Contracting with Metro

 

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On October 1st 2015, I wrote an article about a friend of mine, who after three years of convincing, finally saw an opportunity to contract with Metro. To explain to you the diversity of contracts available with Metro, my friend is a videographer, and this particular contract was to be for a three year contracting opportunity to video and edit various Metro commercials. In the article, I explained how we were able to get my friend approved within a two week time frame. We did this by opting in to the expedited application process which Metro allows if there is a specific bid available which they need the certification for. During the waiting period for approval, we had to work diligently to prepare the Request For Proposal (RFP), so that once he was approved for Metros Disadvantage Business Enterprise (DBE), we can submit his bid on time.

 

We received the notification of his DBE approval just in time for us to be eligible for the bid. About a month later, my friend called me with great excitement notifying me of the contract he was awarded for three years at nearly $15,000 a video. For a Small Business, getting any type of customer is crucial, but receiving an award to work on projects for a Government entity opens up new doors which will not only bring legitimacy to his company but also open doors to work with other agencies due to the resume he has started to build with Metro.

 

Paul Mazbanian CEO Small Business Community Consultants, Inc. www.sbclending.com (818)551-9400
Paul Mazbanian
CEO
Small Business Community Consultants, Inc.
www.sbclending.com
(818)551-9400

Be careful who you hire to assist with your Certifications

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I recently gave a presentation to an organization called, Women’s Presidents Organization. They are a nationwide group consisting of various chapter throughout each state. Each group consists of successful Women entrepreneurs who have monthly meeting and discuss various topics on how to grow their businesses.

A few days ago, I received a phone call from one of the members whom I had the pleasure of meeting during the presentation. She told me that she recently hired a company in Florida prior to her meeting me.  She decided to hire this company and as time went on, she began to notice charges unrelated to the agreement she had signed with them. This prompted her to do some research on the representative she hired.

Unfortunately for her, she was notified that this individual has a prior record of being a sex offender. This information was shocking to her. Had she known of his criminal background, she would have never hired them. It is unclear what she will do, due to the contractual obligation she now has with them.

The moral of this article is to be certain the people you hire, are honest and transparent, therefore resulting in a good business relationship with positive results.

 

Paul Mazbanian CEO Small Business Community Consultants, Inc. www.sbclending.com (818)551-9400

Paul Mazbanian
CEO
Small Business Community Consultants, Inc.
www.sbclending.com
(818)551-9400

Metro’s DBE Certification

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As Business Owners, we always try to promote and brand ourselves to everyone we can. This includes but is not limited to, other business owners, family, friends etc. We get particularly excited when a close friend calls us for assistance. Three years ago, I met with a friend of mine who is a producer and video editor. I mentioned to him the advantages of becoming certified as a Minority Owned Business. I told him what I would tell any other business owner, regarding the benefits and advantages for Minority Owned Business and doing business with Federal, State and Local Agencies.

Although I frequently see this friend, he did not proceed with the certification immediately. Fast forward three years to 2015 and I receive a call from him letting me know of an opportunity coming up with Metro in September of this year. Of course I was excited for him and told him I would help. With 3 weeks from the due date of the proposal, I sincerely wanted to help my friend grow his business. I believe he already new the “I told you so” story, so I did not mention in it to him. My first advice to him was to focus on application and the gathering of the supporting documents so that we may submit the application as an expedited application to become approved as an SBE with Metro. Over the course of two weeks, we met multiple times to ensure the accuracy of the application. He still needed to complete the RFP and submit it by the due date, but since the RFP had a SBE Set aside, the application needed to get done first.

After submitting the completed Metro Application, my friend was approved within two weeks and the RFP was submitted on time. If he does indeed get this contract, it will significantly help his business grow over the next few years. In addition, it will give him notoriety working with Metro and also help him get future projects.

The reason I am writing this article is if my friend were to take my advice originally, he would not have to go through the stress of getting approved and complete the RFP within a two week time period. This put a significant strain on him because he needed the certification to bid on the project, we put in extra hours to get in submitted on time.

