contracting for success

Contracting for Success

Mitchell E. Daniels, Governor

Indiana Department of Administration

•Qualify for MBE/ WBE Participation Points on state projects

•Consideration at state universities and casinos

•Notification of state business opportunities

• Why Apply for State Certification?

•Access to training opportunities•Advocacy Services•State certification often accepted for purchasing at other organizations

•No application fee

Why Apply for State Certification?

Sub-Contracting

•Incentives are given only for MBE and WBE Sub-Contracting

•Dually certified firms must choose ONE certified status per project – MBE or WBE

• Sub-contractors must provide a commercially useful function

•New Opportunities

•Visibility and consideration for contracts

•State, local, federal and large corporations

What’s Next

•Target market

•Target customers

•Experience, robust and successful deliverables

Know Your Market

Sell your company !Sell your product !

PriceProduct Service

In the Door

• Be Prepared• Maintain Certification• ACE form(s)• email address • General information changes• Change in organization

Steps to Take

•http://www.unspsc.org/

Classification of products and services

•Current and accurate codes•Code amendments•Commercially useful function

UNSPSC Codes

Purpose: to enable collaborate commerce

“root” = All Products and Services (implied)

Segment 44 Office Equipment and Accessories and Supplies

Family 10 Office machines and their supplies and accessories

Class 15 Duplicating machines

Commodity 01 Photocopiers

Class 31 Printer and facsimile and photocopier and supplies

Commodity 03 Toner

44 10 15 01

44101501

UNSPSC Code

Family Tree

MWBE Certification List Functionality

http://www.in.gov/idoa/2867.htm

1.Control “f”2.Sort by available fields3.Tuesday & Thursday weekly

update

Welcome Packet

• New Resource• Newly Certified• Presently Certified

Contracting for Success

Indiana Department of AdministrationMinority and Women’s Business Enterprises Division

Mitchell E. Daniels, Governor

Contact-to-Contract: Roundtable Connection

Overview

• Be proactive -your phone will not ring automatically as a certified vendor

• There are no quotas just goals

• You must work for it

Goal SettingM/WBE Participation

MBE Participation

WBE

Participation

Construction 7% 5%

Professional Services

8% 8%

Procurement 4% 9%

2007-2009

• Provide excellent product or service

Keys to Contracting Success

• Offer competitive prices

• Build Key Business Relationships

• Market your business to key players in the State Procurement Process

– State Purchasers

– State Prime Contractors

– Other MWBE’s

Keys to Contracting Success (Cont’d)

• Participate in Networking Opportunities

– Pre-proposal/ Pre-Bid

Meetings

– Special Events/ Tradeshows

– University/ Organization Events

Keys to Contracting Success (Cont’d)

• Procurement solicitationshttp://www.in.gov/idoa/2788.htm

Solicitations

• Public Works solicitationshttp://www.in.gov/idoa/2823.htm

• INDOT Bidshttp://www.in.gov/dot.html

• Other Opportunitieshttp://www.in.gov/idoa/2788.htm

• Request for Quotation (RFQ) - Procurements

Methods of Procurement

• Invitation to Bid (Bid) - Construction

• Request for Proposal (RFP) – Professional Service

• Attend Pre-Bid/ Pre-RFP Meetings• Tell Firms about your interest

Steps to Awards

• Construction: Email MWBE@idoa.in.gov• Solicitations published with milestones• Commitment letter required from M/WBE

subcontractors to protect self• Evaluations/ Public Inspection

• Prime Contractor is notified and negotiations begin

• Prime Contractor receives awarded contract• Written agreement with sub-contractor

Professional Service/ Procurement Evaluations

(* Agency can fix these + or – 10 points)

1. Adherence to Mandatory Requirements

Pass/

Fail

2. Management Assessment/Quality (Business and Technical Proposal)

* 25 points

3. Cost (Cost Proposal) •30 points

Professional Service/ Procurement Evaluations

4. Indiana Economic Impact 15 points

5. Buy Indiana 10 points

6. MBE participation 10 points

7. WBE participation 10 points

IDOA Contract Boilerplate Language for Professional Services on RFP/RFS:

– Prime Contractor must submit agreement with each MWBE within 90 days of contract execution with the State

– Awarded proposal becomes incorporated into and a requirement of the contract

– Contractors shall not substitute, replace or terminate any MBE and/ or WBE without prior written authorization from MWBED and the MWBE

Post Contract Award

MWBE Construction Bid Policy

Applies to: 1. Public Works

2. State Office Building Commission

3. INDOT State-Funded projects

MWBE Construction Good Faith Efforts Evaluation

A. Notice to MBE and WBEs

B. Economically Feasible Subcontract

C. Consideration of all MBE and WBE quotes

D. MBE and WBE Barrier Assistance

E. Advertisement

F. Agency Assistance

G. Research participation Area - “think out of the box”

H. Response Time

I. Documentation of Statements from M/WBEs

J. Availability of M/WBEs

• Prime Contractors must honor participation plan originally submitted

– Subcontractor commitment form becomes part of the binding contract

Monitoring Compliance

• As a subcontractor, consider a written agreement with the prime you can enforce

• MWBED audits contracts

• Primes in non-compliance face sanctions

Monitoring Compliance (Cont’d)

• Sanctions may include:

Monitoring Compliance (Cont’d)

– Withholding of payments

– Payment adjustments– Termination of contract– Suspension or revocation

to bid on State contracts up to 36 months

• Seeking a Prime Contractor

• Secure the Contract• Monitoring the Contract

Contract Management

• Determine Prime Contractors bidding on Contracts– Attend the Pre-RFP Meetings– Request information on previous

RFP’s– Request information on RFP’s in

Midwest

Contract Management:

Seeking a Prime Contractor

• Leverage your products and services with Prime Contractors– Understand their business

requirements?– Are products and services a match?– If not, which products and services

can modified or added?

Contract Management:

Seeking a Prime Contractor

• What do Prime Contractors look for?– A subcontractor that work well as a

business partner– Business Integrity– Understands the business

Contract Management:

Seeking a Prime Contractor

• What do Prime Contractors look for (cont’d)?– Financially sound – Great reputation in the community

as well as in business: “People talk…………”

Contract Management:

Seeking a Prime Contractor

• Complete Subcontractor Commitment Letter as well as Contract– Create positive business

relationship– Avoid misunderstandings and

disputes

Contract Management:

Secure the Contract

• Complete Subcontractor Commitment Letter as well as Contract - Clear up important issues– Due Dates– Legal aspects– Contacts– Pay / Expenses– Liability

Contract Management:

Secure the Contract

• What subcontractor must consider– Historical pricing data– Margins– Quality – Other requirements

Contract Management:

Secure the Contract

• Stay ahead– Track your performance– Communicate issues quickly– Maintain documentation– Ask for reports

Contract Management:

Monitoring the Contract

• When problems arise– Point out problem to Prime

Contractor quickly– Be prepared to provide supportive

documentation– Be flexible– Provide solutions– Contact the MWBE office

Contract Management:

Monitoring the Contract

Contact Us

Minority and Women Business Enterprise

402 W. Washington Street, Room W469

Indianapolis, IN 46204

mwbe@idoa.in.gov

317-232-3061

Questions