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Identifying and Utilizing Disadvantaged Business Enterprises (DBEs) and Small Business Enterprises (SBEs) Jeanne Day-La Bo, DBE Program Specialist Michigan.

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Presentation on theme: "Identifying and Utilizing Disadvantaged Business Enterprises (DBEs) and Small Business Enterprises (SBEs) Jeanne Day-La Bo, DBE Program Specialist Michigan."— Presentation transcript:

1 Identifying and Utilizing Disadvantaged Business Enterprises (DBEs) and Small Business Enterprises (SBEs) Jeanne Day-La Bo, DBE Program Specialist Michigan Department of Transportation (MDOT) Federal Transit Administration (FTA) Opening “DOORS” Program

2 “How do I identify the types of vendors we need?” Review several years of grant requests! List all goods and services purchased. – In general, transit agencies have similar procurement and contracting needs.

3 “What will grant requests show me?” Types of work funded with federal money What vendors do this work? Anticipated dollar value of work How much money will be going to these vendors? Grantee name and address show the general location where vendors are needed.

4 Identify vendors for specific projects Review bid documents and project line items to identify vendors needed to do the job.

5 Don’t know all the trades needed to pave a parking lot? No problem. TALK TO PEOPLE WHO DO! Agency staff responsible for the work Professional organizations and unions Project managers Vendors you work with Other agencies “But I don’t know how to pave a parking lot!”

6 “I know what vendors I need. How do I find them?” All vendors are classified using North American Industry Classification System (NAICS) code(s). The U.S. Census Bureau maintains a NAICS search by key word: Once you know the NAICS classification code, ask your DBE and SBE certification agency or Unified Certification Program for a contact list of vendors certified in the NAICS codes you need and market to those vendors.

7 Save time - Borrow from other agencies! NAICS codes projected for DBE goals using three years of approved capitol and operating grants for sub-recipients reporting to FTA through the MDOT: Accountants and Audits: 541211-Offices of Certified Public Accountants Administrative and general management/third-party managers: 541611-Administrative management and general management consulting Advertising and Marketing: 541613-Marketing Consultant Services541810-Advertising Agencies 541840-Media Representatives541890-Other services related to advertising Bike and ski racks for buses: 336399-All other motor vehicle parts manufacturing Bus and staff automobile parts and repairs: 423120-Motor vehicle supplies and new parts merchant wholesalers 811111-General automotive repair441310-Automotive parts and accessories stores Bus shelters: 236220-Commercial and institutional building construction Bus Wash: 811192-Truck and bus washes Communications and dispatching equipment: 443112-Radio, television, and other electronics stores Drug and alcohol testing: 621511-Medical Laboratories Energy Efficiency Audits or Other Building Inspection: 541350-Building Inspection Services

8 Environmental consulting and remediation services: 541620-Environmental Consulting Services562910-Remediation Services 541690-Other scientific and technical consulting services Facilities or facility renovations: 541300-Architectural and Engineering Services 238290-Other building equipment contractors (includes garage door repair/replacement) 238110-Poured concrete foundation and structure contractors 238120-Structural steel and precast concrete contractors 238130-Framing contractors238140-Masonry contractors 238150-Glass and glazing contractors238160-Roofing contractors 238170-Siding contractors238320-Painting/wall covering contractors 238190-Other foundation, structure, and building exterior contractors 238210-Electrical contractors and other wiring installation contractors 238220-Plumbing, heating, and air-conditioning contractors 238310-Drywall and insulation contractors444120-Paint and wallpaper stores 238330-Flooring contractors442210-Floor covering stores 238340-Tile and terrazzo contractors235350-Finish carpentry contractors 238390-Other building finishing contractors238910-Site preparation contractors 238990-All other specialty trade contractors444190-Other building material dealers Fuel: 447190-Other gasoline stations 454310-Fuel dealers Garbage/waste collection services: 562110-Waste collection services Insurance: 524114-Direct Health and Medical Insurance Carriers 524126-Direct property and casualty

9 Landscaping, lawn, tree, shrub maintenance and installation: 561730-Landscaping Services Mechanics tools and equipment: 333319-Other commercial and service industry machinery manufacturing Mowers, snow blowers, and other non-automotive tools and equipment and repair: 444130-Hardware stores444210-Outdoor power equipment stores 452990-All other general merchandise stores 811490-Other Personal and Household Goods Repair and Maintenance Paving or restoring driveways, parking lots, walkways, or ferry docks: 237310-Highway, street, and bridge construction 237990-Other heavy and civil engineering construction 327320-Cement manufacturing339950-Sign manufacturing 541300-Architectural and Engineering Services Office supplies: 453210-Office supplies & stationary stores Office furniture: 442110-Furniture stores Staff automobiles and trucks: 441110-New car dealers Security and surveillance: 561621-Security systems services (except locksmiths) Uniforms: 448190-Other clothing stores

10 “I’d like to recruit potential DBEs and SBEs. Where do I find them?” Chambers of Commerce Religious Groups Professional Organizations (Web-based phone book) Ethnic and gender based associations Trade unions Referrals by contracting personnel in your agency Other federal, state, and local agencies

11 “How do I utilize DBEs and SBEs?” Review every project with federal funds. Are there sufficient numbers of DBEs and SBEs who can bid competitively in the respective area of the state? – Consider other factors s,uch as project scope and time constraints, past history, the political environment and other considerations that may impact small business success. Assign a DBE or SBE participation goal when feasible.

12 “How do I utilize DBEs and SBEs?” Consider “unbundling” large projects into smaller pieces DBEs and SBEs can reasonably perform. When low bid is used for selection, include a price preference for bidders meeting race-neutral small business goals in your program. – For example, the “as submitted” bid value for each bidder who meets the goal is reduced by a percent specified in the proposal (i.e., 5 percent).

13 “How do I help DBEs and SBEs get work?” Encourage DBEs and SBEs to: Keep in contact with people and agencies who need work done! Participate in networking events, conferences, trade fairs, and other business events. Join professional associations and participate in their events.

14 “How do I help DBEs and SBEs get work?” Ask contracting staff in your agency, sub-recipients and other partners to provide bid advertisements and requests for goods and services. Share information provided with DBEs and SBEs. – Use Web posts, e-mail, fax, direct mail, posting boards, telephone, and job-specific networking sessions. – If using a Web site, train your DBEs/SBEs to check for opportunities there. DBEs and SBEs have limited resources. Don’t flood them with notices about work they don’t do!!

15 DBEs and SBEs must help themselves, too! Networking and relationship-building is critical! Professional success is about 85 percent “who” you know and 15 percent “what” you know.* Successful people spend over half their time building relationships.* * Success Runs in Our Race: The Complete Guide to Effective Networking in the Black Community by George C. Fraser


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