Procurement Opportunities for Your Small Business
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- Alyson Smith
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1 webinar presentation of Procurement Opportunities for Your Small Business Thursday, November 8, 2012 Northern California
2 An Active SBE & MBE Advocate Educate the small, women, minority & disabled veteran business enterprises and their communities on the practices, policies and programs of the Federal, State, CPUC & Corporate America Advocate for SBE s & MBE s to ensure that their businesses continue to grow over time
3 SBE & MBE Success Outcomes Revenue growth Growth in number of employees Improved financial margins and ratios Successful partnerships Improved operational performance Improved management depth
4 A typical Small- Minority- Women- The SBDC Presentation Objectives and Disabled Corporate America Opportunities CPUC & State of California Opportunities eprocurement Business with the State Veteran-Owned Business Enterprises Procurement Minority, Federal & State Certifications Roadmap How to Get Paid Preparing for Business Matchmaking Events Specific Contract Opportunities BMM Websites, Tools & Resources
5 Race for the Business Minority & Women-Owned Businesses Majority- Owned Businesses
6 Race for the Business Unfavorable pricing from Distributors Excluded from bid Un-intentional lists exclusion Bid packages too large Minority & Women-Owned Businesses Majority- Owned Businesses
7 The NorCal SBDC s provides a Clear and Strategic Procurement Roadmap
8 The SBDC Presentation Objectives Resources and Leads for Business Matchmaking with Federal, State and Local Government Agencies, Preparing For a Business Matchmaking Conference Doing Business With Large Corporations & Government Agencies Screening & Engaging a Corporate or Government Buyer Knowledge of Existing Business Certification Programs Tools And Resources Available for Procurement Assistance How to Get Paid
9 Supplier Diversity The Rules of Engagement
10
11 Innovation from small businesses
12 SBE Value Proposition SBE s are 1/3 of America s population SBE s create 2/3 of all jobs SBE segment is 1 of the fastest growing small business segments Ralph G. Moore, in Washington, DC Raising the Bar White Paper Building Capacity White Paper
13 RGMA s Five Levels of Supplier Diversity Program Development World Class Integrated with Corporate Processes Tied to annual performance objectives Advanced Program Focus on Mission critical MWE participation Beginning Program corporate policy statement program literature part-time FTE Basic Program Program Coordinator compliance driven program limited trade fair participation no budget no program ownership Traditional Program Visible Program Mgr. Limited tracking Limited Sr. Mgmt. interest Budgeted program Limited outreach to MWBE s Outside of corporate strategy 3-5% of spend Dedicated program resources Supplier development initiatives Active local & national NMSDC participation Tied to procurement KPI s Buyer/Purchasing education/training Regular program tracking & reporting 5-8% of spend Program integration with business units Senior Mgmt. Leadership Executive level ownership Opportunities exist in all areas of the business Productive second tier program 10-15% corporate spend
14 Corporate America Procurement Roadmap
15 Billion Dollar Roundtable Vision Statement Lead, influence, and shape supplier diversity excellence globally. Mission Statement To drive supplier diversity excellence through best practice sharing and thought leadership.
16 Billion Dollar Roundtable Members
17 53 FORTUNE 500 Companies Headquartered in California State Rank Company Fortune 500 rank City Revenues ($ millions) 1 Chevron 3 San Ramon 245, Hewlett-Packard 10 Palo Alto 127, McKesson 14 San Francisco 112, Apple 17 Cupertino 108, Wells Fargo 26 San Francisco 87, Intel 51 Santa Clara 53, Safeway 63 Pleasanton 43, Cisco Systems 64 San Jose 43, Walt Disney 66 Burbank 40, Google 73 Mountain View 37,
18 Northern California Minority Supplier Development Council (NCMSDC) NCMSDC provides the only nationally-recognized Ethnic Minority Business Certification in Northern California and Hawaii and connects certified Minority-owned Business Enterprises (MBEs) with NCMSDC Corporate Members, including many of America s largest publicly-owned, privately-owned, and foreign-owned companies, as well as universities, hospitals, and other buying institutions.
19 Women's Business Enterprise National Council (WBENC) The Women's Business Enterprise National Council (WBENC) is dedicated to advancing the success of Corporate Members, certified women's business enterprises (WBEs), and government entities in partnership with its Regional Partner Organizations (RPOs)
20 Disabled Veteran Business Enterprises (DVBE) For DVBE certification purposes, a "disabled veteran" is: A veteran of the U.S. military, naval, or air service; The veteran must have a serviceconnected disability of at least 10% or more; and The veteran must reside in California.
