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How to Capture Your Share of $1 Trillion Dollars In Public Contracts. Know Your Rights and Your Opportunities. Sponsored by:. Raul Espinosa Chief Visionary Officer Managing Partner of Umbrella Initiative Founder, FPA and CEO of FitNet. “ To involve University Professors and Students

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How to capture your share of 1 trillion dollars in public contracts

How to Capture Your Share of

$1 Trillion Dollars

In Public Contracts

Know Your Rights and Your Opportunities



How to capture your share of 1 trillion dollars in public contracts

  • Raul Espinosa

  • Chief Visionary Officer

  • Managing Partner of Umbrella Initiative

  • Founder, FPA and CEO of FitNet


How to capture your share of 1 trillion dollars in public contracts

To involve University Professors and Students

in Sustainable Commercial Projects

with Contracting Potential

to help Create Jobs

in Underserved Communities”


Federal
Federal

Any business, meeting a very complex 57 page methodology

NaFCAthrough their ‘Solution Summits’ has recommended simplification of methodology



State and local governments
State and Local Governments

  • Businesses which self-register as having less than 100 employees

  • Some states stipulate that gross revenues can NOT exceed a certain amount (i.e., $7M, $25M)

  • Characterized by a wasteful archaic and duplicative registration and certification process


Federal level
Federal Level

  • (According to SBA Size Standards)

  • Any Business meeting a very complex 57 page methodology


Federal level1
Federal Level

  • Notdominant in their own NAICS code(s)

  • Employsless than a defined percentage of dominant businesses in a NAICS code(s)


Federal level2
Federal Level

  • Grossesless than a percent of the dominant businesses in a NAICS code(s)

  • Simplification must incorporate revamping Size Protests, Penalties and Enforcement


Disadvantaged
Disadvantaged

Owned/controlled by a Member of a group Congress has determined is underserved


Disadvantaged1
Disadvantaged

Race, ethnicity and gender are simply characteristicsof the groups

Current certification process causes wasteand abuse


Set aside contracts
Set Aside Contracts

Established to prevent monopolies, build capacity and level the playing field in contracting

Reserved for competition solely among small and disadvantaged businesses


Set aside contracts are supposed to
Set Aside Contractsare supposed to:

  • Established by public agencies

  • Determined by market research


Set aside contracts1
Set Aside Contracts

Regulations and Procurement Statutes are supposed toprovide guidance

Size Protests are supposed toprevent abuses and safeguard the participation


Set aside contracts2
Set Aside Contracts

Penalties and their enforcement are supposed todeter abusive practices or barriers

Specialized Education on small business issues for contracting workforce is supposed to be available


Leveling the playing field
Leveling the Playing Field

Eliminating the existing ‘barriers’ or ‘abusive procurement practices’

Enforcing the Existing Laws


Our constitutional model
OUR Constitutional Model

Transparency, Technology and Elimination of barriersare the tools of this Model

Relies on alignment with statutes(i.e., 23%), goals (i.e., 5%) and measurable results

  • Model supported by 276 specific procurement statutes


Our constitutional model1
OUR Constitutional Model

Model supported by 276 specific procurement statutes

Previous efforts were poorly justified by bureaucrats pressured by lobbyists and their legal counsel

  • Focused on guaranteeing “Maximum Practicable Utilization” or MPU, for its target audience


Our constitutional model2
OUR Constitutional Model

Focused on guaranteeing “Maximum Practicable Utilization” or MPU, for its target audience

Minimizes ‘race-neutral’ schemes because they do notprevent ‘disparities’ nor eliminate ‘barriers’


Our constitutional model3
OUR Constitutional Model

Tracking both the businesses and contracts they receive is essential

Court challenges against ‘set-asides’ can be successfully defeated with this model


Federal procurement facts
Federal Procurement Facts

CCR Data = Registered to Contract with the Government (as of 03-2011)



Share of federal contracts1
Share of Federal Contracts

“Procurement data that is gathered by, reported, and entered by procurement agencies is often incomplete, inaccurate, and untimely.”

