2015 Annual Report — Division of Small Business · 2016-04-05 · 2015 Project Awards (SBE...

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CITY AND

COUNTY OF

DENVER

2015 ANNUAL REPORT — DIVISION OF SMALL BUSINESS

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Division of Small Business Opportunity: Mission Statement The mission of the Office of Economic Development’s (OED) Division of Small Business Opportunity (DSBO) is to support the growth, capacity and sustainability of minority, women owned and other small disadvantaged business (M/WBE).

DSBO encourages the utilization of small and disadvantaged businesses on construction and professional services projects, participation on Denver International Airport (DEN) Concessionaire opportunities as well as procurements for covered goods and services. DSBO manages small business (SBE, EBE, SBEC), Minority/Women Business Enterprise (M/WBE), and Federal (DBE, ACDBE) certifications and oversees small and disadvantaged business compliance goals on City and County of Denver and DEN contracts. DSBO administers the Construction Empowerment Initiative (CEI) Mentor-Protégé Program in support of the City and County of Denver’s core value of growing small and disadvantaged businesses throughout Denver.

The goal of the M/WBE program is to establish a critical mass of highly qualified and successful minority and women owned businesses in the construction and professional services industry. The intent of the M/WBE program will be to increase the:

1. Number of M/WBE firms that participate as prime contractors;

2. Bonding capacity of M/WBE firms;

3. The number, types and dollar amounts earned by M/WBE firms as prime contractors; and

4. Aggregate revenues of M/WBE firms

This will be achieved through an overarching culture in the Hancock administration that celebrates diversity of economic opportunity, holding prime contractors accountable for reaching their M/WBE participation goals and by bold initiatives designed to build the capacity of the M/WBE community.

[2015 ANNUAL REPORT — DIVISION OF SMALL BUSINESS] February 29, 2016

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Table of Contents

Division of Small Business Opportunity: Mission Statement ................................................................ 2

Letter from the DSBO Director ................................................................................................................ 4

Executive Summary ................................................................................................................................. 5

Disparity Study & Aspirational Goals ...................................................................................................... 6

DSBO Certification Trainings ................................................................................................................... 7

Denver Mentor Protégé Program & Small Business Advocacy at DEN ................................................ 8

Certified Firms Seeking Bonding in 2015 .............................................................................................. 9

DSBO Certification Programs & Certifications Through 2015 ...................................................... 11-12

Certified Firm Growth Through The Years............................................................................................ 12

DSBO Certification Program Graduate & Certified Firms at DEN ....................................................... 13

Tenant Finish at Denver International Airport & DSBO Compliance .................................................. 14

Purchasing Goods & Services .............................................................................................................. 15

Certification Program Definitions .................................................................................................... 15-17

2015 Project Awards (M/WBE) ............................................................................................................ 18

2015 Project Awards (SBE Defined Selection Pool) ........................................................................... 19

2015 Project Awards (DEN Tenant Finish – SBE) ............................................................................... 20

2015 Project Awards – DBE ................................................................................................................. 21

2015 Project Awards – Goods & Services: SBE & M/WBE ................................................................ 22

2015 Project Payments – M/WBE .................................................................................................. 23-24

2015 Project Payments – SBE Defined Selection Pool ...................................................................... 25

2015 Project Payments – Denver International Airport SBE ........................................................ 26-27

2015 Project Payments – DBE ....................................................................................................... 28-29

2015 Project Payments – Goods & Services ...................................................................................... 30

Contact DSBO ........................................................................................................................................ 31


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Letter from the DSBO Director The words “growth,” “achievement,” and “opportunity” adequately frame a consistent theme in 2015 for the Division of Small Business Opportunity (DSBO). In 2015, our pool of certified firms has grown in capacity. These certified firms earned more than $239 million on projects & concessions throughout Denver and at Denver International Airport (DEN) in 2015. The work of DSBO played a critical role in developing small businesses and helping prepare them for work with the City and County of Denver. Growth in the program is represented by utilization of the Purchasing ordinance, which has opened doors for more vendors to become certified and work with the city’s procurement of covered goods and services. Many more of our certified firms are exploring how to become bonded, representing growth and staying power for small businesses in the marketplace. In addition, nine firms graduated from our certification program due to exceeding revenue and size thresholds, indicating business strength and growth through and beyond the program. Achievement in the program is marked by the implementation of DSBO’s new Mentor/Protégé program which is tailored to our partners in the construction field. DSBO is developing a Technical Assistance program that will serve as a resource tool to assist small businesses. DSBO has implemented an aggressive site visit schedule to personally re-visit firms seeking renewal of their certification. Finally, DSBO at DEN was recognized by the Federal Aviation Administration and given the DBE-ACDBE Advocate of the Year award for 2015. We are honored by this award and continue to strive in our efforts to advocate for our certified firms! Opportunity was achieved as certified firms have submitted 698 competitive bids in 2015! These are certified firms that are actively competing for work on Denver projects as primes and subs, demonstrating their growth and maturity through bidding opportunities in Denver and DEN. DSBO performed more outreach and training sessions in 2015, reaching out to new as well as potential contractors and concessionaires. Certified firms worked on large projects of all disciplines including the new airport Westin hotel, and the North University storm system project. In all, 2015 was a positive year of achievement in DSBO, but more importantly, it was a year of continued growth and opportunity for our certified firms.

