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  1. 1. Doing Business With the Public Sector Tina Giles-Potter Administrator, Small Business Program Orange County Transportation Authority
  2. 2. Doing Business in the Public Sector <ul><li>Most agencies require registration in their database </li></ul><ul><li>Some have programs that require a certification for participation to be counted (federal and state funds). </li></ul>
  3. 3. CERTIFICATION <ul><li>GOOD NEWS: </li></ul><ul><li>You are in a directory/database = FREE MARKETING </li></ul><ul><li>BAD NEWS: </li></ul><ul><li>Not all certifications are created equal. </li></ul>
  4. 4. TYPES OF CERTIFICATION <ul><li>SBA </li></ul><ul><li>SBE </li></ul><ul><li>MINORITY/WOMEN </li></ul><ul><li>DBE </li></ul>
  5. 5. SMALL BUSINESS ADMINISTRATION <ul><li>SBA certification is good for all of the U.S. </li></ul><ul><li>Different programs </li></ul><ul><li>- 8(a) </li></ul><ul><li>- Small Disadvantaged Business </li></ul><ul><li>- HubZone </li></ul>
  6. 6. STATE OF CALIFORNIA <ul><li>Established the Small Business Enterprise (SBE) </li></ul><ul><li>Certification is good for the entire state </li></ul><ul><li>Managed by the Department of General Services </li></ul><ul><li>5% preference </li></ul>
  7. 7. PUBLIC UTILITIES <ul><li>MWBE Clearinghouse provides certification for minority and woman owned firms </li></ul><ul><li>Certification is good for 3 years </li></ul><ul><li>Will accept certification from SBA and DOT </li></ul>
  8. 8. COUNTY <ul><li>Certification for Small Business Enterprise (SBE) </li></ul><ul><li>Certification by county, may have reciprocity with other counties </li></ul>
  9. 9. CITY <ul><li>Certification for: </li></ul><ul><li>- Minority Business Enterprise (MBE) </li></ul><ul><li>- Woman Business Enterprise (WBE) </li></ul><ul><li>- Community Business Enterprise (CBE) </li></ul><ul><li>- Local Small Business Enterprise (LSBE) </li></ul><ul><li>Certification is limited, may have reciprocity with other cities </li></ul>
  10. 10. DEPARTMENT OF TRANSPORTATION <ul><li>49 CFR Part 26 establishes the Disadvantaged Business Enterprise (DBE) </li></ul><ul><li>Certification is good for the entire state of California </li></ul><ul><li>Certification is good for 3 years </li></ul><ul><li>Certification can be used to obtain certification in other states </li></ul>
  11. 11. UNIFIED CERTIFICATION PROGRAM <ul><li>UCP provides One-stop shopping for applicants </li></ul><ul><li>One application form, One process, One decision lets eligible firm participate anywhere in the State </li></ul>
  12. 12. CUCP <ul><li>All U.S. DOT recipients participate in program </li></ul><ul><li>- 129 Transit Agencies, 20 Major Airports, 67 Auxiliary Airports, 1 Highway Entity </li></ul><ul><li>State is divided into two regions, Northern and Southern Clusters </li></ul>
  13. 13. SOUTHERN CALIFORNIA CLUSTER <ul><li>Southern California firms seeking DBE certification can submit application to: </li></ul><ul><li>Orange County Transportation Authority </li></ul><ul><ul><li>Los Angeles Metropolitan Transit Authority </li></ul></ul><ul><ul><li>City of Los Angeles </li></ul></ul><ul><ul><li>City of San Diego </li></ul></ul><ul><ul><li>San Diego County Regional Airport Authority </li></ul></ul>
  14. 14. DISADVANTAGED BUSINESS ENTERPRISE <ul><li>Program established by Department of Transportation to increase the participation of DBEs on contracts awarded using federal dollars. </li></ul>
