Workshop on Small Business Certification at SFO What You Need to Know and Why You Should Apply
Learning Objectives Understand the Different Types of Certifications Learn What Certifications Apply at SFO Learn How to Apply for Certification
Acronyms ACDBE Airport Concession Disadvantaged Business Enterprise CMD Contract Monitoring Division (of the City & County of SF) CUCP California Unified Certification Program DBE Disadvantaged Business Enterprise DOT US Department of Transportation FAA Federal Aviation Administration LBE Local Business Enterprise NAICS North American Industry Classification System SBA U.S. Small Business Administration
What Is Small Business Certification? Certification is a review process that ensures a small business is owned, controlled, and operated by the applicants. What Is The Purpose Of Certification? The Purpose is to Ensure Non-discrimination in the award and administration of contracting and lease opportunities. Remove Barriers to the participation of small business in a multi billion dollar contracting marketplace.
Baseline Questions 1. Only Local Business Enterprises (LBEs) can bid on construction projects at SFO. (True/False) 2. SFO is a certifying agency. (True/False) 3. Once certified as a Disadvantaged Business Enterprise in California a firm can then use this certification nationwide. (True/False)
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Benefits of Certification All Programs Marketing Tool Certification is a marketing tool, enabling inclusion and recognition in that certification s database reflecting an effort that is viewed by thousands of prime contractors ( primes ), and government agency officials. Reflects Diversity & Strengthens Capability Primes often add local and diverse business to strengthen their capabilities, create broader appeal, and better reflect local interests. Agency Commitment SFO encourages and is committed to the participation of certified small businesses throughout its programs.
Benefits of Certification - LBEs Contract Obligations City departments, primes and other bidders search the LBE database for to confirm one s certification status, search for LBEs to fulfill their contract obligations, and to notify those businesses of opportunities. Bid Discounts Although Non-LBEs can bid on City Projects, LBEcertified firms are eligible to receive bid discounts when bidding, thus making them more competitive than they would be otherwise. Set-asides Micro sized LBEs are eligible to participate in city contracts that are specifically set aside for them.
Which Programs Apply to SFO and Why ACDBE Airport Concession Disadvantaged Business Enterprise Program is applied to SFO s Concession leases, as a condition of receiving funding from the US Department of Transportation (DOT/FAA). DBE Disadvantaged Business Enterprise Program is applied to construction projects at SFO that are funded by FAA s Airport Improvement Program (AIP) funds. SBA Small Business Administration Program is applied to projects that are federally funded but not from the Department of Transportation (i.e., TSA funds). LBE Local Business Enterprise Program is applied to construction and professional service contracts containing locally generated funds. Most of SFO s funds are generated locally.
Social Disadvantage: Socially disadvantaged individuals are those who have been subjected to racial/ethnic prejudice or cultural bias, including Black Americans, Native Americans, Asian Pacific Americans, Subcontinent Asian Americans, Hispanic Americans, and Women. DBE & ACDBE Definition An ACDBE (and a DBE) is a for-profit company At least 51% owned by an individual(s) that is socially and economically disadvantaged. Women and minority businesses are considered socially and economically disadvantaged unless the owner has a personal net worth more than $1.32 million. Size Standards: For most types of businesses gross receipts averaged over the previous 3 years must not exceed their caps: ACDBEs $56.42 million 3 year average DBEs $22.41 million 3 year average
How Do I Become ACDBE or DBE Certified? ACDBE Certifying Agencies To become certified by SFO, contact Kamal.Hubbard@flysfo.com or call (650) 821-5142. Review application information at http://californiaucp.org. Other certifiers include City of Los Angeles, San Diego Regional Airport, and Caltrans. DBE Certifying Agencies Northern California DBE certifiers: SFMTA, Caltrans, BART, VTA, SamTrans, and City of Fresno. Review info at http://californiaucp.org and contact a certifying agency. California Unified Certification Program (CUCP) Each state has a UCP, or group of certifying agencies, enabling a similar process for each state. Time Frame After submitting application and supporting documentation allow up to 90 days for site visit and final decision.
How Do I Become LBE Certified? Definition LBEs are firms whose primary place of business is in San Francisco. Firms must be certified by CMD prior to bid submittal in order to receive LBE benefits. Certifying Agency Contract Monitoring Division (CMD). Contact lbecert@sfgov.org or (415) 581-2310. Walk ins welcome, 30 Van Ness Avenue, San Francisco. CMD hosts a certification workshop the 1 st Wednesday of every month. RSVP lbecert@sfgov.org to reserve space. Review program information at http://sfgov.org/cmd/resources. CMD implements and enforces the Chapter 12B Equal Benefits Ordinance, Chapter 14B Local Business Enterprise Ordinance and the Chapter 14C Benefit Corporation Discounts Ordinance on behalf of the City & County of San Francisco. Time Frame It may take several days to gather supporting documentation. CMD usually completes their reviews and site visits within 45 days.
Common Elements To Certification Certification is Specific to NAICS Codes Firms are certified only in their areas of expertise based on North American Industry Code Classifications, which contains hundreds of classifications, each having a six digit code https://www.naics.com/search/ Lack of Reciprocity One type of certification does not make a firm eligible or entitled to another certification type. Burden of Proof A firm bears the burden of providing detailed information to support appropriate designations. Site Visits After documents are reviewed a site visit is required (ACDBE, DBE, LBE). No Guarantee After being certified there is no guarantee of work businesses must still compete but there is a leveling effect.
Application Documents Commonly Requested Federal Tax Returns Personal & Business (3 years) Professional Licenses Employee Data Verification Nationality and Gender Verification Proof of Ownership Contributions Place of Business Verification & List of Other Real Estate Articles of Incorporation/ Partnership Agreements Personal Net Worth Statement (ACDBE & DBE only)
Certification Program Differences ACDBE DBE LBE Business Type Retail/Food/ Services Construction/ Professional Services All Types Tax Status For Profit Only For Profit Only All Types Personal Net Worth Social Disadvantage Application Processing Time <$1.32 Mil <$1.32 Mil N/A Women/Minor. Women/Minor. N/A < 90 days < 90 days < 45 days
Useful Links: DBE & ACDBE Application and Supplemental Questionnaire: http://www.caltrans.ca.gov/hq/bep/business_forms.htm DBE & ACDBE Certifying Agencies and Instructions: http://californiaucp.org/ LBE Application: http://sfgov.org/cmd/applications LBE Instructions & Resources: http://sfgov.org/cmd/how-comply Contract Monitoring Division: http://sfgov.org/cmd
Review Questions 1. Only Local Business Enterprises (LBEs) can bid on construction projects at SFO. (True/False) 2. SFO is a certifying agency. (True/False) 3. Once certified as a Disadvantaged Business Enterprise in California a firm can then use this certification nationwide. (True/False)
Questions and Comments Thank You! 9/19/17