DOING BUSINESS WITH THE CITY

Presented to

National Contract Management AssociationSpace City Houston Chapter2013 Small Business Conference & Trade FairApril 11, 2013

Mission

The Mayor’s Office of Business Opportunity

is committed to creating a competitive and diverse

Business environment in the City of Houston by

promoting the growth and success of small

businesses, with special emphasis on historically

underserved groups by ensuring their meaningful

participation in the government procurement

process.

Our key objectives are to Educate. Connect. Grow.

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What We Do

CertificationOBO processes applications from firms interested in the City of Houston’s Minority, Women,

Small, and Persons with Disabilities Business Enterprise certifications and the U.S. Department

of Transportation’s Disadvantaged Business Enterprise certification.

Business AssistanceAssistance navigating through the City’s licensing and permitting process through the Houston

Business Solutions Center. We also collaborate with partners such as: banks, educational

institutions, local chambers, government agencies, and business and trade organizations to

provide: business development, networking activities, and access to various opportunities. OBO

sponsors and/or co-sponsors events such as: Meet the Buyer, Runway to Business Opportunities,

MED Week, Government Procurement Connections, and the EXPO Business Opportunity

Marketplace.

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What We Do

Hire Houston FirstAn initiative to promote economic opportunity for Houston businesses and to support job creation,

Hire Houston First grants the City the ability to give preference to local companies and local

workers, as long as their pricing is competitive.

Contract Oversight, Mediation and Resolution ServicesOBO monitors contracts with M/WDBE goals and offers mediation services to certified firms

seeking to resolve conflicts with prime contractors. Arbitration is available through the Southeast

Texas College of Law’s Frank Evans Center for Conflict Resolution, if necessary.

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City of Houston Certifications

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Types of Certification

Minority Business Enterprise (MBE) – • The minority owner(s) must possess at least 51% ownership, management and control of the firm• The owner must have training/expertise to perform the work, and where required, have a license or

certificate in his or her name• The firm must be independent and currently operating• The firm must meet the SBA size standard• The firm must maintain a significant local business presence in Harris, Brazoria, Fort Bend, Chambers,

Galveston, Liberty, Montgomery, or Waller Counties

Women Business Enterprise (WBE) –• The minority owner(s) must possess at least 51% ownership, management and control of the firm• The owner must have training/expertise to perform the work, and where required, have a license or

certificate in his or her name• The firm must be independent and currently operating• The firm must meet the SBA size standards• The firm must maintain a significant local business presence in Harris, Fort Bend, Brazoria Chambers,

Galveston, Liberty, Montgomery, or Waller Counties

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Types of Certification

Persons with Disability Business Enterprise (PDBE) – • The person with disability must possess at least 51% ownership, management and control of the firm• The disability must be determined by a medically determined physical and/or mental impairment that

substantially limits one or more of his or her major life activities• The firm must maintain a significant local business presence in Harris, Fort Bend, Brazoria, Chambers,

Galveston, Liberty, Montgomery, or Waller Counties

Small Business Enterprise (SBE) –• The ownership does not have race or gender eligibility requirements• The firm must meet SBA size standards• The firm must maintain a significant local business presence in Harris, Brazoria, Fort Bend, Chambers,

Galveston, Liberty, Montgomery, or Waller Counties

Disadvantaged Business Enterprise (DBE) –• At least 51% owned, managed and controlled by one or more individuals who are socially and economically

disadvantaged• The firm must be independent and currently operating• Personal net worth cannot exceed $1.32 million and the firm must meet the SBA size standards

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Advantages of Certification

Certified firms are listed in the City’s online directory; accessible by city departments, prime contractors, and other parties.

Access to free or low cost business development resources and skill-building experiences including workshops and seminars.

Mediation services on City of Houston contracts. Assistance in navigating through the City’s licensing and permitting process through the Houston

Business Solutions Center. Access to prime and subcontracting opportunities on City of Houston contracts.  City of Houston certifications are accepted by:

Environmental Protection Agency Port of Houston Authority METRO Houston Independent School District Houston Community College Houston Housing Authority Texas Comptroller of Public Accounts Private Corporations in the Metropolitan Area

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Female37%Male

63%

Asian 11%

Black 33%

Caucasian20%

Hispanic26%

Native American

2%Other

Ethnicity 14%

FY2013 Currently Certified Firms

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Ethnicity

Gender

Industry

• As of 4/3/2013, there are 2,015 currently certified firms.• Most of these are within the construction industry.