Chris Martinez, Director Division of Small Business Opportunity


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Executive Summary Total Number of Certified Firms:

• 1,245 unique certified firms through DSBO as of January 2016 Bonding Capacity

• 42% of 130 survey respondents are currently bonded, with 38% to seek bonding in next two years

• 19 firms have bonding in the $3M-20M range, and 5 firms have aggregate bonding of more than $20M

Total Revenues:

• In 2013, total revenue of certified firms was $2.6 billion, averaging $2.4M per firm (16% increase since 2011)

• In 2013 total payments made by the city to certified firms represented 9% of total revenue City as Customer

• In 2015, $54M of project awards were made to M/WBE firms (20% of total awards), and $19M of project awards were made to DBE firms (35% of total awards)

• In 2015, $86M was paid to M/WBE firms (27% of total project payments) and $15M was paid to DBE firms (30% of total project payments), representing a 15% decrease and 69% increase, respectively

• $130M earned by ACDBE concessionaires, representing 39% of total concessions revenue at Denver International Airport

Prime Contracts:

• In 2015, certified firms earned $22M (6% of total payments made by city) as prime contractors

Goals Performance As reflected in the following table, DSBO met or exceeded all Aspirational Goals for 2015:

Categories Aspirational Goal

Program Type Goal Achieved

Construction 24% M/WBE, SBE, EBE, DBE

28%

Professional Services 33% M/WBE, SBE, EBE, DBE 35%

Goods 5% M/WBE, SBE 5%

Services 8% M/WBE, SBE 85%


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Disparity Study In July 2011, MGT of America, Inc., was retained to conduct a Comprehensive Disparity Study for the City of Denver to provide current data on the DSBO programs. This study consisted of fact-finding to analyze city procurement trends and practices for the study period from January 1, 2005 through December 31, 2011. This study evaluated the impact of race and gender neutral remedial efforts and to evaluate various options for future program development. The study also made recommendations for the aspirational goals. * (The full report may be found at www.denvergov.org/dsbo).

Aspirational Goals Aspirational goals are annual goals which DSBO targets to achieve in a calendar year, in accordance with DRMC 28-54(2). In 2015, DSBO was encouraged by the high participation of certified firms on Services projects, as reflected below. The current aspirational goal percentages achieved in 2015 for the DSBO program are as follows: A B C D E

A. Program Type: Certification types included in each category.

B. Payment Totals: Represents total payments in 2015 for each category.

C. Paid to Certified Firms: Represents total payments in 2015 to certified firms.

D. Aspirational Goal: Represents the goal percentage set for each category.

E. Goal Achieved: Represents the percentage of aggregate payments to certified firms out of total payments to projects with goals in 2015. NOTE: Excluding DBE participation and counting only local program participation (MWBE, SBE, EBE) results in goal achievement: Construction = 27% | Professional Services = 36%.

* From MGT of America, Inc. City & County of Denver Disparity Study – Executive Summary ** No project awards or payments for the EBE program in 2015

Categories Program Type Payment

Totals

Paid to Certified

Firms Aspirational

Goal Goal

Achieved

Construction M/WBE, SBE, DBE, EBE** $330,998,674 $91,714,210 24% 28%

Professional Services M/WBE, SBE, DBE, EBE** $44,496,217 $15,452,913 33% 35%

Goods M/WBE, SBE $1,706,009 $79,036 5% 5%

Services M/WBE, SBE $2,603,307 $2,200,730 8% 85%

Airport Concessions ACDBE $329,917,138 $129,625,687 33% 39%

http://www.denvergov.org/dsbo


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DSBO Certification Trainings In order to provide enhanced customer service to Denver’s contracting community, DSBO facilitates monthly certification training sessions that are free and open to the public. The intent of the trainings is to provide enhanced information for businesses that wish to be certified or would like to learn more about DSBO programs and opportunities. In 2015, DSBO certification analysts met with and trained more than 120 individuals representing companies or firms throughout the Denver metro area who wished to learn about our certification programs. Certification Training Feedback “The class was very helpful for our business. I didn’t know all of the opportunities available for small businesses!” “This class was very helpful. All of our questions were answered and it helped make this large process [of getting certified] more manageable.” “More information than I expected! Things were explained very much in-depth!” “Very clean presentation with an excellent information packet.”

Construction of bike/pedestrian ramps underway at Confluence Park.


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Denver Launches Mentor Protégé Program for Construction in 2015 A program pairing construction mentors with smaller and less experienced firms was a frequent request in surveys and among the Construction Empowerment Initiative (CEI) group over the last two years. In 2015, a new Mentor-Protégé program was developed in partnership between DSBO and CEI. This Mentor-Protégé program was implemented in mid-2015. Phase l of the process, identifying and pairing appropriate mentors with protégés, has been completed with the following initial class composed of five mentor-protégé teams committed to starting a strategic, long-term partnership:

Villalobos Concrete, Inc. mentoring Chacon Construction & Transport, Inc. LEI Companies mentoring St. Andrews Construction Services Corp. Hensel Phelps mentoring Sky Blue Builders LLC Hensel Phelps mentoring Flawless Steel Welding LLC RMK Electric Inc. mentoring Living Design Studios Inc.

Moving forward, each Mentor-Protégé team will create a development plan that establishes goals for the partnership. DSBO personnel will meet with the teams on a monthly basis to discuss progress toward the identified goals and to provide support. Phase II of the program will launch in mid-2016 to identify and incorporate five additional teams into the program.

Small Business Advocacy – DSBO at Denver International Airport For its efforts to promote opportunities for small, minority- and women-owned businesses, Denver International Airport was selected on August 11, 2015 by the FAA as the winner of the 2015 Disadvantaged Business Enterprise Advocate and Partner Award. Issued by the FAA’s Office of Civil Rights, the award recognizes the Division of Small Business Opportunity’s (DSBO) partnership with Denver International Airport (DEN) in promoting opportunities for small businesses and certified minority-owned firms in concessions, construction, and professional services at the airport. “Denver is building a global economy and Denver International Airport is linking us with the world,” Denver Mayor Michael Hancock said. “We have set a high standard for how we conduct business in the city, and this prestigious recognition by our partners at the FAA shows that we are answering the call for inclusivity among business opportunities at DEN.”


