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Organizational Overview

U.S. Department of Commerce Minority Business Development Agency. Organizational Overview. Juan Pickett, Business Development Specialist MBDA. 1. The Agency.

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Organizational Overview

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  1. U.S. Department of Commerce Minority Business Development Agency Organizational Overview Juan Pickett, Business Development Specialist MBDA 1

  2. The Agency The Minority Business Development Agency (MBDA) is tasked with promoting the growth and competitiveness of minority-owned businesses nationwide. By Executive Order 11625, MBDA conducts the following: • Coordinate the plans, programs and operations of Federal agencies to strengthen minority business enterprises (MBEs). • Promote the mobilization of activities and resources of State and local governments, businesses and trade associations, universities, foundations, professional organizations towards the growth of MBEs. • Establish a center for the development, collection, summarization and dissemination of information for and about minority businesses. • Provide financial assistance to public and private organizations so they may render business consulting services to MBEs.

  3. The Agency Our Vision MBDA’s vision is economic prosperity for all American business enterprises. Our Mission To foster the growth and global competitiveness of U.S. businesses that are minority-owned.

  4. Why is MBDA important • The U.S. needs strong minority-owned firms to achieve maximum economic growth. • The nation is failing to reap the benefits of economic parity – the creation of 16 million jobs, generation of $2.5 trillion in gross receipts and unrealized tax base exceeding $100 billion per year. • Minority firms have the potential to contribute significantly to the balance of trade. Minority businesses are twice as likely to generate sales through exports compared to non-minority firms. • Minority-owned firms create job opportunities for all Americans; MBEs tend to be generally more balanced in hiring minority and non-minority persons. • In 2050, the minority community will represent 54% of total U.S. population. • MBDA is a catalyst to build minority-owned firms of size, scale and capacity.

  5. Why is MBDA important Source: U.S. Census Bureau, 2002 Survey of Business Owners, August 2006, and 2007 Special Tabulation on total minority firms for 2002.

  6. Our Clients U.S. businesses owned and operated by the following ethnic groups: • Native Americans • Hasidic Jewish Americans • Native Hawaiians • Asian Americans • Alaska Natives • Pacific Islanders • Hispanic Americans • African Americans

  7. Our Clients The core MBDA client is a firm that generates $500,000 in annual revenue. These firms have the following characteristics: • Represent only 5% of all minority firms • Generate 75% of all minority-owned firms gross receipts • Provide 73% of all paid employees • * Source: U.S. Census Bureau, 2007 Special Tabulation for Minority Firms in 2002, “2002 Survey of Business Owners.”

  8. MBDA provides nationwide reach through five regional offices. MBDA Structure New Orleans REC

  9. Service Delivery MBDA network is comprised of 46 centers which are organized as public/private partnerships.

  10. Service Delivery MBDA service delivery program was developed in conjunction with the Tuck School of Business at Dartmouth College. Through this collaboration a systems-integrated approach was designed into the Agency’s service delivery model. MBDA evaluates clients based on their business functions as outlined below: • Strategy – plans for achieving sustainable competitive advantage and creating customer value. • Processes – efficiencies and effective ways of manufacturing products or delivery of services. • Architecture - organizational and value chain (outsourcing) structure to implement the strategy and key processes. • Resources - the acquisition and management of financial, human, and technical assets. • Systems - mechanisms for control and communication, including but not limited to management information systems (MIS). • Employee Empowerment – delegation in a way that encourages staff to pursue strategic initiatives and continuous improvement.

  11. Service Delivery Based upon result of systems-integrated review, MBDA provides the following services: • Business Consulting • Procurement Matching • Private Equity and Venture Capital Sourcing • Bonding Assistance and Loan Packaging • Strategic Partnering (e.g, Business-to Business, Teaming, Joint Ventures, etc.) • Market Promotion of Clients to Prime Contractors and Other Buyers

  12. Performance MBDA’s performance criteria is based on: • New Jobs Created • Dollar Value of Contracts Awarded • Dollar Value of Financing Transactions Awarded • 2,001 New Jobs • $1.7 Billion in Contracts • $278 Million in Financing January 1 through August 25, 2009, MBDA has created: • * The Job Creation measure was established in fiscal year 2005.

