Small / Local Business

Enterprise Program (SLBE)

Presented by

Eugene Lauer, Interim Director, Office of Economic Development

Deborah Hudson, Director, Department of Fiscal & Administrative

Services

Slide 2

Why An SLBE Program

• Commissioners' Goals and Objectives:

• Goal # 1 – Economic Development (ED)

• Objective #12 – Minority Business Enterprise

• Objective #13 – Buy / Hire Local

• Objective #14 – Small Business Resources

• May 2011 Economic Development Goals and

Objectives Briefing – SLBE proposed as key

component.

Slide 3

Why An SLBE Program

• Business community has requested vendor

preference.

• Each dollar spent with local business

generates between $1.36 – $1.60 in local

economic activity.

• Uses County purchasing power to better

stimulate the local economy.

Slide 4

Participation Requirements

• Each firm must:

• Be certified in the State of Maryland Small

Business Reserve (SBRP) Program.

• Maintain SBRP certification.

• Comply with all provisions of the SBRP,

including annual re-certification.

• The Charles County Government (CCG) Small

Local Business Enterprise Program (SLBE)

will utilize the State SBRP qualifying criteria:

Slide 5

Participation Requirements

Maryland Small Business Reserve Program

• Must be independently owned and operated

• May not be a subsidiary

• Does not dominate its field of operation

• Firms annual average gross sales (Last three

years) may not exceed the maximum permitted.

• May not exceed the maximum number of

employees permitted (Limit is 25 to 100 staff,

depending upon the field of operation)

Slide 6

Participation Requirements

Maryland Small Business Reserve Program

• To be eligible for SLBE preference firm must, prior

to submitting a bid or proposal:

• Be certified in the State Program

• Meet all additional CCG Program requirements.

• CCG will plainly advertise in its solicitations:

• State SBRP certification requirement.

• County SLBE requirements.

• How to access the State & County criteria.

Slide 7

Participation Requirements

Maryland Small Business Reserve Program

• Compliance with Maryland Program certification

criteria is monitored and enforced by the State.

• The Department of Economic Development and

the Purchasing Office will provide assistance to

help businesses complete the State certification

process.

Slide 8

Participation Requirements

Charles County “Local Business” Requirements

• Principal place of business must be in Charles

County;

or

• Firm has a significant employment presence in

Charles County (At least 25% of its employees

domiciled in Charles County);

or

• Firm has a branch or satellite office in the County

which generates at least 25% of gross sales.

Slide 9

Participation Requirements

Charles County “Local Business”

• An SLBE will “graduate” from the Program and

will be no longer eligible for SLBE preference

when:

• It has received more than $3 million in awards

within any 60 month period, based upon their

SLBE status;

or

• It exceeds the maximum annual gross sales or

maximum number of employees permitted.

Slide 10

General Program Principles

• The Program is race and gender neutral

• The current MBE program is retained. The SLBE

Program will contain tangible preferences that

could result in award to MBEs, and possibly

increase minority business participation.

• CCG Departments will work with Purchasing to

establish opportunities in informal solicitations.

• CCG Departments will also be responsible for

meeting SLBE goals within small procurements

conducted by the Department.

Slide 11

General Program Principles

• In determining the SLBE percentage achieved, the

entire value of SLBE provided goods and services

shall be counted, even if procured via apart from

any SLBE-specific reserve.

• Additional Program elements and features may be

developed and phased-in as needs and

opportunities are identified.

Slide 12

Proposed SLBE Preferences

All Procurement up to $50,000:

• Formal contracts up to $50,000 are reserved for

SLBEs if there are at least 3 qualified SLBE firms.

• Procurements of $5,000 to $25,000 are reserved for

SLBEs, and are obtained by CCG Departments via

informal quotes. Departments retain the option to

focus on SLBEs for purchases under $5,000.

• Exceptions allowing award to a non-SLBE firm:

• Fewer than three bids/quotes are received, or

• Lowest SLBE bid/quote is 10% or more higher

than the lowest non-SLBE bid.

Slide 13

Proposed SLBE Preferences

Proposed SLBE Preferences 5% 10 Points 5 Points

Non-Construction Over $50,000

Invitations To Bid - Prime Contractor X

Invitations To Bid - Sub-Contractor X*

Non-Construction Over $50,000

Requests For Proposals - Prime Contractor X

Requests For Proposals - Sub Contractor X*

Construction Over $50,000 (Maximum $500,000)

Invitations To Bid - Prime Contractor X

Invitations To Bid - Sub-Contractor X*

Construction Over $50,000 (Maximum $500,000)

Requests For Proposals - Prime Contractor X

Requests For Proposals -Sub-Contractor X*

* Note: Based upon SLBE contribution only.

Slide 14

Proposed SLBE Preferences

Split Procurement:

When several distinct services are required under

one contract, two or more contracts may issued to

encourage SLBE competitiveness as a prime

contractor, if:

• Such multiple contracts are compatible with the

needs of the CCG Department requesting.

• Not contrary to the best interests of the County.

• Not contrary to County procurement regulations.

Slide 15

Exclusions• Any single procurement over $3 million.

• Contracts that conflict with State/federal rules.

• Pre-existing contracts and their extensions.

• Intergovernmental agreements, emergency

procurement, and memorandums of agreement.

• Sole-source and piggyback contracts.

• Joint/cooperative procurement conducted with

other jurisdictions.

• Any procurement for which there are not at least 3

local SLBEs qualified to perform the contract.

• Contracts granted a waiver by the President of the

Charles County Commissioners.

Slide 16

Implementation• Authorize preparation of an ordinance for

introduction in November 2011.

• December-January – Adoption of ordinance.

• Implementation and marketing of program

concurrent with SLBE Coordinator being hired

(Approximately March – April 2012).

• Economic Development will fund for Coordinator

and Program promotion thru June 2012.

• FY13 will require budgeted funds for Coordinator

and operating expenses (Marketing, travel, etc.).

Presented by:

Charles County Government

Department of Fiscal

& Administrative Services

and

Office of Economic Development

Mission Statement

The mission of Charles County Government is

to provide our citizens the highest quality

service possible in a timely, efficient, and

courteous manner. To achieve this goal, our

government must be operated in an open and

accessible atmosphere, be based on

comprehensive long- and short-term planning,

and have an appropriate managerial

organization tempered by fiscal responsibility.

Vision Statement

Charles County is a place where all people

thrive and businesses grow and prosper;

where the preservation of our heritage and

environment is paramount, where government

services to its citizens are provided at the

highest level of excellence; and where the

quality of life is the best in the nation.