How to Capture Your Share of $1 Trillion Dollars In Public Contracts

2. How to Capture Your Share of $1 Trillion Dollars In Public Contracts Know Your Rights and Your Opportunities

3. Sponsored by:

4. Raul Espinosa • Chief Visionary Officer • Managing Partner of Umbrella Initiative • Founder, FPA and CEO of FitNet

5. “To involve University Professors and Students in Sustainable Commercial Projects with Contracting Potential to help Create Jobs in Underserved Communities”

6. Federal Any business, meeting a very complex 57 page methodology NaFCAthrough their ‘Solution Summits’ has recommended simplification of methodology

7. Small Business

8. 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

9. Federal Level • (According to SBA Size Standards) • Any Business meeting a very complex 57 page methodology

10. Federal Level • Notdominant in their own NAICS code(s) • Employsless than a defined percentage of dominant businesses in a NAICS code(s)

11. Federal Level • Grossesless than a percent of the dominant businesses in a NAICS code(s) • Simplification must incorporate revamping Size Protests, Penalties and Enforcement

12. Disadvantaged Owned/controlled by a Member of a group Congress has determined is underserved

13. Disadvantaged Race, ethnicity and gender are simply characteristicsof the groups Current certification process causes wasteand abuse

14. 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

15. Set Aside Contractsare supposed to: • Established by public agencies • Determined by market research

16. Set Aside Contracts Regulations and Procurement Statutes are supposed toprovide guidance Size Protests are supposed toprevent abuses and safeguard the participation

17. Set Aside Contracts Penalties and their enforcement are supposed todeter abusive practices or barriers Specialized Education on small business issues for contracting workforce is supposed to be available

18. Leveling the Playing Field Eliminating the existing ‘barriers’ or ‘abusive procurement practices’ Enforcing the Existing Laws

19. OUR Constitutional Model Transparency, Technology and Elimination of barriersare 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

20. OUR Constitutional Model Model 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

21. OUR Constitutional Model Focused on guaranteeing “Maximum Practicable Utilization” or MPU, for its target audience Minimizes ‘race-neutral’ schemes because they do notprevent ‘disparities’ nor eliminate ‘barriers’

22. 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

23. Federal Procurement Facts CCR Data = Registered to Contract with the Government (as of 03-2011)

24. Share of Federal Contracts • 23%

25. 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---

26. Florida Procurement Facts

27. The Florida Challenge 1,586 public entities, only 32 offer freepublic access The 32 public entities have processed $9.4 Billion in contracts which still cannot be tracked

28. The Florida Challenge System not designed for procurement The state currently cannot confirm how much it can spend onpublic contracts

29. The Florida Challenge An archaic and duplicative registration/certification process prevents progress Lack of trackingresults prevents goals and objectives

30. The Florida Challenge Nocentralized procurement training Disparities abound which require costly studies to justify ‘set-asides’

31. The Florida Challenge The racial-neutral One Florida Initiative must be either strengthened or replaced

32. 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

33. The Florida Opportunity • Economic development, federal and private funding are availablefor such efforts • “The Portal” will create jobs, teaming arrangements and allow for replication in other states

34. 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

35. The Florida Opportunity • The cooperation of ALL1,586 public entities in the State is badly needed for this undertaking

36. The Florida Opportunity • Our Lieutenant Governor, Jennifer Carroll, who is supporting our effort has said: • “The Umbrella Initiative offers actual solutions with measurable resultsto a State dilemma the Governor intends to solve.”

37. Mission • “To Double the Number of Small and Minority BusinessesContracting with the Federal, State and Local Governments by the Year 2020”

38. Ryan Reid • Chief Technical Officer • Founder of NetQuarry

39. The Umbrella Initiative Portal

40. The System Today • Data fragmented, varied, individual silos • Built for the contracting agency • Missing market research capability • No centralized registration • No communication conduit • No collaboration network • No empirical award data

41. Today – Individual Silos • Multiple websites for opportunities • Every website is different • Authentication isn’t shared and must be remembered • The small business contractor burden is high

42. Today – Agency Focused • Not designed with the contractors needs in mind. • No “best practice” guidelines for small business. • Proper response process is mysterious • Small Businesses are lost

43. Today – Market Research • No established process for procurement strategy (e.g. Set Asides) • Market research cannot be measured • Small business is unable to influence strategy • Burden on the contracting agency is overwhelming

44. Today – Registration • No central registration system • Makes empirical award data impossible • No way to communicate to the vendor community • Market research participation cannot be measured

45. Today - Communication • No direct conduit between contractor and contracting agency • Best case: summarized, advertised Q&A • Worst case: no Q&A • Result is mystery and poor results

46. Today – Award Data • No empirical award data • Requires: • Centralized Registration • Centralized Procurement Advertisement • Actual procurement costs are impossible to measure

47. Today – Collaboration • Larger opportunities require effective teams • Today - general purpose partnerships only – largely ineffective • No actionable opportunities to form meaningful teams around • No scalable, available, networking community

48. The UPS Solution • Centralized location for all solicitation data • Tools for BOTH contractor and contracting agency • Simple, transparent market research • Single central registration system • Direct communication • Empirical Award Data

49. UPS – Centralized Data • All data available in one location • Single authentication, single interface • NOT a wholesale replacement! Current systems remain the same. • Agencies without any system can participate

50. 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