PRESENTED BY

OFFICIAL MEDIA SPONSOR

WELCOME

Jason Dunn

Chairman

Southwest Ohio Regional

Transit Authority

WELCOME

Wendell Young

Councilmember

City of Cincinnati

KEYNOTE ADDRESS

Joe Allen

General Manager

Global Operations

General Electric

WELCOME

Harry Black

City Manager

City of Cincinnati

SMALL BUSINESS ENTERPRISE

PROGRAM

Rochelle Thompson

Contract Compliance Officer

City of Cincinnati

SMALL BUSINESS ENTERPRISE PROGRAM

www.cincinnati-oh.gov/purchasing/registration/small-business-enterprise-

certification/

Starting Nov. 1: https://cincinnati.diversitycompliance.com/

SMALL BUSINESS ENTERPRISE PROGRAM

THE CITY’S SMALL BUSINESS ENTERPRISE PROGRAM IS RACE AND GENDER NEUTRAL. ITS PURPOSE IS TO PROMOTE FULL AND EQUAL BUSINESS OPPORTUNITIES FOR ALL PERSONS DOING BUSINESS WITH THE CITY OF CINCINNATI BY ASSISTING SBEs TO ACTIVELY PARTICIPATE IN THE CITY PROCUREMENT PROCESS.

SMALL BUSINESS ENTERPRISE PROGRAM

1) Office of Contract Compliance Duties (Amend CMC 323-15)

OCC responsible for administration and enforcement of the SBE Program Rules and Regulations

Enforce Outreach Certification Report

Track

Monitor Process

SBE

Applications

Maintain

Data

Direct

Assistance

Review

Good Faith

Efforts

Investigate

Violations

Business

Resource

SMALL BUSINESS ENTERPRISE PROGRAM

2) SBE Program Total Spend Goals for Construction, Professional Services, Supplies/Services (Amend CMC 323-7)

Category Goals Construction 30% Professional Services 15% Supplies/Services 15%

SMALL BUSINESS ENTERPRISE PROGRAM

3) Subcontracting Outreach Program (Amend CMC 323-31)

Applies to contracts at $100,000 or greater

SBE Goals Also Apply To Our Large Vendors – SBEs Provide the Competitive Advantage

4) Streamlined Certification Process Approves a certification agency which predominately meets the City’s requirements so long as the applicant firm provides all additional information that is required by the City. Contract Compliance Officer approves certification agencies for the Process. State of Ohio EDGE and SBA 8(a) Program certifications are authorized

SMALL BUSINESS ENTERPRISE PROGRAM

5) City’s Certification Processes….. 1)Expedite (Self-certification) for companies bidding on contracts, purchase orders, projects under $50,000. Online version and Hard copy

2)Fast Track (Streamlined) Certification application – 1 page application, affidavit, copy of approved certificate

3)Full-certification – no dollar limit threshold for bidding, requires industry standard documents (taxes, personal financial statements and documents unique to business structure.

4)Renewal application – each certified company wishing to keep certification must renew every two years. Same process as initial certification.

SMALL BUSINESS ENTERPRISE PROGRAM

6) City’s SBE Eligibility Requirements for certification….. A) Been in existence for at least one year;

B) Have maintained a fixed office location in Hamilton County for one year prior to application;

C) Must meet the size standards as established by C.M.C. 323-1-S.;

D) Must perform a commercially useful function;

E) The personal net worth of each owner of the business seeking certification cannot exceed $750,000;

F) Each owner must be a U.S. citizen;

G) Must be certified by the City.

SMALL BUSINESS ENTERPRISE PROGRAM

Category SBE Spend

Non-SBE

Spend All Spend

%SBE

Spend

Construction $32,318,767 $73,835,387 $106,154,153 30.4%

Prof. Services $4,658,418 $21,564,626 $26,223,044 17.8%

Supplies/

Services $3,812,203 $33,624,424 $37,436,627 10.2%

Total $40,789,387 $129,024,437 $169,813,824 24.0%

2013 SBE Annual Spend

DOING BUSINESS WITH THE

CITY OF CINCINNATI

Michael L. Cervay

City Purchasing Agent

City of Cincinnati

Slide 17

Doing Business with the City of

Cincinnati and the Bidding

Process

Economic Inclusion

Vendor Fair

October 29, 2014

City of Cincinnati Finance Department Purchasing Division

Michael L. Cervay City Purchasing Agent

Slide 18

Purchasing Objectives • Uphold Cincinnati Municipal Code Chapter 321

requirements

• Insure “Best Practice” in the procurement area

• Secure the needs of the City

• Get “best value” for the taxpayers’ dollars

• Support Inclusion

– Partner with SRL Consultants

– Open Cincinnati Task Force Recommendations

Slide 19

The Starting Point for Vendors • City of Cincinnati Vendor Self Service (VSS) at

www.cincinnati-oh.gov/vss – Register vendors

– Register by commodity code

– Receive email notification of bid opportunities for registered commodities

– View invitations to bid online

– Submit online bids for demolitions

– Vendors are paid through VSS

• Obtain SBE Certification if applicable (Office of Contract and Compliance)

