State Small Business Program Overview

State Small Business Program Overview
Moderated by: Carol Wilson (CT) Panelists: Mariel Dennis (CA) Meg Yetishefsky (CT) Shelia Simpson (TN) John Cisneros (CO)

Mariel Dennis Procurement Division Department of General Services
California Small Business and Disabled Veteran Business Enterprise (DVBE) Programs Mariel Dennis Procurement Division Department of General Services rev

Fiscal year 2003/2004: The State awarded over $7.5 billion for goods, services and construction -$ 1.6 billion to Small Businesses -$ 670 million to Micro Businesses -$ 149 million to DVBEs

Small Business Program
Created in 1973 by the Small Business Procurement and Contract Act Administered within the Department of General Services Established to further the participation of small business in State contracting

Small Business Program
State agencies are to award at least 25% of annual contracting dollars to certified firms

SB Certification Eligibility
Principle office must be located in California Officers/owners must be domiciled in California Business must be independently owned and operated Business must not be dominant in its field of operation

SB Certification Eligibility continued
Construction, Service and Non-manufacturer firms: 100 or fewer employees Average annual gross receipts of $10 million or less per year for each of the most recent three years

SB Certification Eligibility continued
Manufacturer firms: 100 or fewer employees Primarily engaged in the chemical or mechanical transformation of raw materials or processed substances into new products Standard Industrial Classification (SIC) Codes 2000 through 3999

Microbusiness A subset of Small Business
Follows same scheme for “manufacturers” and others Size: Up to 25 employees and Up to $2.5 million/year No separate certification required

Program Benefits 5% bidding preference
Non-SBs can qualify for 5% bid preference if subcontract 25% with SB/MB Streamlined contracting process only for certified firms Automatic higher interest on Prompt Payment penalty

Program Benefits continued
Certified firms listed on the Internet Certified Firm Listing CMAS administrative fee is waived to State agencies using certified firms Other entities may “honor” the State’s certification (“Reciprocity”) rev

DVBE Participation Program
Military and Veterans Code §999 et seq. and Public Contract Code §10115 et seq. Administered within the Department of General Services Established to further the participation of Disabled Veteran Business Enterprise (DVBE) in State contracting

DVBE Participation Program continued
State agencies must award at least 3% of annual contract dollars to DVBEs by Directly contracting with DVBE OR Indirectly contracting with a firm who subcontracts with one or more DVBE firms

DVBE Certification Eligibility
At least 51% owned by one or more disabled veterans Daily business operations must be managed and controlled by one or more disabled veterans Home office must be located in the U.S. rev

DVBE Certification Eligibility continued
Disabled Veteran means A veteran of the U.S. military, naval, or air service; and Has a service-connected disability of at least 10% or more, and Must be domiciled in California rev

Office of Small Business and DVBE Services
707 Third Street, First Floor West Sacramento, CA Tel: (916) Fax: (916) Website: Hours: M-F 8:00 A.M. – 5:00 P.M. rev

The State of Connecticut Supplier Diversity Program
NASPO – April 2- 4, 2006

Small Business Profile Heart of Connecticut’s economy.
Small Businesses are vital to the state’s economy. Not only do small businesses play a critical role by efficiently reallocating the state’s resources and injecting new ideas into the economy with business starts and stops, but their diversity and composition provide the workforce with many opportunities. Women are seeking economic security through business ownership. Between 1997 and 2004,there was a 63.8% increase in the number of women owned firms in the state. rev

Supplier Diversity Program
Addresses our diverse customer’s demand to reflect diversity with the vendors we use Provides us with added insight, innovation and alternative approaches to doing business that we might not find elsewhere

Our Mission ……. Serve as primary liaison for small vendors seeking procurement opportunities; Actively recruit and certify small, women, minority and disabled-owned businesses; Work to build stronger supplier relationships through our supplier diversity initiatives; Maintain the highest level of technical expertise within state agencies; rev

State Government Requirements CONN GEN STAT 4a-60g provides: 25% of state funded purchase are reserved for small businesses. Of that amount, 25% are reserved for small businesses that are minority-owned.