21 CPUC Procurement Roadmap
22 CPUC Building on Success On October 4, 2012, at the CPUC 10th annual En Banc hearing 2011 General Order 156 report to the legislature titled 2011 Utility Procurement of Goods, Services, and Fuel from Women-, Minority-, and Disabled Veteran-owned Business Enterprises (WMDVBE) The 30+ California utility companies spending with WMDVBE procurement increased: from $5.17 billion in 2010 to $7.2 billion in
23 Contracting Legislation California Public Utilities Commission General Order 156 established in 1989, governs the Subcontracting Program for all energy, telephone and water company utilities. Each Utility shall establish and maintain a subcontracting program for the purpose of encouraging its prime contractors to utilize Women, Minority, Disabled Veteran Business Enterprise (WMDVBE) Subcontractors. Each Utility shall include in its annual report to the Commission a summary of Prime contractor progress in increasing the participation of WMDVBE subcontractors AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
24 Contractual Requirements Inclusion of Diversity Utilization Clause Maximum Practical Opportunity Specific MWDVBE Targets Established reporting timeframes Part of Overall Negotiations Review/Concurrence by Supplier Diversity Team AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
25 What Value do I Have as a Contractor? Mobile Global Virtual Next Generation Cost Effective Supply Chain Efficiencies Increased ROI AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
26 STATE OF CALIFORNIA DEPARTMENT OF INSURANCE EXECUTIVE OFFICE 300CAPITOLMALL, SUITE1700 SACRAMENTO,CA (916) Dave Jones, Insurance Commissioner September 14, 2012 Dear Friends: I am writing to invite you to the 2012 Insurance Diversity Summit, hosted by the California Department of Insurance and its Insurance Diversity Task Force. The Summit is designed to discuss and explore the issues of diversity within California s insurance industry with stakeholders from all sectors. Please join us for the Summit: California Department of Insurance 2012 Insurance Diversity Summit Tuesday, October 9, :00 pm 5:30 pm Loker Conference Center, California Science Center 700 Exposition Park Drive, Los Angeles CA Earlier this year, we announced the formation of the Insurance Diversity Task Force to consider and make recommendations about diversity in the insurance industry, including the diversity of corporate governing boards and procurement from our state s growing and vital minority- and service-disabled veteran-owned businesses. The Task Force is hopeful that your participation in this year s Summit will help shape their recommendations to the Department and provide a forum for insurers and diverse suppliers to discuss the importance of diversity in the insurance industry, best practices, how to overcome challenges faced by diverse suppliers, governing board diversity and Assembly Bill 53 (Solorio). Certified WMDVBEs who are interested in contracting with the insurance industry are encouraged to send one representative to the Summit. A Reception will take place from 5:30 7:00 pm at the California Science Center, Edgerton Court. Details to follow. To RSVP for the Summit, please us at DiversitySummit@insurance.ca.gov. For more information, please feel free to contact us at (916) We look forward to having you join us on October 9 for this important Diversity Summit.
27 CPUC Contract Opportunities Current Opportunities General Information Projects / Opportunities Available for Small Businesses
28 State of California DGS Procurement Roadmap
29 Question Steps to take to make contact with government agencies? How we can get information to agencies what we grow and construct?
30 State of California Message The State of California is committed to the small business community: Governor Arnold Schwarzenegger s Executive Orders S and S mandates 25% of purchases to SBE s The California Public Utilities Commission (CPUC) is committed to the minority business community: In 1989, the CPUC the regulatory agency for all State utility companies recommended a 21.5% minimum for MBE s
31 The State of California California is now the 8 th Largest Economy in the World Every year the state awards over $9 Billion in procurements and contracts for goods, services, and construction Over 160 agencies throughout the State
32 The State Buys Goods Services Construction
33 Top 10 in Contract Awards 1. Department of Corrections 2. Department of General Services 3. Department of Mental Health 4. Department of Transportation 5. Department of Consumer Affairs 6. Department of Water Resources 7. Department of Health Services 8. Public Employees Retirement System 9. California Energy Commission 10.Department of Parks & Recreation
34 Small Business Procurement and Contract Act 1) Increases the contract award amount from $100,000 to $250,000 2) Requires contractors that made contract commitments to include small business or DVBE participation 3) Increases the minimum State Contract Act project award amount from $100,000 with a base year of 1993 to $250,000 with a base year of 2010
35 Procurement Division eprocurement C A L I F O R N I A D E P A R T M E N T O F G E N E R A L S E R V I C E S P R O C U R E M E N T D I V I S I O N
36 How to Introduce Yourself to State SB/DVBE Advocates Determine which agency will meet your needs. (Check SB/DVBE Council Meeting Attendance, SARA winners) Remember, advocates are busy, so don t take up more than a minute or two of their time (Better yet, them. Explain why you are calling. That way, you are not playing phone tag.) Prepare 30 second elevator speech to include: Name, Business Name, Supplier ID, and What You Do Have attachment/brochure with supplier id number included (business cards and s, too!)
