STATE CERTIFICATION
20th Annual SADBOC Government Procurement Fair
April 18, 2019
OFFICE OF EQUITY IN PROCUREMENT
TAMMY GAGLIOTI
Vendor Specialist
651.201.2430
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: [email protected]
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
• Babatope Adedayo, 651-201-2406
• Aaron Anderson, 651-201-2401
• Amondo Dickerson, 651-201-2408
• Tammy Gaglioti, 651-201-2430
• Sheila Scott, 651-201-2428
CONTACT INFORMATION
For information regarding the Minnesota Small Business Procurement Program:
• Office of Equity in Procurement/Vendor Kiosk
651.201.2402
email: [email protected]
• OSP HelpLine
651.296.2600
email: [email protected]
Questions?
Tammy Gaglioti | Vendor Specialist