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Certified Firms Seeking Bonding in 2015 One measure of gauging the growth and staying power of certified firms is to look at their bonding capability. When a firm is bonded it shows their capacity to grow and obtain work on their own. One of the ultimate goals of bonding is to develop a firm’s ability to perform the work role of prime contractor on future projects. The Division of Small Business Opportunity and the Office of Economic Development have closely surveyed the pool of certified firms in Denver for bonding ability and is happy to report that the number of firms seeking formal training and information on bonding has increased each year. Bonding courses sponsored by DSBO in partnership with OED had triple the number of participants than seen in recent years. In 2015, 16 firms participated in the downtown course and DEN had 40 participants spread over two sessions. Interest in becoming a bonded firm is growing, and we have started to receive more questions regarding bonding during general information sessions. Increased interest and participation in bonding classes is another positive sign that certified firms are growing and realizing greater stability. In late 2015, DSBO surveyed the pool of certified firms on bonding which yielded the following results:

• 130 certified firms responded to the survey. • 42% of the respondents are currently bonded. • 38% of respondents state they will be pursuing bonding capability in the next two years. • 50 firms surveyed said their bonding aggregate limit is in the $50K to $1M range. • 19 Participants reported bonding capacity of $3M - $20M range • Several larger certified firms have an aggregate bonding limit up to $20M.

Based on these results, we believe that certified firms in Denver are growing in capacity and setting their own favorable course.

Business owner Lucia Lightfield of Lightfield Enterprises (M/WBE, DBE, SBE, & EBE) working in the field performing concrete field testing on one of her company’s concrete projects.


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DSBO Certification Programs The DSBO certification program is designed to provide greater opportunities for minority, women, disadvantaged, small, and emerging business enterprises. Qualified firms are listed in a directory made available to contractors, consultants, and purchasers on a real-time basis. These firms have the opportunity to bid on Denver projects and/or be selected as a part of competitive bidding teams while building their reputations based on their abilities and qualities of work, thereby initiating growth through demonstrated work and development. The certification program consists of six different certification types administered by DSBO:

1. M/WBE – Minority/Women Business Enterprise 2. SBE – Small Business Enterprise 3. SBEC – Small Business Enterprise Concessions 4. EBE – Emerging Business Enterprise 5. DBE – Disadvantaged Business Enterprise 6. ACDBE – Airport Concessions Disadvantaged Business Enterprise

DSBO Certifications: New in 2015 In 2015, DSBO’s certification analysts met, interviewed and certified 143 business enterprises within the state of Colorado which were new to Denver’s certification programs. These new businesses are now in Denver’s Certified Directory database and will receive expanded opportunities for utilization on Denver projects.

DSBO Certifications: Re-visiting Certified Firms In 2015, DSBO continued its policy in compliance with Federal guidelines to re-visit current certified firms every three years. These site re-visits include follow-up interviews with the certified firms to evaluate and capture a firm’s growth, capacity, and to ensure that the firm remains within the eligibility criteria for the program in which they are certified. This presents an opportunity for the firm to associate a friendly face with their DSBO representative, ask questions, and re-familiarize themselves with marketing, bidding, and contracting opportunities with not only the City & County of Denver, but also opportunities with UCP partners and other agencies throughout the State of Colorado. CDOT, Denver Public Schools, RTD, are just a few of the agencies which utilize our database of capable certified firms. DSBO performed a total of 120 certification revisits in 2015!


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DSBO Certifications Through 2015 The DSBO certification program is designed to provide greater opportunities for minority, women, disadvantaged, small, and emerging business enterprises. Qualified firms are listed in a directory made available to contractors, consultants, and purchasers on a real-time basis (Directory may be found at: www.denvergov.org/dsbo). Certified firms have the opportunity to bid on Denver projects and/or be selected as a part of competitive bidding teams while building their reputations based on their abilities and qualities of work, thereby initiating growth through demonstrated work and achievement on projects. The certification program consists of six different certification types administered by DSBO. There are currently a total of 1,245 unique certified firms through DSBO. Quantities of certifications by type are listed below to show certified firm capacity in each certification type (many firms hold multiple certification types), covering the construction industry, professional services (all certification types except ACDBE), airport concessions (ACDBE only), and goods and services (M/WBE & SBE only):

*This number does not include firms which are DBE certified through UCP partner CDOT.

Certification Type Total Active Certification

Types 2015

M/WBE 770

SBE 963

SBEC 24

EBE 501

DBE 915

ACDBE 272

Total Active Certification Types Held by all Vendors* 3,445



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Certified Firm Growth Through The Years This chart shows the aggregate gross revenues of certified firms from 2009-2013, illustrating overall growth. 2014 & 2015 values have been excluded to account for firms that filed for tax extensions. Firms reporting $0 revenue have not been included in these numbers.

Growing Successful Certified Firms Most certified firms are in the program as a means to an end. Many see that obtaining a certification gives them greater opportunities to work in hopes of establishing a good reputation and one day being large enough to serve as a prime contractor on projects. A certified firm that has grown impressively in recent years is Advanced Traffic Services, LLC. Advanced Traffic Services, LLC has increased its visibility and participation on projects by successfully bidding on jobs, thereby helping their growth each year. Advanced Traffic Services works with construction companies on projects both locally and statewide, in the public and private sectors. In 2012, they reported gross receipts of $10,000, and in 2015 they have more than tripled their earnings. Advanced Traffic Services has worked diligently to realize this growth and have provided the excellent service that prime contractors are looking for. Advanced Traffic Services, LLC started with 3 employees and have expanded their employee numbers into double digits. They plan to again grow their staff in 2016!