Row Labels Count PercentArchitectural & Engineering Products and Services 188 9%Automotive & Transportation 85 4%Business Services & Support/Creative Products & Services 287 14%Concessions & Food Products Service 39 2%Construction Services & Equipment 539 27%Energy & Utilities/Environmental Services & Equipment 78 4%Facilities & Security Products & Services (Janitorial/Security/HVAC) 207 10%Heath Care & Pharmaceutical Products & Services 44 2%Industrial Manufacturing & Equipment 43 2%Legal, Financial & Insurance & Real Estate Services 109 5%Other Services 165 8%Retail, Wholesale & Warehousing 117 6%Technology & Telecommunications 114 6%Grand Total 2,015 100%

Business AssistanceHouston Business Solutions Center

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Houston Business Solutions Center

The Houston Business Solutions Center functions as an information clearinghouse for people wishing

to start or operate a business in the Houston-Metropolitan area. Services include: free

Business Resource Guides, technical assistance on relevant permits and licenses needed to operate;

financing information; the provision of business management counseling courtesy of the Service Corps of

Retired Executives (SCORE); and business workshops and programs on a number of business-related

topics.

The HBSC is also responsible for assembling the City Contracting Guide and the Sources of

Assistance Business Resource Guide. These two documents and the Getting Started

Packet can be accessed on the Division’s website at http://www.houstontx.gov/hbsc/index.html.

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Hire Houston First ProgramHire Houston First grants the City the ability to give preference to City and Local companies and workers, as long as their pricing is competitive.

City Business means a business with a principal place of business within City limits.

Local Business means a business with a principal place of business in the 8 counties in and surrounding Houston city limits.

Businesses must either:

Be headquartered in the incorporated limits of the City or the 8 local counties;

or

Have 20% or more of the entity's workforce regularly based and have a substantial part of its operations based in the incorporated limits of the City or the 8 local counties*

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Female37%Male

63%

Asian 11%

Black 33%

Caucasian20%

Hispanic26%

Native American

2%Other

Ethnicity 14%

FY2013 Currently Certified Firms

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Ethnicity

Gender

Industry

• As of 4/3/2013, there are 2,015 currently certified firms.• Most of these are within the construction industry.

Row Labels Count PercentArchitectural & Engineering Products and Services 188 9%Automotive & Transportation 85 4%Business Services & Support/Creative Products & Services 287 14%Concessions & Food Products Service 39 2%Construction Services & Equipment 539 27%Energy & Utilities/Environmental Services & Equipment 78 4%Facilities & Security Products & Services (Janitorial/Security/HVAC) 207 10%Heath Care & Pharmaceutical Products & Services 44 2%Industrial Manufacturing & Equipment 43 2%Legal, Financial & Insurance & Real Estate Services 109 5%Other Services 165 8%Retail, Wholesale & Warehousing 117 6%Technology & Telecommunications 114 6%Grand Total 2,015 100%

Business AssistanceHouston Business Solutions Center

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Houston Business Solutions Center

The Houston Business Solutions Center functions as an information clearinghouse for people wishing

to start or operate a business in the Houston-Metropolitan area. Services include: free

Business Resource Guides, technical assistance on relevant permits and licenses needed to operate;

financing information; the provision of business management counseling courtesy of the Service Corps of

Retired Executives (SCORE); and business workshops and programs on a number of business-related

topics.

The HBSC is also responsible for assembling the City Contracting Guide and the Sources of

Assistance Business Resource Guide. These two documents and the Getting Started

Packet can be accessed on the Division’s website at http://www.houstontx.gov/hbsc/index.html.

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Hire Houston First ProgramHire Houston First grants the City the ability to give preference to City and Local companies and workers, as long as their pricing is competitive.

City Business means a business with a principal place of business within City limits.

Local Business means a business with a principal place of business in the 8 counties in and surrounding Houston city limits.

Businesses must either:

Be headquartered in the incorporated limits of the City or the 8 local counties;

or

Have 20% or more of the entity's workforce regularly based and have a substantial part of its operations based in the incorporated limits of the City or the 8 local counties*

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Administration of HHF

Designation of Firms

• OBO processes applications for HHF through it’s Houston Business Solutions Center

• Unlike the certification process for S/MWBEs, designation of HHF is significantly shorter

• To date, there are more than 800 companies designated,• These designated firms have been added to OBO’s online Hire

Houston First registry

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HHF in the Award Process

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*A firm designated as a City business automatically qualifies as a Local Business.

