Presentation 5 steps for doing business with the City and County of Denver

CeciliaV. Rivas de Schuermann, Business Development Coordinator
City and County of Denver General Services Purchasing Division
www.denvergov.org/purchasing
cecilia.rivasdeschuermann@denvergov.org
720.913.8120
5Steps for doing
business with
the city
Delivering opportunities to our community and value to our city

1 Be ready
2 Research
3 Make an action
plan
4 Build relationships
5 Bid

1 Be ready
• What does it mean to be “Be ready”? Entering a new market takes time and
commitment
Who is going to research opportunities at the city?
Who is going to develop and implement the action plan?
Who is going to establish and develop relationships at the city?
Who is going to keep the cash-flow flowing while entering the government market?

1 Be ready
• A 2013 study by American Express OPEN showed that it takes,
on average, 2 years and at least 4 bids to win a government contract

2 Research outcomes
• Defined target list
• Effective communication message and images – to be used in all promotional
material including website, capability statement, and social media. The same
message to be reinforced in sales calls, face-to-face meetings, etc.
• Time frame

2 Research outcomes
• Defined target list
• 2-3 city agencies, there are over 65 agencies plus the Denver International Airport (DEN);
have at least 2 contacts per agency
• Which agencies are currently buying your product/service?
• How often do they buy/need your product/service?
• Who are they buying from?
• Does your company have a competitive advantage over the current provider?
• Which agency’s mission closely matches your company’s?

2 Research outcomes
Purchasing Division – www.denvergov.org/purchasing
• Vendor Tools & Resources
º Bidding opportunities: BidNet Direct
www.bidnetdirect.com/colorado ; $89.95 per year to receive email notifications
º Purchasing Contact Representative (PCR) List for all city agencies
ᵒ Contact us – list of all buyers and their commodities. Contact me for non-listed
commodities
Delivering opportunities to our community and value to our
How do you reach your target agency? How do they post bids, RFP’s?

2 Research outcomes
Delivering opportunities to our community and value to our
http://business.flydenver.com/bizops
º Future Opportunities: 90-day forecast
º Hotel and transit center
º Contracts – detailed information about construction & professional services
º Concession opportunities
º Business requirements – resources to operate in airport environment

• Parks uses Rocky Mountain E-Purchasing System (BidNet)
• Public Works posts solicitations on www.Work4Denver.org; they handle new
construction projects and major renovations for all city agencies except DEN
• The Purchasing Division website has a document with contact information for all
agencies under link “VendorTools & Resources”
2 Research outcomes

2 Research outcomes; 2016 total $1,246,291,097
Purchasing Division
Spend
Bids & RFP’s
$382,895,874
P card*
$40,401
Total
$382,936,275
Denver International
Airport (DEN) Spend
Bids and RFP’s
$376,246,462
P card*
$8,406,790
Total
$384,653,252
Various
Agencies Spend
Bids and RFP’s
$462,543,127
P card*
$16,158,443
Total
$478,701,570
Goods and Services
Construction &
Professional Services
Construction &
Professional Services
*P card charges are for Goods and Services, each charge has a $2,000 limit

2 Research outcomes
• Communication message and images
• Buyers are interested in solutions
• Solutions message needs to be concise and easy to understand
• Prepare a 30 second, 1 minute, and a 5 minute sales presentation that solves your target
market problem (s)
• The same solutions message should be included in your website, social media, postcards,
fliers, brochures, etc.
• Capability statement – maximum 2 pages and the goal is to provide differentiating factors
about your company in a concise manner

2 Research outcomes
• Communications message and images
• Images should be consistent and aligned with your message
• Make sure your company has legal rights to use selected images

2 Research outcomes
• Timing - Set realistic goals to implement the sales campaign and to achieve goal
to enter new market, increase sales, and diversify your customer base