---Daniel Gordon, Administrator of Federal Procurement Policy OMB June 2011---



The florida challenge
The Florida Challenge

1,586 public entities, only 32 offer freepublic access

The 32 public entities have processed $9.4 Billion in contracts which still cannot be tracked


The florida challenge1
The Florida Challenge

System not designed for procurement

The state currently cannot confirm how much it can spend onpublic contracts


The florida challenge2
The Florida Challenge

An archaic and duplicative registration/certification process prevents progress

Lack of trackingresults prevents goals and objectives


The florida challenge3
The Florida Challenge

Nocentralized procurement training

Disparities abound which require costly studies to justify ‘set-asides’


The florida challenge4
The Florida Challenge

The racial-neutral One Florida Initiative must be either strengthened or replaced


The florida opportunity
The Florida Opportunity

A proposed new Florida Procurement Portal – with a proven platform  

The savings that it will create and the duplication that it will eliminate, alone, will cover its costs


The florida opportunity1
The Florida Opportunity

  • Economic development, federal and private funding are availablefor such efforts

  • “The Portal” will create jobs, teaming arrangements and allow for replication in other states


The florida opportunity2
The Florida Opportunity

  • The Delaware Governor just unveiled a similar portal with less than 2/3 of our features

  • Several Cities have announced plans for costly‘disparity studies’ in order to justify set-asides


The florida opportunity3
The Florida Opportunity

  • The cooperation of ALL1,586 public entities in the State is badly needed for this undertaking


The florida opportunity4
The Florida Opportunity

  • Our Lieutenant Governor, Jennifer Carroll, who is supporting our effort has said:

  • “The Umbrella Initiative offers actual solutions with measurable resultsto a State dilemma the Governor intends to solve.”


Mission
Mission

  • “To Double the Number of Small and Minority BusinessesContracting with the Federal, State and Local Governments by the Year 2020”


How to capture your share of 1 trillion dollars in public contracts

  • Ryan Reid

  • Chief Technical Officer

  • Founder of NetQuarry



The system today
The System Today

  • Data fragmented, varied, individual silos

  • Built for the contracting agency

  • Missing market research capability

  • No centralized registration

  • No communication conduit

  • No collaboration network

  • No empirical award data


Today individual silos
Today – Individual Silos

  • Multiple websites for opportunities

  • Every website is different

  • Authentication isn’t shared and must be remembered

  • The small business contractor burden is high


Today agency focused
Today – Agency Focused

  • Not designed with the contractors needs in mind.

  • No “best practice” guidelines for small business.

  • Proper response process is mysterious

  • Small Businesses are lost


Today market research
Today – Market Research

  • No established process for procurement strategy (e.g. Set Asides)

  • Market research cannot be measured

  • Small business is unable to influence strategy

  • Burden on the contracting agency is overwhelming


Today registration
Today – Registration

  • No central registration system

  • Makes empirical award data impossible

  • No way to communicate to the vendor community

  • Market research participation cannot be measured


Today communication
Today - Communication

  • No direct conduit between contractor and contracting agency

  • Best case: summarized, advertised Q&A

  • Worst case: no Q&A

  • Result is mystery and poor results


Today award data
Today – Award Data

  • No empirical award data

  • Requires:

    • Centralized Registration

    • Centralized Procurement Advertisement

  • Actual procurement costs are impossible to measure


Today collaboration
Today – Collaboration

  • Larger opportunities require effective teams

  • Today - general purpose partnerships only – largely ineffective

  • No actionable opportunities to form meaningful teams around

  • No scalable, available, networking community


The ups solution
The UPS Solution

  • Centralized location for all solicitation data

  • Tools for BOTH contractor and contracting agency

  • Simple, transparent market research

  • Single central registration system

  • Direct communication

  • Empirical Award Data


Ups centralized data
UPS – Centralized Data

  • All data available in one location

  • Single authentication, single interface

  • NOT a wholesale replacement! Current systems remain the same.