2009 | 834Firms

2010 | 926Firms

2011 | 1027Firms

2012 |1009Firms

2013 | 1067Firms

Averaged Gross Receipts $1,905,681.93 $2,017,676.16 $2,077,261.16 $2,235,969.13 $2,415,383.06

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

2009-2013 Averaged Gross Revenues for Certified Firms


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DSBO Certification Program Graduate Congratulations to the LEI Companies, construction division, for graduating out of the MWBE, DBE and SBE programs in July, 2015 due to their exceeding the business size standard. This indicates positive growth and wherewithal. LEI specializes in electrical systems, construction, 24-hour service and maintenance, design/build services, and solar power and lighting. Incorporated in 2002, LEI’s construction division has grown and taken on challenging projects at DEN and throughout Denver. In 2015 LEI employed 180 people in construction, and they continue to be an active voice in policy discussions on various committees and work groups. As a demonstration of their commitment to give back to the contracting community, LEI was recently approved to act as a Mentor in Denver’s new Mentor/Protégé program.

Certified Firms & Denver International Airport The ACDBE program is a federal program designed to create a level playing field for small, minority and women-owned businesses in the airport concessions industry. DSBO administers the program on behalf of DEN and the City & County of Denver. DEN and DSBO have established an ACDBE participation goal of 33% of overall concessions gross revenue. With roughly $300 million in annual concessions revenue, this translates to $100 million plus in opportunity for certified ACDBE businesses. DEN has achieved an average of 38% ACDBE participation over the last several years.

DIA Concessions Revenue FY 2014-2015

Total Revenue Earned by ACDBE

Firms ACDBE %

Concessions $329,917,138 $129,625,687 39.29%

Growing ACDBE Firms Delarosa Restaurant Concepts (DRC) is run by Mike De la Rosa, a native of Denver and seasoned restaurant owner and operator. After college, Mike began working at Jardel Enterprises, a family business that owns and operates four Burger King Franchises, including one at DEN. DRC is a certified ACDBE and is Mike’s recent foray into restaurant ownership. Mike teamed with Concessions International to bid on a Concourse B Food Court location, and the new company will open a Chick-Fil-A restaurant at DEN in 2016. De la Rosa is also in his third year as Vice President of the DEN Concessionaire’s Association.

Burger King Franchise operated by Mike De la Rosa at the DEN Terminal.


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Tenant Finish at Denver International Airport

The Tenant Finish program at Denver International Airport consists of projects for DEN tenants to include the building of new structures, alterations and/or reconfigurations of space at the airport as it applies to tenant spaces. The tenant group at DEN consists of the concessionaires, rental car companies, and airline partners. These projects present a unique opportunity for businesses to perform work at the airport by allowing airport tenants to contract the work themselves. These agreements exist solely between the tenant and the general contractor. Because these spaces are located on the city of Denver’s property, Denver Ordinances as well as DEN and City construction and design standards apply.

DSBO Compliance The DSBO compliance program was formed to provide ongoing compliance monitoring and enforcement for certified contractors, consultants, and goods and services providers who are working on Denver construction, professional service, goods and service projects, as well as Denver International Airport (DEN) concession projects. The main priority for the compliance unit is to ensure that the established project goals for the project are met, while addressing any issues or discrepancies which may arise throughout the life of the project. The federal government released new regulations in 2014 for the DBE program and training was a top priority for DSBO. Staff took advantage of training sessions offered by the Federal Highway Administration (FHA), the Federal Transit Administration (FTA), and the Federal Aviation Administration (FAA). The training sessions reviewed all new requirements and focused on fraud prevention, reporting, and keeping records updated.

These pictures show construction and completion of the newly opened Coors Silver Bullet Bar, a centerpiece of the DEN Concourse C expansion. Concource C expansion concessions are operated by Paradies-Tastes 5280, LLC., a joint-venture with 45% ACDBE participation.


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Purchasing Goods and Services The City & County of Denver adopted a new program on April 1, 2014 that is designed to address disparities and increase opportunities for Small Business Enterprises (SBE), Minority and Women Owned Businesses (M/WBE) to participate in city procurements. The program is tailored to use the competitive procurement process to expand M/WBE and SBE participation for these covered goods and services. The new program applies to specific categories of goods and services identified:

Covered Goods Covered Services

Electronic Parts & Equipment Building Management & Maintenance Services, including Janitorial Services

Office Equipment Parking Services Machinery, Equipment & Supplies Security Services

Electrical and Industrial Equipment including Parts and Supplies

Maintenance & Repair Services, including Landscaping

Communication Equipment Communication Equipment Related Services

General Business Services (staffing, interpretation, graphic design, printing and photocopying, transportation and courier delivery services)

Certification Program Definitions The following information presents definitions and a categorical overview of the DSBO certification programs. Definition: Bid Preference (Covered Goods & Services) – Bid Preference applies to all bids for covered goods and services with an estimated cost of %50,000 to $250,000, where the award is to be made to the low qualified bidder meeting requirements. Solicitations at this level are open to all prospective bidders, but DSBO certified SBE vendors (including MBE and WBE vendors who meet SBE standards) who certify that they will self-perform a minimum of 75% of the value of a resulting purchase order or contract will receive a 10% bid preference for the purpose of evaluation. 10% will be deducted from the total price of all certified SBE vendor bids (including MBEs and WBEs) and after factoring the 10% bid preference, the low cost bidder meeting requirements will be awarded. The purchase order or contract is written for the actual quote amount for the awarded bidder.


