Professional Services Collaborative Forum January 14, 2016 VISION. Create a leveled playing field for small businesses through dialogue, transparency, partnership, and inclusion. MISSION. To provide a forum where small businesses, CDOT staff, and other industry leaders can find solutions to issues affecting DBE and ESB utilization and success. What we do Why we do it Introduction to the Forum Structure of the Forum Advisory Chair & Vice-Chair Responsibilities Elected (nominations in box in back of room) Year term. About an hour/month Chair: Small business owner Liaison Advisory planning Connect2DOT.org Meeting Materials Connect2DOT.org/stay-connected/pscf Comments & Questions Connect2DOT.org/stay-connected/cdotcf To submit comments, questions, or suggested agenda items Small Business Utilization on Professional Services Contracts CDOTs Small Business Programs Disadvantaged Business Enterprise (DBE) Program Federally-mandated USDOT Program Firms certified by the Colorado UCP Certifying Agencies (CDOT & CCD) Criteria: Disadvantaged Owner, Size, Ownership, & Control CDOT Overall Goal: 12.15% Race-Neutral Measures Required Race-Conscious Measures As Necessary Emerging Small Business (ESB) Program CDOT-specific program Firms certified by CDOT Criteria: Work Type, Size & Independence Legislation: Increase competition USDOT: Race-Neutral Measure Contracts Subject to the Brooks Act (40 USC 11) The Brooks Act requires agencies to promote open competition by advertising, ranking, selecting, and negotiating contracts based on demonstrated competence and qualifications for the type of engineering and design services being procured, and at a fair and reasonable price. Engineering and design related services are defined in 23 U.S.C. 112 (b)(2)(A) and 23 C.F.R. 172.3 to include program management, construction management, feasibility studies, preliminary engineering, design engineering, surveying, mapping, or other related services. These other services may include professional engineering related services, or incidental services that may be performed by a professional engineer, or individuals working under their direction, who may logically or justifiably perform these services. What are Professional Services Contracts? What we are NOT discussing today: Procurement Contracts: Procurement of goods and services provided to the State Solicitation & award subject to the Procurement Code In most cases, DBE & ESB do not apply Construction Contracts: Follows DBE Standard Special Provision Working on new ESB incentives Come to the March forum Innovative Contracts: CM/GC Design-Build Public-Private Partnerships Project Specific Non-Project Specific Program Specific Professional Services Contract Types: Advertisement Statement of Interest (SOI) Scoring Interviews (If applicable) Selection Negotiation/Review Contract Encumbrance/Task Order Invoice Payment The Process -Small Business Points are 10% of Scoring -Points awarded in SOI scoring based on efforts to meet the DBE contract goal: -DBE prime: 5 points -Met goal: 3 points -Some participation: 1 point -New firm: 1 point -Points award for having an ESB on the team: -ESB prime: 5 point -Each ESB: 1 point -New ESB: 1 point Current Structure -Process -Commitments made with SOI -All forms due with SOI -Cover sheet provided with each task order -Compliance -DBE goal applies to entire contract value of NPS -DBE compliance only at task order/encumbrance -Unable to track by DBE commitment -Not tracking ESB utilization Current Structure Continued 1.Compliance with the DBE regulation a.Must make good faith efforts to meet contract goal b.Must make commitments to specific firms c.Cannot terminate or substitute without good cause d.Withhold payment for not fulfilling commitments e.Must promptly pay subcontractors f.Must have real time data on participation g.Maximize race-neutral efforts 1.Increase competition and lower barriers to participation a.Foster small business prime participation b.Encourage utilization of smaller firms c.Encourage utilization of new firms 3. Keep it simple a.Standardize processes for all regions b.Be able to effectively track and monitor participation OBJECTIVES 1.No points for meeting the DBE goal: Every Consultant shall make good faith efforts to meet the DBE contract goal. -Project & Program Specific: -Plan submitted with SOI (% participation only; no $) -Commitment prior to contract (Includes $) -Good faith effort review prior to contract if goal not met -Non-Project Specific: -Affidavit submitted with SOI: good faith efforts will be made to meet contract goal on overall contract and each task order (must consider/prepare with teaming) -Plan and commitments submitted with task order -Good faith effort review of task order if goal not met KEY CHANGES 2. Revised point structure focused on ESB firm participation: -ESB Prime: 10 points -DBE Prime: 6 points -ESB Utilization:.5 point per % of participation -Level 1 ESB: 1 point (PS only)* -New Relationship with ESB: 1 point (PS only)* -Non-DBE or ESB Prime Maximum: 7 points *will have minimum participation requirements KEY CHANGES CONT. 3. Improved monitoring and enforcement of DBE commitments and ESB promises: -DBE commitments will be binding, not just the goal: Allocations to specific firms will be enforced. -Promises for points = binding obligations: Promises to utilize ESBs become ESB goals and commitments, enforced like DBE goals and commitments. -30% prime participation will be enforced: Particularly if Consultant is a DBE or ESB and received points. -Task orders and/or payments withheld for noncompliance: Task orders and invoice payments may be withheld if Consultant does not make good faith efforts. KEY CHANGES CONT. 4. Prompt payment to subconsultants and vendors -Seven Day Terms: All subconsultants must be paid within seven days of payment from CDOT. Report of prompt payment must be made within 15 days of payment from CDOT. Must demonstrate good cause for delay of payment. -Sixty Day Terms: Payment must be made no less than 60 days from date of invoice regardless of payment from CDOT. KEY CHANGES CONT. Discussion Please raise your hand to comment. Please allow the moderator to call on you. Please provide your name and the name of the company or organization you represent. Please note: Individuals in this forum must be respectful of one another in order for us to have a solution-driven conversation. We will limit the time for comments to ensure others are heard. Have we failed to identify or attempt to address a concern of small businesses? What else would you like to know about the proposed changes that we have not presented today? Of the new changes, what are areas of concern for you/your company and why? Do you have a proposed modification or solution? Upcoming Events January 15: I-25 North Express Lanes (Segment 3) Project Pre-Bid and Prime/Small Business Networking Meeting January 21: Flatiron-AECOM C-470 DBE/ESB Outreach Event January 22: Kraemer-IHC JV C-470 DBE/ESB Outreach Event February 9: ESB Orientation Webinar February 25: CDOT Contract Management & Compliance Workshop Comments & Questions: Connect2DOT.org/stay-connected/cdotcf To submit comments, questions, or suggested agenda items