Certification Programs for Business Enterprises nyc/getcertified

1. Certification Programs for Business Enterprises www.nyc.gov/getcertified

2. The New York City Certification Programs • Contents • Background of the NYC M/WBE Program • Benefits of Certification • Requirements for the M/WBE Program • Application Process • What to Expect • Fast Track Application • Other Certification Programs – EBE and LBE • Assistance

3. 1992 The City’s first M/WBE Program is created to make it easier for buyers inside City agencies to identify NYC-certified M/WBEs that sell the goods/services they purchase 1994 Court challenges and administration changes force program into a dormant period 1998 Formal utilization goals end in 1998 2003 Executive Order 36 re-instates the City’s commitment to raise awareness of M/WBE certification, holds agencies accountable for M/WBE utilization, and remedies challenges historically faced by M/WBEs 2005 Mason Tillman Associatesreleases disparity study findings, providing concrete data and creating momentum for further action Executive Order 71provides a legal platform for the creation of an aggressive and comprehensive M/WBE program In December, Mayor Bloomberg signed Local Law 129 of 2005, creating an M/WBE program to actively reduce disparity for minorities and women and to ensure fair participation and equal opportunity in City purchasing Implementation The Past: M/WBE Timeline

4. The Present: LBE, Local Law 129 of 2005, and Local Law 12 of 2006 • Establishing Citywide contracting goals • by industry, ethnicity and gender, M/WBE • without regard to ethnicity or gender, EBE • 10%, solely for construction trades, LBE • Committing resources to helping certified companies grow • Added more staff working for M/W/EBEs • Streamlined certification applications and made it easier for companies to apply • Created training, development and mentorship programs geared toward helping M/W/L/EBEs compete and succeed • Holding agencies accountable • Developed technology to ensure that use of M/W/EBEs is quantified and reported • Established annual M/WBE plan to detail agencies’ commitment to buying from certified firms

5. Benefits of Certification ProgramsWhy get certified? Free services offered to all certified companies: • A procurement counselor to assist with the City purchasing process • Expert advice and assistance on bids and proposals • Business development classes on City contracting • Events to help firms build networks with City agencies and large contractors • Bid notifications by email • Online Directory of Certified Companies: www.nyc.gov/buycertified

6. Benefits of the M/WBE ProgramWhy get certified? The value of contracts won after direct assistance has increased substantially since Local Law 129 took effect. Total Dollar Value of Contracts Awarded to M/WBEs ($ millions) $236 • The number of contracts won increased from 1,153 in 2006 to 3,251 in 2007 to 4,283 in 2008.

7. Benefits of the M/WBE ProgramWhy get certified? Successful Certified Companies • Certified MBE selling office equipment, computers and janitorial supplies • 2006 M/WBE of the Year Award • City agencies like the DEP, the DHS, and the NYPD rely on Ebony Office Products to fill rush orders for the items that keep their offices running. • Won approximately $378,000 in City contracts in FY 2008 and $351,000 in FY 2007 • Owner, Michael Ukhueduan, says” Certification is good to have because the City wants to do more business with minority and women businesses.” Ebony Office Products Certified MBE Ebony Office Products Certified MBE • Certified MBE company providing computer repair, networking, and cabling services • Received assistance in marketing and attended networking events • Compulink works with City agencies ranging from the Sanitation Department to the MTA • Won approximately $1,100, 000 in City contracts in FY 2007 • Owner, Rafeal Arboleda, says “They have shown me how best to navigate the City’s procurement process…events, such as this past June’s Procurement Fair, allow me to have face-to-face interactions with a number of government agencies.” Compulink Technologies Certified MBE

8. Eligibility Requirements – M/WBE ProgramWho can become certified? The Department of Small Business Services’ Minority and Women-owned Business Enterprise (M/WBE) Program certifies businesses owned, operated, and controlled by women or by designated minorities. The program is designed to help generate growth opportunities for these businesses. • Eligibility Requirements: • To qualify for certification into the M/WBE program, a company must be: • In business for at least one year. Royal Cleaning Service Inc. Certifed MBE • At least51% owned, operated, and controlled by women or by members of recognized minority groups, including Asians, Blacks, Hispanics, and Native Americans. • Located in New York City or one of the following surrounding counties: NY: Nassau, Putnam, Rockland, Suffolk, Westchester NJ: Bergen, Essex, Passaic • *If the company is located outside of New York City and the counties listed above, it must have a significant tie to the City's business community (e.g., have derived 25% or more of gross receipts from business conducted in the City, possess a license issued by the City, have a bank account in the City, etc.)