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Definition: Economically disadvantaged – An owner(s) personal net worth must not exceed $1.32 million, excluding ownership in their primary residence or the applicable business for which they are seeking certification. Definition: Defined Procurement Pool (Covered Goods & Services) – Defined Procurement Pools are used for covered goods and services with an estimated cost of $50,000 or less. Defined Procurement Pool solicitations are open to all DSBO certified Small Business Enterprises (SBE) vendors, including qualified Minority and Women Owned Business Enterprises (M/WBE). If three or more certified vendors who are not brokers, packagers or manufacturer’s representatives are available within a North American Industry Classification Standard (NAICS) code and specific goods/service category, the solicitation will be sent to all available certified vendors and only DSBO certified vendors will be eligible to participate. All bidders are required to certify that they will self-perform a minimum of 75% of the value of the resulting purchase order or contract. If less than three DSBO certified vendors are available, all available certified vendors will be invited to participate, but the solicitation will also be open to non-certified firms. Definition: Defined Selection Pool – Through the Defined Selection Pool Program, a portion of the city’s construction and professional design contracts are designated for exclusive bidding by SBEs. City entities that have reserved projects under the defined selection pool include Public Works, Denver International Airport, General Services, Parks and Recreation and Environmental Health. Definition: Independent Partnerships (Covered Goods & Services) – Bids and Requests for Proposal (RFPs), and other solicitations for covered goods and services that are not included in the SBE defined procurement pool, bid preference or goal programs will include a clause in the solicitation encouraging, but not requiring, participation by SBEs, MBEs and WBEs in supply chain activities, prime/subcontractor arrangements including partnerships and joint ventures on city contracts and/or purchase orders. Bidders are not rewarded or penalized for participation or lack of participation by SBEs, MBEs or WBEs in their proposal. Definition: Minority individual – An individual whose lifelong cultural and social affiliation is with one of the groups encompassed within the findings of the Denver City Council, which are reputably presumed to be socially and disadvantaged, as defined by Denver Revised Municipal Code (DRMC) 28-54 (35) & 49 Code of Federal Regulations (CFR) §26.67(a). Definition: Small Business – A firm that does not exceed the U.S. Small Business Administration (SBA) size criteria AND has average annual gross receipts that do exceed established size standards (listed at http://www.sba.gov/size).

Definition: Voluntary Participation - Voluntary Participation means the project was not on Denver property or paid for by City or Federal funds, but the project voluntarily adhered to an M/WBE goal. Local Program: M/WBE – A for-profit small business in which at least 51% is owned, operated and controlled by citizens or permanent resident aliens who meet the definitions of a minority individual as described above.

http://www.sba.gov/size


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Local program: SBE – A for-profit small business whose three-year average gross receipts do not exceed current SBA size standards. This is a race-and-gender neutral program. Local Program: SBEC – This is a subset of all SBEs, with the distinction being that these firms are concessions at City of Denver owned facilities (including Denver International Airport). Local Program: EBE – This certification type is new to DSBO in 2014 and seeks to promote opportunities for growth and development to new and emerging business enterprises. While similar to DSBO’s SBE program, the EBE program has smaller size requirements under which applicants must qualify in order to be eligible for this program. The EBE program is a race/gender neutral program. The business owner(s) must also fall within the criteria established for personal net worth. Federal Program: DBE – A for-profit small business that is managed and controlled by a socially and economically disadvantaged individual(s), owning at least a 51% interest. Federal Program: ACDBE – The Airport Concession Disadvantaged Business Enterprise program (ACDBE) was issued to DIA in March of 2005. It is the policy of the City and County of Denver to ensure that ACDBEs have an equal opportunity to receive and participate in concession opportunities.

Compliance Contract Types Contract Types – DSBO monitors and reports on the following four contract types:

• Construction – These projects consist of actual vertical (buildings) or horizontal (roadways, parks, etc.) construction.

• Professional Service – These projects consist of a wide variety of professional service projects,

including design, consulting, architecture, etc.

• Goods and Services – These projects provide for the procurement of supplies (parts and equipment, etc.) or services (janitorial, security, etc.)

• DEN Tenant Finish – These projects consist of contracts at DEN with SBE goals (small tenant

finish projects less than $150,000) and M/WBE goals (tenant finish projects more than $150,000), for DEN tenants which consist of concessionaires, car rental companies, airlines, etc. These businesses contract directly with general contractors. Due to the fact that these projects take place on city property, the SBE and MWBE ordinances apply.


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2015 Project Awards (M/WBE) The following data represents project award totals for contracts with M/WBE goals in 2015 for Denver & DEN.

A B C =B/A

Denver: Minority/Women Business Enterprise (M/WBE)

Contract Type Award Total Commitment Total M/WBE%

Construction $80,591,022 $14,415,884 17.89%

Professional Services $13,286,727 $3,023,570 22.76%

Totals $93,877,749 $17,482,514 18.62% This award information represents all Denver projects excluding DEN

A B C =B/A

DEN: Minority/Women Business Enterprise (M/WBE)

Contract Type Award Total Commitment Total M/WBE%

Construction $113,819,899 $15,397,425 13.53%

Construction Tenant $26,419,342 $10,462,748 39.60%

Voluntary Participation $31,058,388 $9,939,437 32.00%

Professional Services $3,685,000 $798,500 21.67%

Totals $174,982,629 $36,598,109 20.92% This award information represents only DEN projects

A. Award Total: Represents total dollar value of all projects awarded with M/WBE goals. B. Commitment Total: Represents total dollar value committed to M/WBE firms on projects

awarded with M/WBE goals. C. M/WBE %: Represents the percentage of the award total committed to M/WBE firms.