2.2 Introduction to General Services Purchasing Division
a. The Purchasing Division has City Charter Authority over:
• the purchase of all goods and related services to keep the city in business as well as the purchase
of services for maintenance and upkeep of city facilities, i.e. almost everything that is not new
construction or professional services. Purchasing procures goods and services for DEN too.
• the management and disposition of all surplus materials for the city: cars, pick-up truck, bicycle,
street sweeper, used office furniture, jewelry, electronics, etc.
www.govdeals.com/DenverCO

2.2Purchasing Division’s Goals
• To obtain quality goods/services offering the best value at the lowest possible cost
from qualified, responsive, and responsible vendors
• To strengthen the communication and the relationships with prospective vendors and
current vendors

2.3Procurement methods
a. Bid
• decided based on lowest cost proposal meeting required specifications from a
responsible, responsive vendor
b. RFP
• purchasing seeks best overall value for the city
• award decision includes other factors besides just pricing
• award decision includes an evaluation panel of technical experts from city agencies
and other city stakeholders and may involve outside experts
Bid vs Request for Proposal (RFP)

2.3Procurement methods – all relating to goods & services
• ProcurementCard (P card) - $0-$2,000 per purchase
• Open market - $10,000 or less
• Informal procedure – greater than $10,000 and less than $50,000
• Formal procedure - $50,000+

• ProcurementCard (P card) - $0-$2,000 per purchase, works just like a credit card.
Every agency has several P cards. Example of proper use: Paying for catering
services on a non-city property

• Open market - purchase amount is less than $10,000, no formal advertising, proof
of insurance and bonding might be required. Buyer might do a solicitation if it is in
the city’s best interest

• Informal procedure - purchase amount is greater than $10,000 and less than $50,000,
no formal advertising, proof of insurance and bonding might be required. Posted on
BidNet except when solicitation is for covered good or service and the Buyer forwards
solicitation directly to city certified vendors, if *

• Formal procedure - purchase amount is great than $50,000, sealed proposal, formal
advertisement, and in many cases, proof of insurance and bonding might be required

2.4Receipt & opening of proposals
• Proposers are responsible for following instructions in the solicitation regarding
submission process

2.5 Responding, continuation
Lastly, read the bid thoroughly and look for:
• Required submittals
• Copies of licenses and certifications, if applicable
• Equipment lists, if applicable
• Resumes of your team, if applicable
• Answers to city posed essay questions – provide full and complete answers and any required
backup material to support your answers. You will be scored on these answers by an evaluation
panel
https://www.sba.gov/tools/business-plan/1

2.6Award policy criteria
• For formal solicitations - awards will be made to the lowest, responsive, responsible,
qualified proposer; considering price, adherence to specifications and requirements,
responsibility, reliability, capability of proposer, availability of funds, and all other
relevant factors
• The Buyer will notify the successful proposer(s) in writing
• For RFPs, an evaluation panel of subject matter experts will review and score submitted
proposals using predetermined evaluation criteria. A predetermined weighting of
technical factors vs pricing is used to determine the proposal offering the best overall
value to the city

2.7Payment procedure
• The vendor must prepare and submit an invoice to the relevant city agency
after the delivery of goods/services ordered. The relevant agency is always
specified on the Purchase Order (PO) or the contract
• All invoice documents must include the PO # as well as the contact person
name at relevant agency
• Prompt payment and pay without delay is the city’s commitment. Vendor
might be entitled to receive a penalty payment if the city does not pay
within 35 days from the receipt date of a complete and responsive invoice.
The city sets the penalty payment

2.7Payment procedure
• The City and County of Denver does not pay sales taxes

2.7Living wages
• City and County of Denver Office of the Auditor enforces living wages,
www.denvergov.org/auditor go to PrevailingWage tab

2.8Prevailing wages
• City and County of Denver Office of the Auditor is responsible for enforcing
living wages, www.denvergov.org/auditor go to Prevailing Wage tab

