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Doing Business With the Public Sector Tina Giles-Potter Administrator, Small Business Program Orange County Transportation Authority
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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).
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CERTIFICATION GOOD NEWS: You are in a directory/database = FREE MARKETING BAD NEWS: Not all certifications are created equal.
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TYPES OF CERTIFICATION SBA SBE MINORITY/WOMEN DBE
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SMALL BUSINESS ADMINISTRATION SBA certification is good for all of the U.S. Different programs - 8(a) - Small Disadvantaged Business - HubZone
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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
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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
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COUNTY Certification for Small Business Enterprise (SBE) Certification by county, may have reciprocity with other counties
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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
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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
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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
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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
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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
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DISADVANTAGED BUSINESS ENTERPRISE Program established by Department of Transportation to increase the participation of DBEs on contracts awarded using federal dollars.
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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
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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
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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.
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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.
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PERSONAL NET WORTH Each disadvantaged owner’s personal net worth (excluding business ownership and primary residency) can not exceed $750,000.
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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
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BENEFITS Targeted procurement outreach activities On-line DBE directory – free local and statewide marketing for your firm Prompt payment provisions
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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
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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
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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)
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Request For Proposals Award is based on: 1. Firm’s score on items 2. Oral interview 3. Best and final offer - cost
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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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