Certification can be a powerful tool toward helping small businesses gain access to contracting opportunities with government agencies and private sector organizations. That said it’s essential that small business owners know exactly what their certifications are designedto do, and what the goals of each program are. Using the New York City MWBE program as an example, in January 2013, the Mayor signed Local Law 1 making changes to the M/WBE program. The new law became effective July 1, 2013. Some of the changes that I am excited about are that MWBE participation goals may now be imposed on all service contracts (Professional, Standard and Construction). These changes, in my opinion, greatly increase opportunities for smaller firms in a variety of areas. New goals have been established for MWBE participation in Construction Services of 38%, Goods (below $100,000) of 45%, Professional Services 37%, and Standardized Services 31%. Goals in each of these groups are also broken down for all ethnicities and women. For more information on Local Law 1, see the attached link: http://nycbusiness-solutions.com/post/42428679393/the-411-on-local-law-1-of-2013-in-2005-mayor#.UgvMo3rD_ug
Understanding New York City MWBE participation goals empowers MWBEs by allowing firms to drill down, fine town their marketing and most importantly target agencies that align with their current capacity. Each City agency adopts an annual plan and goals for procurements from MBEs and WBEs which also makes the process somewhat easier. By doing some research, you can determine what each agency is buying, and how to best approach them. Some of the Agency websites I reviewed have opportunities broken down into categories that are less than 20,000; between 20,000 to 100,000 and greater than 100,000. There is an opportunity for firms large and small.
In addition to understanding participation goals, you want to pay attention to how and when each agency makes purchases; micro purchases, small purchases, RFPs, bids, IFB, and RFQ to name a few. The New York City fiscal year begins on April 1 and ends on March 31. Again, the more you understand the process, the better your chances are for success.
Doing business with the government requires a consistent plan of action, and in addition to understanding the goals of the program; you need to identify targets within that program and market to them. MWBE firms needs to be positioned for success by clearly defining capacity, core competencies and unique selling proposition. References and past performance history need to be up to date. Financial preparedness, integrity and responsibility are also non-negotiable.