2.9 Covered Goods and Services Ordinance
a. A disparity study is the legal foundation to give benefits to Small,
Minority, andWomen owned business. CDOT and the City and County
of Denver have commissioned such studies
b. A disparity study in 2012 identified 469 categories of goods and services
where Small (SBE), Minority (MBE), & Women (WBE) Owned Businesses
were under-represented in awards by the City and County of Denver
c. A Covered Goods and Services (C G&S) Ordinance was implemented
April 1, 2014

d. The next disparity study will begin by June 2017
e.The current Construction and Covered Goods and Services Ordinance will
expire in 2019
f.The results of the new study will form the basis for the new ordinance that
will provide benefits to industries where discrimination is still prevalent

2.9Covered Goods and Services Ordinance
Purpose
To address disparities and increase opportunities for
Small, Minority, and Women Owned Businesses
to participate in city procurement

Covers 469 North American Industry Classification (NAICS) code
descriptions
Covered Goods
• Electronic parts and equipment
• Office equipment
• Machinery, equipment, and supplies
• Electrical and industrial equipment, including parts and supplies
• Communication equipment

Covered Services
• Building management and maintenance services, including janitorial
services
• Parking services
• Security services
• Maintenance and repair services, including landscaping
• Communication equipment related services
• General business services: staffing, interpretation, graphic design,
printing and photocopying, transportation, and courier delivery
service

2.10 City Certification
• Participating vendors must be certified by the City’s Division of Small Business
Opportunity (DSBO), www.denvergov.org/dsbo, under one or more applicable NAICS
codes to participate. Monthly certification training, next one is May 17thth, 2017 from
9:00 am to 11:00 am. Information and registration at www.denvergov.org/purchasing ,
go to calendar tab.

Process to become a City certified vendor
Beginning
º Small/Minority/Women Owned Business Enterprise
º Provides covered goods or services, construction
service, or professional service
City Certification Criteria
º Minimum of 6 months in business
º Small Business Enterprise by SBA standards
º 51% of owners must be under the Personal Net Worth
Standard: less than $1.32 million, excluding the equity
in primary residence and applicant business enterprise
https://www.sba.go
v/tools/size-
standards-
tool?ms=nid4060
https://
Application
º Apply online at https://denver.mwdbe.com/?
º Pay the $200 non-refundable application fee; yearly
renewal fee is $50
º Site visit by DSBO representative
City Certified Vendors
º Contact information listed on DSBO website
º Ready to bid on city solicitations
Not certified?
ᵒ Eligible to reapply for certification after one year. Businesses are welcome to bid on
city solicitations.

2.12Program is made up of 4 separate components
• Defined Procurement Pool – benefit is limited competition
• Covered goods and services under $50,000
• Open only to city certified Small Business Enterprises (SBE) if there are 3 certified vendors
• Bidders required to certify they will self-perform a minimum of 75% of the contract’s value
• Bids or RFP’s
• Bid Preference – benefit is a 10% price competitive advantage
• Covered goods and services from $50,000-$250,000
• Small Business Enterprises (SBE)
• Bidders required to certify they will self-perform a minimum of 75% of the contract’s value
• Hard bids only
• Certified vendors get a 10% price preference

2.12Program components
• Goals – benefit is increased opportunities
• Covered goods and services over $1,000,000; including multi-year contracts
• Participation goals are set for Minority Business Enterprises(MBE)/Women Business
Enterprises (WBE)
• Bids and RFPs
• Independent Partnership
• Covered goods and services from $250,000-$1,000,000 or when other Programs do not apply
• S/M/WBE all included

2.13 How is a $10,000+ bid/RFP created in Purchasing?
One of the 65+ city agencies or
DEN has a goods and services
need; agency researches
estimated cost
Agency contacts buyer
Buyer forwards information to
analyst at Purchasing to
determine solicitation’s NAICS
code. Covered Goods &
Service (C G&O) Ordinance
covers 469 NAICS code
descriptions
The buyer and the agency will
meet one time or several times
over weeks/months depending
on the complexity of the RFP

Analyst determines
solicitation is not part of
C G&S Ordinance
Buyer continues working
with agency and bid/RFP is
posted on BidNet Direct
Solicitation is not part of Covered Goods & Services Ordinance