Small Business Enterprise
A Company . . . Doing business and having a principal place of business in CT for at least one year; With gross revenues of < $10,000,000 in the last fiscal year; and With 51% ownership held by person(s) who are active in the daily affairs & have management direction power, and receives beneficial interests of the business. rev

Minority Business A Company . . .
Owned and operated by a person(s) who is a member of a minority group; 51% ownership of the company; Active in the daily affairs & operation of the company; Authority to direct the management & policies of the company; and receives beneficial interests of the business Meet the definition of a small business.

Minority means: Black American Hispanic American Persons with origins in the Iberian Peninsula Asian American American Indians A woman An individual with a disability

Certification: Companies are certified for a two-year period; Re-certification must occur at the end of the second fiscal year; DAS certification review process is complete within approx. three weeks.

Where To Look For State SBE/MBE Procurement Opportunities- webpage www
Where To Look For State SBE/MBE Procurement Opportunities- webpage A Message from the Program Director Introduction to the Supplier Diversity Program Program Information Eligibility Requirements Connecticut General Statute 4a-60g Procedures (UNDER CONSTRUCTION) Application Forms CHRO Forms Instructions Supporting Documents rev

Where To Look For State SBE/MBE Procurement Opportunities- webpage
Resources Staff Directory Directory of Purchasing Agents Small/Minority Business Search SBE/MBE/DBE Bids/RFPs New Certified Vendors (Weekly) African American Certified Vendors Agency Compliance Advocacy and Outreach Bidder Notification System FAQ”

For What Commodities Does DAS Contract?
Buying Team 1 Food, Electrical, Plumbing, Safety, Refrigeration, Clothing, Footwear, Carpeting, Textiles, Laboratory, Medical Clinical and Pharmaceuticals Buying Team 2 Athletic, Musical, Office Products, Paper, Photographic, Signage and Tags, Furniture, Office Machines , Printed Forms, Printing and Advertising

Commodities (continued)
Buying Team 3 Construction Building & Roadway Materials, Fuels, Hardware, Animals/Feeds & Automotive, Hand Tools, Agricultural, Communication, Signal, Alarm, Marking Materials (roadway), Building Management, Financial Management Buying Team 4 Debt Collection, Security, Custodial, Rubbish, Trans-portation, Environ-mental Services, Facilities Services, Mailing, Moving, Skilled & Trade Labor Services, Conference Facilities

SBE/MBE Vendors in State of Connecticut Program
Currently there are 2300 businesses certified in the program Various Types - Construction, Service Providers and Consulting SBE/MBE Contracts with Lawn Care, Office Supplies,Janitorial, Printing Services

FAQ’S (Frequently Asked Questions)
Is there a cost to the program? No What are the benefits of the State of Connecticut SBE/MBE Certification? Certification may afford the company SBE/MBE bidding opportunities, as well as greater exposure among all state agencies, towns, and municipalities. rev

What types of Applications do you have? Currently there are two types of applications available. The preferred method is the On-line Application process. The second method is a paper version of the on-line application. This method should only be used if for some reason you are unable to fill out the on-line application. Please be advised if you chose the latter method, additional processing time will be necessary, because the Supplier Diversity Specialist will be required to input the data you provide into the on-line application.

How do I become a certified small or minority business enterprise with the Department of Administrative Services? Go to Applications in the Office of Supplier Diversity main menu and access the On-line Application form. Fill out the form and provide any necessary supporting documentation. If all of the requirements of the program are met, you may become certified as a Small or Minority Owned Business Enterprise.

What are the benefits of the online application process? Accessibility – Once certified, you may access your application data at anytime to make any necessary updates or adjustments. Cost Savings – Electronic processes save time and money for your company and the State of Connecticut as a whole. Environmental Benefits – By submitting your application on-line, you are saving paper, which helps to preserve our valuable natural resources.