37 How to Introduce Yourself to State SB/DVBE Advocates (CONT) Send attachment/brochure updates every 3 to 4 months via CHECK GRAMMAR and SPELLING! Don t overdo the attachments! Acknowledge any contact with a courteous reply Provide technical data to support claims, if needed Use business resources to help you perfect your marketing techniques-it s a worthwhile investment!
38 State SBE & DVBE Advocates Visit the website of the agency that may looking to secure your services. Each agency has a small business advocate that you can contact with specific questions.
39 Caltrans Procurement Roadmap
40 California Unified Certification Program (CUCP) Disadvantaged Business Enterprise (DBE) Certification Application To access the statewide CUCP DBE database, please log onto: A Partial List of the NAICS Codes Roster of Certifying Agencies The California Unified Certification Program Application Package is available on the website at
41 Caltrans Map 24
42 California Department of Transportation Contracts Advertised Projects (Projects for Bid) New to bidding Caltrans projects? Check out our Bidder's Exchange page for a quick rundown of our bidding resources. All Advertised Projects All Plans Preview Projects New! All Upcoming Projects Calendar of Upcoming Bid Openings
43 Caltrans Widen For Left Turn Channelization List of Bid Items Contract Plans and Special Provisions Order Bid Book 0 bidder inquiries Widen For Left Turn Channelization 01-Hum /7.6 * Date Advertised 09/10/2012 Bids Opening in Sacramento * Bids Open 10/02/2012 Estimate: $450,000 In Humboldt County At Carlotta From Wilson Lane To 0.5 Mile West Of Cummings Creek Road The Contractor must have either a Class A license or one of the following Class C licenses: C Working Days * 5% DVBE Requirement * Cost per set: Bidders: $E-ad, Nonbidders: $E-ad Subs/Suppliers: Opt In 4 prime contractors looking for help Primes: Advertise for help See 9 opt-in records See Non-Bidding Planholders See Bidding Planholders
44 County and Local Government Procurement Roadmap
45 ARRA Information and Resources for California State Association of Counties:
46 Information and Resources for Cities:
47 Federal Grants & Certification Procurement Roadmap
48 Federal Grants Website Grants.gov is the source to FIND and APPLY for federal government grants. The System for Award Management (SAM) is a free website which consolidates Federal procurement systems and the Catalog of Federal Domestic Assistance. Currently CCR, FedReg, ORCA and EPLS have been migrated into SAM. All Federal suppliers are required to have a current registration in the SAM website to be eligible for contract award. Register on SAM at
49 US Government Certifications Small Business Administration (SBA) Small Disadvantaged Business (SDB) Program 8(a) Program Historically Underutilized Business Zone (HUBZone) Program GSA Multiple Award Schedules
50 National Certifications Northern California Minority Supplier Development Council (NCMSDC) California Disabled Veteran Business Alliance (CADVBE) Women's Business Enterprise National Council
51 State of CA Certifications Department of General Services DVBE & Small Business Certification California Unified Certification Program (CUCP) California Public Utilities Commission (CPUC) California Multiple Award Schedules (CMAS)
52 Preparing for Business Matchmaking Events Roadmap
53 How to Get Paid Know the paperwork process Keep good records Know your options Progress payments Prompt Payment Act EFT (electronic funds transfer) Accept government credit cards
54 Diversity & Inclusion Show value in each key area: Demonstrable Savings Deployable Service Dependable Solutions with Diverse Suppliers
55 Create the BMM Environment Make sure to represent your company in the promotion of an environment that: Fosters communication and cooperation Treat all members of the BMM community with dignity and respect Promote partnerships/team agreements Let the marketplace know about your product or service
56 10 things NOT to do during a BMM Event A. B. C. D. E. F. G. H. I. J. Whine or Cry Get Historical Demonstrate any feelings of entitlement or special treatment Spend a lot of money on give a ways Bring outdated and/or unedited information about your company Drop names with the intention of winning deals Project a Rigid, Laid back or Desperate demeanor Present your company as being in a controlled chaos mode Represent your company as being able to do any thing Interrupt other interviews or disregard any Matchmaker process
57 Before the BMM Event 1. Get your Dun & Bradstreet (DUNS) Number A. Research your North American Industry Classification System (NAICS) Codes Standard Industrial Classification (SIC) Codes United Nations Standard Products and Services Code (UNSPSC) B. Register your company in the Federal governments System for Award Management (SAM) website CAGE Code website
