Business Opportunities Fair August 20, 2018 8am-4pm McNichols - - PowerPoint PPT Presentation

2018 General Services Business Opportunities Fair

August 20, 2018 8am-4pm McNichols Civic Center Building 144 W Colfax Ave, Denver, CO 80202

Agenda & Logistics

Murphy Robinson Executive Director Department of General Services

Lance Jay Chief Procurement Officer Department of General Services Purchasing & Procurement Division

Brandon Gainey Deputy Executive Director/ Chief Operating Officer Department of General Services

Certification Benefits

Revised Municipal Code of the City and County of Denver

• Chapter 28 – Human Rights
• Article V – Nondiscrimination in City contracts and purchase orders for

covered goods and covered services and opportunities for minority and woman-owned business and small business enterprises in procurements for covered goods and covered services

• Sec. 28-126 – City procurement goals – Contracts/purchase orders > $1M
• Sec. 28-139 - Defined Procurement Pool – Administration of a defined pool
• Sec. 28-142 – SBE Bid preference for city contracts and purchase orders

for covered goods/services from $50,000 to $250,000

Certification Benefits

• 469 NAICS Codes / Descriptions
• 101 NAICS Codes relate to Construction Services
• Important to be Certified in ALL applicable NAICS codes

North American Industrial Classification Standard (NAICS) codes system

• Each purchase of covered goods/services with estimated cost $>1M will be

assigned a unitary procurement goal for MBE/WBE BE utilization based upon a percentage of the dollar value.

• Sec. 28-126

City procurement goals – Contracts/purchase orders > $1M

• When the purchasing division seeks to acquire covered goods/services with

a cost <$50,000, DSBO and Purchasing will determine whether there >3 certified SBEs in the applicable NAICS codes system.

• If there are >3 SBEs, Purchasing will provide the procurement opportunity

to only those SBEs.

• SBEs will self-perform no less than 75% of the total amount of the contract
• r purchase order with their own forces
• Sec. 28-139

Defined Procurement Pool – Administration of a defined pool

• The SBE bid preference invites small businesses to compete for city

procurement opportunities for covered goods and services.

• SBEs will self-perform no less than 75% of the total amount of the contract
• r purchase order with their own forces
• SBE will be given a bid preference on bids equal to 10% of the total bid

price.

• The bid preference shall be used only to evaluate the bid(s) and shall not

affect the bid contract price.

• Sec. 28-142

SBE Bid preference for city contracts and purchase orders for covered goods/services from $50,000 to $250,000

Mayor Michael B. Hancock Denver Mayor

From Shovels to Software: How to Sell to the City Janell Schaffer, Paige Cheney, & Cecilia V Rivas Schuermann Purchasing & Procurement Division

CRACKING THE MYTHS

“Everything is an RFP”

PO? RFQ? RFP? P? MPO? Bidne net? Open n Mark rket? t? Inform rmal? l? BPO? O?

“I gave a proposal for the job … Where's my Purchase Order?”

“I should only go for the big, high dollar contracts”

St Start t Sm Small ll .. ... . Thi hink nk Big

Resea earch rch! Which

ch Agenc ncies ies buy what you are sellin ing

Reach ch out and connect ect Build d trust t through ugh excellen cellent t service, ce, timel eline ness ss, and respect ect

“Once the Purchase Order or contract is awarded, I've succeeded”

Know w your value ue Show w your r value ue

“If I ask questions, people will think I'm not capable.”

FROM SHOVELS TO SOFTWARE...

WE ARE HERE TO SUPPORT YOU!

1st Wednesday of every month Next training September 5, 2018 Registration www.denvergov.org/purchasing calendar tab

Current & upcoming solicitations is updated every week

Current & upcoming solicitations information

3 ways to review information

• 1. Join our Communications Platform,

https://fs7.formsite.com/CCDenver/form290/ind ex.html , and receive weekly updates plus news relevant to the small business community

• 2. Purchasing’s LinkedIn page
• 3. Purchasing’s website,

www.denvergov.org/purchasing calendar tab

Th Thank you!

you!

