How to Capture Your Share of $1 Trillion Dollars In Public Contracts
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Transcript of How to Capture Your Share of $1 Trillion Dollars In Public Contracts
How to Capture Your Share of
$1 Trillion DollarsIn Public Contracts
Know Your Rights and Your Opportunities
Sponsored by:
Raul EspinosaChief Visionary Officer
Managing Partner of Umbrella Initiative
Founder, FPA and CEO of FitNet
“To involve University Professors and Students
in Sustainable Commercial Projects
with Contracting Potential
to help Create Jobs
in Underserved Communities”
Federal
Any business, meeting a very complex 57 page
methodology
NaFCA through their ‘Solution Summits’ has recommended
simplification of methodology
Small Business
State and Local Governments
Businesses which self-register as having less than 100 employees
Some states stipulate that gross revenues can NOT exceed a certain amount (i.e., $7M,
$25M)Characterized by a wasteful archaic and duplicative registration and certification
process
Federal Level(According to SBA Size Standards)
Any Business meeting a very complex 57 page methodology
Federal Level
1. Not dominant in their own NAICS code(s)
2. Employs less than a defined percentage of dominant businesses
in a NAICS code(s)
Federal Level
3. Grosses less than a percent of the dominant businesses in a NAICS
code(s)
4. Simplification must incorporate revamping Size Protests, Penalties and
Enforcement
Disadvantaged
Owned/controlled by a Member of a group Congress has determined is
underserved
Disadvantaged
Race, ethnicity and gender are simply characteristics of the
groups
Current certification process causes waste and abuse
Set Aside Contracts
Established to prevent monopolies, build capacity and level the playing field
in contracting
Reserved for competition solely among small and disadvantaged businesses
Set Aside Contractsare supposed to:
Established by public agencies
Determined by market research
Set Aside Contracts
Regulations and Procurement Statutes are supposed to provide
guidance
Size Protests are supposed to prevent abuses and safeguard the
participation
Set Aside Contracts
Penalties and their enforcement are supposed to deter abusive practices or
barriers
Specialized Education on small business issues for contracting workforce is
supposed to be available
Leveling the Playing Field
Eliminating the existing ‘barriers’ or ‘abusive procurement practices’
Enforcing the Existing Laws
OUR Constitutional ModelTransparency, Technology and Elimination of
barriers are the tools of this Model
Relies on alignment with statutes (i.e., 23%), goals (i.e., 5%) and measurable results
Model supported by 276 specific procurement statutes
OUR Constitutional ModelModel supported by 276 specific
procurement statutes
Previous efforts were poorly justified by bureaucrats pressured by lobbyists and their legal counsel
Focused on guaranteeing “Maximum Practicable Utilization” or MPU, for its target audience
OUR Constitutional Model
Focused on guaranteeing “Maximum Practicable Utilization” or MPU, for its
target audience
Minimizes ‘race-neutral’ schemes because they do not prevent ‘disparities’
nor eliminate ‘barriers’
OUR Constitutional Model
Tracking both the businesses and contracts they receive is essential
Court challenges against ‘set-asides’ can be successfully defeated with this
model
Federal Procurement Facts
2010 U.S. Census CCR Data
Small Businesses in
U.S.27.2 Million 482,262
(1.7%)
Total Minority Businesses in
U.S. 5.8 Million 117,636 (2%)
Total Disadvantaged Businesses in
U.S.21.1 Million 260,860
(1.2%)
CCR Data = Registered to Contract with the Government (as of 03-2011)
Share of Federal Contracts
23%
Share of Federal Contracts“Procurement data that is gathered by,
reported, and entered by procurement agencies is often incomplete, inaccurate, and untimely.”
---Daniel Gordon, Administrator of Federal Procurement Policy OMB June 2011---
FY 2007 FY 2008 FY 2009Small
Business Share
Claimed$83.2 Billion
$93.3 Billion
$96.8 Billion
Official Percentage of
Total 21.5% 21.3% 21.8%Realistic Unofficial
Total18.3 – 19.4%
18.1 – 19.2%
18.5 – 19.6%
Florida Procurement FactsTotal Small Business in the State 2.4 Million
Registered to do Business in the State 95,004
Registered as “Disadvantaged” Businesses 7,280
Certified as “Minorities” by the State 3,583 (<1%)
The Florida Challenge
1,586 public entities, only 32 offer free public access
The 32 public entities have processed $9.4 Billion in contracts which still
cannot be tracked
The Florida Challenge
System not designed for procurement
The state currently cannot confirm how much it can spend on public
contracts
The Florida Challenge
An archaic and duplicative registration/certification process
prevents progress
Lack of tracking results prevents goals and objectives
The Florida Challenge
No centralized procurement training
Disparities abound which require costly studies to justify ‘set-asides’
The Florida Challenge
The racial-neutral One Florida Initiative must be either
strengthened or replaced
The Florida Opportunity
A proposed new Florida Procurement Portal – with a proven platform
The savings that it will create and the duplication that it will eliminate,
alone, will cover its costs
The Florida Opportunity
Economic development, federal and private funding are available for such
efforts
“The Portal” will create jobs, teaming arrangements and allow for replication in other states
The Florida Opportunity
The Delaware Governor just unveiled a similar portal with less than 2/3 of our
features
Several Cities have announced plans for costly ‘disparity studies’ in order to justify
set-asides
The Florida Opportunity
The cooperation of ALL1,586 public entities in the State is badly needed
for this undertaking
The Florida Opportunity
Our Lieutenant Governor, Jennifer Carroll, who is supporting our effort has said: “The Umbrella Initiative offers
actual solutions with measurable results to a State dilemma the
Governor intends to solve.”