  • Agencies without any system can participate


Ups small business design
UPS – Small Business Design

  • Designed to help BOTH contractor and contracting agency

  • Establishes “best practices” around response

  • Allows small business to influence procurement strategy

  • Improves contracting agency’s ability to conduct market research


Ups market research
UPS – Market Research

  • Simple, transparent process to establish procurement strategy

  • Empirical measurement of the market research effort

  • Cost savings for both sides

  • Result: fair and transparent Set Asides percentages


Ups registration
UPS - Registration

  • Single registration requirement

  • Allows for measurement of available talent pool (aids market research)

  • Provides a means for the state to communicate to the vendor community


Ups communication
UPS - Communication

  • Direct conduit between contractor and agency

  • Effective Q&A

  • Transparency as requirements are shaped or changed

  • End results match real needs

  • Burden reduced for contracting agency


Ups collaboration
UPS - Collaboration

  • Online community built around actionable opportunities

  • Allows multiple businesses to form meaningful partnerships

  • Best-practice guidance at all levels – legal, performance, capture, delivery


Ups award data
UPS – Award Data

  • Empirical link between solicitation and awarded contractor

  • Dependable reporting

  • Real-time availability

  • True measurement


How to capture your share of 1 trillion dollars in public contracts

  • Jamall Little

  • Majoring in Business Management

  • SIFE Student


How to capture your share of 1 trillion dollars in public contracts

  • Jillian Shellard

  • Majoring in Elementary Education

  • SIFE Student


Limited education
Limited Education





C e l
C.E.L.

  • Connect

  • Educate

  • Lead



C e l1
C.E.L.

  • Distance Learning classrooms for the Dominican Republic and Haiti

  • Global Disaster Emergency units for immediate deployment


Distance learning portable classrooms
Distance Learning Portable Classrooms

  • 12 computers

  • 12 Chairs

  • Inverter and Battery System

  • Solar Panel System

  • Security Cabinet

  • 1 Internet Satellite Dish

  • Network Connection Equipment

  • Cooking Fans

  • Desk

  • Insulation

  • Lights


Global disaster emergency u nits
Global Disaster Emergency Units

  • 1 propane gas kitchen

  • 1 counter

  • 1 dining table

  • 1 ventilation fan

  • 1 Security Cabinet with lock

  • 2 Windows

  • Solar Power System powering 2 light fixtures, 1 electric outlet

  • Twin bunk bed set

  • 1 Dresser


C e l benefits
C.E.L. Benefits

  • 300 jobs in Jacksonville

  • 85 Jobs per month

  • 11 jobs per container


C e l benefits1
C.E.L. Benefits

  • $429,083.00 back into the local economy of Jacksonville


Jacksonville youth works
Jacksonville Youth Works

  • At risk youth ages 16 - 25





Puntacana
Puntacana

  • Rural school in the Dominican Republic

  • Named after Prominent Dominican designer, Oscar de la Renta, a founder along with Julio Iglesias and Frank Rainieri.


The vision
The Vision

  • 400 National Disaster Emergency units

  • 360 Distance Learning Portable Classrooms


Retrofitting classrooms
Retrofitting Classrooms

  • 15 Days to retrofit one container

  • 50 containers can be retrofitted per month


Emergency retrofitting
Emergency Retrofitting

  • 11 days to retrofit one container

  • 60 containers can be converted in a month


Portable classroom costs
Portable Classroom Costs

  • $85,500 per unit including labor

  • $30,780,000 to retrofit 360 containers


Emergency unit costs
Emergency Unit Costs

  • Average Cost: $35,000 per unit including labor.

  • $15,000,000 to build and make available 400 retrofitted containers


Potential uses
Potential Uses

  • Portable shelters

  • Temporary housing

  • Public Sanitation Unit

  • Portable Electrical Power Generating Units


How to capture your share of 1 trillion dollars in public contracts



Procurement system weaknesses
Procurement System Weaknesses

  • Limit opportunities that may lead to business


Weakness examples
Weakness Examples

  • Lack of information

  • Lack of standard procurement system training

  • Limited access to relevant/timely information


Weakness examples1
Weakness Examples

  • Limited availability (time of day) of training opportunities for small business owners

  • Modality of traditional procurement training limits opportunities and business outside of immediate region


How to capture your share of 1 trillion dollars in public contracts

Potential Benefits

  • Access

  • Connected to viable

  • and immediate

  • procurement opportunities

  • Increased dispersion

  • Timeliness

Information


Dr henry b thomas retired unf professor co founder of umbrella initiative

Dr. Henry B. ThomasRetired UNF ProfessorCo-founder of Umbrella Initiative


Small business legal center network
Small Business Legal Center Network

  • Gives small and minority business a ‘legal voice’ with which to defend their statutory rights

  • Helps solo and small-firm lawyers to provide quality legal services and handle ethical and practice dilemmas in the context of procurement justice law


How to capture your share of 1 trillion dollars in public contracts


Law schools
Law Schools enter law schools aspiring to work for the public interest, but, upon graduation, find themselves debt-ridden or unable to obtain one of the scarce public service positions.

