Small Business Roundtable & W bi & Webinar

Agendag

• I-70 East Project Update• Discussion: Barriers for Small Businesses

Project Location

Phase 1 end

The VisionThe Viaduct Today

With Your Help in 2021

The Projectj

Public-private partnership

Project Deliveryp p p

• Design-Build-Finance-Operate-Maintain Model• Four developer teams shortlisted to respond to Request for

Proposal (RFP)Proposal (RFP)• Best value; defined scope• Subject to final outcome of Environmental Impact

Statement

Multiple Request For Proposal (RFP) draftsp q p ( )• September 2015 – Summer 2016

Proposed Small Business Goals:

• Design DBE Goal: 11.6%

Proposed Small Business Goals:

• Construction DBE Goal: 12.5%

• ESB Goal: 3%• ESB Goal: 3%

• O, M & R (Post-Construction):TBD

Overall Structure

Developer

Construction Subcontract O, M & R Subcontract3% ESB

,TBD

Design Constructiong11.6% DBE  12.5% DBE

How to access the RFP

• All drafts posted on the HPTE website• tinyurl.com/p7ynoyo

• RFP has two primary sections:• Instructions to Proposers (ITP)P j t A t (PA)• Project Agreement (PA)

• Schedules

• First draft only included proposed goals for small business; y p p g ;subsequent drafts will include additional detail and requirements

Where to find I-70 East DBE/ESB Requirements:• ITP:• ITP:

o Proposer submits a Small & Disadvantaged Business Participation Plano Plan scored as part of proposal evaluation

• Schedule 15: Criteria & compliance procedures for Small & Disadvantaged Business Participation Plan, including:o Plan review & approval process

M it i g t ki g & ti go Monitoring, tracking & reportingo Replacement & good faith effort requirementso Enforcement mechanisms

• Section 17: Outlines general subcontracting requirements, including prompt pay and release of retainage

Procurement Schedule

First Draft RFP: September 2016• Second Draft RFP: January 2016• Third Draft RFP: March 2016• Third Draft RFP: March 2016• Final RFP: May 2016• Proposal Deadline: September 2016Proposal Deadline: September 2016• Selection: Late September 2016• Financial Close: Early 2017

Where we are now

Supplemental Draft EIS Final EIS

January 2016

Record of Decision

Environmental Impact Statement (EIS)

August 2014 January 2016 Summer 2016

R t f Final Request

Project DeliveryConstruction

Request for QualificationsMarch 2015

Draft Request for ProposalsSeptember 2015

Final Request for ProposalsEarly summer 

2016

Start

2017

Public Outreach

Input on I-70 East DBE Goals

• Methodology will be published on the CRBRC website November 9, 2015webs te Nove be 9, 0 5

• Open for comment for 2 weeks

What is the Greatest Barrier for Small Businesses on Large Projects?

• Prompt Payment- Earned Value Management• Bonding Requirements• Insurance Requirements• Establishing a New Relationship• Quoting/Estimating• Capital to Commence Work• Communication & Dispute Resolution • Communication & Dispute Resolution • Scheduling• Workforce Opportunities• Identification of Opportunitiespp

Greatest Barriers (from group):

1) Establishing a New Relationship2) Identification of Opportunities3) P P & C h fl3) Prompt Pay & Cash flow

‐

1) Establishing New Relationships• Prime tells where small business utilization is not being maximized (where

they need help identifying small business)• Reverse trade fair (timing is critical, focus on opportunities and sync timing

with prime’s needs) General reverse trade fair; primes may have other with prime s needs). General reverse trade fair; primes may have other projects going on.

• Break out outreach events to specific project needs (targeted outreach events). Clear communication regarding purpose of events and needs of

j t

‐

project.• Instructions to prime regarding when they will communicate with small

businesses• Direct contact information of teams available

2) Identification of OpportunitiesList of opportunities:- publish list/schedule of when primes are looking for specific work so subs know when to contact prime-Small business meetings at CDOT (quarterly). Promote awareness about all opportunities at CDOT.

‐Other Suggestions:- More firm letter of intent. Increase transparency.

Insurance issues Sometimes it is beyond what CDOT requires - Insurance issues. Sometimes it is beyond what CDOT requires.

3) Prompt Payment and Cash FlowTeeth in contracts for prompt pay (enforcement)-Mechanism for retainage release (note: section 17 has some provisions about this).-What is prompt to you?

-14 days for construction30 f f i l i-30 for professional services

-15-30 days- Sub paid 30 days from invoice-Mechanism to know why you are not paid (Good cause. How do you know- improving communication

‐

communication.-Guidelines for primes in negotiation with subs-Earned value management requirement (federal mechanism)-Contractual requirement for lien releases is a problem-Small business report to agency when they are paid This way agency knows what is going -Small business report to agency when they are paid. This way agency knows what is going on. (RTD is currently doing this)- take into consideration certified payrolls

4) Insurance-Discretionary insurance requirements set by primes are problematic. - Establish limits of insurance now. - Look at provisions to make sure that undue insurance requirements are not imposed on small businessesimposed on small businesses.

‐

5) Bonding Requirements- Bonding or Insurance Program. RTD may have a good model: alternative to bonding insurance program.- Phased bonding

-eliminate unfair relationshipseliminate unfair relationships- Bonding thresholds

- Subcontractors with contracts $1 million or less will be under umbrella bonding program

Under $50k no bonding requirement

‐

- Under $50k no bonding requirement

6) Capacity Development & Other Issues- Supportive services for building the workforce-Joint check agreements - Educate small businesses about resources available - Encourage mentor-protégé If regulation is too tough it may inhibit primes - Encourage mentor-protégé. If regulation is too tough it may inhibit primes from helping. Allow for mentoring and make lines clear so primes feel comfortable helping.

O ll S ti

‐

Overall Suggestion:- Address other issues in another session

C o n t a c t s

Katherine Williams Small Business & Title VI SupervisorKatherine Williams@state co us

Erik LacayoI-70 East Civil Rights ComplianceErik Lacayo@state co usKatherine.Williams@state.co.us Erik.Lacayo@state.co.us

Rebecca White I-70 East CommunicationsRebecca.white@state.co.us

Cathy KramerConnect2DOTCathy kramer@state co usRebecca.white@state.co.us Cathy.kramer@state.co.us

Next Webinar in I-70 East Series

• Early 2016 (Jan‐Feb)o Second draft of RFP release

Changes additions response to commentso Changes, additions, response to comments

o Potential Supportive Services for I‐70 East