2016 annual report - denver · 2016 annual report – dsbo 8 aspirational goals per ordinance #85...

DIVISION OF ECONOMIC MOBILITY

2016 ANNUAL REPORT Division of Small Business Opportunity (DSBO)

Creating and expanding opportunities for small, disadvantaged, and minority- and women-owned businesses

TOGETHER, WE BUILD.

2016 Annual Report – DSBO 1

Table of Contents

DSBO Mission Statement………………………………………………………………………………………………………… 3

Letter from the Mayor .............................................................................................................................. 4

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

Disparity Study ......................................................................................................................................... 7

Aspirational Goals .................................................................................................................................... 8

DSBO Certification Trainings ................................................................................................................... 9

Denver Launches Mentor-Protégé Program for Construction in 2016 ................................................. 9

Certified Firms - Bonding ...................................................................................................................... 11

DSBO Certification Programs ............................................................................................................... 11

DSBO Certifications: New in 2016 ....................................................................................................... 12

DSBO Certifications: Re-visiting Certified Firms .................................................................................. 12

DSBO Certifications Through 2016 ..................................................................................................... 13

Certified Firm Growth Through the Years ............................................................................................ 14

Promoting the Growth of Certified Firms ............................................................................................. 14

Certified Firms & Denver International Airport .................................................................................... 15

Growing ACDBE Firms ........................................................................................................................... 15

Purchasing Goods and Services .......................................................................................................... 17

DSBO Compliance ................................................................................................................................. 17

2016 Statistics ...................................................................................................................................... 18

2016 Project Awards (M/WBE) ............................................................................................................ 19

2016 Project Awards (SBE Defined Selection Pool) ........................................................................... 20

2016 Project Awards (DEN (Airport) Tenant Finish – SBE ................................................................. 21

2016 Project Awards – DBE ................................................................................................................. 22

2016 Project Awards – Goods & Services: SBE & M/WBE ................................................................ 23

2016 Project Payments – M/WBE: Prime & Subcontractor Payment Breakout .............................. 24

2016 Project Payments – SBE Defined Selection Pool ...................................................................... 25

2016 Project Payments – Denver International Airport SBE ............................................................. 26

2016 Project Payments – DBE ............................................................................................................ 27

2016 Project Payments – Goods & Services ...................................................................................... 28


Contact DSBO ........................................................................................................................................ 29

Appendix A ............................................................................................................................................. 30

Certification Program Definitions ......................................................................................................... 30

Compliance Contract Types .................................................................................................................. 32


DSBO: Mission Statement

The mission of the Office of Economic Development (OED) Division of Small Business

Opportunity (DSBO) is to support the growth, capacity, and sustainability of minority,

women owned (M/WBE) and other small disadvantaged businesses (SBE).

DSBO encourages the utilization of small and disadvantaged businesses on construction

projects, professional services projects, and procurement of covered goods and services,

as well as participation on Denver International Airport (DEN) concessionaire

opportunities. DSBO oversees compliance goals on City & County of Denver and Denver

International Airport (DEN) contracts for small business (SBE, EBE, SBEC),

Minority/Women Business Enterprise (M/WBE), and federal (DBE, ACDBE) certifications.

DSBO also administers the Construction Empowerment Initiative (CEI) Mentor-Protégé

Program in support of the City & 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, professional

services and covered goods and services. The intent of the M/WBE program is to increase

the:

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

2. Bonding capacity of M/WBE firms

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

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 its M/WBE participation goals, and by bold initiatives designed to build the capacity

of the M/WBE community.


Letter from the Mayor

Access to customers and market opportunities is a key ingredient for any successful small business.

As detailed in this report, the Denver Office of Economic Development’s business certification and

compliance programs are leveling the playing field for our firms, providing a platform for today’s

small businesses to become the leading companies of tomorrow.

In 2016, the City & County of Denver continued to work tirelessly, on many levels, to expand

contracting prospects for small businesses, as well as socially and economically disadvantaged

firms. From construction and related professional services, to city procurements for selected goods

and services, as well as airport concessions, the city is fostering and delivering a powerful vision of

inclusivity.

