strategic action plan

Department of Small and Local Business Development

Agency Strategic Action PlanJune 1st 2013 – May 31st 2014

Ted ArcherDirector, Strategic Operations

Strategic Action Plan

To advance the mission of the agency to support the District’s over 50,000 small businesses, including 1100 Certified Business Enterprises (CBEs) and thousands of potential entrepreneurs, DSLBD will implement a Strategic Action Plan beginning June 1st 2013 through May 31st 2014.

May 2013Agency Strategic Action Plan

www.DSLBD.dc.gov 2

The Department of Small and Local Business Development was formed through the Small, Local, and Disadvantaged Business Enterprise Development and Assistance Act of 2005. Prior to the “Act” there were several other iterations of the agency along with different functions. The Agency’s Strategic Action Plan aims to clearly articulate the Agency’s purpose and objectives to its stakeholders.

Past Iterations of the Department of Small and Local Business Development


www.DSLBD.dc.gov 3

Office of Minority Business Development

Office of Human Rights and Minority Business Development

Office of Local Business Development

DSLBD

Agency Vision

Agency Strategic Action Planwww.DSLBD.dc.gov 4

Agency Mission

The mission of the Department of Small and Local Business Development (DSLBD) is to support the development, economic growth, and retention of District-based businesses, and to promote economic development throughout the District’s commercial corridors.

OUR VISIONDSLBD envisions a business environment in which:

1)DC businesses are connected in real-time with local, federal, and global business opportunities; 2)Small businesses can navigate government quickly, confidently, and effectively; and, 3)Every entrepreneur and small business with a great idea and a great plan can access the capital to make it happen.

May 2013

DSLBD Functions

5

AGENCY FUNCTIONS

Agency Strategic Action Planwww.DSLBD.dc.govMay 2013

Transforming the Agency

Previous Organizational StructureThe previous organizational structure reflected only a small range of services for DC

businesses

Agency Strategic Action Planwww.DSLBD.dc.gov 6May 2013

16 Total FTEs

Director

Public Affairs

Assistant Director Business Opportunities and Access to Capital

Chief of Staff

Assistant DirectorTraining and Commercial

Revitalization

Manager Business Certification

Director

Assistant Director

Certification, Compliance & Enforcement

Manager, ExportDC

Manager Procurement

Assistance

Manager Technology & Innovation

DSLBD Organization PlanRevised April 03, 2013

Manager, Small Business

Development

Agency Fiscal Officer

General Counsel

Manager Retail Business

Development

Director Strategic

Operations

Transforming the Agency

Redesigned Organizational StructureThe redesigned organizational structure serves as the foundation for a client centered

approach to the delivery of a dynamic portfolio of services

Agency Strategic Action Planwww.DSLBD.dc.gov 7May 2013

43 Total FTEs


CERTIFIED BUSINESS ENTERPRISE (CBE)PROGRAM

BusinessCertification

Compliance &

Enforcement

BusinessDevelopmen

t

May 2013

CBE Compliance Action Plan Summary

May, 2013Agency Strategic Action Plan

www.DSLBD.dc.gov 9

CBE Compliance Action Plan Highlights and Milestones(June 2013 – May 2014)

DSLBD will investigate, monitor, spot check, and recommend enforcement action on the following:

1100 CBEs 88 Joint Ventures168 Developers 120 Prime Contactors 80 District Agencies $15 billion total dollar volume in Expendable, Contract, & Project Budgets1188 Site Visits/Spot checks 200 Investigations

(estimates based on FY11-12 activities)

Local Business Definition

• Principal office physically located in the District;• Chief executive officer and highest level managerial employees maintain their offices

and perform their managerial functions in the District;• Meets one of the four following standards:

• More than 50% of the assets, excluding bank accounts, are located in the District;• More than 50% of the employees are residents of the District;• The owners of more than 50% of the business enterprise are residents of the

District; or• More than 50% of the total sales or other revenues are derived from transactions

in the District• Is properly licensed under DC law; and• Is subject to tax under DC law (Chapter 18 of Title 47)• Site visits are conducted within the Washington Metropolitan area to verify that the

firm meets the local business enterprise definition.


CBE Program: At a Glance

Agency Strategic Action Planwww.DSLBD.dc.gov

11

Businesses may be certified in any of the following categories; however, only a maximum of 12 points can be applied toward any contract award. In evaluating invitations for bids (IFBs), contracting personnel apply a percentage reduction in price according to the CBE designation. In evaluating requests for proposals (RFPs), contracting personnel apply points to proposal evaluations according to CBE designation. DSLBD also certifies joint ventures in the CBE Certification Program.