  13. Performance MBE Firms Receiving Services by Industry Classification in FY 2008 MBE Firms Awarded Contracts by Industry Classification in FY 2008

  14. Case Study 1 Client Stats Firm: AIS Location: Chicago, IL Ethnicity: Hispanic American Industry: IT Consulting/Security, Data Warehousing Annual Sales: $6 million $7.2 million $1.2 million Number of Employees: 10 18 8 Non-Minority 50% - Before After Increase Service Provided by MBDA: Description: Client needs assessment, contract acquisition matching and bid assistance. Number of Client Service Hours: 97 Recorded Client Impact: Date Awarded Dollar Value of Awarded Contracts: $1.2 million 10/1/2008 – 12/5/2008 Percent Increase in Sales: 20% Number of New Contracts: 7 Number of Contract Sources: 7 New Jobs Created: 8 Percent Increase of Employee Resources/Capacity: 80% in employee capacity

  15. Case Study 2 Client Stats Firm: NECCI Location: New York, NY Ethnicity: African American Industry: Interior Finish Construction Annual Sales: $37 million $50 million $13 million Number of Employees: 35 65 30 Non-Minority - - Before After Increase Service Provided by MBDA: Description: Client needs assessment, contract acquisition matching, bid assistance, and construction related consulting. Number of Client Service Hours: 31 Recorded Client Impact: Date Awarded Dollar Value of Finance Assistance: $6.5 million 9/30/2008 Dollar Value of Awarded Contracts: $13.3 million 2/27/2008-5/22/2008 Percent Increase in Sales: 35% Number of New Contracts: 3 Number of Contract Sources: 1 New Jobs Created: 30 Percent Increase of Employee Resources/Capacity: 86% in employee capacity

  16. Case Study 3 Client Stats Firm: CII Location: Albuquerque, NM Ethnicity: Hispanic American Industry: Environmental Engineering and Technology Services Annual Sales: $15 million $410 million $395 million Number of Employees: 21 TBD - Non-Minority 57% - Before After Increase Service Provided by MBDA: Description: Client needs assessment, contract acquisition matching, bid assistance, and administrative management consulting. Number of Client Service Hours: 4 Recorded Client Impact: Date Awarded Dollar Value of Awarded Contracts: $395 million 4/3/2009 Percent Increase in Sales: 270% Number of New Contracts: 1 Number of Contract Sources: 1 New Jobs Created: TBD Percent Increase of Employee Resources/Capacity: TBD

  17. Case Study 4 Client Stats Firm: GS&A CJV Location: Alto, NM Ethnicity: Hispanic American Industry: Commercial Construction Annual Sales: Start-Up $3.027 million $3.027 million Number of Employees: 0 2 Non-Minority 0% - Before After Increase Service Provided by MBDA: Description: Creation of the Joint venture, secured SBA approval of the joint venture and assisted with proposal to the Army Corps of Engineers. Number of Client Service Hours: 34 Recorded Client Impact: Date Awarded Dollar Value of Finance Assistance: $30 million 12/2/2008 Dollar Value of Awarded Contracts: $3.027 million 1/15/2009 Percent Increase in Sales: 100% Number of New Contracts: 2 Number of Contract Sources: 1 New Jobs Created: 2 Percent Increase of Employee Resources/Capacity: 100% in employee capacity

  18. Case Study 5 Client Stats Firm: RSC Location: Fargo, ND Ethnicity: Native American Industry: Construction Annual Sales: $3.0 million $7.9 million $4.9million Number of Employees: 20 25 5 Non-Minority 43% - Before After Increase Service Provided by MBDA: Description: Procurement Services/Procurement Lead Number of Client Service Hours: 33 Recorded Client Impact: Date Awarded Dollar Value of Awarded Contracts: $ 4,998,196 7/10/2008 Percent Increase in Sales: 20% Number of New Contracts: 1 Number of Contract Sources: 1 New Jobs Created: 5 Percent Increase of Employee Resources/Capacity: 25% in employee capacity

  19. New Strategic Focus • Increase focus to minority-owned firms with $1 million or more in revenue. • Create a new generation of $100 million in annual revenue businesses. • Continue to expand minority businesses globally. • Foster growth of minority businesses into key innovative industries: • Clean Energy • Green Technology • Healthcare • Information Technology

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