City & County of Denver

Office of Economic Development (OED) Strategic Investments

OED’s Background

The City & County of Denver’s OED is comprised of five divisions:

• Housing
• Neighborhood Services
• Workforce Development
• Small Business Opportunity
• Business Development

➢Strategic Investments

History of OED’s Loan Program

➢ Mayor’s Office of Economic Development began its loan program in 1986 ➢ Since 1986, OED has revolved approximately $170,000,000 assisting 850 small businesses ➢ Private capital leveraged is estimated at $650,000,000 (3.8x’s)

Strategic Investments provides “Gap” financing for start-up and business expansion

➢ ELIGIBILTY STANDARDS

➢Loan program is geographic dependent. Business must be located within Denver’s RLF boundary ➢Meet one of the national objectives of the loan program ➢Commitment of private financing and other sources of funding ➢No home-based businesses ➢Financially viable business plan/model

Community Development Block Grant (CDBG)

➢ Loan programs funded by CDBG (HUD: Housing and Urban Development) ➢ Loan Programs ▪ Revolving Loan Fund (RLF) Program ▪ Neighborhood Business Revitalization (NBR) ➢ Eligible Uses of Funding: ▪ Real estate acquisition ▪ Construction costs Purchase of FF&E (Furniture, Fixture & Equipment) ▪ Working Capital ▪ Inventory ➢ National Objective Criteria: ▪ Benefit to low and moderate income persons/Create jobs (one job per $35,000 funding) ▪ Eliminate slum and blight ▪ Urgent need

Objectives of Loan Programs

➢ Create jobs available to low-and-moderate income individuals ➢ Stimulate the redevelopment under-utilized and deteriorated commercial districts ➢ Elimination of slum and blight ➢ Improve the quality and level of goods and services in Denver’s low-and- moderate income neighborhoods ➢ Create access to capital for small business entrepreneurs who cannot obtain conventional/traditional financing

Commitment of Private Financing

➢ Owner equity and private financing must be maximized and fully committed to the proposed project: ▪ “But for” the City’s participation, the project would not be realized ▪ Declination letters, demonstrated “gap” in financing structure, etc. ➢ No competition with private lending institutions ▪ Public dollars cannot be substituted for private dollars ▪ City of Denver takes a subordinated lien position

Revolving Loan Fund (RLF) Program

➢ Project must be located in the RLF boundary ➢ Gap financing up to 25% of total project costs ➢ Gap financing up to 30% of total project costs if business is minority and/or female-owned ➢ Maximum loan amount is $350,000 ➢ Job creation

Sample RLF Sources and Uses Funding

Uses Sources Real estate acquisition $300,000 Bank $400,000 Construction/renovation $150,000 Owner’s equity $50,000 FF&E purchases $100,000 Denver-OED $150,000 Working capital $50,000 TOTAL: $600,000 $600,000

Denver’s $150,000 participation represents 25% of the total project costs

Neighborhood Business Revitalization (NBR) Loan Program

➢ Project located in the NBR target area:

▪ Downing Street: 31st to 35th ▪ Bruce Randolph Ave.: Downing to York ▪ York Street: Bruce Randolph to 38th Avenue ▪ East Colfax: Broadway to Colorado (informally extended to Quebec) ▪ Larimer Street: 20th to Park Avenue ▪ Morrison Road: Knox Ct. to Sheridan ▪ Santa Fe Drive: Alameda Ave. to 13th Avenue ▪ Welton Street: Park Avenue to 30th Street ▪ Washington Street: 24th to 26th Street ▪ West 38th Avenue: Jason to Federal ▪

Gap financing up to 50% of total project costs

Newer Target Neighborhoods

➢Elyria-Swansea ➢Globeville ➢Sun Valley ➢Montbello

RLF and NBR Map

Underwriting Criteria

• Underwrite rate and term based on businesses ability to repay
• Below market interest rates (1% to 6%)
• Typical terms:
• Real estate acquisition: 10-25 years
• Renovation/construction: 5-20 years
• FF&E purchases: 7-15 years
• Working capital: 4-10 years
• 6 to 9 moratorium at the beginning of the loan
• Loan collateral: Business assets, deed of trust
• Personal guaranty required

