presentation 5 steps for doing business with the city and county of denver

Cecilia V. Rivas de Schuermann, Business Development Coordinator City and County of Denver General Services Purchasing Division

www.denvergov.org/[email protected]

720.913.8120

5Steps for doing business with

the city

Delivering opportunities to our community and value to our city

http://www.denvergov.org/purchasing

mailto:[email protected]

1 Be ready

2 Research

3 Make an action

plan

4 Build relationships

5 Bid


1 Be ready

• What does it mean to be “Be ready”? Entering a new market takes time and commitment

Who is going to research opportunities at the city?

Who is going to develop and implement the action plan?

Who is going to establish and develop relationships at the city?

Who is going to keep the cash-flow flowing while entering the government market?


1 Be ready

• A 2013 study by American Express OPEN showed that it takes,

on average, 2 years and at least 4 bids to win a government contract


2 Research outcomes

• Defined target list

• Effective communication message and images – to be used in all promotional material including website, capability statement, and social media. The same message to be reinforced in sales calls, face-to-face meetings, etc.

• Time frame


2 Research outcomes

• Defined target list

• 2-3 city agencies, there are over 65 agencies plus the Denver International Airport (DEN); have at least 2 contacts per agency

• Which agencies are currently buying your product/service?

• How often do they buy/need your product/service?

• Who are they buying from?

• Does your company have a competitive advantage over the current provider?

• Which agency’s mission closely matches your company’s?


../Vendor tools/PCR Website Contact Information 11102016.pdf

2 Research outcomes

Purchasing Division – www.denvergov.org/purchasing

• Vendor Tools & Resources

º Bidding opportunities: BidNet Direct

www.bidnetdirect.com/colorado ; $89.95 per year to receive email notifications

º Purchasing Contact Representative (PCR) List for all city agencies

ᵒ Contact us – list of all buyers and their commodities. Contact me for non-listed

commodities

Delivering opportunities to our community and value to our

city

How do you reach your target agency? How do they post bids, RFP’s?


http://www.bidnetdirect.com/colorado

2 Research outcomes

Delivering opportunities to our community and value to our

city


http://business.flydenver.com/bizops

º Future Opportunities: 90-day forecast

º Hotel and transit center

º Contracts – detailed information about construction & professional services

º Concession opportunities

º Business requirements – resources to operate in airport environment

http://business.flydenver.com/bizops



• Parks uses Rocky Mountain E-Purchasing System (BidNet)

• Public Works posts solicitations on www.Work4Denver.org; they handle new construction projects and major renovations for all city agencies except DEN

• The Purchasing Division website has a document with contact information for all agencies under link “Vendor Tools & Resources”

2 Research outcomes

http://www.work4denver.org/

2 Research outcomes; 2016 total $1,246,291,097

Purchasing Division

Spend

Bids & RFP’s

$382,895,874

P card*

$40,401

Total

$382,936,275

Denver International

Airport (DEN) Spend

Bids and RFP’s

$376,246,462

P card*

$8,406,790

Total

$384,653,252

Various

Agencies Spend

Bids and RFP’s

$462,543,127

P card*

$16,158,443

Total

$478,701,570


Goods and Services

Construction &

Professional Services

Construction &

Professional Services

*P card charges are for Goods and Services, each charge has a $2,000 limit

2 Research outcomes

• Communication message and images

• Buyers are interested in solutions

• Solutions message needs to be concise and easy to understand

• Prepare a 30 second, 1 minute, and a 5 minute sales presentation that solves your target market problem (s)

• The same solutions message should be included in your website, social media, postcards, fliers, brochures, etc.