The typical time it takes Metro to approve a Business for DBE Certification or SBE Certification is roughly three months. However, Metro has an expedited application process, if the applicant needs to get certified for a specific bid coming up. This will significantly reduce the wait time for applicants, assuming all required documents are submitted in a timely manner, as was the case with my friend.

My recommendation to all businesses would be to identify your opportunities ahead of time and not be in a position of rushing. This is true for all certifications. Doing your research and forecasting which ones you will need will significantly help, once you come across a situation like the one above.

 

Paul Mazbanian CEO Small Business Community Consultants, Inc. www.sbclending.com

Paul Mazbanian
CEO
Small Business Community Consultants, Inc.
www.sbclending.com

DBE Certification in Two Weeks

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Most times when clients ask about about Certifications, the same questions always come up.”How long does it take to get certified?” Normally it would take roughly 3 months for Metro to approve a Business under each certification. This may seem long, but actually is a short time frame compared to other certifications, such as the SBA 8(a) program.

There is however a mostly unknown process that will significantly reduce the approval time line from 3 months to two weeks. Metro, has an option in one of their documents which allows you to expedite the process, if there is a solicitation that has already been publicized. This option may only be marked if there is an actual solicitation which has a DBE or SBE set aside.

In the previous article, I wrote about a friend who was in this exact predicament. He knew of an opportunity coming up with Metro and needed get certified as an SBE in order to become eligible, since the RFP did have an SBE set-aside. We were able to work relentlessly on the application, asked Metro to expedite the application and was approved within two weeks right when the RFP was announced.

In order to become certified via the expedited process, the METRO application needs to be completed, along with all of the necessary supporting documents. Metro will not approve any application until all required documents have been received and verified. The trick in getting the application approved within two weeks, is entirely reliant on the applicant and how soon they can respond to Metro on additional documents if needed.

There is no special formula. All applications are the same and require the same supporting documents. However, the expedited process will allow you to get certified sooner and allow you to bid on opportunities immediately.

 

Paul Mazbanian CEO Small Business Community Consultants, Inc. www.sbclending.com

Paul Mazbanian
CEO
Small Business Community Consultants, Inc.
www.sbclending.com

 

Why are broker Dealers Ineligible to participate in the 8(a) program?

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Why are broker dealers ineligible to participate in the 8(a) program?

If you are labeled as a broker, but do not feel that you are, this article will help you understand how to get approved for the 8(a) certification and other programs by taking some important precautionary steps.

SBA wants success to come to every 8(a) approved firm. Making sure they will be successful is why the approval process is stringent. Based on the Federal Acquisition Regulation code FAR 124.08 “Brokers are ineligible to participate in the 8(a) BD program. A broker is a concern that adds no material value to an item being supplied to a procuring activity or which does not take ownership or possession of or handle the item being procures with its own equipment or facilities”.

Recently we were hired by two separate clients who happen to be in the same line of work, distributors of office products. One was applying for the 8(a) certification, while the other for Metro’s Disadvantage Business Enterprise (DBE) Certification. In both instances, client did not feel that they were brokers as defined by the SBA, but rather a dealer. A broker is a pass through entity which at times makes commission paid to them by the manufacturer or distributor. In this case, both parties made neither. The only flaw they possessed was that they did not stock inventory. This is of course the most important rule of being a broker, that they don’t keep stock of their products.

The office supply industry is a multi billion dollar industry and both companies receive orders from all over the United States and their customers demand delivery promptly, sometimes the next day. If they were to stock inventory, take order from customers thousand of miles away and deliver the next day, Small Businesses in this particular industry would not exist. In order for them to be able to do this, they will need to have multiple warehouses across the nation and stocking hundreds of thousand of dollars worth of daily inventory. This would make perfect sense for a company such as Hewlett Packard or Amazon, but most definitely not a Small Business.