How long is a company certified? A company is certified for up to a two year period with the certification terminating at the end of the second fiscal year. (however a company with over 6 million dollars gross receipts will be issued a certificate for a one year period)

How does a company recertify? A company is required to recertify once there certification expires. The company has a 90 day grace period to submit a recertification application. Companies will be notified by the DAS 30 days prior to their expiration date.

How long does the review process take? Complete application packages take approx.. 3 weeks to review. Incomplete packages will require additional correspondence thereby delaying the review.

Is there a directory published that lists the companies certified through the Set Aside Program? Yes, a complete listing of certified companies is published electronically

What agencies participate in the Set-Aside Program? Agencies with budget over $10,000. rev

Supplier Diversity Program New Initiatives
SBE/MBE Bids posted Bidder Notification System Web Site Links Private Sector Involvement On line application SBE/MBE success stories posted on web Coordination with other agencies and organizations

GOVERNOR’S OFFICE OF DIVERSITY BUSINESS ENTERPRISE
GO DBE and BERO is a partnership of collaborative efforts for success in assisting diversity businesses. NASPO Small Business Seminar April 3, 2006 rev

HISTORY State Government’s maze of varied and decentralized procurement processes are complicated, confusing and discouraging to Diversity Businesses Diversity Businesses have described doing business with State government as complicated, confusing and discouraging mainly because State government has varied and decentralized procurement processes. rev

HISTORY LINKING RESOURCES…
“the collaborative efforts of the five major procurement authorities within state government conducted research which” Commissioner Gwendolyn Sims Davis ▪ Finance & Administration Economic & Community Development General Services Transportation State Building Commission With the collaborative efforts of 5 major State Depts, we have been able to combine our resources to help develop diversity businesses into viable and successful businesses. F & A (responsible for the business contracting of professional services by using the Request for Proposal (RFP) process. ECD is our technical, managerial and financial resource for diversity businesses. You help us prepare more and more businesses to become ready, willing and able to do business with the State of Tennessee. GS (responsible for the business contracting of goods and supplies (commodities) by using the Invitation to Bid Process (ITB) process. TDOT provide certification for DBEs that can help them build roads and highways and are accustom to inclusion of diversity participation in procurement opportunities. State Building Commission is responsible for design and construction of projects and provide a large arena for diversity participation. Collectively, these 5 major procurement entities are the Steering Committee for the GO DBE rev

HISTORY Research Found:
“We should ensure fair and equal participation in the State’s procurement and contracting process” -Governor Phil Bredesen Research Found: Low number of minority, women & small businesses participating in State procurement and contracting Barriers exist that prevented minority, women and small businesses from participating in State procurement A great need to create initiatives to breakdown barriers and develop a way to increase participation With the Governor’s Focus of ensuring fair and equal participation in State procurement and contracting process… Research has shown that there is a Low number of MBE/WBE/SBE participating in State procurement and contracting There were barriers identified that prevented diversity businesses for participating and there was a need to create initiatives to breakdown the barriers and develop a way to increase participation rev

INITIATIVES -Governor Phil Bredesen
“We should ensure fair and equal participation in the State’s procurement and contracting process” -Governor Phil Bredesen Restructured Request For Proposal (RFP) requirements and evaluations to recognize diversity Changed Invitation to Bid (ITB) language to invite business diversity Continued assessment of Performance Bond requirements in routine purchases Partnering with ECD for Technical Assistance Some successful initiatives with the support of our partners that we have been able to accomplish for increasing diversity inclusion in the State’s procurement activities are: Diversity Language has been including in both the RFP and ITB proposals that ask for documentation of diversity commitment from proposers and bidders. Continuous assessment of the need for performance bonds in routine purchases. And our critical and most beneficial partnership with ECD for assisting diversity businesses by preparing them to do business with and within the State of Tennessee Now I will introduce Mike Perry, who will share an overview of the Executive Order#14. rev