Certification Categories Authority Preference # of CBEs(as of 4/4/13)

% of CBEsby Category

(as of 4/4/13)

Local Business Enterprise (LBE) §2-218.3127 DCMR 802 2 or 2% 1138 100%

Small Business Enterprise (SBE) §2-218.32 3 or 3% 1077 95%

Disadvantaged Business Enterprise (DBE) §2-218.3327 DCMR 803 2 or 2% 634 56%

Resident Owned Business (ROB) §2-218.3527 DCMR 804 5 or 5% 574 50%

Development Zone Enterprise (DZE) §2-218.37 2 or 2% 647 57%

Longtime Resident Business (LRB) §2-218.3627 DCMR 805 5 or 10% 90 8%

Veteran Owned Business (VOB) §2-218.38 2 or 0% 45 4%

Local Manufacturing Business Enterprise (LME)

§2-218.39 2 or 0% 1 0%

Joint Venture Certifications (JV) §2-218.39a27 DCMR 811 Varies 69 N/A

CBE Locations


www.DSLBD.dc.gov 12

PERCENT OF CERTIFIED BUSINESS ENTERPRISES BY WARD*

The Business Certification Division evaluates businesses headquartered in the District to determine their eligibility to become a Certified Business Enterprise (CBE).

The DC Government directs spending to CBEs, and they in turn support and contribute to job creation and the city tax base, strengthening the local economy.

The CBE Program provides contracting preference for local businesses so they can better compete for DC Government contracts and procurement opportunities.

* As of April 2013

Ward 37%

Ward 413%

Ward 16%

Ward 231%

Ward 517%

Ward 612%

Ward 76%

Ward 89%

Jun 2013 July 2013 Aug 2013 Sep 2013 Oct 2013 Nov

2013Dec

2013 Jan 2014 Feb 2014 Mar 2014 Apr 2014 May 2014

Roll out Developer Compliance training for Developer community and other stakeholders

200 total developers

Perform CBE spot checks/ and enforce penalties on delinquent CBEs and JVs

1188total CBEs/JVs

Review high profile District contracts above 250k for subcontract compliance

10 total contracts

120 total stakeholders

Leverage CBE Advisory Group recommendations, partner with District Contracting personnel to implement efficient and transparent waiver process for subcontracting compliance

1100 total CBEs

Launch All New “Cloud-based” Certification Process for CBEs

75 total developers

Partner with Developer community to streamline and simplify reporting process for projects

Investigate, contact, and perform site visits on delinquent CBEs and JVs identified by media, ODCA, and DSLBD

15 total CBEs

168 total developers

Investigate and contact delinquent developers identified by, ODCA, and DSLBD

Roll out Agency Expendable Budget Compliance training for operating and capital budgets

110 total budgets

Issue Comprehensive Preliminary findings from Compliance & Enforcement Action Plan by May 31st 2014

220 vendors

Recommend enforce penalties on noncompliant developers and prime contractors

Recommend corrective action for noncompliant District Agencies

200 total Agencies

May 2013

Action Plan Timeline CBE Compliance & Enforcement LEGEND

Short Term – Investigations and data collection, announcement of more stringent standards for CBE compliance

Medium Term- Data Analysis, standardization of new, efficient and transparent processes, training for stakeholders

Longer Term- Issuance of reports, enforcement of penalties, and remediation

Compliance and Enforcement


8 Compliance Program AreasCompliance Programs # of Entities

MonitoredRequirement Dollar Volume Discretionary

(Expendable) Budget

CBE Goal

Agency Expendable (Operating) Budget Compliance for SBE Expenditures 10

78 50% $6,060,652,139 $482,620,179 $241,310,090

Agency Expendable (Capital) Budget Compliance for SBE Expenditures11

29(242 projects)

50% $5,176,714 Undetermined (Not Monitored)

Undetermined (Not Monitored)

Agency Subcontracting Compliance for Contracts over $250,00012 (Construction and Non-Construction)

120 35% $142,809,988 Undetermined (Not Monitored)


Developer CBE Utilization Compliance13 159 35% $3,890,492,771 $2,602,879,323 $1,057,998,855

CBE Equity Participation Compliance Program for Development Projects

<159 20% Undetermined (Not Monitored)



