2013 ANNUAL REPORT. Office of Economic Development Division of Small Business Opportunity. Revised edition, 11/24/14

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1 2013 ANNUAL REPORT Office of Economic Development Division of Small Business Opportunity Revised edition, 11/24/14

2 A Message from the DSBO Director A series of challenges and victories for Denver s certification and contracting programs were presented in Reauthorization of the local programs was on the agenda, and Mayor Michael B. Hancock supported an ordinance expanding the contracting programs into the realm of city purchasing and procurement. The ordinances provide even greater opportunity for small businesses to participate on projects and in the purchase of covered goods and services for agencies across the city. The Construction Empowerment Initiative committee worked tirelessly with community and industry partners to craft ordinances that are fair, implementable, and transparent. Hundreds of hours of volunteer work resulted in drafts of two ordinances that will assist in our efforts to grow Denver s economy. Projects in the greater city as well as at DIA utilized certified firms wherever possible. We have seen an increase in the number and types of firms applying for certification, and the coming year will bring more opportunities for small businesses to work in Denver, with the introduction of our Mentor/Protégé program, and the availability for technical assistance offered by the city and the greater community. DSBO looks forward to working with you in 2014, and we wish you the best! Sincerely, Chris Martinez Director Division of Small Business Opportunity Denver Office of Economic Development

3 DSBO Overview Throughout Denver and at DIA, on contracts large and small, DSBO ensures that appropriate certified firms are working on projects. Certification, compliance and outreach are critical functions of DSBO in the charge to grow the economy and assist small businesses to prosper. DSBO in 2013 Denver s Division of Small Business Opportunity (DSBO) saw an exciting year in In addition to certifying new firms for work in Denver and at DIA, the office worked in conjunction with the Construction Empowerment Initiative (CEI) to draft a new ordinance for the city that expands opportunity to our smallest and emerging business firms. DSBO Director Chris Martinez worked with Co-Chairs of the Disparity Study Task Force, businesswoman Denise Burgess and architect Mike Roybal. Together with community partners and contractors across the city, the CEI group produced an ordinance reauthorizing Denver s current contracting programs, as well as a companion ordinance that expands the contracting program to the purchase of identified goods and services by agencies across the city. Outreach In 2013, outreach staff met with contractors, consultants and anyone wanting to do business with the city. Outreach events included detailed informational trainings surrounding the certification programs offered by DSBO. In addition, questions and comments are addressed at these sessions so that Denver s contracting and professional services community may have a better understanding of our programs and contracting opportunities which exist within the City & County of Denver. DSBO staff participate in outreach sessions with groups and individuals across the city. Other outreach events included meet-and-greet sessions hosted by both the city and private entities. These events expanded upon opportunities offered through working with the City of Denver and Denver International Airport. Certification DSBO operates the certification and recertification programs to provide opportunities to minority, women, disadvantaged and small business enterprises. There are five different certifications administered by DSBO: Small Business Enterprise (SBE); Disadvantaged Business Enterprise (DBE); Minority/Women Business Enterprise (MWBE); Airport Concession Disadvantaged Business Enterprise (ACDBE); and Small Business Enterprise Concessions (SBEC). Compliance The DSBO compliance program was formed to provide ongoing compliance monitoring for contractors and consultants who are working on Denver construction, professional services, or DIA concession projects. Compliance ensures that the established project participation goals for a project are met while utilizing and adhering to standards set by applicable city ordinances and federal guidelines.

4 DSBO Overview 2013 ACDBE Overview The Airport Concession Disadvantaged Business Enterprise program (ACDBE) was issued to DIA in March of It is the policy of the City and County of Denver to ensure that ACDBEs have an equal opportunity to receive and participate in concession opportunities. Successful ACDBE - Huy Pham today is part of a joint venture at DIA that owns and operates standalone kiosks. Soon Mr. Pham will open his first QSR restaurant on Concourse B, Modmarket, with four more restaurants opening as part of the Concourse C expansion in He is 100% local, 100% ACDBE certified, and 100% minority owned! He has outstanding relationships among DIA staff and has key relationships with local vendors, regional suppliers and national brands. Mr. Pham is a veteran of work in U.S. airports, including working for WHSmith USA at Denver International Airport. Mr. Pham also has contracts with restaurants at LAX and Chicago O Hare. DIA-DSBO staff Vicki Padilla (left) and Julie Wilson (right), pictured with Huy Pham (center) DBE Overview The DBE business certification can be used only to compete for any federally funded airport, highway or transit projects/contracts within the state of Colorado. There are currently 1,871 DBE certified contractors doing business in Colorado (includes DBE contractors certified by the Colorado Department of Transportation). In 2013 these DBE firms earned more than $6.4 million. Summary Overview This summary covers the calendar year January 1 December 31, The data is divided into two primary categories: projects at Denver International Airport (DIA) and all others within the City and County of Denver. Both categories include DBE, M/WBE and SBE-DSP activity, which is defined below. The DIA summary includes three further categories unique to the airport a total of awards made to Small Business Enterprise (SBE) qualified firms prior to the establishment of SBE-DSP program in 2008, a summary representing SBE concessions, and the total of all revenue from DIA concessions. In the latter case only, the data is based on a July 1, 2012 through June 30, 2013 fiscal year. The total number of active certifications during 2013 spans five categories, with the difference between the number of certifications and the number of firms resulting from the fact that many firms hold multiple certifications. All data in this summary represent Denver projects only; the State of Colorado Department of Transportation (CDOT) also certifies firms in the DBE category which are not shown here. The abbreviations used throughout include the following: DBE Disadvantaged Business Enterprise Firms seeking this certification must be owned and controlled at a minimum of 51% by one or more socially and economically disadvantaged persons. In addition, the business size as measured by average annual gross receipts over the most recent three years must be under the specified dollar amounts. These size standards are set according to the firm s North American Industry Classification System (NAICS) code. Depending on the industry, these limits can range from $2.5

