Doing Business With the Public

SectorTina Giles-Potter

Administrator, Small Business Program

Orange County Transportation Authority

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).

CERTIFICATION

GOOD NEWS:

You are in a directory/database = FREE MARKETING

BAD NEWS:

Not all certifications are created equal.

TYPES OF CERTIFICATION

SBA SBE MINORITY/WOMEN DBE

SMALL BUSINESS ADMINISTRATION

SBA certification is good for all of the U.S.

Different programs- 8(a)- Small Disadvantaged

Business- HubZone

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

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

COUNTY

Certification for Small Business Enterprise (SBE)

Certification by county, may have reciprocity with other counties

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

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

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

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

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

DISADVANTAGED BUSINESS ENTERPRISE

Program established by Department of Transportation to increase the participation of DBEs on contracts awarded using federal dollars.

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

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

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.

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.

PERSONAL NET WORTH

Each disadvantaged owner’s personal net worth (excluding business ownership and primary residency) can not exceed $750,000.

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

BENEFITS

Targeted procurement outreach activities

On-line DBE directory – free local and statewide marketing for your firm

Prompt payment provisions

How to Do Business in the Public Sector

Procurement Types:- Informal (Small and

Convenient Procurement), less than $25,000

- Formal over $25,000IFB – Invitation For BidsRFP – Request For

Proposals

Invitation For Bids

Written sealed bid, award is based on:1. The lowest dollar amount2. Responsive

- Forms- Information- Bond (if required)

3. Responsible- Work Record

Request For Proposals

Negotiated cost, evaluation committee scores:1. Qualifications of firm2. Staffing & Project Organization3. Work Plan4. Cost & Price5. DBE Goal (Federal projects)

Request For Proposals

Award is based on:1. Firm’s score on items2. Oral interview3. Best and final offer - cost

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