Department of Small and Local Business Development Agency Strategic Action Plan June 1 st 2013 – May 31 st 2014 Ted Archer Director, Strategic Operations

Strategic Action Plan To advance the mission of the agency to support the District’s over 50,000 small businesses, including 1100 Certified Business Enterprises (CBEs) and thousands of potential entrepreneurs, DSLBD will implement a Strategic Action Plan beginning June 1 st 2013 through May 31 st May 2013 Agency Strategic Action Plan 2

The Department of Small and Local Business Development was formed through the Small, Local, and Disadvantaged Business Enterprise Development and Assistance Act of Prior to the “Act” there were several other iterations of the agency along with different functions. The Agency’s Strategic Action Plan aims to clearly articulate the Agency’s purpose and objectives to its stakeholders. Past Iterations of the Department of Small and Local Business Development May 2013 Agency Strategic Action Plan Office of Minority Business Development Office of Human Rights and Minority Business Development Office of Local Business Development DSLBD

Agency Vision Agency Strategic Action Plan Agency Mission The mission of the Department of Small and Local Business Development (DSLBD) is to support the development, economic growth, and retention of District-based businesses, and to promote economic development throughout the District’s commercial corridors. OUR VISION DSLBD envisions a business environment in which: 1)DC businesses are connected in real-time with local, federal, and global business opportunities; 2)Small businesses can navigate government quickly, confidently, and effectively; and, 3)Every entrepreneur and small business with a great idea and a great plan can access the capital to make it happen. May 2013

DSLBD Functions 5 AGENCY FUNCTIONS Agency Strategic Action Plan

Transforming the Agency Previous Organizational Structure The previous organizational structure reflected only a small range of services for DC businesses Agency Strategic Action Plan May Total FTEs

Transforming the Agency Redesigned Organizational Structure The redesigned organizational structure serves as the foundation for a client centered approach to the delivery of a dynamic portfolio of services Agency Strategic Action Plan May Total FTEs

Agency Strategic Action Plan CERTIFIED BUSINESS ENTERPRISE (CBE) PROGRAM Business Certification Compliance & Enforcement Business Development May 2013

CBE Compliance Action Plan Summary May, 2013 Agency Strategic Action Plan CBE Compliance Action Plan Highlights and Milestones (June 2013 – May 2014) DSLBD will investigate, monitor, spot check, and recommend enforcement action on the following:  1100 CBEs  88 Joint Ventures  168 Developers  120 Prime Contactors  80 District Agencies  $15 billion total dollar volume in Expendable, Contract, & Project Budgets  1188 Site Visits/Spot checks  200 Investigations (estimates based on FY11-12 activities)

Local Business Definition Principal office physically located in the District; Chief executive officer and highest level managerial employees maintain their offices and perform their managerial functions in the District; Meets one of the four following standards: More than 50% of the assets, excluding bank accounts, are located in the District; More than 50% of the employees are residents of the District; The owners of more than 50% of the business enterprise are residents of the District; or More than 50% of the total sales or other revenues are derived from transactions in the District Is properly licensed under DC law; and Is subject to tax under DC law (Chapter 18 of Title 47) Site visits are conducted within the Washington Metropolitan area to verify that the firm meets the local business enterprise definition. Agency Strategic Action Plan

CBE Program: At a Glance Agency Strategic Action Plan 11 Businesses may be certified in any of the following categories; however, only a maximum of 12 points can be applied toward any contract award. In evaluating invitations for bids (IFBs), contracting personnel apply a percentage reduction in price according to the CBE designation. In evaluating requests for proposals (RFPs), contracting personnel apply points to proposal evaluations according to CBE designation. DSLBD also certifies joint ventures in the CBE Certification Program. Certification CategoriesAuthorityPreference # of CBEs (as of 4/4/13) % of CBEs by Category (as of 4/4/13) Local Business Enterprise (LBE) § DCMR or 2% % Small Business Enterprise (SBE) § or 3%107795% Disadvantaged Business Enterprise (DBE) § DCMR or 2%63456% Resident Owned Business (ROB) § DCMR or 5%57450% Development Zone Enterprise (DZE) § or 2%64757% Longtime Resident Business (LRB) § DCMR or 10%908% Veteran Owned Business (VOB) § or 0%454% Local Manufacturing Business Enterprise (LME) § or 0%10% Joint Venture Certifications (JV) § a 27 DCMR 811 Varies69N/A

CBE Locations May 2013 Agency Strategic Action Plan 12 PERCENT OF CERTIFIED BUSINESS ENTERPRISES BY WARD*  The Business Certification Division evaluates businesses headquartered in the District to determine their eligibility to become a Certified Business Enterprise (CBE).  The DC Government directs spending to CBEs, and they in turn support and contribute to job creation and the city tax base, strengthening the local economy.  The CBE Program provides contracting preference for local businesses so they can better compete for DC Government contracts and procurement opportunities. * As of April 2013 Ward 3 7% Ward 4 13% Ward 1 6% Ward 2 31% Ward 5 17% Ward 6 12% Ward 7 6% Ward 8 9%