Other OED Loan Products

➢DOC-EDA: Revolving loan fund initially funded in 1980 for $960,000 ➢HUD Section 108: Typically used to fund a portion of large anchor projects, e.g., New Elitch Gardens, Downtown Aquarium, Taxi

Lending and other Key Partners

➢ Commercial Banks ➢ CHFA ➢ SBA ➢ Commons on Champa ➢ Angel Investors ➢ Rocky Mountain MicroFinance ➢ Colorado Enterprise Fund ➢ Accion ➢ Colorado Lending Source ➢ Preferred Lending Partners ➢ CEDCO ➢ Mile High Community Loan Fund ➢ Mi Casa ➢ Denver SBDC ➢ Local Chambers of Commerce

Contact Information:

Rick Snyder

• Sr. Economic Development Specialist

Office of Economic Development 101 West Colfax Avenue, Suite 850 Denver, CO 80202 Phone: (720) 913-1631 E-mail: rick.snyder@denvergov.org

Division of Small Business Opportunity

Tanya ya Davi vis | M Manager er Divi vision

• n of Small

ll Busine ness Opportun rtunit ity y (DSBO) BO) Tanya.d ya.davis avis@de denverg nvergov

• v.o

.org rg 720 720-913 913-1780 1780 offi fice e | 72 720-239 39-364 649 cell

DSBO’s Mission

The Division of Small Business Opportunity (DSBO) was created to develop and enforce programs for enhancing minority, women-owned (M/WBE) and small business (SBE) utilization in city construction, professional design and construction services, and DIA concession contracting, and to promote economic development of such business enterprises.

• Goal 1: Increase the number of Certified MWBEs to match potential in local population.
• Goal 2: Build the skills of M/WBEs to increase their capacity and facilitate growth

aspirations.

• Goal 3: Build connections, deepening relationships among Denver MWBEs, and Primes.
• Goal 4: Increase the local opportunities for MWBEs to work on public contracts.
• Goal 5: Ensure goals are met with meaningful work that develops Primes and Subs.

46

DSBO Gove vern rnanc nce

Denver Revised Municipal Code (D.R.M.C)

➢ Article III: Nondiscrimination in city contracts for construction, reconstruction, and remodeling, professional design and construction services. ➢ Arti ticle cle V: Non

• ndisc

scri riminat mination

• n in city

ty contra

• ntracts

ts and purchase chase orders rs for r cove vered ed goods

• ds and cove

vere red servi rvice ces s and opport

• rtuniti

ties es for r minority

• rity and wome

men-own

• wned

ed busines ess s and smal all busines ess s ente terpri rise ses s in proc

• cure

reme ments ts for r cove vered goo

• ods

s and servi rvice ces. ➢ Article VII: Opportunities for small business enterprises in city contracts for construction , reconstruction and remodeling, and professional design and construction services, and in concession agreements, through defined selection contracts and concession agreements.

Good d and Servi vices s Ordin inance ance

Article V. determines the purpose and scope of four different programs.

1) Sec. 28-126. - Procurement Goals: MWBE goal established for a contract or purchase order of $1Mil or more. 2) Sec. 28-139. - Defined Procurement Pool: Contracts or Purchase Orders of $50K or less. 3) Sec. 28-142. - SBE Bid Preference: Contracts or Purchase Orders from $50K to $250K. 4) Sec. 28-151. - Independent Partnerships: Contracts or Purchase Orders from $250K -$1Mil

Goods ds and Servi vices ces Ordin inanc nce

Covered Goods Include: ➢ Electronic parts and equipment ➢ Office equipment ➢ Machinery, equipment and supplies ➢ Electrical and industrial equipment including parts and supplies ➢ Communication equipment Covered Services Include: ➢ 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 consisting of staffing, interpretation, graphic design, printing and photocopying, transportation, and courier services

D.R.M.C. Chapter 28, Articl cle V, Sect ction n 28-123 123

Dispa sparity rity Study dy

50

BBC Research and Consulting is conducting a Disparity Study for the period of January 2012-December 2016.

