Best Practices for Identifying and Utilizing DBE’s

Best Practices for Identifying and Utilizing DBE’s USDOT/FTA “DOORS” Program, Minneapolis, MN Roberto Cornelio, Great Lakes Region OSDBU/SBTRC

Why work with DBE’s? • Yes, it’s an obligation for it’s also a great opportunity • Represents an opportunity to invest taxpayer dollars to generate local economic development and job creation • Represents an opportunity to invest in and help local firms grow and develop the ability to compete for opportunities in other areas, creating additional jobs in your community

How can you help DBE’s…get to the next level? • Identify talented DBE’s who’ve performed at a high level and groom them to access larger opportunities • Consider establishing programs, including a Mentor/Protégé program that pairs up DBE’s with larger firms committed to supporting their growth • Consider programs to reward larger firms who commit to helping DBE’s grow i.e. extra points

How can you help DBE’s? • Know who they are and know their • Capacity • Challenges • Opportunities • Examine your internal process to identify opportunities that match DBE’s capacity…are the same companies always winning the bids? • Ensure that DBE’s fully understand your procurement process • Ensure that there are services and assistance designed to provide DBE’s with the right technical assistance and support…services that truly meet their needs

How can you help DBE’s? • Ensure that DBE’s understand precisely what it will take for them to perform and be successful. Ask the questions: • Does the DBE have access to financing to carry the cost of materials? • Does the DBE have access to financing to cover payroll until it receives payment?

How can you help DBE’s? • Conduct targeted outreach to ensure you’re reaching the DBE’s with greatest potential for success • Host “one-on-one” matchmaking sessions with promising DBE’s to ensure they have all of the information they need and that all of their questions are answered • Identify opportunities for DBE’s to pair up with others, including other DBE’s to increase their competitiveness

How can you help DBE’s? • Monitor Prime/DBE Subcontractor relationships to ensure that: • DBE’s are performing as agreed • DBE’s are being paid as agreed • Partner with credible assist agencies that can help you identify vetted DBE’s receiving the strategic advice and consulting services that will make them successful. Let them help you find the right DBE’s

Best Practices for DBE’s USDOT/FTA “DOORS” Program, Minneapolis, MN Roberto Cornelio, Great Lakes Region OSDBU/SBTRC

Best Practices for DBE’s • Are you ready to do business? • Do you have the strongest possible foundation for your business that will enable you to perform and to grow? • Have you done an objective assessment of your capacity? What size project can you really handle? • Do you have access to the capital that you will need to finance a project?Do you have a cash flow projection?

Best Practices for DBE’s Are you ready to do business? • Do you have an operations plan that will allow you to seamlessly deliver on the project? • Do you have a plan to hire, train and retain the people that you will need to deliver on the project? • Do you have the internal infrastructure and capacity to ensure that all necessary paperwork required for payment will be completed and submitted on time to ensure you get paid? • Do you have an attorney who will help you read/understand/negotiate your contract?

Best Practices for DBE’s • Are you staying ready? • Are you taking advantage of the various forms of free assistance that are available to you? • State DOT Supportive Services programs • SBA programs including Small Business Development Centers and SCORE • DOD’s Procurement Technical Assistance Centers • USDOT’s Small Business Transportation Resource Center • Chambers of Commerce and Business/Trade Associations programs

Best Practices for DBE’s Are you staying ready? • Are you making sure that these assistance programs know what you really need to compete and be successful? • Are you making sure that procurement officials know who you are and what you can do? • Are you making adjustments/changing your strategy as you move forward?

Winning the Bid • Are you getting frequent/timely information about upcoming opportunities? Longer term opportunities? Do you know where the money is being spent and where it will be spent? • Are you evaluating opportunities on an ongoing basis to ensure that they are consistent with your capacity? • Do you have boilerplate language for your bids and proposals?

Winning the Bid • Do you know how the agency’s procurement process works? • Who reviews proposals? • Who makes recommendations? • Who makes the final decision? • Do any of these people know who you are? • Are there unique things in the procurement process that concern you? Are you recommending that changes be made?

Winning the Bid • How do you find the Primes with whom to partner? • How do they find you? • Do you vet the Primes? • How do they vet you? • What kind of relationship do you try to build with the Primes? Are you a partner or a sub? Can you become a joint venture partner?

Winning the Bid • Have you thought about teaming up with other DBE’s who have your or greater capacity? • Tried putting together your own “Dream Team”? • Finally, are you making plans for and getting ready for life after graduation?

Best Practices for Identifying and Utilizing DBE’s