**In procuring architectural, engineering or land surveying services under the Professional Services Procurement Act, Tex. Gov't C ode, § 2254.004, the applicable city department shall, when appropriate, consider knowledge of

local conditions as part of the qualifications determination in addition to HHF status.

Personal Property (Goods)If the contract's value is $100,000 or greater, then the contract is awarded to a City

Business* that is within 3% of lowest bid.

If the contact's value is under $100,000, then the contract is awarded to a City

Business* that is within 5% of the lowest Bid.

Services**

If the contract's value is $100,000 or greater, then the contract is awarded to a Local

Business that is within 3% of lowest bid.

If the contract's value is under $100,000, then the contract is awarded to a Local

Business that is within 5% of the lowest bid.

For Purchases under $50,000.00: "the City shall, subject to the requirements of section 15-181, select vendors and service providers with a principal place of business in the local area, provided that any such vendor's bid is no more than five percent greater than the lowest bid, in the event the

lowest bid is from one other than a city business or a local business. "

Hire Houston First Awards

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As of September 2012, the total award to Hire Houston First firms was $139,770,950. Of this amount, City designated businesses were awarded 555 prime contracts and non-contract purchase orders (POs) totaling $58,126,344. Local designated businesses were awarded 340 prime contracts and non-contract purchase orders totaling $81,644,607.

County

City Business Local Business

Total Award

Total No. of Prime Contracts

and PO'sAward

No. of Prime Contracts and

PO's Award

No. of Prime Contracts and

PO'sBrazoria $814,392 8 $814,392 8Fort Bend $5,225,241 53 $5,225,241 53Galveston $3,723,255 2 $3,723,255 2Harris $58,126,344 555 $55,957,221 214 $114,083,564 769Montgomery $15,924,498 63 $15,924,498 63Grand Total $58,126,344 555 $81,644,607 340 $139,770,950 895

Program-wide Goals:The City, with Council’s approval, periodically sets citywide contracting goals to ensure participation by S/MWBEs in the City’s procurement process. In instances where federal funding is involved, goals are established in accordance with their specific requirements.

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Program Goals

Construction – 14% MBE, 8% SBE

Purchasing - 11% MBE

Professional Services - 24% MBE

“Good Faith Efforts”

Those efforts required to be made and demonstrated by an apparently

successful bidder or proposer prior to award of a contract and at the

conclusion of performance of the contract in the event it has been

unsuccessful in meeting the contract MWBE goal.

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Doing Business with the City

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Doing Business with the City

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Vendor Registration

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Strategic Purchasing Division

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Calvin D. Wells, City Purchasing Agent

(832) 393-8700/(832) 393-8755 Fax

HI-TECH PROCUREMENT CONTRACTS

Douglas Moore, Manager (832) 393-8724

SUPPLY/NEW CONTRACTS

Desiree R. Heath, Manager (832) 393-8742

FLEET/FORMAL/INFORMAL/SERVICE CONTRACTS

Ray Durousseau, Deputy Assistant Director, (832) 393-8726

Best Practices

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PRIOR TO AWARD

Keep contact information updated. Submit competitive bid. Review ALL requests from prime contractors and

respond with a bid or no bid. Check minority/women focused organizations for notices Attend pre-bid meetings.

Best Practices

POST AWARD

Look for communication from the City of Houston Contract Compliance Office.

Execute a subcontract agreement with the prime contractor.

Follow the progress of the contract. Keep your contact information updated. Respond to the City of Houston’s deviation request from

the prime contractor.

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Best Practices

OTHER BEST PRACTICES

Complete a supplier profile Complete a vendor application Check advertisements Check the Houston Business Journal and Houston Chronicle newspapers Visit the City’s Purchasing Office web site at www.purchasing.houstontx.gov Check out the City’s Bid Board located at City Hall, 901 Bagby, Room 120 Attend Pre-Bid/Pre-Proposal conferences Review previous bids Understand all terms and conditions Read the insurance and drug compliance Carefully review the specifications Read and clearly understand the price increase language Be aware of the M/WDBE goals Submit bid on time and sign all documents

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Thank You.