  • Facilitate communication between and among law school consortia members

  • Aggregate, analyze, and disseminate data regarding best practices in ensuring small business access to fairness and justice in procurement


Law schools1
Law Schools enter law schools aspiring to work for the public interest, but, upon graduation, find themselves debt-ridden or unable to obtain one of the scarce public service positions.

  • Support community based legal clinics/seminars in small business procurement capacity-building efforts

  • Promote the Consortia's mission and identify and recruit new law schools for membership

  • Develop and share expertise regarding access to small business procurement justice’s best practices.


Legal center network
Legal Center Network enter law schools aspiring to work for the public interest, but, upon graduation, find themselves debt-ridden or unable to obtain one of the scarce public service positions.

  • Addresses:

    • White Papers

    • Articles

    • Legislative Positions

    • Hearings


Legal center network1
Legal Center Network enter law schools aspiring to work for the public interest, but, upon graduation, find themselves debt-ridden or unable to obtain one of the scarce public service positions.

  • Creates additional ‘transparency’ over ‘abusive procurement practices’ through a ‘Contracting Abuse Database’

  • This database will be similar to the one POGO conceived which eventually became FAPIIS


Contracting abuse database
Contracting Abuse Database enter law schools aspiring to work for the public interest, but, upon graduation, find themselves debt-ridden or unable to obtain one of the scarce public service positions.

  • Allows Small and Disadvantaged businesses to report government units that are alleged to have engaged in abusive contracting parties

  • Brings both attention and pressure upon contracting units reported to have engaged in retaliation or have been alleged to have violated regulations


Size protests
Size Protests enter law schools aspiring to work for the public interest, but, upon graduation, find themselves debt-ridden or unable to obtain one of the scarce public service positions.

  • Must result in tangible benefits for the protestor if they succeed in the protestof a dispute against an ineligible business


Size protests1
Size Protests enter law schools aspiring to work for the public interest, but, upon graduation, find themselves debt-ridden or unable to obtain one of the scarce public service positions.

  • A successful protestor must receive either the contract which they had claimed was awarded to an ineligible firm, or ‘future contracts’ for at least twice the amount of the lost contract for bona-fide needs of the Agency over a negotiated period of time as long as the price offered is fair and just.  


Size protests2
Size Protests enter law schools aspiring to work for the public interest, but, upon graduation, find themselves debt-ridden or unable to obtain one of the scarce public service positions.

  • Have never worked as Congress intended because they only deliver ‘illusionary’ justice

  • Currently an inefficient use of tax payer dollars and a waste of government resources


Size protests3
Size Protests enter law schools aspiring to work for the public interest, but, upon graduation, find themselves debt-ridden or unable to obtain one of the scarce public service positions.

The SBA needs to revamp their system as a result of their Size Standards


How to capture your share of 1 trillion dollars in public contracts


How to capture your share of 1 trillion dollars in public contracts

  • businesses contracting with the federal, state, and local government by 2020.”To involve University Professors and Students

  • in Sustainable Commercial Projects

  • with Contracting Potential

  • to help Create Jobs

  • in Underserved Communities”


How to capture your share of 1 trillion dollars in public contracts

businesses contracting with the federal, state, and local government by 2020.”Procurement data that is gathered by, reported, and entered by procurement agenciesis often incomplete, inaccurate, and untimely.”

---Daniel Gordon, Administrator of Federal Procurement Policy OMB June 2011---


How to capture your share of 1 trillion dollars in public contracts

  • For videos of the container, please go to: businesses contracting with the federal, state, and local government by 2020.”

  • Celproject.com

  • For more information on the umbrella initiative, please go to:

  • Umbrellainitiative.com