Key Dates: ➢ Late September 2018: Final Disparity Study Report ➢ October 2018: Public meeting ➢ December 2018: First draft of new ordinance ➢ January-February 2019: Public comment on ordinance draft ➢ April 2019: DSBO Ordinance Sunsets/New Ordinance in effect

Thank you! Tanya Davis | Manager Division of Small Business Opportunity (DSBO) Tanya.davis@denvergov.org 720-913-1780 office | 720-239-3649 cell

Prevailing Wage Overview

Compensation Laws

 Prevailing Wage Ordinance  OHR Compensation and Classification

 Career Service Act

 Denver Living Wage

 Parking Lot Attendant, Security Guard, Child Care Worker, at any public

building or public parking facility owned by the City or Clerical Support Worker.

Timothy M. O'Brien, CPA, Auditor

Prevailing Wage Division Responsibilities

 Ensure that contracts have the proper wage determination.  Attend Pre-Bids, Pre-Construction to inform contractors of PW requirements.  LCPtracker set-up of contracts/projects and contractors.  Ensure contractors have access to LCPtracker.  Audit payroll records for compliance.  Process (approve) Invoices.

Timothy M. O'Brien, CPA, Auditor

Prevailing Wage

 Denver’s Prevailing Wage Ordinance (Section

20-76 of the Denver Revised Municipal Code) requires payment of the prevailing wage.

 Latest revision was CB16-0985, passed

unanimously, effective January 1, 2017.

 Adopted in 1950 to create a “level playing field”

for all contractors.

 The Auditor’s Office has sole authority to

enforce Denver’s Prevailing Wage Ordinance.

Timothy M. O'Brien, CPA, Auditor

When Does Prevailing Wage Apply?

Construction, alteration, improvement, repair, maintenance, demolition, and certain services City-owned or leased building For any agency of the city, or financed in whole

• r in part by the city

In excess of $2,000

Timothy M. O'Brien, CPA, Auditor

Key Elements of Prevailing Wage

Proper Classification and Rates of Workers

Employees are to be classified and paid properly for the classification of work they are performing Prevailing wage rates are a minimum

Timothy M. O'Brien, CPA, Auditor

Classification and Rates

• f Workers

Wage Determinations Fringe Benefits Overtime Apprentices Salaried Personnel Performing Work Owner-Operator Requirements Weekly Payment of Employees Changes in Wage Rates On-Site Inspections Submittal of Certified Payroll Records Non-Compliance

Proper Classification and Rates of Workers

Office of Human Resources creates all wage classifications Prevailing Wage Clarification Document https://denverauditor.org

Classification and Rates

• f Workers

Wage Determinations Fringe Benefits Overtime Apprentices Salaried Personnel Performing Work Owner-Operator Requirements Weekly Payment of Employees Changes in Wage Rates On-Site Inspections Submittal of Certified Payroll Records Non-Compliance

Timothy M. O'Brien, CPA, Auditor

Wage Determinations

 Building with OHR supplemental  Heavy with OHR supplemental  Highway with OHR supplemental  Building, Heavy, Highway, Residential

(without supplemental) for federally funded projects

 OHR/CSA  Living Wage

Timothy M. O'Brien, CPA, Auditor

Classification and Rates

• f Workers

Wage Determinations Fringe Benefits Overtime Apprentices Salaried Personnel Performing Work Owner-Operator Requirements Weekly Payment of Employees Changes in Wage Rates On-Site Inspections Submittal of Certified Payroll Records Non-Compliance

Fringe Benefits

 Fringe benefits must be paid as part of prevailing wage.  Contractor paid fringe benefits must have approval

before being applied.

 Fringe benefits not approved must be paid as cash

directly to the employee.

 Fringe owed on standard-time and overtime.