• Capability statement – maximum 2 pages and the goal is to provide differentiating factors about your company in a concise manner


2 Research outcomes

• Communications message and images

• Images should be consistent and aligned with your message

• Make sure your company has legal rights to use selected images


2 Research outcomes

• Timing - Set realistic goals to implement the sales campaign and to achieve goal to enter new market, increase sales, and diversify your customer base


2.2 Introduction to General Services Purchasing Divisiona. The Purchasing Division has City Charter Authority over:

• the purchase of all goods and related services to keep the city in business as well as the purchase

of services for maintenance and upkeep of city facilities, i.e. almost everything that is not new

construction or professional services. Purchasing procures goods and services for DEN too.

www.denvergov.org/purchasing

• the management and disposition of all surplus materials for the city: cars, pick-up truck, bicycle,

street sweeper, used office furniture, jewelry, electronics, etc.

www.govdeals.com/DenverCO



http://www.govdeals.com/DenverCO

2.2 Purchasing Division’s Goals

• To obtain quality goods/services offering the best value at the lowest possible cost from qualified, responsive, and responsible vendors

• To strengthen the communication and the relationships with prospective vendors and current vendors


2.3 Procurement methods

a. Bid• decided based on lowest cost proposal meeting required specifications from a

responsible, responsive vendor

b. RFP• purchasing seeks best overall value for the city

• award decision includes other factors besides just pricing

• award decision includes an evaluation panel of technical experts from city agencies and other city stakeholders and may involve outside experts


Bid vs Request for Proposal (RFP)

2.3 Procurement methods – all relating to goods & services

• Procurement Card (P card) - $0-$2,000 per purchase

• Open market - $10,000 or less

• Informal procedure – greater than $10,000 and less than $50,000

• Formal procedure - $50,000+


2.3 Procurement methods• Procurement Card (P card) - $0-$2,000 per purchase, works just like a credit card.

Every agency has several P cards. Example of proper use: Paying for catering services on a non-city property


2.3 Procurement methods• Open market - purchase amount is less than $10,000, no formal advertising, proof

of insurance and bonding might be required. Buyer might do a solicitation if it is in the city’s best interest


2.3 Procurement methods• Informal procedure - purchase amount is greater than $10,000 and less than $50,000,

no formal advertising, proof of insurance and bonding might be required. Posted on BidNet except when solicitation is for covered good or service and the Buyer forwards solicitation directly to city certified vendors, if *


2.3 Procurement methods• Formal procedure - purchase amount is great than $50,000, sealed proposal, formal

advertisement, and in many cases, proof of insurance and bonding might be required


2.4 Receipt & opening of proposals

• Proposers are responsible for following instructions in the solicitation regarding submission process


2.5 Responding, continuation

Lastly, read the bid thoroughly and look for:• Required submittals

• Copies of licenses and certifications, if applicable

• Equipment lists, if applicable

• Resumes of your team, if applicable

• Answers to city posed essay questions – provide full and complete answers and any required

backup material to support your answers. You will be scored on these answers by an evaluation

panel

https://www.sba.gov/tools/business-plan/1


https://www.sba.gov/tools/business-plan/1

2.6 Award policy criteria

• For formal solicitations - awards will be made to the lowest, responsive, responsible, qualified proposer; considering price, adherence to specifications and requirements, responsibility, reliability, capability of proposer, availability of funds, and all other relevant factors

• The Buyer will notify the successful proposer(s) in writing

• For RFPs, an evaluation panel of subject matter experts will review and score submitted proposals using predetermined evaluation criteria. A predetermined weighting of technical factors vs pricing is used to determine the proposal offering the best overall

value to the city


2.7 Payment procedure• The vendor must prepare and submit an invoice to the relevant city agency

after the delivery of goods/services ordered. The relevant agency is always specified on the Purchase Order (PO) or the contract

• All invoice documents must include the PO # as well as the contact person name at relevant agency

• Prompt payment and pay without delay is the city’s commitment. Vendor might be entitled to receive a penalty payment if the city does not pay within 35 days from the receipt date of a complete and responsive invoice. The city sets the penalty payment


2.7 Payment procedure• The City and County of Denver does not pay sales taxes


2.7 Living wages• City and County of Denver Office of the Auditor enforces living wages,

www.denvergov.org/auditor go to Prevailing Wage tab


http://www.denvergov.org/auditor

2.8 Prevailing wages• City and County of Denver Office of the Auditor is responsible for enforcing

living wages, www.denvergov.org/auditor go to Prevailing Wage tab


http://www.denvergov.org/auditor

2.9 Covered Goods and Services Ordinancea. A disparity study is the legal foundation to give benefits to Small,

Minority, and Women owned business. CDOT and the City and County of Denver have commissioned such studies

b. A disparity study in 2012 identified 469 categories of goods and services where Small (SBE), Minority (MBE), & Women (WBE) Owned Businesses were under-represented in awards by the City and County of Denver

c. A Covered Goods and Services (C G&S) Ordinance was implemented

April 1, 2014


C:/Users/140355/Desktop/City and County of Denver NAICS Codes for Covered Goods and Services.pdf