5 Summary Overview million averaged per year to $17.4 million averaged per year. Manufacturers, wholesalers and retailers must meet an employee size standard generally ranging between 500 to 1500 employees, depending on the NAICS classification, and their average three-year gross sales generally must be less than $17.4 million. M/WBE Minority/Woman Business Enterprise Firms seeking this certification must be a for-profit, minority-owned business regardless of size, physically located in the United States or its trust territories, which is owned, operated and controlled by minority group members and/or by a woman or women. Minority group members are U.S. citizens who are Asian, Black, Hispanic and Native American. Ownership by minority individuals means the business is at least 51% owned by such individuals or, in the case of a publiclyowned business, at least 51% of the stock is owned by one or more such individuals. Further, the management and daily operations are controlled by those minority group members. SBE Small Business Enterprise Firms seeking this certification must meet criteria established by the U.S. Small Business Administration that are based on limits to gross annual revenue according to the firm s National American Industry Classification System (NAICS).The limits may be changed annually. SBEC Small Business Enterprise Concessions This is a subset of all SBEs, with the distinction being that these firms are concessions at airports. DSP Defined Selection Pool This is a subset of all SBEs, with the distinction being that these firms meet additional criteria based on NAICS and may be adjusted annually or by project. ACDBE Airport Concessions Disadvantaged Business Enterprise Modeled after the federal DBE program, ACDBE firms must meet the same federal guidelines as DBE firms, however, average annual gross receipts caps vary with most categories capped at $56.4 million. Categories within the ACDBE program include concessions operators (food & beverage, retail and services to the public), suppliers of goods and services to concessionaires, and car rental operators/suppliers.

6 2013 DENVER PROJECT INFORMATION Disadvantaged Business Enterprise (DBE) Award Total Commitment Total DBE % Payments Total DBE Paid DBE % Construction $ 24,253, $ 4,029, % $ 15,621, $5,178, % Professional Services $ 5,486, $ 1,008, % $ 5,533, $ 1,427, % Minority/Women Business Enterprise (M/WBE) Award Total Commitment Total M/WBE % Payments Total M/WBE Paid M/WBE % Construction Denver $ 112,094, $ 13,910, % $ 91,437, $ 22,429, % Professional Services $ 7,906, $ 840, % $ 7,428, $ 1,660, % Small Business Enterprise - Defined Selection Pool (SBE-DSP) * Reflects number of certifications per specific certification program. Many firms hold multiple certifications. * * Reflects DBE certifications by Denver; does not include DBE certifications by CDOT Award Total Commitment Total SBE % Payments Total SBE Paid SBE % Construction $ 1,571, $ 1,061, % $ 3,836, $ 2,677, % Professional Services $ 268, $ 84, % $ 195, $ 49, % Total # of Active Certifications* DBE 830 M/WBE 702 SBE 875 ACDBE 233 SBEC 17 Total Certifications 2,657 Total Firms ** 1,112 How to Read the Project Information Charts The Payments Total column for each activity may include awards made in 2013 on long-term projects that span several years. Thus in both of these charts, the first three columns represent awards specific to 2013, while the fourth, fifth, and sixth columns represent payments made in 2013 but originating from previous projects that span several years. Column Heading: Award Total Definition: Total contract value Commitment Total Amount committed to certified firms in 2013 DBE, MWBE, SBE, ACDBE % Percentage of work committed to certified firms in 2013 Payments total Total amounts paid on contracts in 2013 DBE, MWBE, SBE, ACDBE Paid DBE, MWBE, SBE, ACDBE % Amount certified firms were paid in 2013 Percentage of participation by certified firms in 2013

7 2013 DIA PROJECT INFORMATION DIA Small Business Enterprise (SBE)* Payments Total SBE Paid SBE % Construction $ 0.00 $ % Professional Service $ 569, $ 156, % *This section represents the former SBE program that was replaced in 2007 by the Defined Selection Pool. Payment represents payout of previous years contracted projects. DIA Disadvantaged Business Enterprise (DBE) Award Total Commitment Total DBE % Payments Total DBE Paid DBE % Construction $37,737, $ 7,102, % $42,878, $5,507, % Professional Services $ 0.00 $ % $ 5,673, $ 928, % DIA Minority/Women Business Enterprise (M/WBE) Award Total Commitment Total M/WBE % Payments Total M/WBE Paid M/WBE % Construction $ 145,501, $ 17,815, % $ 239,291, $ 52,540, % Professional Services $ 8,456, $ 1,220, % $ 49,113, $14,196, % DIA Small Business Enterprise - Defined Selection Pool (SBE-DSP) Award Total Commitment Total SBE % Payments Total SBE Paid SBE % Construction $ 0.00 $ % $ 1,049, $ 416, % Professional Services $ 0.00 $ % $ 186, $34, % SBE Concessions Program Award Total Commitment Total SBE % Payments Total SBE Paid SBE % Construction $ 1,704, $ 238, % $ 1,583, $ 282, % Professional Services $ 0.00 $ % $ 0.00 $ % DIA Concession Revenue FY Revenue ACDBE $ ACDBE % Concessions $ 300,271, $113,310, % Car Rental $ 386,565, $ 3,722, %

8 Denver Office of Economic Development Division of Small Business Opportunity 201 West Colfax Avenue, Department 208 Denver, Colorado Phone: Fax: Web: Twitter: Twitter.com/DenverOED Facebook: Facebook.com/DenverOED