South Platte River Vision Project: Construction of Johnson Habitat.


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2015 Project Awards (SBE Defined Selection Pool) The Defined Selection Pool is a program in which a portion of the city’s construction and professional design contracts are designated for exclusive bidding by SBEs. This is defined in Article VII, Section 28-204 of the DRMC. The following data represents project award totals for construction and professional service contracts with SBE DSP goals in 2015 for Denver & DEN.

A B C D=B/A E=C/A

Denver: Small Business Enterprise (SBE Defined Selection Pool)

Contract Type Award Total

SBE Prime Commitment

Total SBE Prime %

SBE Sub Commitment

Total

SBE Sub %

Construction $4,565,510 $3,448,924 75.54% $294,111 6.44%

Professional Services $0 $0 0% $0

0%

Totals $4,565,510 $3,448,924 75.54% $294,111 6.44% This award information represents all Denver projects excluding DEN

A B C D=B/A E=C/A

DEN: Small Business Enterprise (SBE Defined Selection Pool)

Contract Type Award Total

SBE Prime Commitment

Total SBE Prime %

SBE Sub Commitment

Total

SBE Sub %

Construction $570,625 $209,777 36.76% $110,852 19.43%

Professional Services $32,199 $32,199 100.00% $0

0%

Totals $602,824 $241,976 40.14% $110,852 18.39% This award information represents only DEN projects

A. Award Total: Represents total dollar value of all projects awarded with SBE-DSP goals. B. Prime Commitment Total: Represents total dollar value awarded to SBE Prime firms on

projects awarded with SBE-DSP goals. C. Sub Commitment Total: Represents total dollar value awarded to SBE Sub firms on projects

awarded with SBE-DSP goals. D. SBE Prime %: Represents the percentage of the award total to the SBE Prime firms. E. SBE Prime %: Represents the percentage of the award total to the SBE Prime firms.


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2015 Project Awards (DEN Tenant Finish – SBE) The following data represents project award totals for small tenant finish projects (all projects less than $150,000) at DEN with SBE goals in 2015. Tenant finish projects at DEN which are greater than $150,000 are assigned M/WBE goals and are included with DEN M/WBE goal information for awards and payments.

A B C =B/A

DEN: Small Business Enterprise Concessions Program (SBE)*

Contract Type Award Total Commitment Total SBE %

Construction $1,441,229 $141,607 9.83% *DEN Tenant Finish projects are for construction projects only

A. Award Total: Represents total dollar value of all projects awarded with SBE goals. B. Commitment Total: Represents total dollar value committed to SBE firms on projects awarded

with SBE goals. C. SBE %: Represents the percentage of the award total to SBE firms.

Newly remodeled Concourse C at Denver International Airport.


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2015 Project Awards – DBE The following data represents project award totals for contracts with DBE goals in 2015 for Denver & DEN.

A B C =B/A

Denver: Disadvantaged Business Enterprise (DBE)

Contract Type Award Total Commitment Total DBE%

Construction $9,654,064 $1,759,830 18.23%


Totals $12,572,094 $2,898,805 23.06% This award information represents all Denver projects excluding DEN

A B C =B/A

DEN: Disadvantaged Business Enterprise (DBE)

Contract Type Award Total Commitment Total DBE%

Construction $41,816,336 $16,081,761 38.46%

Professional Services $0 $0 0%

Totals $41,816,336 $16,081,761 38.46% This award information represents only DEN projects

A. Award Total: Represents total dollar value of all projects awarded with DBE goals. B. Commitment Total: Represents total dollar value committed to DBE firms on projects awarded

with DBE goals. C. DBE %: Represents the percentage of the award total to DBE firms.


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2015 Project Awards – Goods & Services: SBE & M/WBE The following data represents project award totals for goods & services covered contracts in 2015 for Denver & DEN. Independent Partnerships (IP) represent procurements for covered goods or services for which there was not a pool of certified firms available, however, participation by certified firms is encouraged.

A B C =B/A

Denver & DEN Goods & Services (SBE, M/WBE)

Contract Type Award Total Commitment Total Certified Firms %

Goods (M/WBE) $1,200,000 $0 0%

Services (M/WBE) $40,000,000 $21,701,005 54.25%

Goods (SBE) $155,234 $155,234 100.00%

Services (SBE) $275,304 $125,304 45.51%

Goods (IP SBE) $2,041,793 $63,411 3.11%

Services (IP SBE) $3,913,186 $1,502,236 38.39%

Totals $47,585,517 $23,547,190 49.48%

A. Award Total: Represents total dollar value of all goods & services projects. B. Commitment Total: Represents total dollar value committed to certified goods and services

firms on projects awarded. C. M/WBE/SBE Firms %: Represents the percentage of the award total to certified M/WBE & SBE

firms providing goods and services.

Colorado Pedestrian Bridge - beginning construction

Moran Custom Fabrication installing handrails

Colorado Pedestrian Bridge over I-25


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2015 Project Payments – M/WBE The following data represents project payments for contracts with M/WBE goals in 2015 for Denver & DEN. Payments in 2015 reflect payments for contracts awarded in 2015 as well as payments from contracts awarded in years prior which are ongoing. Voluntary Participation means the project was not on Denver property or paid for by City or Federal funds, but the project voluntarily adhered to an M/WBE goal.