EXECUTIVE ORDER 14 Signed by Governor Bredesen December 8, 2003.
Establishes state policy to expand economic opportunities for small businesses and businesses owned by minorities and women to successfully compete for state contracts. rev

The Governor’s Office of Diversity Business Enterprise
EXECUTIVE ORDER 14 The Governor’s Office of Diversity Business Enterprise Establishes the Governor’s Office of Diversity Business Enterprise within the Department of General Services under the direction of the Commissioner of General Services. Provides a central point of contact to assist minority, women owned and small businesses to compete successfully in state procurements. rev

Public Chapter 569 Tennessee Minority Owned, Woman Owned and Small Business Procurement and Contracting Act Signed into law April 27, 2004 Revises 15 year old law to encourage greater participation in the state’s contracting process Revises definitions Requires active solicitation of bids and proposals Applies to all contract activity rev

REGISTRATION PROCESS Universal Vendor Registration Verification
“To avoid the maze of confusion, minority, women and small businesses interested in doing business with the State should register with the Governor’s Office of Diversity Business Enterprise” -Commissioner Sims-Davis Universal Vendor Registration Verification Assessment Referral for Procurement opportunities Technical Assistance (B.E.R.O) Registration is the first step in the process for diversity businesses And the process is driven by the registration form Information captured on the form assist the Office in reviewing supporting documentation for business diversity claim, which is indicating a request to be recognized as a Minority owned (MBE), Woman owned (WBE) or Small Business Enterprise (SBE) There is a specific timeframe for submission of supporting documentation for diversity business claim. The business can submit the registration form to the Office without supporting document and is considered to be in a pending status. The business has 30 days to provide supporting documentation to substantiate the diversity business claim. If this occurs, the status moves from pending to active. An inactive status will occur if no supporting documentation is received within the 30 day timeframe. All supporting documentation is verified. Upon verification, the Office will certify the diversity business as a MBE, WBe or SBE. Notification is sent to the diversity businesses that they met the criteria for claiming diversity business status. Notification is sent to diversity businesses that do not met the criteria encouraging them to call for an appointment to discuss. Any change of diversity status should be reported to the Office within 10 days of the occurrence. Diversity businesses are required to renew their registration annually rev

CERTIFICATION PROCESS
“identify those businesses that are ready, willing, and able to do business with the state” - Patricia Wesson, Director of Certification Verification: - Organizational Documents - Tax Returns - Banking Information Site-Visits: - May be performed Notification letter and Certificate Annual Renewal The final step in the process is Referral Which is driven by the Referral Form Businesses assessed to be “ready, willing and able” are referred to the appropriate procurement opportunity. Businesses in need of financial, managerial and technical assistance are referred to ECD. Essential navigators of the referral process are State Procurement Personnel and our ECD Diversity Business Liaison, whom I have the pleasure of introducing, Lorie Shauntee. rev

CERTIFICATION ROCESS Less than sixty (60) days from receipt of registration with supporting documentation. RECIPROCITY SBA (SDB, 8A) Minority Supplier Development Councils State and City Certifying Agencies Uniform Certification Agencies Metro Transit Authorities Airport Authorities State Department of Transportation

DIVERSITY BUSINESS DIRECTORY
“develop & maintain a consolidated database listing to assist departments, commissions, and agencies in identifying Diversity firms with capabilities relevant to general purchasing and contracting requirements “ -Diversity Business Liaison, Richard Van Norman List businesses that Go-DBE has determined to be certified minority, women & small business enterprises Available to contractors, suppliers and State procurement personnel to assist in efforts to solicit Diversity firms rev

REPORTING MONITORING Agency level reporting of Diversity
“a reporting and monitoring process used to determine each State Agency’s level of compliance with the Governor’s initiatives. Each State Agency is required to establish internal goals for meeting diversity program objectives” -Program Director, Mike Perry Agency level reporting of Diversity Business awards and contracts Monitor Agency internal participation Annual Reporting to Governor and Tennessee General Assembly rev

