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
Certification Benefits 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
North American Industrial Classification Standard (NAICS) codes system • 469 NAICS Codes / Descriptions • 101 NAICS Codes relate to Construction Services • Important to be Certified in ALL applicable NAICS codes
Sec. 28-126 City procurement goals – Contracts/purchase orders > $1M • 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. 28-139 Defined Procurement Pool – Administration of a defined pool • 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 or purchase order with their own forces
Sec. 28-142 SBE Bid preference for city contracts and purchase orders for covered goods/services from $50,000 to $250,000 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 or 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.
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? Bidne net? RFP? P? MPO? RFQ? Open n Mark rket? t? BPO? O? Inform rmal? l?
“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
F ROM S HOVELS TO S OFTWARE ... WE ARE HERE TO SUPPORT YOU ! “If I ask questions, people will think I'm not capable.”
1 st 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 $150,000 Owner’s equity Construction/renovation $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: 31 st to 35 th ▪ ▪ Bruce Randolph Ave.: Downing to York York Street: Bruce Randolph to 38 th Avenue ▪ ▪ East Colfax: Broadway to Colorado (informally extended to Quebec) Larimer Street: 20 th to Park Avenue ▪ ▪ Morrison Road: Knox Ct. to Sheridan Santa Fe Drive: Alameda Ave. to 13 th Avenue ▪ Welton Street: Park Avenue to 30 th Street ▪ Washington Street: 24 th to 26 th Street ▪ West 38 th 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: o Real estate acquisition: 10-25 years o Renovation/construction: 5-20 years o FF&E purchases: 7-15 years o 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
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