1. DOING BUSINESS WITH THE CITY Presented to National Contract Management Association Space City Houston Chapter 2013 Small Business Conference & Trade Fair April 11, 2013

2. Mission The Mayor’s Office of Business Opportunity is committed to creating a competitive and diverse Business environment in the City of Houston by promoting the growth and success of small businesses, with special emphasis on historically underserved groups by ensuring their meaningful participation in the government procurement process. Our key objectives are to Educate. Connect. Grow. 2

3. What We Do Certification OBO processes applications from firms interested in the City of Houston’s Minority, Women, Small, and Persons with Disabilities Business Enterprise certifications and the U.S. Department of Transportation’s Disadvantaged Business Enterprise certification. Business Assistance Assistance navigating through the City’s licensing and permitting process through the Houston Business Solutions Center. We also collaborate with partners such as: banks, educational institutions, local chambers, government agencies, and business and trade organizations to provide: business development, networking activities, and access to various opportunities. OBO sponsors and/or co-sponsors events such as: Meet the Buyer, Runway to Business Opportunities, MED Week, Government Procurement Connections, and the EXPO Business Opportunity Marketplace. 3

4. What We Do Hire Houston First An initiative to promote economic opportunity for Houston businesses and to support job creation, Hire Houston First grants the City the ability to give preference to local companies and local workers, as long as their pricing is competitive. Contract Oversight, Mediation and Resolution Services OBO monitors contracts with M/WDBE goals and offers mediation services to certified firms seeking to resolve conflicts with prime contractors. Arbitration is available through the Southeast Texas College of Law’s Frank Evans Center for Conflict Resolution, if necessary. 4

5. City of Houston Certifications 5

6. Types of Certification Minority Business Enterprise (MBE) – The minority owner(s) must possess at least 51% ownership, management and control of the firm The owner must have training/expertise to perform the work, and where required, have a license or certificate in his or her name The firm must be independent and currently operating The firm must meet the SBA size standard The firm must maintain a significant local business presence in Harris, Brazoria, Fort Bend, Chambers, Galveston, Liberty, Montgomery, or Waller Counties Women Business Enterprise (WBE) – The minority owner(s) must possess at least 51% ownership, management and control of the firm The owner must have training/expertise to perform the work, and where required, have a license or certificate in his or her name The firm must be independent and currently operating The firm must meet the SBA size standards The firm must maintain a significant local business presence in Harris, Fort Bend, Brazoria Chambers, Galveston, Liberty, Montgomery, or Waller Counties 6

7. Types of Certification Persons with Disability Business Enterprise (PDBE) – The person with disability must possess at least 51% ownership, management and control of the firm The disability must be determined by a medically determined physical and/or mental impairment that substantially limits one or more of his or her major life activities The firm must maintain a significant local business presence in Harris, Fort Bend, Brazoria, Chambers, Galveston, Liberty, Montgomery, or Waller Counties Small Business Enterprise (SBE) – The ownership does not have race or gender eligibility requirements The firm must meet SBA size standards The firm must maintain a significant local business presence in Harris, Brazoria, Fort Bend, Chambers, Galveston, Liberty, Montgomery, or Waller Counties Disadvantaged Business Enterprise (DBE) – At least 51% owned, managed and controlled by one or more individuals who are socially and economically disadvantaged The firm must be independent and currently operating Personal net worth cannot exceed $1.32 million and the firm must meet the SBA size standards 7

8. Advantages of Certification  Certified firms are listed in the City’s online directory; accessible by city departments, prime contractors, and other parties.  Access to free or low cost business development resources and skill-building experiences including workshops and seminars.  Mediation services on City of Houston contracts.  Assistance in navigating through the City’s licensing and permitting process through the Houston Business Solutions Center.  Access to prime and subcontracting opportunities on City of Houston contracts.  City of Houston certifications are accepted by:  Environmental Protection Agency  Port of Houston Authority  METRO  Houston Independent School District  Houston Community College  Houston Housing Authority  Texas Comptroller of Public Accounts  Private Corporations in the Metropolitan Area 8

9. FY2013 Currently Certified Firms 9 Ethnicity Gender Industry As of 4/3/2013, there are 2,015 currently certified firms. Most of these are within the construction industry.

10. Business Assistance Houston Business Solutions Center 10

11. Houston Business Solutions Center The Houston Business Solutions Center functions as an information clearinghouse for people wishing to start or operate a business in the Houston-Metropolitan area. Services include: free Business Resource Guides, technical assistance on relevant permits and licenses needed to operate; financing information; the provision of business management counseling courtesy of the Service Corps of Retired Executives (SCORE); and business workshops and programs on a number of business-related topics. The HBSC is also responsible for assembling the City Contracting Guide and the Sources of Assistance Business Resource Guide. These two documents and the Getting Started Packet can be accessed on the Division’s website at http://www.houstontx.gov/hbsc/index.html.http://www.houstontx.gov/hbsc/index.html 11

12. Hire Houston First Program Hire Houston First grants the City the ability to give preference to City and Local companies and workers, as long as their pricing is competitive. City Business means a business with a principal place of business within City limits. Local Business means a business with a principal place of business in the 8 counties in and surrounding Houston city limits. Businesses must either: Be headquartered in the incorporated limits of the City or the 8 local counties; or Have 20% or more of the entity's workforce regularly based and have a substantial part of its operations based in the incorporated limits of the City or the 8 local counties* 12

13. FY2013 Currently Certified Firms 13 Ethnicity Gender Industry As of 4/3/2013, there are 2,015 currently certified firms. Most of these are within the construction industry.