We were able to get both companies approved. We did this by proving to each agency, that keeping that level of inventory was not viable. Thus, we also provided the SBA and Metro with current levels of inventory held as well as receipts and invoices of purchase orders made. In addition, we provided the shipment charges made by the clients proving that their products were housed at the manufacturers warehouse and later shipped to the customer along with pictures of the inventory etc.

When applying for any type of certification, particularly the ones mentioned above, and if your business may be labeled as a broker but you clearly are not, an explanation will be needed. It is important to answer and questions they may have with actual data proving you are not a broker.

To learn more about our services, please visit www.sbclending.com.

 

Paul Mazbanian CEO Small Business Community Consultants, Inc. www.sbclending.com
Paul Mazbanian
CEO
Small Business Community Consultants, Inc.
www.sbclending.com

2014 In Review and Looking Ahead to 2015

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2014 was a great year for us. Since our services are geared toward Small Businesses, we have seen them thriving more this year than the previous 7 years. Perhaps it is due to the change in the Economy or perhaps people are understanding the benefits of obtaining their Certifications more than before. What ever the reason may be, Small Business Community Consultants, Inc. has helped more businesses this year in obtaining their Federal, State and Local Certifications than ever before.

You may have read our National Press Release for the first half of the year (click here to read), which outlined our accomplishments of 13 approved certifications, including:

  • 8(a) Certification————————————– 1
  • DBE Certifications———————————— 2
  • WOSB Certifications——————————— 4
  • SB Certifications————————————– 3
  • DVBE Certifications———————————- 1
  • WBE Certifications———————————– 2

TOTAL:                                                          13

We are happy to announce that we were able to approved 17 more Certifications for the remainder of the year giving us a total of 30 approved Certifications. Our total numbers for the year are as follows:

  • 8(a) Certifications———————————– 2
  • DBE Certifications———————————- 5
  • SBE Certifications———————————- 4
  • WOSB Certifications——————————- 7
  • WBE Certifications——————————— 2
  • SB Certifications———————————– 9
  • DVBE Certifications——————————- 1

TOTAL:                                                          30

As we head in to 2015, we have 28 certifications that are either submitted waiting for approval, or are in the process of being submitted. Below is a list of our “in process” Certifications heading in to next year.

  • 8(a) Certifications———————————– 5
  • DBE Certifications———————————- 9
  • SBE Certifications———————————- 8
  • WOSB Certifications——————————-1
  • WBE Certifications——————————— 2
  • SB Certifications———————————– 1
  • MBE Certification———————————- 2

TOTAL:                                                          28

In 2015, we are looking to offer new and exciting services to our clients, including but not limited to, access to local, State and Federal Contracting opportunities as well as Seminars. We will also be launching a new website which will be more user friendly and will give our clients the ability to learn and educate themselves prior to starting the Certification process.

Paul Mazbanian SBC Consultants, Inc. www.sbclending.com/ paul@sbclending.com/ 818-551-9400

Paul Mazbanian
SBC Consultants, Inc.
www.sbclending.com/
paul@sbclending.com/
818-551-9400

Hiring a consultant to help you with your 8(a) application can save you time and money

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We recently received a call from a client requesting details on the SBA 8(a) certification. Clients nature of business was providing Environmental Testing such as Phase 1 reports. Client was intrigued that we had assisted other Environmental Firms in receiving their 8(a) certification. After a very productive conversation, I left the client with plenty of information to digest.

A few days later, the client, who was extremely experienced in his field of work, emailed me and told me  that he spoke to someone and they told him that all first time applicants get rejected, and this is how the SBA controls their capacity issues. He then proceeded to write, “we may attempt the first application ourselves, save the money, get rejected and proceed with you with the 2nd attempt”.

There are plenty of concerns I have with the above statement:

  1.  The application process can take up to 40 hours to complete, thus, the time and energy spent on submitting a package you ultimately know will be declined is counter productive.
  2. The reason why our clients hire us, is because of the experience we bring to the table and the clients we have helped get certified.
  3. Our clients also hire us because not only do they not understand the details of the program, but also because they do not have the time to spend on completing the application, gathering supporting documents, analyzing it for it’s completeness, writing letters to explain inconsistencies etc.