Slide 20

Where Vendors Can Get Bid Information

• VSS online at www.cincinnati-oh.gov/vss

• By calling the Purchasing Division front desk at 513-352-3209 or Purchasing 24-hour hotline (513-352-BIDS)

• List of current bids located in the Purchasing lobby during regular office hours – updated daily

• City Bulletin

• Weekly notification sent to certified SBEs

CONTRACTING PROCESS

TYPE COMPETITIVE

BID AWARD

CRITERIA ADVERTISING

REQUIREMENTS BID/PERFORMANCE

SURETY AUTHORITY

Decentralized

<$5,000

Not Required Must be awarded to a SBE in the commodity (CMC Sec. 321-38)

Not required Only required for demolition

321-11

Quotes

>$5,000 <$50,000

2 SBE quotes but no more than 3 written quotes

Must be awarded to the lowest/best SBE in the commodity (CMC Sec. 321-38)

Not required Only required for demolition

321-13

Informal

>$50,000 <$250,000

Must be competitively bid

Lowest and Best (CMC Sec. 321-37)

Minimum of 1 week None unless construction >50K or any demolition

321-15

Formal

>$250,000

Must be competitively bid

Lowest and Best (CMC Sec. 321-37)

Minimum of 2 weeks

10% of bid amount (bid surety); 100% of contract amount (performance surety)

321-17

Professional Services

Competitively solicited, unless granted a waiver of Admin Reg. 23

Most Advantageous to the City (CMC Sec. 321-65)

Advertising requirements follow the dollar thresholds listed above.

Surety requirements follow the dollar thresholds listed above.

321-19 & 51;

Adm. Reg. #23

Slide 21

Slide 22

Non-Competitive Contracts • Emergency Purchases – CMC 321-89/Adm. Reg. 34 • Sole Source – CMC 321-85 • Direct Award – CMC 321-87 • Concessions – CMC 321-93 • State/Other Political Subdivisions Contracts – CMC 321-95

and 321-97* (Competition solicited by State of Ohio) • US Communities Government Purchasing Alliance – CMC

321-98* (Competition solicited cooperative) • US Surplus Property – CMC 321.99* • US General Services Administration – CMC 321-101* • Ohio Industries for the Handicapped – CMC 321-105* • Ohio Correctional Institution – CMC 321-107*

*(if <50K, must award to SBE in the commodity)

Slide 23

Competitive Contracts Responsiveness Considerations

• SBE/EEO Compliance • Content & Completeness of Bid/Quote/Proposal • Valid Signature to bind Bidder/Offeror • Vendor Performance File • Living Wage Requirement • Local Preference • Bonding Requirements

– Bid bond = 10% of bid – Performance surety = 100% – Waived in most instances, except all demolitions and construction

>$50,000 • Insurance and Worker’s Compensation

Slide 24

Competitive Contracts Awarding Considerations

• <50K – Must make every effort to award to SBE in commodity – Allow for SBE Matching if the SBE is not the lowest quote – SBE Matching for Quotes

• Determination of Lowest and Best

– Bid Amount – Compliance with bid conditions and specification – SBE Status – Subcontractor Outreach Goals – Local Preference – Delivery time – Prior performance – Test results – Bidder capacity

Slide 25

Open Cincinnati Task Force Recommendations Implemented • Partnered with SRL Consultants • Departmental SBE goals increased • Subcontractor outreach goals now apply to supplies and

services and professional services • SBE participation criteria add to Request For Proposal (RFP)

evaluation criteria • Departments hosting outreach/networking sessions to

increase outreach goals • Standard request for quote form required for purchases

>$5,000 but <$50,000 • Purchases <$50,000 must be awarded to a SBE if 2+ SBEs are

registered in the commodity • If only 1 SBE in commodity, the SBE must be given the

opportunity to match the lowest quote from the non-SBE

WELCOME

Darryl Haley

Interim CEO &

General Manager

Metro

DOING BUSINESS WITH SORTA

Wright C. Parkes

Director of Procurement &

Stores

Metro

What is SORTA?

Political subdivision of State of Ohio

Primary funding from city earnings tax

Created by Hamilton County

Serving Cincinnati, Hamilton County and adjacent counties

355-bus Metro fleet; 53-vehicle Access fleet

Designated operator for Streetcar

17 million annual rides; 837 employees

What is SORTA?

Governance

Governed by Board of Trustees

Governed by state and local laws

Governed by Federal Transit Administration (FTA) requirements

Socio-economic programs

Basic principles of procurement policy

Best use of public dollars

Maximize competition

Level playing field

Open process

consistent with good business practices

How is SORTA funded?

