SWAM INITIATIVE AND STATE CERTIFICATION

1. SWAM INITIATIVE AND STATE CERTIFICATION Virginia Association of Governmental Purchasing 2005 Spring Conference April 29, 2005 Virginia Department of Minority Business Enterprise

2. Shay HopeProcurement AdvocateVirginia Department of Minority Business Enterprise Virginia Department of Minority Business Enterprise

3. Small Businesses in Virginia • Virginia’s entrepreneurs play a vital role in the stability and prosperity of the Commonwealth of Virginia’s economy. The engine that drives the Commonwealth of Virginia is small business. It is critical that we use the entrepreneurial talent available in our communities to maintain a growing state economy. Virginia Department of Minority Business Enterprise

4. Small Businesses in Virginia • Estimated total of small businesses 548,100; • Employer firms (large and small) approximately 168,000 • Employer firms that are small businesses, approximately 164,000 Virginia Department of Minority Business Enterprise

5. Women-Owned Businesses in Virginia • Estimated 132,000 firms • Generate approximately $17.5 billion in revenue • Employ approximately 172,000 workers Virginia Department of Minority Business Enterprise

6. Minority-Owned Businesses in Virginia • Generated approximately $10.2 billion in revenue • 33,500 African American-owned businesses • 22,400 Asian American-owned businesses • 13,700 Hispanic-owned businesses • 3,300 American Indian and Alaskan Native-owned businesses Virginia Department of Minority Business Enterprise

7. Executive Order 29 • Policy of the Commonwealth to make sure that small businesses including women and minorities receive every opportunity to compete for the Commonwealth’s expenditures for construction, goods and services Virginia Department of Minority Business Enterprise

8. Procurement Disparity Study • Suspected underutilization of small, women and minority-owned businesses • 2003, Virginia General Assembly approved need for an official Procurement Disparity Study • Study covered five fiscal years 1998-2002 Virginia Department of Minority Business Enterprise

9. Procurement Disparity Study • Disparity Study showed the Commonwealth has done a poor job of diversifying its supply chain • Commonwealth spending with minority firms was less than .44% of total Commonwealth spending • Commonwealth spending with women-owned firms was only .83% of total Commonwealth spending Virginia Department of Minority Business Enterprise

10. Procurement Disparity Study • 2004, Governor appointed the Inter-Secretarial Task Force on SWAM Procurement • Task Force charged with developing specific strategies to implement the recommendations of the Disparity Study Virginia Department of Minority Business Enterprise

11. Task Force Recommendations • Adoption of statewide SWAM procurement goals • Merger of state certification programs into DMBE • Inclusion of SWAM subcontractor procurement plans into prime contracts • Increase availability of SWAM firms doing business with the Commonwealth Virginia Department of Minority Business Enterprise

12. State Certification • Beginning 10/1/2004, for the purposes of state procurement rules, if not certified by the Commonwealth as such, your business shall not ……… • Be considered a Small, Woman, or Minority-Owned Business Enterprise; • Be entitled to the benefits of state SWAM procurement opportunities Virginia Department of Minority Business Enterprise

13. Why Certify? • To be included in specific categories in which procurement officers now have specific goals • To leverage your certification in the private sector for those businesses looking to diversify their vendor pool • To have access to information and resources that will help you grow • Only certified SWAM firms will be counted in the state’s utilization reports Virginia Department of Minority Business Enterprise

14. SMALL BUSINESS ENTERPRISE • An independently owned and operated business which, together with affiliates, has 250 or fewer employees, or average annual gross receipts of $10 million or less averaged over the previous three years Virginia Department of Minority Business Enterprise

15. Woman-Owned Business Enterprise • A business concern which is at least 51 percent owned by one or more women who are U.S. citizens or legal resident aliens, or in the case of a corporation, partnership or limited liability company or other entity, at least 51 percent of the equity ownership interest which is owned by one or more women, and whose management and daily business operations are controlled by one or more of such individuals Virginia Department of Minority Business Enterprise