Solicitations is part of the
C G&S Ordinance
Analyst determines program
type and # of certified
vendors
No certified
vendors, less
than 3
at least 3
certified
vendors
Defined Pool & Goals Procedure: lost
opportunity and Independent
Partnership procedure followed.
Benefit under Bid Preference is still
available for certified companies
Solicitation is part of Covered Goods & Services Ordinance

Certified vendors are notified when solicitation is
open. Solicitation is not posted on BidNet
Solicitation is part of Covered Goods & Services Ordinance
Solicitation under $50K
Solicitation $50K-$250K
Solicitation $250K-
$999,999
Solicitation $1,000,000+
Certified vendors are notified
that an opportunity is coming
open. Solicitation is posted on BidNet and bidding
certified vendors get a 10% price preference
open. Solicitation is posted on BidNet and vendors
are encouraged but not penalized/rewarded for
working with certified vendors
open and set goal %. Solicitation is posted on
BidNet. All vendors must comply with set goal

$-
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
$7,000,000.00
$8,000,000.00
2015 2016
2015* vs 2016 Covered Goods and Services Total Award Amounts

$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2015 2016
2015 vs 2016 Amounts Paid* to Covered Goods and Services
Certified Firms

2.14Amounts paid to other categories
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
Construction Professional services Airport concessions
2015 Amounts Paid to City Certified Firms
Construction Professional services Airport concessions

2.15General information
• Ethics – it is unlawful for any Purchasing employee to accept anything of value from
any person or firm to whom a purchase contract may be awarded
• Inspections – all material, equipment, and supplies are subject to inspections and
tests. Items that do not meet specifications will be rejected
• New/Used/Altered/Equipment – all supplies offered and furnished must be new and of
current production unless otherwise specified in the solicitation
• Tie proposals – a coin toss decides tie proposals equal in all respects including pricing

3 Make an action plan
• Set realistic goals based on research results and available resources
• Examples:
• Amy is responsible to do the research to decide which 2 city agencies the company will target.
Research deadline is November 18, 2016. Amy will communicate research findings to John.
• Amy is responsible for setting a meeting with Sue, one of the decision makers at Risk Management
by January 24, 2017. Meeting date by February 14, 2017.
• Jim is responsible for making changes to the website to reflect a government procurement focus.
Jim is also responsible to write content and select appropriate graphics for the capability statement
tailored to Risk Management’s needs. Jim is also responsible to write content on their social media
venues addressing risk management related topics.The deadline is January 6, 2017.

3 Make an action plan
• Examples:
• Jim’s message will concentrate on conveying a solutions message. The government procurement
message will be consistent with the company’s overall message.

4 Build relationships
• Building relationships is a cornerstone of every long-term successful sale
• Building relationships takes time
• The product/service offered needs to be reliable and the price needs to be competitive
to get to the finish line: awarded profitable government contract

5Bid
• Read the solicitation very carefully and make notes
• Answer each questions clearly and concisely
• Contact the Buyer, in writing, if unsure about anything in the solicitation
• Submit your response on time

5Bid
• Ask for help
• www.denvergov.org/purchasing, right hand side Resource Links tab

5Bid
www.denvergov.org/purchasing, right hand side Resource Links tab

Bid with confidence
Selling to the government can be complex.
You are not alone.
The City’s Purchasing Division is committed to
assist you along the way to success.

Q + A

Thank you
CeciliaV. Rivas de Schuermann, Business Development Coordinator
City andCounty of DenverGeneral Services Purchasing Division
Cecilia.rivasdeschuermann@denvergov.org
720. 913-8120
5
Steps for doing
business with
the city

Presentation 5 steps for doing business with the City and County of Denver

Recommended

Recommended

More Related Content

Similar to Presentation 5 steps for doing business with the City and County of Denver

Similar to Presentation 5 steps for doing business with the City and County of Denver (20)

More from Cecilia Rivas Schuermann

More from Cecilia Rivas Schuermann (10)

Recently uploaded

Recently uploaded (20)

Presentation 5 steps for doing business with the City and County of Denver