A B C=B/A Denver – Minority/Women Business Enterprise Payments (M/WBE)

Project Type Total Payments MWBE Paid MWBE %

Construction $73,808,695 $16,180,152 21.92%


Totals $87,065,686 $18,292,535 21.01% This payment information represents all Denver projects excluding DEN A B C=B/A

DEN – Denver – Minority/Women Business Enterprise Payments (M/WBE)

Project Type Total

Payments MWBE Paid MWBE %

Construction $161,643,513 $41,555,376 25.71%

Tenant Finish $32,544,715 $13,146,034 40.39%

Voluntary Participation $10,691,347 $1,572,467 14.71%


Totals $230,033,844 $67,409,684 29.30% This payment information represents only DEN projects

A. Total Payments: Represents total amounts paid toward projects with M/WBE goals. B. M/WBE Paid: Represents total amounts paid to M/WBE firms on projects with M/WBE goals. C. M/WBE %: Represents the percentage of the payments total paid to M/WBE certified firms.


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2015 Project Payments – M/WBE: Prime & Subcontractor Payment Breakout The following data represents project payment breakouts for primes and subcontractors on contracts with M/WBE goals in 2015 for Denver & DEN. Payments in 2015 reflect payments for contracts awarded in 2015 as well as payments from contracts awarded in years prior which are ongoing.

A B C=B/A D E=D/A

Denver – M/WBE

Project Type Total Payments Amounts

Retained by MWBE Primes

MWBE Prime %

MWBE Subs Paid MWBE Subs

%

Construction $73,808,695 $5,538,514 7.50% $10,641,639 14.42% Professional Services $13,256,991 $540,213 4.07% $1,572,169 11.86%

Totals $87,065,686 $6,078,727 6.98% $12,213,808 14.03% This payment information represents all Denver projects excluding DEN

A B C=B/A D E=D/A

DEN – M/WBE

Project Type Total

Payments

Amounts Retained by

MWBE Primes

MWBE Prime %

MWBE Subs Paid MWBE Subs

%

Construction $161,643,513 $1,606,670 0.99% $39,948,706 24.71%

Tenant Finish $32,544,715 $4,721,733 14.51% $8,424,301 25.89% Voluntary Participation $10,691,347 $0 0% $1,572,467 14.71% Professional Services $25,154,269 $1,788,685 7.11% $9,347,123 37.16%

Totals $230,033,844 $8,117,088 3.53% $59,292,596 25.78% This payment information represents only DEN projects

A. Total Payments: Represents total amounts paid toward projects with M/WBE goals. B. Amounts Retained by MWBE Primes: Represents amounts retained by M/WBE primes on

projects with M/WBE goals. C. M/WBE Prime %: Represents the percentage of payments paid to M/WBE certified primes. D. M/WBE Subs Paid: Represents the total amounts paid to M/WBE certified subcontractors. E. M/WBE Subs %: Represents the percentage of the payments total paid to M/WBE certified

subcontractors.


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2015 Project Payments – SBE Defined Selection Pool The following data represents project payments for contracts with SBE-DSP goals in 2015 for Denver & DEN. Payments in 2015 reflect payments for contracts awarded in 2015 as well as payments from contracts awarded in years prior which are on-going.

A B C=B/A D E=D/A Denver SBE Defined Selection Pool (SBE-DSP)

Project Type Total

Payments

Amounts Retained by

SBE-DSP Primes

SBE-DSP Prime %

SBE Subs Paid

SBE Subs %

Construction $4,832,809 $4,349,948 90.01% $363,339 7.52% Professional Services $39,166 $32,774 83.68% $0 0%

Totals $4,871,975 $4,382,722 89.96% $363,339 7.46% This payment information represents all Denver projects excluding DEN

A B C=B/A D E=D/A

DEN SBE Defined Selection Pool (SBE-DSP)

Project Type Total

Payments

Amounts Retained by

SBE-DSP Primes

SBE-DSP Prime %

SBE Subs Paid

SBE Subs %

Construction $519,380 $278,548 53.63% $79,872 15.38% Professional Services $1,072,646 $748,322 69.76% $304,177 28.36%

Totals $1,592,025 $1,026,870 64.50% $384,049 24.12% This payment information represents only DEN projects

A. Payments Total: Represents total amounts paid toward projects with SBE-DSP goals. B. SBE-DSP Paid: Represents total amounts paid to SBE-DSP primes on projects with SBE-DSP

goals. C. SBE-DSP%: Represents the percentage of the payments total paid to SBE certified primes. D. SBE Subs Paid: Represents the total amounts paid to SBE certified subcontractors. E. SBE Subs %: Represents the percentage of the payments total paid to SBE certified

subcontractors.


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2015 Project Payments – Denver International Airport SBE The following data represents project payments for DEN SBE projects awarded prior to the establishment of the SBE-Defined Selection Pool program in 2008. The payments below represent 2015 payments on projects still ongoing under the older SBE program.

A B C=A/B

DEN - Small Business Enterprise (prior to 2008) (SBE)

Contract Type Payments Total SBE Paid SBE%

Tenant Finish Construction $2,636,212 $456,210 17.31 %

Professional Services $491,861 $996 0.20 %

Totals $3,128,073 $457,206 14.61%

A. Payments Total: Represents total amounts paid toward projects with SBE goals. B. SBE Paid: Represents total amounts paid to SBE firms on projects with SBE goals. C. SBE %: Represents the percentage of the payments total paid to SBE certified firms.

Underground tank replacement project – Denver Service Center at Roslyn.


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2015 Project Payments – Denver International Airport SBE: Prime & Subcontractor Payment Breakout The following data represents prime and subcontractor payment breakouts for project payments on DEN SBE projects awarded prior to the establishment of the SBE-Defined Selection Pool program in 2008. The payments below represent 2015 payments on projects still ongoing under the older SBE program.

