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STATE CERTIFICATION

20th Annual SADBOC Government Procurement Fair

April 18, 2019

OFFICE OF EQUITY IN PROCUREMENT

TAMMY GAGLIOTI

Vendor Specialist

651.201.2430

Tammy.Gaglioti@state.mn.us

Department of Administration

Office of State Procurement

Office of Equity in Procurement

STATE OF MINNESOTA PROCUREMENT

AUTHORITY

Minnesota Statutes 16C

Minnesota Rules 1230

Judicial Case Law

• Former Governor Mark Dayton issued Executive Order 15-02 (January 2015) and Executive Order 16-01 (January 2016)

• Established and reaffirmed the Diversity and Inclusion Council:

• Employment Practices Committee

• Contracting Practices Committee

• Civic Engagement Practices Committee

EQUITY AND DIVERSITY

EQUITY AND DIVERSITY

“In Minnesota, we know we are all better off together. Our state must be a leader in ensuring that everyone has an opportunity to thrive. Disparities in Minnesota, including those based on race, geography, and economic status, keep our entire state from reaching its full potential.”

~Governor Tim Walz, Executive Order 19-01~

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EQUITY AND DIVERSITY

Governor Walz’s Executive Order establishes the One Minnesota Council on Diversity, Inclusion and Equity.

This council is comprised of:• the Governor’s Chief Inclusion Officer (the Chair);

• the Governor’s Deputy Chief of Staff for Public Engagement and Outreach (the Vice Chair), and

• commissioners from cabinet agencies as selected by the Governor, as well as voices from the community.

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STATE OF MINNESOTA PROCUREMENT

Approximately $2.3 billion spent on:

Goods

General Services

Construction

Professional Services

Technical Services

TOP SPEND CATEGORIES IN FY18

• Highways and Bridges ‐ $615 million

• Non‐IT professional/technical services (e.g., architects, engineers, medical) ‐ $340 million

• Supplies (pens, paper, computer hardware) ‐ $178 million

• Equipment (vehicles, servers, road graders) ‐ $119 million

• Computer and system services (LAN, WAN, web hosting, data storage) ‐ $166 million

• Space rental and utilities (building leases, electricity, water) ‐ $167 million

• IT professional/technical services (IT consultants, programmers) ‐ $125 million

• Communication (telephones, UPS/FedEx, postage) ‐ $57 million

• Building and Improvements (remodeling, repairs, HVAC, electrical work) ‐ $39 million

• Printing and Advertising ‐ $14 million

MINNESOTA SMALL BUSINESS PROCUREMENT PROGRAM

A statewide purchasing program for certified socially and economically disadvantaged small businesses

The size of a business is determined using the Small Business Administration’s size standards in Code of Federal Regulations, Title 49, section 26.65, available on our website: http://www.mmd.admin.state.mn.us/sicsize.asp

MINNESOTA SMALL BUSINESS PROCUREMENT PROGRAM

Sample size standards (in millions of $)

Most Manufacturing 23.98

Many Retail, Caterers 7.50

Computer Training 11.00

Engineering/Scientific 15.00

Travel Agencies 20.50

MINNESOTA SMALL BUSINESS PROCUREMENT PROGRAM

Three certifications:

Targeted Group (TG)

Economically Disadvantaged (ED)

Veteran-Owned (VO)

MINNESOTA SMALL BUSINESS PROCUREMENT PROGRAM

Eligibility requirements for all three certifications:

Must be a for-profit small business

Must be based in Minnesota

Must meet the financial size standards

Must be majority owned by qualified person(s)

The qualified owner must have the expertise to control the management and operation of the business

TARGETED GROUPS (TG)

2017 DISPARITY STUDYhttps://mn.gov/admin/disparity-study/

What barriers exist

Availability of TG businesses

Recommend programs to:

Remedy effects of disparities

Reduce/eliminate barriers

DISPARITY STUDY 2017

• The State of Minnesota

• The Metropolitan Council

• The Metropolitan Airports Commission

• The Mosquito Control District

• Minnesota Sports Facilities Authority

• Minnesota State Colleges and Universities

• The City of St. Paul

• The City of Minneapolis

• Hennepin County

• Other various state and local government units

Participants included:

DISPARITY STUDY 2017

• One Portal

• Outreach

• Virtual Assistance Portal

• Financial & Technical Assistance

• Public Procurement

• Best Practices

• Legislative

• Advancing Equity in Employment

Subcommittees have been formed to address the recommendations from the Disparity Study, including:

TARGETED GROUPS (TG)

Ethnic minorities:

• Black American

• Hispanic American

• Asian Pacific American

• Subcontinent Asian American

• Indigenous American

Non-minority women

Persons with a substantial physical disability

Targeted Group businesses must be at least 51% owned, operated and controlled by:

TARGETED GROUPS (TG)

Two ways to become certified:

1. a) If your business is certified as a Disadvantaged Business Enterprise (DBE) through the Minnesota Unified Certification Program (MNUCP), and your

b) Principal place of business is in Minnesota, then

c) Complete an affidavit provided by OEP; or

2. Small Business Application Process

ECONOMICALLY DISADVANTAGED (ED)

Business must be located in, or owner must reside in:

Labor Surplus Counties – counties designated as labor surplus areas by the US Department of Labor

Low Median Income Counties – counties in which the median income for married couples is less than 70 percent of the state median income for married couples

Rehabilitation Facilities - facilitate employment for persons with a severe disability

ECONOMICALLY DISADVANTAGED (ED)

ECONOMICALLY DISADVANTAGED (ED)

ECONOMICALLY DISADVANTAGED (ED)

One way to become certified:

1. Small Business Application Process

VETERAN OWNED (VO)

Includes:

Veteran-Owned Small Business (VOSB)

Service-Disabled Veteran-Owned Small Business (SDVOSB)

VETERAN OWNED (VO)

Two ways to become certified:

1. WWW.VIP.VETBIZ.VA.GOV

a) If you are already certified as a VOSB or SDVOSB by the U.S. Department of Veterans Affairs, are listed on their website, and your

b) Principal place of business is in Minnesota, then

c) Complete an affidavit provided by OEP.

VETERAN OWNED (VO)

2. Small Business Application Process, with an additional step:

a) Submit Minnesota Department of Veterans Affairs (MDVA) Veteran Verification Request along with required documentation to the MDVA:

https://mn.gov/mdva/resources/employment/veteransasbusinessowners.jsp

b) Receive verification letter from MDVA

VENDOR REGISTRATION

First step to doing business with the State of Minnesota:

Become a State of Minnesota Vendor – Register in SWIFT:

http://supplier.swift.state.mn.us

VENDOR REGISTRATION

Every individual or business wishing to do business with the state is considered to be a vendor and must register.

Supplier Portal is part of SWIFT:

• Maintain address and contact information

• Set up automatic bid notices

• Bid on contracts

• View payment details for work performed on a state contract

Complete the application on the Small Business Certification Portal: https://sbcp.mn.gov/

Can apply for certification with the state, with the DBE program, and with the CERT program through this portal.

APPLICATION PROCESS

APPLICATION PROCESS

APPLICATION PROCESS – HELPFUL TIPS

SUGGESTIONS:

Register as a state vendor first

Email address: Business appropriate

NOTE: Email and phone messages should be checked at least daily

Business description: Details, buzz words

Website

APPLICATION PROCESS – HELPFUL TIPS

SUGGESTIONS (continued):

Make use of business advisors:

PTAC: Christina.Nebel-Dickerson@state.mn.us

www.mn.gov/admin/ptac

DEED Small Business: http://mn.gov/deed/business/

Attorney: http://www.mnbar.org/

APPLICATION PROCESS

COMMON ISSUES:

Ownership: Must be at least 51%

Stocks/percentage of ownership

Copy roster & both sides of stock certificates

Top position: CEO/President

Missing documents: All on list must be accounted for

APPLICATION PROCESS

COMMON ISSUES (continued):

Correct documents:

SOS certificate

Appropriate governance documents – accurately reflect control

Business bank account

Resume – chronological

Using personal SSN

APPLICATION TIMELINE

Submit the application through the Small Business Certification

Portal, including all applicable supplemental information

Certification process can take approximately 8-10 weeks

Receive your certification letter and certification logos

TG/ED/VO Directory listing/SWIFT designation: Immediate

BENEFITS OF CERTIFICATION

Certified Small Businesses may receive preference up to:

Targeted Groups (TG) 6%

Economically Disadvantaged (ED) 6%

Veteran Owned (VO) 6%

Preference applies to the first $2,000,000 of the contract

TG/ED/VO DIRECTORY

TG/ED/VO DIRECTORY

TG/ED/VO DIRECTORY

BENEFITS OF CERTIFICATION

TG/ED/VO certification may be used by MnDOT, the Metropolitan Council, and the Metropolitan Airports Commission for their non-federally funded purchases

Other states, counties, municipalities and government agencies verify eligibility through our program

Some major corporations with programs for women and minorities accept our certification

Certification is free!

Direct Select:

• Up to $5,000

Equity Select:

• Up to $25,000 for TG/ED/VO

TG/ED/VO business names are listed at the top of multiple award contracts, designated with *

BENEFITS OF CERTIFICATION

As of July 1, 2016, goals can apply to TG, ED, VO or combination.

Small Business Goals are set on some:

• Construction contracts

• Professional/Technical contracts

BENEFITS OF CERTIFICATION

BENEFITS OF CERTIFICATION

• Sheltered Market – can be used if it is determined that there are at least 3 TG, ED and/or VO firms that are interested in bidding.

• Projects are reviewed, and appropriate TG, ED and/or VO firms are contacted, to determine if there are at least 3 certified firms that are interested in bidding.

• If there are, then the project is eligible for Sheltered Market and ONLY certified firms may respond to the solicitation.

Vendor is responsible to report to both SWIFT and to TG/ED/VO:

Changes in address, phone, email, website

Changes in ownership

Changes in scope of work/NAICS codes

Updating business description.

CERTIFICATION UPDATES

RECERTIFICATION:

Every 2 years (approximately)

Recertification request will be sent to your email address

Respond within 2 weeks

If you are certified based on being DBE or USDVA verified, we will check your status and automatically recertify your company as long as you remain DBE- or USDVA-certified

CERTIFICATION UPDATES

mn.gov/admin/OSP

SOLICITATIONS

• Goods, Services, Construction

www.mmd.admin.state.mn.us/solicitations.htm

• Professional Technical

State Register (Current Issue) available online at: www.mn.gov/admin/bookstore/register.jsp

• Construction

Franz Reprographics: https://www.ipdservices.com/clients/MMD/

mn.gov/admin/OSP

VENDOR KIOSK

• OEP’s Vendor Kiosk is available to provide one-on-one assistance with a variety of tasks:

• Answering questions about the TG/ED/VO program, review of application materials

• Registering for a MN Vendor ID number

• How to maintain vendor contact information

• Selecting appropriate category codes

• Helping vendors learn how to do business with the State

• Locating and downloading solicitation materials

• Referral to appropriate small business resources

OFFICE OF EQUITY IN PROCUREMENT TEAM (OEP)

• Igbal Mohammed, Supervisor, 651-201-2421

Igbal.Mohammed@state.mn.us

• Babatope Adedayo, 651-201-2406

Babatope.Adedayo@state.mn.us

• Aaron Anderson, 651-201-2401

Aaron.Anderson@state.mn.us

• Amondo Dickerson, 651-201-2408

Amondo.Dickerson@state.mn.us

• Tammy Gaglioti, 651-201-2430

Tammy.Gaglioti@state.mn.us

• Sheila Scott, 651-201-2428

Sheila.Scott@state.mn.us

CONTACT INFORMATION

For information regarding the Minnesota Small Business Procurement Program:

• Office of Equity in Procurement/Vendor Kiosk

651.201.2402

email: Procurement.Equity@state.mn.us

• OSP HelpLine

651.296.2600

email: mmdhelp.line@state.mn.us

Questions?

Tammy Gaglioti | Vendor Specialist

Thank you again!

Tammy Gaglioti

Tammy.Gaglioti@state.mn.us

651.201.2430