9. Eligibility RequirementsWho can become certified? When determining eligibility, keep in mind these key points: • Brokers are generally not eligible for certification. • Franchisees controlled by the franchiser and not-for-profit organizations are ineligible for certification. • Under Local Law 129 of 2005, owners of Spanish and Portuguese origins are not considered minorities. • Eligible owner(s) must direct and control day-to-day operations of the company.

10. Recommended SectorsWho does the City buy from? In addition to the basic eligibility requirements, sector is a crucial factor in determining to what extent businesses will benefit from M/WBE Certification Not a Fit The City rarely makes purchases from businesses in the following sectors: • Restaurants • Retail Largest Sectors The City regularly makes purchases from businesses in the following sectors: • Construction • Carpenters, painters, electricians, etc. • Professional Services • Accountants, lawyers, consultants, etc. • Non-Skilled Services • Janitorial, maintenance, etc. • Goods/Products

11. Application ProcessStep 1: Register to do business with NYC government • Complete Vendor Enrollment Application online at www.nyc.gov/selltonyc • For assistance, call the Vendor Enrollment Center at 212-857-1680

12. Application ProcessStep 1: Register to do business with NYC government How to Complete FMS Vendor Enrollment • Vendor Enrollment Application is an online form of the City’s Financial Management System (FMS) • Application has 9 questions about the company and a contact person • At Question 9, company must select NIGP codes that identify the products and/or services it wants to sell to City government • Companies must respond to email bid solicitations or risk not getting future solicitations • To make updates to NIGP codes, contact the Vendor Enrollment Center at: 212-857-1680 Snapshots of bidder list of products/services codes. There are thousands of codes available.

13. Tips for Selecting NIGP Codes Be specific, not general • Browse a copy of the NIGP code directory before applying for FMS Vendor ID number. Don’t over select or under select codes • Select specific codes, not category codes • Select codes for services the company has performed repeatedly and best • Select codes for products the company has sold in bulk and competitively View choices made by similar businesses using the Online Directory of Certified Companies • Look at your competitors’ codes Remember, services are often more marketable to NYC government than products • If as part of your service you sell products, register only the service

14. Application Process Step 2: Complete the certification application • Certification Applications available online at: www.nyc.gov/getcertifed or contact the Certification Helpline 212-513-6311

15. Application ProcessThe certification application Sections of the Certification Application

16. Application ProcessThe certification application:documentation (1) Mandatory Documentation Checklist *Note: During the review process, additional documents may be requested to determine company’s eligibility. 1. Resumes for each person with ownership interest or who holds any key managerial position • No biography paragraphs 2. Bank signature card (copy of signature card or letter from bank identifying all persons authorized to sign on each account and any limitations or conditions on signatures) 3. Prior three (3) years of business Federal, State, and City tax returns, including all schedules and attachments, as filed with the relevant tax authority. • 2 years of personal returns as substitute if 3 years of business returns not available • At least 1 year of business returns is required. 4. Prior two (2) years of personal tax returns (1040’s) for each person with ownership interest, including all applicable W-2 forms and schedules. • Not required for the initial submission of the application except as stated in 3. above • May be requested during the review process, in addition to business returns

17. Application ProcessThe certification application:documentation (2) Mandatory Documentation Checklist (continued) 5. Proof of U.S. Citizenship for each person with ownership interest (passport, birth certificate, naturalization certificate) or Permanent Resident Alien Status (Green Card) 6. Proof of ethnicity for each person with ownership interest (passport, certificate of live birth (if born in U.S.A.), naturalization certificate or Permanent Resident Alien Status (Green Card)) • Not about nationality, it is about ethnicity and/or race, except for Hispanics where country of origin is one consideration among others 7. Copies of licenses, permits, and certifications (See question 35) • All required by law to do business in your profession, trade, or line of business • Any that document appropriate training, credentials, etc. 8. Lease agreement or proof of ownership (deed) for all business location(s) • Multiple if applicable 9. Other agreements showing business activity (equipment leases, purchase agreements, utility bills for three months, management service agreements, accounting or legal agreements, etc.)