At a glance, 2016 was a strong year for the OED Division of Small Business Opportunity. The number

of certified firms continues to grow, contract awards are on the rise, and the aggregate gross

revenue of our certified firms is charting upward. Through expanded outreach and technical

assistance, including our construction Mentor-Protégé program, we’re helping to position firms to

benefit from our vibrant and burgeoning economy.

With significant projects ranging from Peña Station infrastructure to the kickoff of the construction of

Brighton Boulevard, certified firms are gaining market opportunities throughout the city--and the

future is even brighter. Opportunities await on several fronts, including the National Western Center,

Denver International Airport’s Great Hall, major Public Works projects, and the pending general

obligation bond initiative.

In 2017 and beyond, the city remains committed to creating more inclusive opportunity for our small

business community.

Michael B. Hancock


Executive Summary

Number of Certified Firms:

DSBO has increased the number of certified firms in its program. The following graph illustrates the

total capacity of active certified firms within DSBO’s certification pool. Most of these firms have

multiple certifications (M/WBE, SBE, DBE, ACDBE, SBE).

Award Summary:

As reflected in the following graph, DSBO has successfully increased the percentage of awards to

certified firms since 2013:

0 500 1000 1500

2011

2012

2013

2014

2015

2016

1,068

1,060

1,135

1,231

1,245

1,278

DSBO Certified Firms over time

2011-2016

Year

Total Awarded

Contracts

Total Awarded to

Certified Firms

Certified Firms

%

2016 $ 350,204,310 $ 86,562,814 25%

2015 $ 377,443,887 $ 77,627,814 21%

2014 $ 226,916,078 $ 36,558,630 16%

2013 $ 337,094,142 $ 47,312,173 14%

2012 $ 325,887,918 $ 68,880,877 21%

2011 $ 230,308,268 $ 35,968,578 16%


Airport Concessions Disadvantaged Business Enterprise (ACDBE) Performance:

As reflected in the following graph, there is an increase in the revenue earned by participants of the

ACDBE program.

* This is an estimate. As of the date of publication, a final amount has not been calculated.

Year Total Revenue Earned by ACDBE ACDBE %

2016* $ 384,008,106 $ 148,032,996 39%

2015 $ 329,917,138 $ 129,625,687 39%

2014 $ 330,305,526 $ 129,971,405 39%

2013 $ 300,271,540 $ 113,310,897 37%

2012 $ 279,862,084 $ 95,776,696 34%

2011 $ 265,340,805 $ 90,959,542 34%


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 to

consider various options for future program development. The study also made recommendations for

the aspirational goals. Note: The full report may be found at www.denvergov.org/DSBO.

In January 2017, a Request for Proposal (RFP) was released to find a firm to complete a new disparity

study. This RFP was contracted in April 2017, with the awarded firm will complete the new disparity

study by June 2018. This new disparity study will allow DSBO to update the City Ordinances governing

its programs by April 2019.

http://www.denvergov.org/dsbo


Aspirational Goals

Per Ordinance #85 of the Denver Revised Municipal Code (DRMC) 28-54(2), DSBO is required to set

aspirational goals for the categories in the M/WBE program. These aspiration goals are calculated on

a calendar year basis.

During a 2015 audit, the City Auditor’s Office found that DSBO included SBE numbers in both its

Aspirational Goals and in the Goals Achieved calculations. If DSBO had continued combining M/WBE

and SBE awards in its calculation, those goals would have been exceeded. The Auditor’s Office,

however, asked DSBO to calculate M/WBE awards separately; therefore, in the future, separate

aspirational goals will be calculated for the M/WBE program.

The current aspirational goal percentages achieved in 2016 for the DSBO M/WBE program are shown

below:

* In 2016, there were no goods contracts large enough to have an M/WBE goal set.

** In 2016, several services contracts were awarded with 100% M/WBE participation.

Categories

Program

Type Payment Totals

Paid to Certified

Firms

Goal

Achieved

Aspirational

Goal

Construction M/WBE $ 306,244,769 $ 71,452,358 23% 24%

Professional Services M/WBE $ 58,292,955 $ 17,517,218 30% 33%

Goods * M/WBE $ 714,323 $ 0 0% 5%

Services** M/WBE $ 7,495,726 $ 4,368,423 58% 8%


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. These trainings provide

information for businesses that wish to be certified or that would like to learn more about DSBO

programs and opportunities.