2.9 Covered Goods and Services Ordinance

d. The next disparity study will begin by June 2017

e. The current Construction and Covered Goods and Services Ordinance will expire in 2019

f. The results of the new study will form the basis for the new ordinance that will provide benefits to industries where discrimination is still prevalent



PurposeTo address disparities and increase opportunities for

Small, Minority, and Women Owned Businesses

to participate in city procurement


Covers 469 North American Industry Classification (NAICS) codedescriptions

Covered Goods• Electronic parts and equipment

• Office equipment

• Machinery, equipment, and supplies

• Electrical and industrial equipment, including parts and supplies

• Communication equipment



Covered Services• Building management and maintenance services, including janitorial

services

• Parking services

• Security services

• Maintenance and repair services, including landscaping

• Communication equipment related services

• General business services: staffing, interpretation, graphic design, printing and photocopying, transportation, and courier delivery service



2.10 City Certification

• Participating vendors must be certified by the City’s Division of Small Business Opportunity (DSBO), www.denvergov.org/dsbo, under one or more applicable NAICS codes to participate. Monthly certification training, next one is May 17thth, 2017 from 9:00 am to 11:00 am. Information and registration at www.denvergov.org/purchasing , go to calendar tab.


http://www.denvergov.org/dsbo


Process to become a City certified vendor


Beginning º Small/Minority/Women Owned Business Enterprise

º Provides covered goods or services, construction service, or professional service

City Certification Criteriaº Minimum of 6 months in business

º Small Business Enterprise by SBA standards

º 51% of owners must be under the Personal Net Worth Standard: less than $1.32 million, excluding the equity in primary residence and applicant business enterprise

https://www.sba.gov/tools/size-standards-tool?ms=nid4060https://

Application º Apply online at https://denver.mwdbe.com/?

º Pay the $200 non-refundable application fee; yearly renewal fee is $50

º Site visit by DSBO representative

City Certified Vendorsº Contact information listed on DSBO website

º Ready to bid on city solicitations

Not certified?

ᵒ Eligible to reapply for certification after one year. Businesses are welcome to bid on city solicitations.


https://www.denvergov.org/content/denvergov/en/denver-office-of-economic-development/do-business-with-denver.html

2.12 Program is made up of 4 separate components

• Defined Procurement Pool – benefit is limited competition• Covered goods and services under $50,000

• Open only to city certified Small Business Enterprises (SBE) if there are 3 certified vendors

• Bidders required to certify they will self-perform a minimum of 75% of the contract’s value

• Bids or RFP’s

• Bid Preference – benefit is a 10% price competitive advantage• Covered goods and services from $50,000-$250,000

• Small Business Enterprises (SBE)

• Bidders required to certify they will self-perform a minimum of 75% of the contract’s value

• Hard bids only

• Certified vendors get a 10% price preference


2.12 Program components • Goals – benefit is increased opportunities

• Covered goods and services over $1,000,000; including multi-year contracts

• Participation goals are set for Minority Business Enterprises(MBE)/Women Business Enterprises (WBE)

• Bids and RFPs

• Independent Partnership• Covered goods and services from $250,000-$1,000,000 or when other Programs do not apply

• S/M/WBE all included


2.13 How is a $10,000+ bid/RFP created in Purchasing?


One of the 65+ city agencies or DEN has a goods and services

need; agency researches estimated cost

Agency contacts buyer

Buyer forwards information to analyst at Purchasing to

determine solicitation’s NAICS code. Covered Goods &

Service (C G&O) Ordinance covers 469 NAICS code

descriptions

The buyer and the agency will meet one time or several times over weeks/months depending on the complexity of the RFP

