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Doing Business With the Public Sector

Doing Business With the Public Sector. Tina Giles-Potter Administrator, Small Business Program Orange County Transportation Authority. Doing Business in the Public Sector. Most agencies require registration in their database

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Doing Business With the Public Sector

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  1. Doing Business With the Public Sector Tina Giles-Potter Administrator, Small Business Program Orange County Transportation Authority

  2. Doing 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).

  3. GOOD NEWS: You are in a directory/database = FREE MARKETING BAD NEWS: Not all certifications are created equal. CERTIFICATION

  4. TYPES OF CERTIFICATION • SBA • SBE • MINORITY/WOMEN • DBE

  5. SMALL BUSINESS ADMINISTRATION • SBA certification is good for all of the U.S. • Different programs - 8(a) - Small Disadvantaged Business - HubZone

  6. STATE OF CALIFORNIA • Established the Small Business Enterprise (SBE) • Certification is good for the entire state • Managed by the Department of General Services • 5% preference

  7. PUBLIC UTILITIES • MWBE Clearinghouse provides certification for minority and woman owned firms • Certification is good for 3 years • Will accept certification from SBA and DOT

  8. COUNTY • Certification for Small Business Enterprise (SBE) • Certification by county, may have reciprocity with other counties

  9. CITY • 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 cities

  10. DEPARTMENT 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 states

  11. UNIFIED CERTIFICATION PROGRAM • UCP provides One-stop shopping for applicants • One application form, One process, One decision lets eligible firm participate anywhere in the State

  12. CUCP • 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 Clusters

  13. SOUTHERN 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 Authority

  14. DISADVANTAGED BUSINESS ENTERPRISE • Program established by Department of Transportation to increase the participation of DBEs on contracts awarded using federal dollars.

  15. DEFINITION OF DBE • A 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) Control

  16. BUSINESS 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….$ 4,000,000

  17. OWNERSHIP • 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.

  18. 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.

  19. PERSONAL NET WORTH • Each disadvantaged owner’s personal net worth (excluding business ownership and primary residency) can not exceed $750,000.

  20. 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 American

  21. BENEFITS • Targeted procurement outreach activities • On-line DBE directory – free local and statewide marketing for your firm • Prompt payment provisions

  22. How to Do Business in the Public Sector • Procurement Types: - Informal (Small and Convenient Procurement), less than $25,000 - Formal over $25,000 IFB – Invitation For Bids RFP – Request For Proposals

  23. Invitation For Bids • Written sealed bid, award is based on: 1. The lowest dollar amount 2. Responsive - Forms - Information - Bond (if required) 3. Responsible - Work Record

  24. Request For Proposals • Negotiated cost, evaluation committee scores: 1. Qualifications of firm 2. Staffing & Project Organization 3. Work Plan 4. Cost & Price 5. DBE Goal (Federal projects)

  25. Request For Proposals • Award is based on: 1. Firm’s score on items 2. Oral interview 3. Best and final offer - cost

  26. Why Do Business with OCTA OCTA 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

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