Mission“To Double the Number of Small
and Minority Businesses Contracting with the Federal,
State and Local Governments by the Year 2020”
2010 U.S. Census CCR Data Our Mission
Small Businesses in the USA 27.2 Million 482,262
(1.7%) 964,524
Total Minority Businesses in the
USA 5.8 M 117,636
(2%) 235,272
Total Disadvantaged
Businesses in the USA
21.1 M 260,860 (1.2%) 521,720
Ryan Reid Chief Technical OfficerFounder of NetQuarry
The Umbrella Initiative Portal
The System TodayData fragmented, varied, individual silos
Built for the contracting agencyMissing market research capability
No centralized registrationNo communication conduitNo collaboration networkNo empirical award data
Today – Individual SilosMultiple websites for opportunities
Every website is differentAuthentication isn’t shared and must
be rememberedThe small business contractor burden
is high
Today – Agency FocusedNot designed with the contractors
needs in mind.No “best practice” guidelines for
small business.Proper response process is mysterious
Small Businesses are lost
Today – Market ResearchNo established process for
procurement strategy (e.g. Set Asides)
Market research cannot be measuredSmall business is unable to influence
strategyBurden on the contracting agency is
overwhelming
Today – RegistrationNo central registration systemMakes empirical award data
impossibleNo way to communicate to the vendor
communityMarket research participation cannot
be measured
Today - CommunicationNo direct conduit between contractor
and contracting agencyBest case: summarized, advertised
Q&AWorst case: no Q&A
Result is mystery and poor results
Today – Award DataNo empirical award data
Requires:Centralized RegistrationCentralized Procurement
AdvertisementActual procurement costs are
impossible to measure
Today – CollaborationLarger opportunities require effective
teamsToday - general purpose partnerships
only – largely ineffectiveNo actionable opportunities to form
meaningful teams aroundNo scalable, available, networking
community
The UPS SolutionCentralized location for all solicitation dataTools for BOTH contractor and contracting
agencySimple, transparent market research
Single central registration systemDirect communicationEmpirical Award Data
UPS – Centralized DataAll data available in one location
Single authentication, single interfaceNOT a wholesale replacement!
Current systems remain the same.Agencies without any system can
participate
UPS – Small Business Design
Designed to help BOTH contractor and contracting agency
Establishes “best practices” around response
Allows small business to influence procurement strategy
Improves contracting agency’s ability to conduct market research
UPS – Market ResearchSimple, transparent process to establish procurement strategy
Empirical measurement of the market research effort
Cost savings for both sidesResult: fair and transparent Set Asides
percentages
UPS - RegistrationSingle registration requirement
Allows for measurement of available talent pool (aids market research)Provides a means for the state to
communicate to the vendor community
UPS - CommunicationDirect conduit between contractor and
agencyEffective Q&A
Transparency as requirements are shaped or changed
End results match real needsBurden reduced for contracting agency
UPS - CollaborationOnline community built around
actionable opportunitiesAllows multiple businesses to form
meaningful partnershipsBest-practice guidance at all levels – legal, performance, capture, delivery
UPS – Award DataEmpirical link between solicitation
and awarded contractorDependable reportingReal-time availabilityTrue measurement
Jamall LittleMajoring in Business Management
SIFE Student
Jillian ShellardMajoring in Elementary Education
SIFE Student
Limited Education
Natural Disasters
Domestic Disasters
Old Shipping Containers
C.E.L.Connect Educate
Lead
UNF SIFE
C.E.L.
Distance Learning classrooms for the Dominican Republic and
Haiti
Global Disaster Emergency units for immediate deployment
Distance Learning Portable Classrooms
12 computers 12 Chairs Inverter and Battery
System Solar Panel System Security Cabinet 1 Internet Satellite Dish
Network Connection Equipment
Cooking Fans Desk Insulation Lights
Global Disaster Emergency Units
1 propane gas kitchen 1 counter 1 dining table 1 ventilation fan 1 Security Cabinet with
lock
2 Windows Solar Power System
powering 2 light fixtures, 1 electric outlet
Twin bunk bed set 1 Dresser
C.E.L. Benefits
300 jobs in Jacksonville
85 Jobs per month
11 jobs per container
C.E.L. Benefits
$429,083.00 back into the local economy of
Jacksonville
Jacksonville Youth WorksAt risk youth ages 16 - 25
Current Progress
Pananao
Container Shipped by Crowley
Puntacana
Rural school in the Dominican Republic
Named after Prominent Dominican designer, Oscar de la Renta, a founder
along with Julio Iglesias and Frank Rainieri.