18. Application ProcessThe certification application:documentation (3) Mandatory Documentation Checklist (continued) 10. Copy of two (2) or more completed contracts or detailed invoices dated within the last three (3) years and within the five (5) boroughs of New York City 11. Vehicle registration(s) for any vehicle owned by the business or used for business purposes 12. Proof of bonding capacity (if applicable) • Applies to construction, technology/telecommunications, real estate, and finance 13. Proof of any certification (including SBA 8(a)), decertification, or denial from another governmental agency, department, or authority (See question 13) • Multiple if applicable • Withholding of decertification or denial is sufficient cause for denial 14. Proof of sources of capitalization or investment (major purchases receipts, any loan agreements, proof of major or recurring expenses specific to and significant in the business, etc.)

19. Application ProcessThe certification application:documentation (4) Mandatory Documentation Checklist (continued) 15. Current financial statement (statement of cash flows, balance sheet, or profit and loss statement) Balance Sheet

20. Application ProcessThe certification application: documentation (5) Note: Only sole proprietors doing business in their own name do not need any of the above documents.

21. What to Expect Certification process can take two weeks to three months Application received Initial review by Analyst Incomplete Application Complete Application w/ all requested documents 1st Notice of Deficiency 30 days to respond If application is completed w/all requested documents Audit Yes or No 2nd & Final Notice of Deficiency 30 days to respond Analyst’s Recommendation Applicant may withdraw prior to Analyst’s Recommendation-No waiting period Assoc. Dir. reviews to Certify or Deny Insufficient response If certified, will be for 5yrs. Welcome Kit sent out. Yr. No changeAffidavit sent out If denied, 30 days to appeal If deny is upheld-wait 2 yrs. If deny is overruled-firm certifies Rejected - Wait 120 days

22. Fast Track ApplicationExpedited certification process Company may be eligible to submit a “1,2,3” application form, if currently certified as an MBE, WBE, or LBE by one of the following organizations and has sufficient time remaining in that certification: • New York City School Construction Authority At least 1 year remaining • The Port Authority of New York and New JerseyAt least1 year remaining • Women President's Educational OrganizationAt least3 months remaining • New York & New Jersey Minority Supplier Development Council, Inc.At least3 months remaining • New York State Department of Economic Development, Division of Minority & Women's Business Development (DMWBD) At least1 year remaining and (re)-certified after 2/16/2005 1,2,3 Fast track applications are distributed by the certifying partner entities.

23. Other Certification ProgramsLBE and EBE The Department of Small Business Services’ Emerging Business Enterprise (EBE) Program certifies businesses owned, operated, and controlled at least 51% by individuals who are socially and economically disadvantaged. Like the M/WBE Program, the EBE Program is designed to level the playing field for disadvantaged business owners. The company portion of the EBE application form exactly parallels that of the M/WBE Program, omitting all questions of race, gender, or ethnicity. Objective personal characteristics must be documented as the basis for discrimination experienced by the company’s majority owner(s). For more information, contact the Certification Helpline at 212-513-6311 or email at: ebe @sbs.nyc.gov Locally-Based Enterprise (LBE) • The Department of Small Business Services’ Locally-Based Enterprise Program (LBE) works to ensure that firms performing at least 25% of their work in economically disadvantaged areas of New York City, get preference for subcontracting opportunities with prime contractors who are awarded construction contracts funded by City Tax Levy dollars. • For more information, contact the Certification Helpline at 212-513-6311 or email at: lbe@sbs.nyc.gov Emerging Business Enterprise (EBE)

24. Assistance • Certification Application forms and information available online at: www.nyc.gov/getcertifed or contact the Certification Help Line 212 – 513 – 6311 or request via email: mwbe@sbs.nyc.gov ebe@sbs.nyc.gov lbe@sbs.nyc.gov • Certification Prep Course Register online at: www.nyc.gov/helpmecertify Offered twice each month • Document Review Workshop • Offered semi-annually. Prerequisite: Certification Prep Course