Jun 2013July 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 Jan 2014Feb 2014Mar 2014Apr 2014May 2014 Roll out Developer Compliance training for Developer community and other stakeholders 200 total developers Roll out Developer Compliance training for Developer community and other stakeholders 200 total developers Perform CBE spot checks/ and enforce penalties on delinquent CBEs and JVs 1188total CBEs/JVs Perform CBE spot checks/ and enforce penalties on delinquent CBEs and JVs 1188total CBEs/JVs Review high profile District contracts above 250k for subcontract compliance 10 total contracts Review high profile District contracts above 250k for subcontract compliance 10 total contracts 120 total stakeholders Leverage CBE Advisory Group recommendations, partner with District Contracting personnel to implement efficient and transparent waiver process for subcontracting compliance 120 total stakeholders Leverage CBE Advisory Group recommendations, partner with District Contracting personnel to implement efficient and transparent waiver process for subcontracting compliance 1100 total CBEs Launch All New “Cloud-based” Certification Process for CBEs 1100 total CBEs Launch All New “Cloud-based” Certification Process for CBEs 75 total developers Partner with Developer community to streamline and simplify reporting process for projects 75 total developers Partner with Developer community to streamline and simplify reporting process for projects Investigate, contact, and perform site visits on delinquent CBEs and JVs identified by media, ODCA, and DSLBD 15 total CBEs Investigate, contact, and perform site visits on delinquent CBEs and JVs identified by media, ODCA, and DSLBD 15 total CBEs 168 total developers Investigate and contact delinquent developers identified by, ODCA, and DSLBD 168 total developers Investigate and contact delinquent developers identified by, ODCA, and DSLBD Roll out Agency Expendable Budget Compliance training for operating and capital budgets 110 total budgets Roll out Agency Expendable Budget Compliance training for operating and capital budgets 110 total budgets Issue Comprehensive Preliminary findings from Compliance & Enforcement Action Plan by May 31 st vendors Recommend enforce penalties on noncompliant developers and prime contractors 220 vendors Recommend enforce penalties on noncompliant developers and prime contractors Recommend corrective action for noncompliant District Agencies 200 total Agencies Recommend corrective action for noncompliant District Agencies 200 total Agencies May 2013 Action Plan Timeline CBE Compliance & Enforcement LEGEND Short Term – Investigations and data collection, announcement of more stringent standards for CBE compliance Medium Term- Data Analysis, standardization of new, efficient and transparent processes, training for stakeholders Longer Term- Issuance of reports, enforcement of penalties, and remediation

Compliance and Enforcement Agency Strategic Action Plan  8 Compliance Program Areas Compliance Programs# of Entities Monitored RequirementDollar VolumeDiscretionary (Expendable) Budget CBE Goal Agency Expendable (Operating) Budget Compliance for SBE Expenditures %$6,060,652,139$482,620,179$241,310,090 Agency Expendable (Capital) Budget Compliance for SBE Expenditures11 29 (242 projects) 50%$5,176,714Undetermined (Not Monitored) Undetermined (Not Monitored) Agency Subcontracting Compliance for Contracts over $250,00012 (Construction and Non-Construction) 12035%$142,809,988Undetermined (Not Monitored) Undetermined (Not Monitored) Developer CBE Utilization Compliance %$3,890,492,771$2,602,879,323$1,057,998,855 CBE Equity Participation Compliance Program for Development Projects <15920%Undetermined (Not Monitored) Undetermined (Not Monitored) Undetermined (Not Monitored) CBE Development Participation Compliance Program for Development Projects <15920%Undetermined (Not Monitored) Undetermined (Not Monitored) Undetermined (Not Monitored) Joint Venture Program Compliance~88VariesUndetermined (Not Monitored) Undetermined (Not Monitored) Undetermined (Not Monitored) CBE Investigations~1100N/A *Data is as of 8/15/2012*

May 2013 Agency Strategic Action Plan

Enhanced Transparency and Accountability May 2013 Agency Strategic Action Plan CBE Compliance “CLOUD” Database  DIRECT ACCESS  Accessible to Government Agencies, Private Developers/Contractors, and CBEs  PERFORMANCE  Allows DSLBD to proactively monitor and report CBE compliance performance  COLLABORATION  Enhances collaboration between all CBE program stakeholders

Programs Agency Strategic Action Plan 17 Small Business Development Programs Retail Business Development Procurement Technical Assistance Technology & Innovation Development Trade and Export Promotion BUSINESS DEVELOPMENT PROGRAMS May 2013

18 Short Term (June – Aug 2013) Medium Term (Sept 2013 – Feb 2014 ) Longer Term (Mar – May 2014) Retail (Main Streets, BIDs, Clean Teams) Visit and Survey Each DC Retail Neighborhood Main Street Corridor - approx businesses Analyze and Create Report based on Corridor Survey and Needs Assessment Target assistance programs to identified needs and burgeoning corridors Training/ Technical Assistance Collect CBE data and tier CBEs by industry, revenue, and experience, and other characteristics Market DSLBD training curriculum at DSLBD small business forums and expositions. Sponsor new trainings to CBE and other District businesses based on specific needs Business Opps/Capital Access Solidify DC Capital Access Advisory Panel. Aggressively organize opportunity workshops with hospitals, universities…etc. Market access to capital programs at DSLBD and DISB at small business forums and expositions. Report and celebrate DSLBD assisted loan acquisitions Procurement Assistance Perform outreach and market Procurement Technical Assistance Center to DC business Market procurement support programs at DSLBD and DISB at small business forums and expositions. Report and celebrate DSLBD assisted contract awards Export DC Organize training, outreach events, and trade missions to South Africa and South America. Organize Trade Missions to South America or Caribbean Sponsor international market visits for DC businesses ConnecTech Organize and sponsor Small Business Innovation and Technology Events with DC Tech partners (1776, Fortify, etc.) Coordinate Tech Hackathon for DC startups Report on # DC firms winning SBIR Grants from federal government BUSINESS DEVELOPMENT PROGRAMS Agency Strategic Action Plan Action Plan Timeline Business Development Programs