contracting for success
TRANSCRIPT
Contracting for Success
Mitchell E. Daniels, Governor
Indiana Department of Administration
•Qualify for MBE/ WBE Participation Points on state projects
•Consideration at state universities and casinos
•Notification of state business opportunities
• Why Apply for State Certification?
•Access to training opportunities•Advocacy Services•State certification often accepted for purchasing at other organizations
•No application fee
Why Apply for State Certification?
Sub-Contracting
•Incentives are given only for MBE and WBE Sub-Contracting
•Dually certified firms must choose ONE certified status per project – MBE or WBE
• Sub-contractors must provide a commercially useful function
•New Opportunities
•Visibility and consideration for contracts
•State, local, federal and large corporations
What’s Next
•Target market
•Target customers
•Experience, robust and successful deliverables
Know Your Market
Sell your company !Sell your product !
PriceProduct Service
In the Door
• Be Prepared• Maintain Certification• ACE form(s)• email address • General information changes• Change in organization
Steps to Take
•http://www.unspsc.org/
Classification of products and services
•Current and accurate codes•Code amendments•Commercially useful function
UNSPSC Codes
Purpose: to enable collaborate commerce
“root” = All Products and Services (implied)
Segment 44 Office Equipment and Accessories and Supplies
Family 10 Office machines and their supplies and accessories
Class 15 Duplicating machines
Commodity 01 Photocopiers
Class 31 Printer and facsimile and photocopier and supplies
Commodity 03 Toner
44 10 15 01
44101501
UNSPSC Code
Family Tree
MWBE Certification List Functionality
http://www.in.gov/idoa/2867.htm
1.Control “f”2.Sort by available fields3.Tuesday & Thursday weekly
update
Welcome Packet
• New Resource• Newly Certified• Presently Certified
Contracting for Success
Indiana Department of AdministrationMinority and Women’s Business Enterprises Division
Mitchell E. Daniels, Governor
Contact-to-Contract: Roundtable Connection
Overview
• Be proactive -your phone will not ring automatically as a certified vendor
• There are no quotas just goals
• You must work for it
Goal SettingM/WBE Participation
MBE Participation
WBE
Participation
Construction 7% 5%
Professional Services
8% 8%
Procurement 4% 9%
2007-2009
• Provide excellent product or service
Keys to Contracting Success
• Offer competitive prices
• Build Key Business Relationships
• Market your business to key players in the State Procurement Process
– State Purchasers
– State Prime Contractors
– Other MWBE’s
Keys to Contracting Success (Cont’d)
• Participate in Networking Opportunities
– Pre-proposal/ Pre-Bid
Meetings
– Special Events/ Tradeshows
– University/ Organization Events
Keys to Contracting Success (Cont’d)
• Procurement solicitationshttp://www.in.gov/idoa/2788.htm
Solicitations
• Public Works solicitationshttp://www.in.gov/idoa/2823.htm
• INDOT Bidshttp://www.in.gov/dot.html
• Other Opportunitieshttp://www.in.gov/idoa/2788.htm
• Request for Quotation (RFQ) - Procurements
Methods of Procurement
• Invitation to Bid (Bid) - Construction
• Request for Proposal (RFP) – Professional Service
• Attend Pre-Bid/ Pre-RFP Meetings• Tell Firms about your interest
Steps to Awards
• Construction: Email [email protected]• Solicitations published with milestones• Commitment letter required from M/WBE
subcontractors to protect self• Evaluations/ Public Inspection
• Prime Contractor is notified and negotiations begin
• Prime Contractor receives awarded contract• Written agreement with sub-contractor
Professional Service/ Procurement Evaluations
(* Agency can fix these + or – 10 points)
1. Adherence to Mandatory Requirements
Pass/
Fail
2. Management Assessment/Quality (Business and Technical Proposal)
* 25 points
3. Cost (Cost Proposal) •30 points
Professional Service/ Procurement Evaluations
4. Indiana Economic Impact 15 points
5. Buy Indiana 10 points
6. MBE participation 10 points
7. WBE participation 10 points
IDOA Contract Boilerplate Language for Professional Services on RFP/RFS:
– Prime Contractor must submit agreement with each MWBE within 90 days of contract execution with the State
– Awarded proposal becomes incorporated into and a requirement of the contract
– Contractors shall not substitute, replace or terminate any MBE and/ or WBE without prior written authorization from MWBED and the MWBE
Post Contract Award
MWBE Construction Bid Policy
Applies to: 1. Public Works
2. State Office Building Commission
3. INDOT State-Funded projects
MWBE Construction Good Faith Efforts Evaluation
A. Notice to MBE and WBEs
B. Economically Feasible Subcontract
C. Consideration of all MBE and WBE quotes
D. MBE and WBE Barrier Assistance
E. Advertisement
F. Agency Assistance
G. Research participation Area - “think out of the box”
H. Response Time
I. Documentation of Statements from M/WBEs
J. Availability of M/WBEs
• Prime Contractors must honor participation plan originally submitted
– Subcontractor commitment form becomes part of the binding contract
Monitoring Compliance
• As a subcontractor, consider a written agreement with the prime you can enforce
• MWBED audits contracts
• Primes in non-compliance face sanctions
Monitoring Compliance (Cont’d)
• Sanctions may include:
Monitoring Compliance (Cont’d)
– Withholding of payments
– Payment adjustments– Termination of contract– Suspension or revocation
to bid on State contracts up to 36 months
• Seeking a Prime Contractor
• Secure the Contract• Monitoring the Contract
Contract Management
• Determine Prime Contractors bidding on Contracts– Attend the Pre-RFP Meetings– Request information on previous
RFP’s– Request information on RFP’s in
Midwest
Contract Management:
Seeking a Prime Contractor
• Leverage your products and services with Prime Contractors– Understand their business
requirements?– Are products and services a match?– If not, which products and services
can modified or added?
Contract Management:
Seeking a Prime Contractor
• What do Prime Contractors look for?– A subcontractor that work well as a
business partner– Business Integrity– Understands the business
Contract Management:
Seeking a Prime Contractor
• What do Prime Contractors look for (cont’d)?– Financially sound – Great reputation in the community
as well as in business: “People talk…………”
Contract Management:
Seeking a Prime Contractor
• Complete Subcontractor Commitment Letter as well as Contract– Create positive business
relationship– Avoid misunderstandings and
disputes
Contract Management:
Secure the Contract
• Complete Subcontractor Commitment Letter as well as Contract - Clear up important issues– Due Dates– Legal aspects– Contacts– Pay / Expenses– Liability
Contract Management:
Secure the Contract
• What subcontractor must consider– Historical pricing data– Margins– Quality – Other requirements
Contract Management:
Secure the Contract
• Stay ahead– Track your performance– Communicate issues quickly– Maintain documentation– Ask for reports
Contract Management:
Monitoring the Contract
• When problems arise– Point out problem to Prime
Contractor quickly– Be prepared to provide supportive
documentation– Be flexible– Provide solutions– Contact the MWBE office
Contract Management:
Monitoring the Contract
Contact Us
Minority and Women Business Enterprise
402 W. Washington Street, Room W469
Indianapolis, IN 46204
317-232-3061
Questions