Ultimately, what will happen with this client is, they will begin the process and after spending 20 or so hours getting everything together, they will come to road blocks and wish they hired someone who knows the ins and outs of the program. 20 hours of lost work and man hours later, they will realize that hiring a professional to do the work would have saved them time and money.

Unfortunately, all I can do is explain to him what the process entails by being honest and upfront. Ultimately, the research he has done will allow him to make the best decision for himself and his business.

We encourage all of our clients to due their due diligence in understanding the program, but you must leave it to professionals to get it done.

Paul Mazbanian SBC Consultants, Inc. www.sbclending.com/ paul@sbclending.com/ 818-551-9400

Paul Mazbanian
SBC Consultants, Inc.
www.sbclending.com/
paul@sbclending.com/
818-551-9400

Which Goverment Certifications to apply for first

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 Obtaining a Government Certification for your business can a confusing process. Which certifications to apply for and which ones would benefit you most?

You must first identify with whom you would like to do business with? Have you seen more bids with the Federal or State Governments? Your answer may be either one or both., If so, we recommend you apply for all, however this may be time consuming and although will help you in the long run, may not be an immediate priority.

Let’s assume for a moment that you would benefit from both the Federal and State Certifications. We recommend you apply for the easiest ones first, in order to get in to the game now. This will allow you to begin working on marketing your firm as a certified agency.

Below is a list of Certifications and their complexities:

Federal:

1. SBA’s Women Owned Small Business (WOSB): EASY

    The WOSB is one of the easiest certifications to obtain. This is because it is a designation rather than an actual certificate. Obtaining the WOSB Certification will allow you to bid on the 5% set-asides for those businesses designated as WOSB. The process is EASY because there is not physical application process. The requirements are that you register with the various Government sites and upload documents to the repository self-certifying your firm.

2. Women’s Business Enterprise (WBE): MEDIUM

   The WBE is a certification reserved for Women owned businesses only. It mimics the WOSB certification but is verified by one of 5 SBA approved agencies. This certification has a more complex process than the WOSB because it requires a full application and supporting documentation. Your information will go through a process with the agency and you wil be visited by a representative assuring your business indeed is what you represent. I typically advise our clients to obtain this certification if it is being required by a vendor. A physical certificate is issued to the applicant firm.

3. Minority Business Enterprise (MBE): MEDIUM

   The MBE is a national certification given by the National Minority Supplier Development Council. They are one of the nations leading corporate membership organizations. They match a firms goods and services with those of large corporations who intern purchase your product. Think of it as a club where members help each other by purchasing each others product. This certification includes an application and supporting documentation much like the WBE above.

4. SBA’s 8(a) Business Development Program: DIFFICULT

   The SBA 8(a) program is the most lucrative and most difficult to achieve. There are approximately 7,000 approved 8(a) firms in the country. 23% of all Federal Contracts MUST go to 8(a) certified firms. Secondly, an 8(a) certified firm is eligible for soul source awards which means that once they have built their reputation in the program they may get contracts without even bidding against other 8(a) certified firms. Thirdly, if certified and bidding against a non-8(a) certified firm, you will get a 5% bidding preference giving you an advantage over your competitive bidder. The process may take anywhere between 3-6 months depending on how much information is requested by the SBA. For those looking for the greatest benefit, the 8(a) certification allows you to grow your business significantly.

STATE:

1. Metro’s Disadvantage Business Enterprise: MEDIUM

   The DBE certification is the States premier certification allowing 25% of all state set-asides to be reserved for certified firms. Most people think Metro is the subway and bus systems, but contracts are given to a variety of industries. We have seen them as diversified as ink jet suppliers and marketing. So to think that if you are a service business and don’t qualify think again. Having this certification is a big deal and if obtained will open new doors for you. The process includes an application and supporting documentation to be mailed to the certifying agency. approval can take up to 3 months.