Timothy M. O'Brien, CPA, Auditor

Classification and Rates

• f Workers

Wage Determinations Fringe Benefits Overtime Apprentices Salaried Personnel Performing Work Owner-Operator Requirements Weekly Payment of Employees Changes in Wage Rates On-Site Inspections Submittal of Certified Payroll Records Non-Compliance

Overtime

 Overtime is enforced after

40 hours.

 Overtime is calculated at 1½

times the hourly base rate

• nly.

 Fringe must be paid for every

hour worked but is not calculated at 1½ times.

Classification and Rates

• f Workers

Wage Determinations Fringe Benefits Overtime Apprentices Salaried Personnel Performing Work Owner-Operator Requirements Weekly Payment of Employees Changes in Wage Rates On-Site Inspections Submittal of Certified Payroll Records Non-Compliance

Timothy M. O'Brien, CPA, Auditor

Apprentices

 Apprentices must have

a current certificate from USDOL Office of Apprenticeship Training.

 1:1  one apprentice

to one journeyman.

 Helpers or trainees are

NOT allowed.

Classification and Rates

• f Workers

Wage Determinations Fringe Benefits Overtime Apprentices Salaried Personnel Performing Work Owner-Operator Requirements Weekly Payment of Employees Changes in Wage Rates On-Site Inspections Submittal of Certified Payroll Records Non-Compliance

Timothy M. O'Brien, CPA, Auditor

Salaried Personnel Performing Work

 Salary must be converted to an hourly rate and

must be at least the minimum prevailing wage rate.

 Overtime applies to salaried personnel performing

work after 40 hours.

 DO NOT report salaried personnel who only

supervise.

Timothy M. O'Brien, CPA, Auditor

Classification and Rates

• f Workers

Wage Determinations Fringe Benefits Overtime Apprentices Salaried Personnel Performing Work Owner-Operator Requirements Weekly Payment of Employees Changes in Wage Rates On-Site Inspections Submittal of Certified Payroll Records Non-Compliance

Owner-Operator Requirements

 All contractors/subcontractors who classify themselves

as Owner-Operators must verify to our office that they are a legitimate business entity.

 Owner-Operators are required to submit certified

payroll records in LCPtracker.

 Legitimate Owner-Operators ONLY have to report hours

worked, NOT pay information on the certified payroll records.

Timothy M. O'Brien, CPA, Auditor

Classification and Rates

• f Workers

Wage Determinations Fringe Benefits Overtime Apprentices Salaried Personnel Performing Work Owner-Operator Requirements Weekly Payment of Employees Changes in Wage Rates On-Site Inspections Submittal of Certified Payroll Records Non-Compliance

Weekly Payment of Employees

 Employees are to be paid

• n a weekly basis.

 Cash payment to

employees is not acceptable.

Classification and Rates

• f Workers

Wage Determinations Fringe Benefits Overtime Apprentices Salaried Personnel Performing Work Owner-Operator Requirements Weekly Payment of Employees Changes in Wage Rates On-Site Inspections Submittal of Certified Payroll Records Non-Compliance

Timothy M. O'Brien, CPA, Auditor

Changes in Wage Rates

 Wages bound in the contract remain in effect for 12

months from the anniversary date.

 As of January 1, 2017, the bid opening date is considered the contract

anniversary date.

 Prior to January 1, 2017, the anniversary date was the date the contract

was signed by the Mayor.

 On projects with federal funds, wage rates are frozen for

the duration of the project.

Timothy M. O'Brien, CPA, Auditor

Classification and Rates

• f Workers

Wage Determinations Fringe Benefits Overtime Apprentices Salaried Personnel Performing Work Owner-Operator Requirements Weekly Payment of Employees Changes in Wage Rates On-Site Inspections Submittal of Certified Payroll Records Non-Compliance

On-Site Inspections

 On-site inspections will be

conducted.

 Inform employees that this is a

Prevailing Wage project and they might be interviewed

 Wage Rate and Prevailing Wage

posters must be displayed in an easily accessible place on the job site.