Program features for Diversity Businesses
One on one assistance with Diversity Liaison Direct Referrals for Procurement Opportunities Annual Marketplace for Diversity Technical Assistance Consolidated Diversity Business Directory

GOVERNOR’S OFFICE OF DIVERSITY BUSINESS ENTERPRISE
or toll Visit us on the web at Ready to entertain questions READ: Executive Order #14 The success of this STATEWIDE endeavor depends upon the unqualified, enthusiastic participation and commitment from every employee of state government. Our Governor believes this to be true and I unquestionably trust his judgement. It is fitting that the Volunteer State would be the leader in supporting business diversity without quotes or set asides. The integrity of the State is reflective of its employees, who are the key components that help keep state government functional and operational. It is without a doubt that by working together the State of Tennessee has the ability to get this done and lead the other 49 states in how to do what few claim to have done but only we will have accomplished. Our success will at best illustrate “WHY” as state we say loudly and proudly ……Buy Tennessee? rev

BIDS On-Line Vendor Training Module I: The Mission of BIDS (Bid Information and Distribution System)

What is BIDS? The State of Colorado has chosen to decentralize the procurement function. This means that each state agency does most of its own buying. For vendors, BIDS acts as a centralized clearing house of information on bidding opportunities for all of the agencies of the State of Colorado. BIDS is both a supplier database and a notice mechanism. BIDS provides a list of firms that are eligible to bid on state goods and services solicitations. BIDS also gives vendors notice of bidding opportunities and distributes specifications.

BIDS Statistics Approximately 8,000 firms are registered with BIDS.
About 11,000 vendors access the web site to download bidding opportunities. About 200 new vendors become registered each month. The BIDS web site receives around 150,000 hits each month.

Why do I have to pay to register?
The State of Colorado incurs a substantial cost to operate the BIDS System. Approximately three employees are required to run the system and the State has to maintain three servers to keep BIDS going. When BIDS was established in 1994, the legislature chose to cash-fund the program. This means that the users of the system, the vendors, must pay the operating costs.

What do I gain from registering?
The State purchases over $250 million in goods and services each year using BIDS. Instead of having to get registered with each agency and checking with fifty different offices for bidding opportunities, you can get registered once with BIDS and be on the bidding list for each agency. Vendors now have the option of notification or can simply check the web site. This notification is called “push notice”. You are not charged to download bidding documents. You can download the specifications at your convenience without having to pay an additional fee. State price agreements are advertised on BIDS and account for an additional $300 million dollars.

What types of procurements are advertised on BIDS?
Generally, BIDS is used to purchase “large dollar” goods and services solicitations: Goods costing over $5,000 and services costing over $25,000. Often agencies may use BIDS for smaller dollar procurements as well to get the best deal for the State, but they are not required to do so. BIDS is also used to issue a Request for Information (RFI’s) on goods and services procurements. Some agencies use BIDS to verify whether or not a good and services procurement is a sole source by issuing a Notice of Proposed Sole Source.

Procurements that are not Advertised on BIDS:
Purchases by the Judicial and Legislative branches of State government. Professional Services: Architects, Engineers, Landscape Architects, Surveyors and Industrial Hygienists. Highway and bridge construction projects from the Department of Transportation. Real Estate Leases and Purchases.

State Price Agreements
The State of Colorado establishes statewide price agreements for goods and services that are most commonly used by the State. The price agreements account for about $300 million and local government agencies can purchase off them as well. The price agreements are listed on the State Purchasing Office’s web site ( In order to bid on these price agreements, the vendor must be registered with BIDS when the price agreement solicitation is posted.

BIDS On-Line Vendor Training Module II: The BIDS Registration Process

Overview of Registration Process
The State of Colorado posts solicitations on the BIDS web site: Registered BIDS vendors can then download solicitation specifications from the web site using the user login names and passwords that the companies send in on the application form.

