2016 NATIONAL 8(A) ASSOCIATION WINTER CONFERENCE Small Disadvantaged Businesses in Transportation

DOT 2016 Year of Opportunity

Small Disadvantaged Businesses in Transportation Yes, transportation drives opportunity

DOT OSDBU Mission To ensure that small business policies and goals of the Secretary of Transportation are implemented in a fair, efficient, and effective manner to serve small businesses. To provide opportunities, technical assistance, and financial services to the small business community. DOT Operating Administrations Federal Aviation Administration (FAA) Federal Highway Administration (FHWA) Federal Motor Carrier Safety Administration (FMSCA) Federal Railroad Administration (FRA) Federal Transit Administration (FTA) National Highway Traffic Safety Administration (NHTSA) Maritime Administration (MARAD) Office of the Secretary (OST) - OSDBU is part of OST Pipeline &Hazardous Materials Safety Administration (PHMSA) Research and Innovative Technology Administration (RITA) Saint Lawrence Seaway Development Corporation (SLSDC) Small Disadvantaged Businesses in Transportation

What We DO Advocate for small business and Provide technical assistance Provide guidance in acquisition planning and execution Create opportunities at the local, state and federal level Provide financial and surety bonding support services DOT Customers 8(a) firms; HubZone Disadvantaged Business Enterprises (DBEs) Women-owned Small Businesses (WOSB) Service Disabled Veteran owned Businesses (SDVOBs) Veteran owned small businesses (VOSBs) Prime Contractors and DOT financial recipients

Small Disadvantaged Businesses in Transportation 1.Largest infrastructure budget than any other federal agency 2.Since 1983, a statutory provision requiring at least 10% of funds authorized for highway and transit financial assistance programs be expended with DBEs. 3. Agency Small Business Scorecard: U.S. Department of Transportation FY2010 – A FY2012 – A FY2011 – A FY2013 – A+ FY A

Fixing America’s Surface Transportation ( FAST) 5 Year - $305 Billion Budget  $233 Billion is for highways, $49 Billion is for transit and $10 Billion is dedicated to federal passenger rail  Increases Buy America requirement from 60% to 70 % (boost to manufacturing)  The FAST Act provides $305 billion for highway, transit and railway programs  Long-term funding certainty for state surface transportation projects Small Disadvantaged Businesses in Transportation

Flagship Offerings 1. Procurement Assistance helps large prime contractors in identifying potential small businesses to assist them in attaining their subcontracting goals. 2. Financial Assistance assist eligible small businesses with obtaining the necessary financial support to effectively participate in transportation contracts 3. Surety Bonding Program in partnership with The Surety and Fidelity Association of America (SFAA) helps to build sustainable businesses through surety credit as a positioning strategy Small Disadvantaged Businesses in Transportation

THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF SMALL BUSINESS Procurement Assistance DOT FedBizOpps Opportunities Information presented in this section is a daily snapshot of DOT's Federal Business Opportunities (FBO). Visitors are encouraged to register with FedBizOpps to sign up for the Interested Vendors List to receive updated information on individual procurement opportunities. FedBizOpps opportunities Small Disadvantaged Businesses in Transportation

THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF SMALL BUSINESS Procurement Assistance Developing the annual DOT Procurement Forecast (provides information on anticipated procurements over the simplified acquisition threshold amount of $150,000) Helps large prime contractors in identifying potential small businesses to assist them in attaining their subcontracting goals Counsels small businesses and mediating/resolving procurement-related issues Small Disadvantaged Businesses in Transportation

WHAT CAN U.S.DOT SHORT TERM LENDING PROGRAM DO FOR ME ? Small Disadvantaged Businesses in Transportation

SHORT TERM LENDING PROGRAM (STLP) DESCRIPTION Provides Line of Credit for Accounts Receivable Arising From Transportation Related Contracts Primary Collateral Is Receivables from Transportation Contract(s) Participants Can Apply For Renewal For Up To 5 Years Maximum Loan Amount $750,000 Application Fee may not exceed $ made payable to lender Loan application processing turnaround is approx. 30 days Small Disadvantaged Businesses in Transportation

Cont. STLP Program Description Subcontract At Any Tier In Transportation Related Field Funds are Borrowed against each invoice of the Contract (85%) Repayment Occurs as the Project Owner/Prime Contractor pays the Invoice The payment is made jointly to the borrower and to the PL and is sent to the bank, which repays the amount borrowed against the invoice and transmits the balance to the borrower. ACH Payments; Wire transfers Interest Rate Based an a Variable Rate Connected to the WSJ Prime Rate (3.25) Small Disadvantaged Businesses in Transportation

U.S. Department of Transportation Office of Small Business In partnership with The Surety and Fidelity Association of America Surety Bonding Program Surety Bonding Program -from Small Business to CEO Small Disadvantaged Businesses in Transportation

Overview  The BEP is the USDOT’s premier business development program  Stakeholders and the local emerging contractor community have unique opportunity to build relationships with the federal government, state, and private sector  Tailored to firms competing for transportation ‐ related contracts  Ultimately, contractors realize bonding is a tool that can support economic empowerment, sustainability, job creation and legacy wealth  USDOT is partnering with prime contractor community to provide project specific Bonding Programs (BEP) across the country Small Disadvantaged Businesses in Transportation

The Importance of Bonding How one evaluates and manages risk on construction projects and makes fiscally responsible decisions to ensure timely project completion is key to success. Surety bonds provide financial security and construction assurance by assuring project owners that contractors will perform the work and pay specified subcontractors, laborers, and material suppliers. To gamble on a contractor whose level of commitment or qualification is uncertain or who could become bankrupt halfway through the job can be a costly decision. Small Disadvantaged Businesses in Transportation

ARE YOU READY TO BUILD BIG? Go to OSDBU Website at: assistance/bonding-education/bonding-education- program Small Disadvantaged Businesses in Transportation

DOT-related marketing efforts Cross check DOT FY2014 Procurement Forecast with FEDBizOpps for DOT procurement opportunities that have received funding obligation: DOT Subcontracting Directory, which lists large prime contractors receiving Federal contract awards: DOT listing of Small Business specialists in each Operating Administrations whose primary role is to serve as advocates to small businesses. 25th Annual Government Procurement Conference: Go to website and enter word: sources sought in the keyword/solicitation box - discover opportunities to respond to suitable solicitations for information in your industry. Small Disadvantaged Businesses in Transportation

QUESTIONS ON EVERYONE’S MIND? Small Disadvantaged Businesses in Transportation

Call us: ext. 3-2 Write us: U.S. Department of Transportation Office of Small and Disadvantaged Business Utilization (OSDBU) 1200 New Jersey Avenue, SE, Room W Washington, DC us: Visit the OSDBU website at: Small Disadvantaged Businesses in Transportation

U.S. Department of Transportation Office of Small and Disadvantaged Business Utilization SE Region Field Office THANK YOU! Small Disadvantaged Businesses in Transportation