The Vision
400 National Disaster Emergency units
360 Distance Learning Portable Classrooms
Retrofitting Classrooms
15 Days to retrofit one container
50 containers can be retrofitted per month
Emergency Retrofitting
11 days to retrofit one container
60 containers can be converted in a month
Portable Classroom Costs
$85,500 per unit including labor
$30,780,000 to retrofit 360 containers
Emergency Unit Costs
Average Cost: $35,000 per unit including labor.
$15,000,000 to build and make available 400 retrofitted
containers
Potential Uses Portable shelters
Temporary housing
Public Sanitation Unit
Portable Electrical Power Generating Units
Dr. Carlton L. RobinsonDirector of Research
President and CEO of the African American Chamber of Commerce
The Online Learning PortalGain
flexibility in
obtaining resources
Convenience
Virtual exchange
for teaming partners
Connect to the Global
Business Village
Flexibility
Procurement System Weaknesses
Limit opportunities that may lead to business
Weakness Examples
Lack of information
Lack of standard procurement system training
Limited access to relevant/timely information
Weakness Examples
• Limited availability (time of day) of training opportunities for small
business owners
• Modality of traditional procurement training limits opportunities and business outside of immediate
region
Opportunity Business
Prime
Teaming
Contrac
t
Information/Training
• Teaming arrangements
between resource partners
• Teaming arrangements between contractors
Partnerships
• Shared training resources
• On-demand procurement related training
Training
Information
• Access
• Connected to viable and immediate
procurement opportunities
• Increased dispersion
• Timeliness
Potential Benefits
Dr. Henry B. ThomasRetired UNF Professor
Co-founder of Umbrella Initiative
Small Business Legal Center Network
Gives small and minority business a ‘legal voice’ with which to defend their statutory
rights
Helps solo and small-firm lawyers to provide quality legal services and handle ethical and
practice dilemmas in the context of procurement justice law
Aids the large number of law school graduates who enter law
schools aspiring to work for the public interest, but, upon graduation, find
themselves debt-ridden or unable to obtain one of the scarce public
service positions.
Law Schools
Facilitate communication between and among law school consortia members
Aggregate, analyze, and disseminate data regarding best practices in ensuring small business access to fairness and justice in
procurement
Law SchoolsSupport community based legal clinics/seminars in
small business procurement capacity-building efforts
Promote the Consortia's mission and identify and recruit new law schools for membership
Develop and share expertise regarding access to small business procurement justice’s best practices.
Legal Center NetworkAddresses:
White Papers
Articles
Legislative Positions
Hearings
Legal Center NetworkCreates additional ‘transparency’ over
‘abusive procurement practices’ through a ‘Contracting Abuse Database’
This database will be similar to the one POGO conceived which eventually became
FAPIIS
Contracting Abuse Database
Allows Small and Disadvantaged businesses to report government units that are alleged
to have engaged in abusive contracting parties
Brings both attention and pressure upon contracting units reported to have engaged in retaliation or have been alleged to have
violated regulations
Size Protests
Must result in tangible benefits for the protestor if they succeed in the protest of a dispute against an
ineligible business
Size ProtestsA successful protestor must receive either the contract which they had
claimed was awarded to an ineligible firm, or ‘future contracts’ for at least twice the amount of the lost contract
for bona-fide needs of the Agency over a negotiated period of time as long as the price offered is fair and
just.
Size Protests
Have never worked as Congress intended because they only deliver ‘illusionary’
justice
Currently an inefficient use of tax payer dollars and a waste of government
resources
Size Protests
The SBA needs to revamp their system as a result of their Size
Standards
“Our mission is to double the number of small and minority businesses
contracting with the federal, state, and local government by 2020.”
“To involve University Professors and Students
in Sustainable Commercial Projects
with Contracting Potential
to help Create Jobs
in Underserved Communities”
“Procurement data that is gathered by, reported, and entered by procurement agencies is often incomplete,
inaccurate, and untimely.”---Daniel Gordon, Administrator of Federal Procurement Policy OMB June 2011---
FY 2007 FY 2008 FY 2009Small
Business Share
Claimed$83.2 Billion
$93.3 Billion
$96.8 Billion
Official Percentage of
Total 21.5% 21.3% 21.8%Realistic Unofficial
Total18.3 – 19.4%
18.1 – 19.2%
18.5 – 19.6%
For videos of the container, please go to:
Celproject.comFor more information on the umbrella
initiative, please go to:
Umbrellainitiative.com