16. Minority Business Enterprise • A business concern which is at least 51 percent owned by one or more minorities who are U.S. citizens or legal resident aliens, or in the case of a corporation, partnership or limited liability company or other entity, at least 51 percent of the equity ownership interest which is owned by one or more minorities, and whose management and daily business operations are controlled by one or more of such individuals. Virginia Department of Minority Business Enterprise

17. Disadvantaged Business Enterprise • A federal designation based on economic and social disadvantage • Used primarily by recipients of U.S. Department of Transportation funds • There are DBE utilization goals Virginia Department of Minority Business Enterprise

18. DBE Certification • Eligibility Requirements • 51% ownership by socially and economically disadvantaged individual(s) • Operations controlled by disadvantaged individual(s) • Personal Net Worth – can not exceed $750,000 excluding equity in primary residence and applying business • Small business as defined by the SBA Virginia Department of Minority Business Enterprise

19. Small Business Application • DUNS Number • Major field(s) of operation • National Institute of Governmental Purchasing Codes (NIGP) • Approximate date the business was started. Virginia Department of Minority Business Enterprise

20. Small Business Application • eVA registered. • Type of business • Name and address of all owners Virginia Department of Minority Business Enterprise

21. WBE/MBE Certification Application • Work experience resumes of all owners and officers • Certificate of Fictitious Name • Documented proof of contributions used to acquire ownership for each owner • List of equipment leased and signed lease agreements • All relevant licenses Virginia Department of Minority Business Enterprise

22. WBE/MBECertification Application • 8(a) or SDB certification letters • Bank authorization and signatory card • Proof of protected class membership, such as birth certificate, driver’s license (if race is specified), INS documentation, and passport (if born outside the United States) Virginia Department of Minority Business Enterprise

23. WBE/MBECertification Application • Partnership or Joint Venture • Original and any amended Partnership or Joint Venture Agreements • Corporation, Limited Liability Corporation (LLC) or Limited Liability Partnership (LLP) • Officials Articles of Incorporation or Articles of Organization • Both sides of all corporate stock certificates and your firm’s stock transfer ledger • Shareholder’s Agreement, if any Virginia Department of Minority Business Enterprise

24. WBE/MBECertification Application • Minutes of all stockholders and board of directors meetings. • Corporate By-Laws and any amendments • Corporate bank resolution and signature cards • Official Certificate of Formation and Operating Agreement with any amendments for LLC or LLP • Virginia State Corporation Commission Authority to Transact Business in Virginia Virginia Department of Minority Business Enterprise

25. Certification Process • All certifications are processed by DMBE • Call 1-800-223-0671 or download the appropriate application at www.dmbe.virginia.gov • Mail in your completed application to DMBE (with necessary supporting documents) • Call DMBE for Certification questions or assistance Virginia Department of Minority Business Enterprise

26. Certification Process • It’s FAST – Normally seven days for small, 30 days for women, minorities, and DBEs once the application is complete. • It’s FREE • It’s the FIRST STEP! Virginia Department of Minority Business Enterprise

27. Search for SWAM Firms • DMBE (Dept. of Minority Business Enterprise) web site at www.dmbe.virginia.gov • eVA Quick Links • Click on more Buyer/Vendor Info • Look for Reports - Public Click on: Search eVA Vendor Data base - Bidders List Virginia Department of Minority Business Enterprise

28. Number of Certified Businesses Virginia Department of Minority Business Enterprise

29. Need Help With State Certification & Procurement Assistance • Virginia Department of Minority Business Enterprise • www.dmbe.virginia.gov • 804-786-5560 • 1-800-223-0671 (toll-free) Virginia Department of Minority Business Enterprise

30. General Business Assistance • Virginia Business Information Center • www.dba.virginia.gov • 804-371-0438 • 1-866-248-8814 (toll-free) • E-mail VBIC@dba.virginia.gov Virginia Department of Minority Business Enterprise

31. CONTACT INFORMATIONFOR SHAY HOPE • 804-786-7694 (Direct Line) • Shay.hope@dmbe.virginia.gov Virginia Department of Minority Business Enterprise

32. THANK YOU and I encourage each of you to reach out to SWAM Business Enterprises Virginia Department of Minority Business Enterprise