58 Before the BMM Event A. B. C. D. E. Obtain third party certifications Small Business Administration (SBA) National Minority Supplier Diversity Council State of California organizations Disabled Veterans Women Owned organizations Be open to teaming or subcontracting Be proactive by registering your company Be prepared, confident and humble Be positive and remain positive Know and understand the marketplace
59 Before the BMM Event 8. Develop a written plan a) b) c) d) e) f) Business Requirements Description Detailed Information Projects/Procurement Contracts Representative List Registration
60 During the BMM Event Be polite, courteous and display a passion Wear professional business attire and be positive Make valuable use of time
61 10 things to do during a BMM Event K. L. M. N. O. P. Q. R. S. T. Be Enthusiastic and Positive Be in the now Be patient with the corporate process hurdles Minimize give a ways with Logo s Triple check that all of your Company Info is current and edited Stand on your companies own merits and customer testimonies Project an open, ready, willing and able demeanor Present your company as being in a controlled growth mode Make sure to punctuate your companies core competencies Respect the Matchmaker process
62 After the BMM Event Develop your follow-up program Highlight the discussion topics Document how your MBE is a fit with their company Follow up within 1 week
63 Federal Government Procurement Roadmap
64 BMM Contract Websites Federal Business Opportunities (FBO) Federal Agency Websites Federal Procurement Forecasts Department of Homeland Security (DHS) State of California eprocurement Association of Bay Area Governments (ABAG) California City Websites
65 Federal BMM Websites Compete on-line for government requirements with your NAICS codes Phoenix Database to get free contract Minority Business Development Agency Prime Contractors post subcontracting opportunities
66 Federal OSDBU Visit the Federal Office of Small and Disadvantaged Business Utilization (OSDBU) website for the agency that may looking to secure your services. Each agency has a small business advocate that you can contact with specific questions.
67 Minority Business Development Agency Roadmap
68 What is the Minority Business Development Agency? There are more than 4 million minority-owned firms nationwide MBDA is the only federal agency tasked with promoting the growth and global competitiveness of minority-owned firms in the United States. President Nixon established the Office of Minority Business Enterprise in 1969 by Executive Order Since then, the name now the Minority Business Development Agency- scope and responsibilities have changed and increased. Access to capital has been a challenge for minority-owned firms throughout history. Today, MBDA works to provide adequate access to capital for growth and day-to-day activities of minority-owned firms. MBDA works with other federal, state and local government agencies to identify contracting opportunities for minority-owned firms. MBDA works with strategic partners, such as NMSDC, to identify private sector contracting opportunities for minority-owned firms to provide products or services to Fortune 1000 companies.
69 Why is MBDA Important? Minority-Owned Firms Create Job Opportunities for all Americans According to the U.S. Census, in 2050, the minority community will represent 54% of total U.S. population. The U.S. needs strong minority-owned firms to support greater job growth and to create the maximum economic benefit to the nation. The nation is failing to reap the benefits of economic parity the creation of 16 million jobs, the generation of $2.5 trillion in gross receipts and an unrealized tax base exceeding $100 billion per year. Minority firms have the potential to contribute significantly to the balance of trade as minority businesses are twice as likely to generate sales through exports compared to non-minority firms. Minority-owned firms create job opportunities for all Americans as they tend to be generally more balanced in hiring minority and non-minority persons. MBDA is the catalyst to build minority-owned firms of size, scale and capacity.
70 MBDA s Economic Impact Achievement of $98 in Awarded Contracts and Financings for Every $1 Spent Key Agency Performance Measures: Dollar Value of Contracts Awarded Dollar Value of Financial Transactions Awarded New Jobs Created Measure 2009 Actual 2009 Target Percent of Goal Contracts $2.11 B $0.90 B 234% Financials $0.81 B $0.50 B 162% New jobs 3,024 3, % Fiscal Year Agency Funding Total Contracts & Financial Opportunities Awarded New Jobs Created Return on Agency Investment (ROAI) FY 2009 $29.8M $2.9 B 3,024 98x FY 2008 $28.5 M $2.1 B 5,316 74x FY 2007 $29.9 M $1.8 B 3,506 59x FY 2006 $29.8 M $1.6 B 4,254 54x FY 2005 $29.8 M $1.6 B 2,270 54x FY 2004 $29.7 M $1.6 B n/a 54x
71 Sustainability Roadmap Reduce...Recycle...Reuse
72 Did you know Every month, Americans throw away enough aluminum to rebuild the nation s commercial air fleet. The earth s population is expected to exceed 9.5 billion by the year 2050, increasing the potential for shortages of food, clean drinking water, adequate energy and safe air to breathe.