City of Cincinnati earnings

tax

Farebox revenue

Other revenue

(contracts, advertising)

Federal and State

funding

2014 operating expenses: $92.9 million

45%

24%

15%

10%

6%

Total Payroll $41.4

Benefits $22.6

General Operations

$13.6

Fuels and Lubricants

$9.7

Access Contract $5.6

Capital budget: + $35.8 million

Total budget: $128.7 million

What does SORTA buy?

Parts and supplies

Contracted services

Environmental & utilities

Administrative services

Facility services

Procurement types

Request for Quotations (RFQ) (under $25,000)

Invitation for Bids (IFB)

Request for Proposals (RFP)

Sole Source

Business opportunities

Subscribe to bid opportunities

http://metrobidopps. blogspot.com/

Visit “Doing Business” at

www.go-metro.com

Attend outreach events

Attend vendor training opportunities

Attend SORTA

vendor fairs

Meet decision-makers

Request one-on-one meetings

Attend pre-bid & pre-proposal

conferences

Socio-economic programs - DBE

An equal opportunity

program designed to

ensure that small

businesses owned by

minorities, women, and

other disadvantaged

individuals have a fair

opportunity to compete for

federal dollars spent in

transit.

DBE contract goals

Established for each

procurement Based on:

- Availability of opportunities - Availability of

qualified DBEs - Goal, not a quota

Prime must attain or exceed goal

Demonstrate good faith

efforts prior to bid if goal not

attained

To become certified: https://www.ohioucp.org/index.vm

City SBE Directory - http://www.cincinnati-oh.gov/purchasing/resources-directories/sbe-directory/

Ohio MBE List - http://eodreporting.oit.ohio.gov/searchMBE.aspx

Ohio DBE List - https://www.ohioucp.org/index.vm

Socio-economic programs -

additional outreach efforts

• SORTA encourages employment diversity by our

vendors:

- In the overall workforce

- Working on our contracts

• Included in our General Terms and Conditions

Vendor employee diversity

Theresa Harper

Business Development

Manager

Richardson & Assoc. LLC

TESTIMONIAL

Metro, thank you for the opportunity!

“Working with SORTA has been an extremely rewarding experience… both

financially and professionally for Richardson & Associates, CPA firm. The

relationship has been amazing and it offers much growth potential for our firm.

Partnering with CLA was a model example of the true spirit of the DBE

program. This model included DBE Partner involvement in every stage of the

audit and full time utilization of our staff. This type of arrangement has truly

provided Richardson & Associates with faster growth and stronger audit

expertise with larger entities…thank you again!”

-Sherri Richardson, CPA

Managing Partner

Current

Certifications

Year of

Awards/Honors Awards

SBE 2014 Featured in OSCPA “CPA VOICE”

March/April 2014 issue

MBE 2013 Invited to the White House to help impact small

business development polices & procedures

WBE 2012 The U.S. Chamber of Commerce - Blue Ribbon

Small Business Award in D.C.

DBE 2011 The Cincinnati Regional Chamber of

Commerce - Small Business of the Year

EDGE 2010 Cincinnati City Manager

The Leaders for the Future Award

Legal Structure: A Limited Liability Company (LLC) established in 2007

Main Location: An award-winning CPA firm based in Cincinnati, Ohio

Company Size: 10 full time staff and 10 subcontractors

Richardson& Associates LLC - Company Profile

Services Richardson & Associates can provide

Services Targeted Clientele

Auditing

Accounting

Consulting

Taxes

Small Business

Municipalities

Corporate

Richardson & Associates Team

CPAs & Analysts Jointly 26 yrs.

experience

Master & Bachelor Degrees

Minimum 3.2 GPA

Perform asset and inventory audits

Perform operational reviews

Construction contract / change orders audits

Perform part of financial audit as a MBE CPA firm

Develop or update internal controls/Procedures

Grant writing and grant compliance monitoring

Vendor invoice analysis (for errors credits)

Verify rate and fees revenue

Accounting and audit staff support –fill gaps Implement recommendations to increase revenue

Specific Services for Targeted Clientele

Find unproductive satellite locations

Complete our review of controls over warranties projected

$300,000 yr. missed by 3rd parties

Perform NAPA inventory counts - reduce theft/waste

Implement our recommendations - reduce costs

Implement the Policies & Procedures we wrote

Procurement process review – increase efficiencies

Casino revenue reviews/ other tax reviews

Accounting and Staff Augmentation

Tracking and reporting diversity spend

Fleet Services

Dept. of Trade & Dev.

Internal Audit

Finance

Tax Department

Richardson & Associates, LLC

Managing Partner: Sherri Richardson, CPA

8044 Montgomery Road, Suite 700

Cincinnati OH 45236

513-772-8348

www.richardsonandassociates.com

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THANKS FOR ATTENDING!

For a copy of today’s presentation,

please visit www.go-metro.com