Classification and Rates

• f Workers

Wage Determinations Fringe Benefits Overtime Apprentices Salaried Personnel Performing Work Owner-Operator Requirements Weekly Payment of Employees Changes in Wage Rates On-Site Inspections Submittal of Certified Payroll Records Non-Compliance

Timothy M. O'Brien, CPA, Auditor

Submittal of Certified Payroll Records

 Certified payroll records must

be submitted electronically using LCPtracker.

 Assistance with LCPtracker.

Timothy M. O'Brien, CPA, Auditor

Classification and Rates

• f Workers

Wage Determinations Fringe Benefits Overtime Apprentices Salaried Personnel Performing Work Owner-Operator Requirements Weekly Payment of Employees Changes in Wage Rates On-Site Inspections Submittal of Certified Payroll Records Non-Compliance

Non-Compliance

Failure to submit certified payroll records. Rejected payroll reports. False reporting. Misclassifying & underpaying employees.

Timothy M. O'Brien, CPA, Auditor

Classification and Rates

• f Workers

Wage Determinations Fringe Benefits Overtime Apprentices Salaried Personnel Performing Work Owner-Operator Requirements Weekly Payment of Employees Changes in Wage Rates On-Site Inspections Submittal of Certified Payroll Records Non-Compliance

Process of Invoices

Our main goal is to pay contractors/vendors promptly:

 Timely submittal of certified payroll records.

 Support documentation up-to-date.  Purchase Orders should have detailed scope of work and date work

performed.

 Invoices should have correct and sufficient information.

Timothy M. O'Brien, CPA, Auditor

Training & Tutorials

Timothy M. O'Brien, CPA, Auditor

2017 Prevailing Wage Division Highlights

Audited 49,000+ payrolls

• f 833 city projects with

budgets exceeding $1.8 BILLION.

1

Processed 18,000+ Invoices per year.

2

Timothy M. O'Brien, CPA, Auditor

Prevailing Wage Team

Prevailing Wage Supervisor Rafael Gongón Lead Prevailing Wage Investigator Kandice McKeon, Valerie Ramirez, Elvis Rubio Prevailing Wage Investigators Matt Borquez, Arielle Denis, Abby Kreckman, Noah McKechnie, Rudy Lopez and Luis Osorio

Thank You! Questions?

Timothy M. O’Brien, Denver Auditor www.denvergov.org/auditor auditor@denvergov.org 720-913-5000 Facebook.com/DenverAuditorOBrien Reach out on Nextdoor - City of Denver Public Agency page 720-913-5000

Timothy M. O'Brien, CPA, Auditor

Show Me the Money

Steps to Creating an Error Free Invoice

Before You In Invoic ice

Have you…

Been approved by the purchasing department as a city vendor and submitted a W9? Understood prevailing wage requirements (if applicable)? Understood who your city agency contact is for follow-up questions?

Please visit: DenverGov.org/Purchasing

Content of In Invoice

• Legal Name of Company
• DBA Name (if applicable)
• Contact Information

including REMIT address

• Unique Invoice number
• City's PO number

(PO-000XXXXX)

• Invoice Date
• Description of

Goods/Services & itemized cost

• Total Amount Due
• Payment Terms subject

to purchasing & contract agreement

• Tax ID Number
• Contract Number
• Project Information

Contact Information Key Invoice Information Other Helpful Information

The City Purchase Order Number! PO-000XXXXX

The Sin ingle Most Im Important Item on an Invoice is…

• All invoices should be sent to

your contact at the city agency doing the purchasing or placing the order

• To find agency contact info go to:
• DenverGov.org
• Click on tab “A to Z”
• Click on subtitle link: Agency &

Department Contact Information

Where do I Send the Invoice?

THANK YOU !!!

WE LOOK FORWARD TO WORKING WITH YOU!

AccountsPayable.Help@DenverGov.org AP Help Line: 720.913.8811

Accounts Payable Contact Information

AIRPORT AP HELP: AccountsPayable@FlyDenver.org

Stephanie O’Malley Senior Special Advisor to the Mayor

THANK YOU