOCTA Fiscal Year 2003-2004 Budget is $787 MTransportation Systems Development Budget FY 2003-2004 is $204.2 M (Construction & Services)FY 2000-01 –32% contracts to small businessFY 2002-02 –33% contracts to small businessFY 2002-03 –42% contracts to small businessFY 2002-03 –24.9% federal dollars to DBEs