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Doing Business With the Public Sector

Learn how to do business with the public sector effectively, including essential certifications like SBA, SBE, DBE, and MBE. Gain insights into registration processes, the importance of accessing databases for free marketing, and understanding various certification types across local, state, and federal levels. This guide covers the benefits of disadvantaged business enterprise (DBE) programs, procurement tactics, and how to navigate bids and proposals for successful engagement with agencies like the Orange County Transportation Authority and others.

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Doing Business With the Public Sector

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  1. Doing Business With the Public Sector Tina Giles-Potter Administrator, Small Business Program Orange County Transportation Authority

  2. 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).

  3. GOOD NEWS: You are in a directory/database = FREE MARKETING BAD NEWS: Not all certifications are created equal. CERTIFICATION

  4. TYPES OF CERTIFICATION • SBA • SBE • MINORITY/WOMEN • DBE

  5. SMALL BUSINESS ADMINISTRATION • SBA certification is good for all of the U.S. • Different programs - 8(a) - Small Disadvantaged Business - HubZone

  6. 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

  7. 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

  8. COUNTY • Certification for Small Business Enterprise (SBE) • Certification by county, may have reciprocity with other counties

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. DISADVANTAGED BUSINESS ENTERPRISE • Program established by Department of Transportation to increase the participation of DBEs on contracts awarded using federal dollars.

  15. 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

  16. 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

  17. 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.

  18. 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.

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

  20. 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

  21. BENEFITS • Targeted procurement outreach activities • On-line DBE directory – free local and statewide marketing for your firm • Prompt payment provisions

  22. 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

  23. 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

  24. 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)

  25. Request For Proposals • Award is based on: 1. Firm’s score on items 2. Oral interview 3. Best and final offer - cost

  26. 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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