  15. 15. DEFINITION OF DBE <ul><li>A Disadvantaged Business Enterprise (DBE) is </li></ul><ul><li> Any firm eligible to participate as a DBE in projects funded with U.S. DOT Assistance. </li></ul><ul><li>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: </li></ul>(1) Business Size (2) Group Membership or Individual Disadvantage (3) Ownership (4) Control
  16. 16. BUSINESS SIZE <ul><li>The average gross receipts for the past three years for a firm (and its affiliates) must not exceed: </li></ul><ul><li>General Contractors………..$17,420,000 </li></ul><ul><li>Specialty Contractors……….$ 7,000,000 </li></ul><ul><li>Engineering, Architectural….$ 4,000,000 </li></ul>
  17. 17. OWNERSHIP <ul><li>The socially and economically disadvantaged individual applying for DBE certification must own at least 51% of the business. </li></ul><ul><li>Ownership is acquired through real and substantial contributions of expertise, capital or other tangible personal assets. </li></ul>
  18. 18. CONTROL <ul><li>The disadvantaged individual(s) must independently exercise at least 51% control over the day-to-day operations of the business. </li></ul><ul><li>The disadvantaged owner(s) must demonstrate sufficient expertise in the firm’s field of operation. </li></ul><ul><li>Control must be demonstrated in both management and operation of the firm. </li></ul>
  19. 19. PERSONAL NET WORTH <ul><li>Each disadvantaged owner’s personal net worth (excluding business ownership and primary residency) can not exceed $750,000. </li></ul>
  20. 20. GROUP MEMBERSHIP <ul><li>The disadvantaged individual must be a U.S. citizen or permanent resident. </li></ul><ul><li>A member of a group presumed to be socially and economically disadvantaged: </li></ul><ul><li>- Black American - Native American </li></ul><ul><li>- Hispanic American - Women </li></ul><ul><li>- Asian-Pacific American </li></ul><ul><li>- Subcontinent Asian American </li></ul>
  21. 21. BENEFITS <ul><li>Targeted procurement outreach activities </li></ul><ul><li>On-line DBE directory – free local and statewide marketing for your firm </li></ul><ul><li>Prompt payment provisions </li></ul>
  22. 22. How to Do Business in the Public Sector <ul><li>Procurement Types: </li></ul><ul><li>- Informal (Small and Convenient Procurement), less than $25,000 </li></ul><ul><li>- Formal over $25,000 </li></ul><ul><li>IFB – Invitation For Bids </li></ul><ul><li>RFP – Request For Proposals </li></ul>
  23. 23. Invitation For Bids <ul><li>Written sealed bid, award is based on: </li></ul><ul><li>1. The lowest dollar amount </li></ul><ul><li>2. Responsive </li></ul><ul><li>- Forms </li></ul><ul><li>- Information </li></ul><ul><li>- Bond (if required) </li></ul><ul><li>3. Responsible </li></ul><ul><li>- Work Record </li></ul>
  24. 24. Request For Proposals <ul><li>Negotiated cost, evaluation committee scores: </li></ul><ul><li>1. Qualifications of firm </li></ul><ul><li>2. Staffing & Project Organization </li></ul><ul><li>3. Work Plan </li></ul><ul><li>4. Cost & Price </li></ul><ul><li>5. DBE Goal (Federal projects) </li></ul>
  25. 25. Request For Proposals <ul><li>Award is based on: </li></ul><ul><li>1. Firm’s score on items </li></ul><ul><li>2. Oral interview </li></ul><ul><li>3. Best and final offer - cost </li></ul>
  26. 26. Why Do Business with OCTA <ul><li>OCTA Fiscal Year 2003-2004 Budget is $787 M </li></ul><ul><li>Transportation Systems Development Budget FY 2003-2004 is $204.2 M ( Construction & Services) </li></ul><ul><li>FY 2000-01 – 32% contracts to small business </li></ul><ul><li>FY 2002-02 – 33% contracts to small business </li></ul><ul><li>FY 2002-03 – 42% contracts to small business </li></ul><ul><li>FY 2002-03 – 24.9% federal dollars to DBEs </li></ul>