../Vendor tools/PCR Website Contact Information 11102016.pdf

../Promotional material/Trifold Covered goods and services 2017.pdf




Analyst determines solicitation is not part of

C G&S Ordinance

Buyer continues working with agency and bid/RFP is

posted on BidNet Direct

Solicitation is not part of Covered Goods & Services Ordinance

https://www.bidnetdirect.com/colorado/city-and-county-of-denver-general-services-purchasing



Solicitations is part of the C G&S Ordinance

Analyst determines program type and # of certified

vendors

No certified vendors, less

than 3

at least 3 certified vendors

Defined Pool & Goals Procedure: lost opportunity and Independent

Partnership procedure followed.Benefit under Bid Preference is still

available for certified companies

Solicitation is part of Covered Goods & Services Ordinance

../Promotional material/Benefits of City Certification for non-certified businesses.pdf



Certified vendors are notified when solicitation is open. Solicitation is not posted on BidNet

Solicitation is part of Covered Goods & Services Ordinance

Solicitation under $50K

Solicitation $50K-$250K

Solicitation $250K-$999,999

Solicitation $1,000,000+

Certified vendors are notified that an opportunity is coming




Certified vendors are notified when solicitation is open. Solicitation is posted on BidNet and bidding

certified vendors get a 10% price preference

Certified vendors are notified when solicitation is open. Solicitation is posted on BidNet and vendors

are encouraged but not penalized/rewarded for working with certified vendors

Certified vendors are notified when solicitation is open and set goal %. Solicitation is posted on

BidNet. All vendors must comply with set goal

../Current Solicitations/City and County of Denver Purchasing Division Current Solicitations 032817.pdf



$-

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

$7,000,000.00

$8,000,000.00

2015 2016

2015* vs 2016 Covered Goods and Services Total Award Amounts



$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

2015 2016

2015 vs 2016 Amounts Paid* to Covered Goods and Services Certified Firms

2.14 Amounts paid to other categories


$-

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

Construction Professional services Airport concessions

2015 Amounts Paid to City Certified Firms

Construction Professional services Airport concessions

2.15 General information• Ethics – it is unlawful for any Purchasing employee to accept anything of value from

any person or firm to whom a purchase contract may be awarded

• Inspections – all material, equipment, and supplies are subject to inspections and tests. Items that do not meet specifications will be rejected

• New/Used/Altered/Equipment – all supplies offered and furnished must be new and of current production unless otherwise specified in the solicitation

• Tie proposals – a coin toss decides tie proposals equal in all respects including pricing


3 Make an action plan• Set realistic goals based on research results and available resources

• Examples: • Amy is responsible to do the research to decide which 2 city agencies the company will target.

Research deadline is November 18, 2016. Amy will communicate research findings to John.

• Amy is responsible for setting a meeting with Sue, one of the decision makers at Risk Management by January 24, 2017. Meeting date by February 14, 2017.

• Jim is responsible for making changes to the website to reflect a government procurement focus. Jim is also responsible to write content and select appropriate graphics for the capability statement tailored to Risk Management’s needs. Jim is also responsible to write content on their social media venues addressing risk management related topics. The deadline is January 6, 2017.


3 Make an action plan• Examples:

• Jim’s message will concentrate on conveying a solutions message. The government procurement message will be consistent with the company’s overall message.


4 Build relationships• Building relationships is a cornerstone of every long-term successful sale

• Building relationships takes time

• The product/service offered needs to be reliable and the price needs to be competitive to get to the finish line: awarded profitable government contract


5 Bid• Read the solicitation very carefully and make notes

• Answer each questions clearly and concisely

• Contact the Buyer, in writing, if unsure about anything in the solicitation

• Submit your response on time


5 Bid• Ask for help

• www.denvergov.org/purchasing, right hand side Resource Links tab



5 Bidwww.denvergov.org/purchasing, right hand side Resource Links tab




Bid with confidenceSelling to the government can be complex.

You are not alone. The City’s Purchasing Division is committed to

assist you along the way to success.

Q + A


Thank you

Cecilia V. Rivas de Schuermann, Business Development Coordinator

City and County of Denver General Services Purchasing Division

www.denvergov.org/purchasing

[email protected]

720. 913-8120

5Steps for doing business with

the city



mailto:[email protected]

presentation 5 steps for doing business with the city and county of denver

Sales