Transcript What is certification?

Doing Business With
the Public Sector
Tina Giles-Potter
Administrator, Small Business Program
Orange County Transportation Authority
Doing Business in the Public Sector
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Most agencies require registration in their
database
Some have programs that require a
certification for participation to be counted
(federal and state funds).
CERTIFICATION
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GOOD NEWS:
You are in a
directory/database =
FREE MARKETING
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BAD NEWS:
Not all certifications are
created equal.
TYPES OF CERTIFICATION
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SBA
SBE
MINORITY/WOMEN
DBE
SMALL BUSINESS
ADMINISTRATION
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SBA certification is good for all of the U.S.
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Different programs
- 8(a)
- Small Disadvantaged Business
- HubZone
STATE OF CALIFORNIA
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Established the Small Business Enterprise
(SBE)
Certification is good for the entire state
Managed by the Department of General
Services
5% preference
PUBLIC UTILITIES
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MWBE Clearinghouse provides
certification for minority and woman owned
firms
Certification is good for 3 years
Will accept certification from SBA and DOT
COUNTY
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Certification for Small Business Enterprise
(SBE)
Certification by county, may have reciprocity
with other counties
CITY
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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
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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
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UCP provides One-stop shopping for
applicants
One application form, One process, One
decision lets eligible firm participate
anywhere in the State
CUCP
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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:
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Orange County Transportation Authority
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Los Angeles Metropolitan Transit Authority
City of Los Angeles
City of San Diego
San Diego County Regional Airport Authority
DISADVANTAGED BUSINESS
ENTERPRISE
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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
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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
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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
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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
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Each disadvantaged owner’s personal net
worth (excluding business ownership and
primary residency) can not exceed $750,000.
GROUP MEMBERSHIP
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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
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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
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Procurement Types:
- Informal (Small and Convenient
Procurement), less than $25,000
- Formal over $25,000
IFB – Invitation For Bids
RFP – Request For Proposals
Invitation For Bids
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Written sealed bid, award is based on:
1. The lowest dollar amount
2. Responsive
- Forms
- Information
- Bond (if required)
3. Responsible
- Work Record
Request For Proposals
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Negotiated cost, evaluation committee
scores:
1. Qualifications of firm
2. Staffing & Project Organization
3. Work Plan
4. Cost & Price
5. DBE Goal (Federal projects)
Request For Proposals
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Award is based on:
1. Firm’s score on items
2. Oral interview
3. 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