A Complete Application Includes:
A completed application; AND A W-9 form for your company; AND A check for the $30 annual registration fee. The check should be made out to the “State of Colorado” and mailed to the State Purchasing Office at 225 East 16th Avenue, Suite 802, Denver, CO Incomplete applications are returned to the vendor.

Who do I call for assistance?
If the problem is technical in nature (for example, trouble logging in or difficulty with Adobe Acrobat Reader) call the BIDS Help Desk at (303) If the problem is about the details of a solicitation or the specifications, please call the purchasing agent named in the solicitation (contact person). The BIDS Help Desk cannot answer these questions for you.

Adobe Acrobat Reader To view specifications, your computer must have Adobe Acrobat Reader installed. About 70% of all solicitations contain Adobe “pdf” files. This software can be downloaded at no cost from Adobe’s home page: The BIDS Help Desk has provided instructions on how to download Acrobat Reader and a link to Adobe’s download page. There is a link to this information in every solicitation published on BIDS.

BIDS On-Line Vendor Training Module III: Respond/Submit Bids

General Guidelines: It is important to check the web site to make sure the bid you are working on has not been modified by the purchasing agent. Questions about the details of the bid can ONLY be answered by the purchasing agent responsible for that bid. The BIDS Help Desk or State Purchasing Office cannot answer those questions. Sometimes a pre-bid meeting is required in order for a vendor to be deemed a responsive bidder. If a mandatory pre-bid meeting is held, you must send someone to that meeting in order to bid on that solicitation. Vendors do not have to attend the bid opening in order to receive an award.

A responsive vendor must:
BE REGISTERED WITH BIDS at time when the solicitation is due and the bids are opened. Complete and sign ALL solicitation forms requesting information or pricing. Submit the bid in a timely manner BEFORE bid due date/time. Check to see how bids are being accepted (i.e. faxed or sealed) and comply with that method. Review bid for special instructions and address them. Write the solicitation number on the outside of a sealed bid.

BIDS On-Line Vendor Training Module IV: Modifications, Cancellations & Awards

Modifications About one third of all solicitations on the system are modified by the purchasing agent after being published. Requests for Proposals are usually modified at least once; documented quotes are modified the least. Often the modification is just to extend the due date for the bid. However, the modification may impact the specifications of the solicitation. When you find a solicitation that you plan to bid on, you need to check the web site daily to make sure that the solicitation has not been modified. Modifications are noted on BIDS in several ways. In the views of Open Solicitations by Category or Agency, modified solicitations will have a red entry with the date of the modification. Also there is a view called “Modifications” which lists all the modified open solicitations on the system.

Cancellations Solicitations may be cancelled at any time by the purchasing agent. There is a separate section on the BIDS home page where cancelled solicitations are posted. The statutory reasons for canceling a bid include: Supplies or services no longer required. Lack of funding. Extensive amendment required. Ambiguous or inadequate specifications. Prices bid exceed funds available. Prices bid clearly unreasonable. Sometimes solicitations are canceled due to no response.

Awards Awards are posted for each solicitation usually within a month after the bid closes, if you do not see an award call the buyer and check on it. The award will identify the name of the winning vendor and the winning bid price for that solicitation. Requests for Proposals take longer to evaluate than Documented Quotes and Invitations for Bids. After an award is made, the information will remain on the BIDS web site for thirty days. Many companies who are evaluating whether or not to register for BIDS look at awards in their line of business to determine if their prices are competitive with those of other registered BIDS vendors. Special note: Sometimes solicitations will indicate that the official award notice will be posted on BIDS. In those cases, it is important to monitor the Award notices to be sure you know the status of your bid.

Reviewing the Files after a Solicitation Closes
After a vendor is awarded, solicitation files are public records and the non-confidential sections can be viewed by the public. Information like Federal Employer Identification Numbers and “proprietary” information is protected. You must contact the purchasing agent or department responsible for the bid to request to look at the records. The State Purchasing Office does not maintain a central repository of this information for the entire state.

State Small Business Program Overview

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