14. Business Assistance Houston Business Solutions Center 14

15. Houston Business Solutions Center The Houston Business Solutions Center functions as an information clearinghouse for people wishing to start or operate a business in the Houston-Metropolitan area. Services include: free Business Resource Guides, technical assistance on relevant permits and licenses needed to operate; financing information; the provision of business management counseling courtesy of the Service Corps of Retired Executives (SCORE); and business workshops and programs on a number of business-related topics. The HBSC is also responsible for assembling the City Contracting Guide and the Sources of Assistance Business Resource Guide. These two documents and the Getting Started Packet can be accessed on the Division’s website at http://www.houstontx.gov/hbsc/index.html.http://www.houstontx.gov/hbsc/index.html 15

16. Hire Houston First Program Hire Houston First grants the City the ability to give preference to City and Local companies and workers, as long as their pricing is competitive. City Business means a business with a principal place of business within City limits. Local Business means a business with a principal place of business in the 8 counties in and surrounding Houston city limits. Businesses must either: Be headquartered in the incorporated limits of the City or the 8 local counties; or Have 20% or more of the entity's workforce regularly based and have a substantial part of its operations based in the incorporated limits of the City or the 8 local counties* 16

17. Administration of HHF Designation of Firms OBO processes applications for HHF through it’s Houston Business Solutions Center Unlike the certification process for S/MWBEs, designation of HHF is significantly shorter To date, there are more than 800 companies designated, These designated firms have been added to OBO’s online Hire Houston First registry 17

18. HHF in the Award Process 18 *A firm designated as a City business automatically qualifies as a Local Business. **In procuring architectural, engineering or land surveying services under the Professional Services Procurement Act, Tex. Gov't C ode, § 2254.004, the applicable city department shall, when appropriate, consider knowledge of local conditions as part of the qualifications determination in addition to HHF status. Personal Property (Goods) If the contract's value is $100,000 or greater, then the contract is awarded to a City Business * that is within 3% of lowest bid. If the contact's value is under $100,000, then the contract is awarded to a City Business * that is within 5% of the lowest Bid. Services ** If the contract's value is $100,000 or greater, then the contract is awarded to a Local Business that is within 3% of lowest bid. If the contract's value is under $100,000, then the contract is awarded to a Local Business that is within 5% of the lowest bid. For Purchases under $50,000.00: "the City shall, subject to the requirements of section 15-181, select vendors and service providers with a principal place of business in the local area, provided that any such vendor's bid is no more than five percent greater than the lowest bid, in the event the lowest bid is from one other than a city business or a local business. "

19. Hire Houston First Awards 19 As of September 2012, the total award to Hire Houston First firms was $139,770,950. Of this amount, City designated businesses were awarded 555 prime contracts and non- contract purchase orders (POs) totaling $58,126,344. Local designated businesses were awarded 340 prime contracts and non-contract purchase orders totaling $81,644,607. County City BusinessLocal Business Total Award Total No. of Prime Contracts and PO's Award No. of Prime Contracts and PO'sAward No. of Prime Contracts and PO's Brazoria $814,3928 8 Fort Bend $5,225,24153$5,225,24153 Galveston $3,723,2552 2 Harris$58,126,344555$55,957,221214$114,083,564769 Montgomery $15,924,49863$15,924,49863 Grand Total$58,126,344555$81,644,607340$139,770,950895

20. Program-wide Goals: The City, with Council’s approval, periodically sets citywide contracting goals to ensure participation by S/MWBEs in the City’s procurement process. In instances where federal funding is involved, goals are established in accordance with their specific requirements. 16

21. Program Goals  Construction – 14% MBE, 8% SBE  Purchasing - 11% MBE  Professional Services - 24% MBE “Good Faith Efforts” Those efforts required to be made and demonstrated by an apparently successful bidder or proposer prior to award of a contract and at the conclusion of performance of the contract in the event it has been unsuccessful in meeting the contract MWBE goal. 21

22. Doing Business with the City 22

23. Doing Business with the City 23

24. Vendor Registration 24

25. Strategic Purchasing Division 25 Calvin D. Wells, City Purchasing Agent (832) 393-8700/(832) 393-8755 Fax HI-TECH PROCUREMENT CONTRACTS Douglas Moore, Manager (832) 393-8724 SUPPLY/NEW CONTRACTS Desiree R. Heath, Manager (832) 393-8742 FLEET/FORMAL/INFORMAL/SERVICE CONTRACTS Ray Durousseau, Deputy Assistant Director, (832) 393-8726

26. Best Practices 26 PRIOR TO AWARD  Keep contact information updated.  Submit competitive bid.  Review ALL requests from prime contractors and respond with a bid or no bid.  Check minority/women focused organizations for notices  Attend pre-bid meetings.

27. Best Practices POST AWARD  Look for communication from the City of Houston Contract Compliance Office.  Execute a subcontract agreement with the prime contractor.  Follow the progress of the contract.  Keep your contact information updated.  Respond to the City of Houston’s deviation request from the prime contractor. 27

28. Best Practices OTHER BEST PRACTICES  Complete a supplier profile  Complete a vendor application  Check advertisements  Check the Houston Business Journal and Houston Chronicle newspapers  Visit the City’s Purchasing Office web site at www.purchasing.houstontx.govwww.purchasing.houstontx.gov  Check out the City’s Bid Board located at City Hall, 901 Bagby, Room 120  Attend Pre-Bid/Pre-Proposal conferences  Review previous bids  Understand all terms and conditions  Read the insurance and drug compliance  Carefully review the specifications  Read and clearly understand the price increase language  Be aware of the M/WDBE goals  Submit bid on time and sign all documents 28

29. Thank You.