73 1. What is Sustainability? Environment Society Triple Bottom Line Sustainable Development Economy Meeting the needs of the present without compromising the ability of future generations to meet their own needs.
74 One planet with limited resources World Population Will Reach 10 Billion in less than 40 years How will planet Earth provide for their needs?
75 Case Study #1: Walmart Lead Globally in Sustainable Development 21,000 Suppliers/Vendors in Supply Chain Goals To be supplied 100% by renewable energy Create Zero Waste GHG 20% reduction by 2012 and 20MM metric tons from Walmart s Supply Chain by 2020 Truck Fleet 20% more efficient in 3yrs & double in 10 years Suppliers must submit product content and environmental impacts reports
76 America s Business Climate Rising energy costs Environmental impact issues Limited natural resources Increased global demand for sustainability 87% of Fortune 500 are moving to green Global Sustainability Vision, Mission & Goals Sustainable performance required of suppliers Global Sustainability Scorecards
77 Case Study #2: Procter & Gamble Environmental and Social Leadership Goals: 100% renewable or recycled materials 0% consumer & manufacturing waste Powering plants w/100% renewable energy Children safe drinking water Live, Learn & Thrive; health, educ. & life skills Sustainability is about ensuring a better quality of life, now and for generations to come
78 2. What is the Business Case Compliance Values/Principles Cost/Profits Stakeholder Value
79 Business Case Rationale More environmental legislation Moving from pollution control to prevention Green construction and LEED Transitioning to sustainable manufacturing Green House Gas reduction; Carbon Disclosure Project Innovative reuse and recycle of waste Retraining to create 21 st century workforce
80 18 Growth Industries for America Advanced Manufacturing Information Technology Automotive Biotechnology Green Construction Education & Training Energy Efficiency Financial Services Green Facility Maintenance Green Consulting Hospitality Homeland Security Healthcare Aerospace Nanotechnology Retail Transportation Geospatial Technology
81 Business Matchmaking Events
82 CA Small Business & DVBE Outreach Events 2012 The Communications & Outreach section is committed to expanding statewide outreach for DVBEs and small businesses through education and business opportunity enhancements. To view a list of upcoming outreach events for the 2012 year, see the Communications & Outreach 2012 Events Calendar
83 Business Matchmaking Business Matchmaking (BMM) is the nation's premier public-private initiative supporting procurement opportunities for small business in every industry. For the past eight years, BMM has produced regional face-to-face selling events, plenary seminars and workshops, online training and collateral material for primarily minority, women, veteran, and disabled veteran owned firms.
84 Corporate America Websites Supplier Diversity Events As a service many Corporate Supplier Diversity departments publish their calendar of events. The events listed are specific to promoting business activities, such as match-making, business expos, conferences and other types of networking activities. Please note the events listed may require a registration or fee to attend. It is recommended to directly contact the sponsoring organization for more specific logistical information. If available, a website link for either the event or the hosting organization has been posted.
85 Corporate America Websites Supplier Diversity Events In 2011, AT&T spent $12 billion with minority, women and disabled veterans business enterprises, representing 23 percent of our total procurement. In 2011, PG&E achieved its highest level of diversity spending at $1.6 billion or 36.6 percent of our total procurement. eventcalendar/
86 Strategic Resources Roadmap
87 Northern Cal SBDC The Small Business Development Centers of the Northern California SBDC Network help individuals manage the growth of their businesses. Our sole focus is on helping you improve your bottom line.
88 Northern Cal SBDC The SBDC s are the largest technical assistance provider to small business owners in the United States. We provide one-on-one solutionbased business advising at no-cost. We serve clients from across the 11 SBDC offices in the 14 counties of the NorCal SBDC Region.
89 Make an Appointment with Your Local SBDC Center Central Coast SBDC Silicon Valley SBDC - San Francisco SBDC Alameda County SBDC - Contra Costa SBDC Solano College SBDC - Santa Rosa SBDC - Napa Valley SBDC - Mendocino SBDC - North Coast SBDC -
90 Procurement Roadmap Review
91 Things To Remember Target Your Customer: Who buys your product or service? How do they buy? When do they buy? Know the rules: Corporate, Federal, State & Local Acquisition Regulations Contract requirements and specifications How to obtain Contract history Perform As Promised: On-time delivery Good Quality at a Fair Price
92 Summary Be Certified Be Registered Be Prepared Be Confident Be Diligent Thank You and Good Matchmaking!
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