2. Department of General Services Small Business and Disabled Veterans Certification (SB)/(DVBE): EASY

   The Department of General Services serves as the business manager for the State of California. They offer two certifications, the SB and DVBE. Both are online based certifications. Typical certification time can be within a few hours or weeks depending on the type of industry. For instance, service based businesses can be certified very quickly while manufacturing companies need to upload documentation which then needs to be verified by a DGS officer. The DVBE certification is reserved for veterans who are at least 10% disabled and honorably discharged. Documents such as dd214 and discharge papers need to be uploaded.

3. Supplier Clearinghouse Minority Business Enterprise (MBE) Certification: EASY

   Supported by The  California Public Utility Commission (CPUC), which regulates privately owned electric, natural gas, telecommunications, water, railroad, rail transit, and passenger transportation companies. The MBE certification is an online based certification which is fairly easy to do. Certification can take up to 2 weeks depending on the complexity of the applicant.

Click on HERE to view our video testimonials.

Paul Mazbanian SBC Consultants, Inc. www.sbclending.com/ paul@sbclending.com/ 818-551-9400

Paul Mazbanian
SBC Consultants, Inc.
www.sbclending.com/
paul@sbclending.com/
818-551-9400

When should you get a Government Certification to grow your business

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When is the right time to become Federally or State approved for a particular Business Certification?

We frequently get calls from businesses asking us to certify them for a specific certification after one of their vendors asks them for it. This poses a few problems. First, depending on the certification being requested, it can take some time getting certified. Recently we received a call from a local business asking us to help them get certified for the Federal WBE certification. One of their vendors was requesting they have the certification so that they can justify giving their contracts to a WBE certified firm. We were then notified that they need to be certified in two weeks. The agency themselves will need up to 90 days to review the application and approve the company, so getting them approved within a two week time frame was impossible. Although the client did hire us to proceed, they did lose that contracting opportunity.

when should you apply for a Certification?

The time to apply is NOW. If you are aggressively seeking Government work, there will come a time when one of your vendors will request for a certification to justify giving you the contract. Your company should always be ready to jump on an opportunity to bid and win a contract. If you wait until the last minute, the opportunity will be lost.

Important things to consider?

1. Do you want to work with the Federal or State Governments?

2. What Certifications do you qualify for?

3. What certifications would benefit you now?

4. Which certifications will benefit you in the future?

Please visit our Video Testimonials page HERE

 

* SBC Consultants, Inc. is a Los Angeles based consulting firm focusing on assisting Small Business obtain their Federal and State Certifications. Our products include but are not limited to: SBA 8a Certification, WOSB, WBE, DBE, MBE and SB Certifications.

Paul Mazbanian SBC Consultants, Inc. www.sbclending.com/ paul@sbclending.com/ 818-551-9400

Paul Mazbanian
SBC Consultants, Inc.
www.sbclending.com/
paul@sbclending.com/
818-551-9400

Small Business Enterprise Certification Initiative

 

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On June 2nd, 2014, Metro officially announces their Small Business Set-Aside Program to level the playing field for Small Business Enterprise (SBE) by setting aside contracts that only SBE Certified firms can compete for as prime contractors, suppliers and consultants.

Depending on the type of procurement, contracts will range from $3,000 to $5 million. As long as there are 3 or more SBE certified firms available for a single contract, the set aside will be set for them.

According to Metro, “the set-aside program was developed in response to a recent mandate by the Federal Transit Authority (FTA) to improve competition by SBEs on FTA funded procurement.”

The Small Business Set-Aside program offers the following BENEFITS:

  • Enables SBEs to compete as prime contractors, increasing the opportunity to win contracts.
  • Levels the playing field by limiting competition.
  • Notifies of SBEs of eligible contract opportunities.
  • Builds firm capacity, allowing SBEs to take on larger contracts.
Paul Mazbanian SBC Consultants, Inc. www.sbclending.com/ paul@sbclending.com/ 818-551-9400

Paul Mazbanian
SBC Consultants, Inc.
www.sbclending.com/
paul@sbclending.com/
818-551-9400