CBE Development Participation Compliance Program for Development Projects

<159 20% Undetermined (Not Monitored)



Joint Venture Program Compliance ~88 Varies Undetermined (Not Monitored)



CBE Investigations ~1100 N/A N/A N/A N/A

*Data is as of 8/15/2012*


www.DSLBD.dc.gov 15

Certified Business Enterprises (CBEs)

District AgenciesOperating & Capital Budgets

District AgenciesContracts Excess $250K Development Projects

Subsidized by DC Gov’t

20% Equity & Development CBE

Participation

Joint Ventures Certified by DSLBD

DC Based Business Approved

Periodic Office Site Visits

Cloud‘Web-based application”

DSLBD Monitors

District Government

Agencies

District Agencies Contracting Officers


Review of FEIN

Businesses:Certified; RecertifiedCBE Online System

& Cloud

Review of News Publications

DSLBD Review & Assessment

Contract Award Winners-Subcontracting Plan

DSLBD Certification &

Compliance Staff

DSLBD Investigates & Resolves Concerns

District Agencies (IRBs, Loans, Grants,

TIFs, etc.)

DeveloperDSLBDAgreement


Review of Expenditures w/ CBEs-35% of APB

Assess Compliance

Periodic Project Location Site Visits

District Agencies (IRBs, Loans, Grants,

TIFs, etc.)


Development Project

Equity Contract

Procurement Plans

Budget Exclusions

Quarterly Expenditures w/CSBEs

Annual Narrative

Compliance Status

Developer

CBE Developer

Partner


ORAn approved

Waiver of Req.

DSLBD Certification

Process


and CBE Online System


Approved Based on Contract Won

Quarterly Reporting Required after Approved

JV Operating AgreementJV Contract

JV Financial PlanDSBLD Review JV Qtr Rpts

COMPLIANCE MONITORING PROCESSESRevised May 2013

DSLBD Reports to DC Council, DC Auditor, & Agencies Funding Dev.

Projects

HOLD

DSLBD Responds to Agencies

Enhanced Transparency and Accountability


www.DSLBD.dc.gov 16

CBE Compliance “CLOUD” Database DIRECT ACCESS

Accessible to Government Agencies, Private Developers/Contractors, and CBEs

PERFORMANCE Allows DSLBD to

proactively monitor and report CBE compliance performance

COLLABORATION Enhances collaboration

between all CBE program stakeholders

Programs


BUSINESS DEVELOPMENTPROGRAMS

May 2013

18

Short Term(June – Aug 2013)

Medium Term(Sept 2013 – Feb 2014 )

Longer Term(Mar – May 2014)

Retail (Main Streets, BIDs, Clean Teams)

Visit and Survey Each DC Retail Neighborhood Main Street Corridor - approx. 1500 businesses

Analyze and Create Report based on Corridor Survey and Needs Assessment

Target assistance programs to identified needs and burgeoning corridors

Training/Technical Assistance

Collect CBE data and tier CBEs by industry, revenue, and experience, and other characteristics

Market DSLBD training curriculum at DSLBD small business forums and expositions.

Sponsor 25-30 new trainings to CBE and other District businesses based on specific needs

Business Opps/Capital Access

Solidify DC Capital Access Advisory Panel. Aggressively organize opportunity workshops with hospitals, universities…etc.

Market access to capital programs at DSLBD and DISB at small business forums and expositions.

Report and celebrate DSLBD assisted loan acquisitions

Procurement Assistance

Perform outreach and market Procurement Technical Assistance Center to DC business

Market procurement support programs at DSLBD and DISB at small business forums and expositions.

Report and celebrate DSLBD assisted contract awards

Export DCOrganize training, outreach events, and trade missions to South Africa and South America.

Organize Trade Missions to South America or Caribbean

Sponsor 10-12 international market visits for DC businesses

ConnecTechOrganize and sponsor Small Business Innovation and Technology Events with DC Tech partners (1776, Fortify, etc.)

Coordinate Tech Hackathon for DC startups Report on # DC firms winning SBIR

Grants from federal government

BUSINESS DEVELOPMENTPROGRAMS

Agency Strategic Action Planwww.DSLBD.dc.govMay 2013

Action Plan Timeline Business Development Programs

strategic action plan

Documents

agencys strategic action

enforcement action

business environment

agency overviewtransforming

agency missionthe mission

govthe department of

economic development

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