A B C=A/B D E=D/A

DEN - Small Business Enterprise (prior to 2008) (SBE)

Contract Type Payments

Total

Amount Retained by SBE

Prime

SBE Prime

%

SBE Subs Paid SBE Sub

% Tenant Finish Construction $2,636,212 $23,136 0.88% $433,074 16.43 %

Professional Services $491,861 $0 0% $996 0.20 %

Totals $3,128,073 $23,136 0.74% $434,070 13.88%

A. Payments Total: Represents total amounts paid toward projects with SBE goals. B. Amount Retained by SBE Prime: Represents total amounts retained by SBE primes on projects

with SBE goals. C. SBE Prime %: Represents the percentage of the payments total paid to SBE prime certified

firms. D. SBE Subs Paid: Represents total amounts paid to SBE subcontractors on projects with SBE

goals. E. SBE Sub %: Represents the percentage of the payments total paid to certified SBE

subcontractors.


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2015 Project Payments – DBE The following data represents project payments for contracts with DBE goals in 2015 for Denver & DEN. Payments in 2015 reflect payments for contracts awarded in 2015 as well as payments from contracts awarded in years prior which are ongoing.

A B C=A/B

Denver - Disadvantaged Business Enterprise (DBE)

Contract Type Payments Total DBE Paid DBE%

Construction $8,911,099 $1,524,979 17.11%


Totals $12,826,340 $2,612,631 20.36% This payment information represents all Denver projects excluding DEN

A B C=A/B

DEN - Disadvantaged Business Enterprise (DBE)

Contract Type Payments Total DBE Paid DBE%

Construction $35,410,905 $12,207,285 34.47%

Professional Services $566,043 $30,802 5.44%

Totals $35,976,948 $12,238,087 34.02% This payment information represents only DEN projects

A. Payments Total: Represents total amounts paid toward projects with DBE goals. B. DBE Paid: Represents total amounts paid to DBE firms on projects with DBE goals. C. DBE %: Represents the percentage of the payments total paid to DBE certified firms.

DSBO Compliance Officers perform construction site visits to verify compliance with project goals.


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2015 Project Payments – DBE: Prime & Subcontractor Payment Breakout The following data represents project payment breakouts for primes and subcontractors on contracts with DBE goals in 2015 for Denver & DEN. Payments in 2015 reflect payments for contracts awarded in 2015 as well as payments from contracts awarded in years prior which are ongoing.

A B C=B/A D E=D/A

Denver – Disadvantaged Business Enterprise (DBE)

Project Type Total Payments Amounts

Retained by DBE Primes

DBE Prime %

DBE Subs Paid DBE Subs %

Construction $8,911,099 $0 0% $1,524,979 17.11% Professional Services $3,915,241 $474,567 12.12% $613,085 15.66%

Totals $12,826,340 $474,567 3.70% $2,138,064 16.67% This payment information represents all Denver projects excluding DEN A B C=B/A D E=D/A

DEN – Disadvantaged Business Enterprise (DBE)

Project Type Total

Payments

Amounts Retained by DBE Primes

DBE Prime %

DBE Subs Paid DBE Subs %

Construction $35,410,905 $0 0% $12,207,285 34.47% Professional Services $566,043 $0 0% $30,802 5.44%

Totals $35,976,948 $0 0% $12,238,087 34.02% This payment information represents only DEN projects

A. Total Payments: Represents total amounts paid toward projects with DBE goals. B. Amounts Retained by DBE Primes: Represents amounts retained by DBE primes on projects

with DBE goals. C. DBE Prime %: Represents the percentage of payments paid to DBE certified primes. D. DBE Subs Paid: Represents the total amounts paid to DBE certified subcontractors. E. DBE Subs %: Represents the percentage of the payments total paid to DBE certified

subcontractors.


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2015 Project Payments – Goods & Services The following data represents project payments for contracts for goods & services in 2015 for Denver & DEN. Payments in 2015 reflect payments for goods & service projects awarded in 2015 as well as payments from projects awarded in years prior which are ongoing.

A B C =B/A

Denver & DEN Goods & Services (SBE, M/WBE)

Contract Type Payments

Total Payments to Certified

Firms Total Certified Firms %

Goods (M/WBE) $471,433 $0 0%

Services (M/WBE) $2,118,161 $2,118,161 100.00%

Goods (SBE) $15,595 $15,595 100.00%

Services (SBE) $58,577 $53,777 91.81%

Goods (IP SBE) $1,218,981 $63,441 5.20%

Services (IP SBE) $426,569 $28,792 6.75%

Totals $4,309,316 $2,279,766 52.90%

A. Payments Total: Represents total amounts paid toward projects covered by the goods and services ordinance.

B. M/WBE & SBE Paid: Represents total amounts paid to certified M/WBE and SBE firms on projects covered by the goods and services ordinance.

C. M/WBE & SBE %: Represents the percentage of the amount paid to M/WBE and SBE certified firms providing goods and services.

Platte River Vision: Grant-Frontier Park, Pasquinel’s Landing.


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Contact DSBO Newsletter: Sign up for DSBO’s monthly electronic newsletter, filled with current news, events, highlights, community organization links, upcoming bidding opportunities and more! Please put “Newsletter” in your subject to subscribe. Questions, concerns, and comments may also be sent here: [email protected] Websites: www.denvergov.org/dsbo www.flydenver.com Physical Addresses: Downtown Office: 201 W. Colfax Ave, Dept. 907 Denver, CO 80202 p: 720.913.1999 f: 720.913.1809 Airport Office: Denver International Airport Airport Office Building, Suite 7810 8500 Peña Boulevard Denver, CO 80249-6340 p: 303.342.2180 f: 303.342.2190

mailto:[email protected]


http://www.flydenver.com/

2015 Annual Report — Division of Small Business · 2016-04-05 · 2015 Project Awards (SBE...

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