In 2016, DSBO certification analysts met with and trained more than 120 individuals representing

companies or firms throughout the Denver metro area that had expressed an interest in DSBO’s

certification programs.

Denver Launches Mentor-Protégé Program for Construction in 2016

The Mentor-Protégé program began on January 12, 2016, with the identification of five teams to begin

a strategic long-term business relationship. All Protégés had completed assessments of their

businesses to identify weaknesses and/or areas that they wished to strengthen in order to be

successful bidders on a government contract. The results of the assessment were used by the teams

to create a development plan. The plan helps the teams to establish goals for the business

relationship during the program.

Protégé Mentor

Chacon Construction & Transport Inc. Villalobos Concrete Inc.

St. Andrews Construction Services Corp. LEI Companies

Sky Blue Builders LLC Hensel Phelps

Living Design Studios Inc. RMK Electric Inc.

Flawless Steel Welding LLC Hensel Phelps

Some major accomplishments:

As of today, SKY BLUE BUILDERS has received a contract with DEN (Airport). Because of the

company’s interest in obtaining contracts in the health care field, its mentor, Hensel Phelps, has

assisted SKY BLUE BUILDERS by including the company on a contract with a major health care

provider. There are many compliance requirements on healthcare construction contracts and the

mentor has provided the necessary guidance to help SKY BLUE BUILDERS understand those

requirements and, consequently, build the confidence to bid as a prime for future opportunities. In

addition, guidance and expertise on forecasting costs on projects is being provided, allowing SKY BLUE

BUILDERS to determine the person-hours and equipment needed to start and complete multiple

projects simultaneously.

At the beginning of Chacon Transport’s Mentor-Protégé relationship, the company managed seven

trucks in December 2015. Currently, Chacon Transport manages over 30 trucks and operators. The

company’s Mentor is Villalobos Concrete, Inc. This Mentor-Protégé relationship provided Chacon

Transport with the necessary tools to successfully bid on government contracts. This program has


given Chacon Transport access to a business that provides the technical support needed for

submitting bids. As a result, Chacon Transport is more confident that it can become a prime contractor

on future contracts. In addition, Chacon Transport has worked with USDOT to create a safety

policy. Chacon Transport believes that governmental contracts provide security due to the prompt

payment these contracts provide. The company’s main goal is to keep jobs local, to contribute to

Denver's growing economy, and open doors for other local certified firms.

Flawless Steel is a Protégé working with Hensel Phelps as its Mentor. This affiliation has allowed

Flawless Steel to upgrade its accounting system and now the firm has the ability to better recognize

profits on projects and identify excessive costs associated with a project. In addition, Flawless Steel

has increased its financial capability and was able to hire an administrative assistant to handle the

day-to-day operations instead of delegating the function to project management.

St. Andrews Construction Services Corporation is a Protégé working with LEI Companies as its

Mentor. Through this partnership, St. Andrews Construction Services Corporation discovered a path

that will allow it to become more involved in the city process of setting goals as a member of the

Construction Goals Committee.


Certified Firms - Bonding

One measure of fortifying the growth and staying power of certified firms is to look at their bonding

capability. When a firm is bonded, it shows its capacity to grow and obtain work on its own. One of

the ultimate goals of bonding is to develop a firm’s ability to perform the role of prime contractor on

future projects.

• 107 certified firms have indicated their ability to provide bonding without assistance.

Bonding Capacity Number for Firms Bonded

Less than $1M 28

$1M - $3M 24

$3M- 5M 23

$5M - $20M 28

More than $20M 4

TOTAL 107

Based on these results, we believe that certified firms in Denver are growing in capacity and setting

their own favorable courses.

Beginning in 2017, the DSBO certification team will develop a plan to validate bonding during the

site visit process.

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 (the 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 the quality of their work, thereby initiating growth through demonstrated work and

achievement on projects.

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 2016

In 2016, DSBO’s certification analysts met, interviewed, and certified 215 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.

*Processing time for new certifications remained below the 90-day Federal Regulation requirement

DSBO Certifications: Re-visiting Certified Firms

In 2016, 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 it is certified. This presents an opportunity for the firm to associate a

friendly face with its DSBO representative, ask questions, and re-familiarize itself with marketing,

bidding, and contracting opportunities, not only with the City & County of Denver, but also opportunities

with Colorado Unified Certification Program (CUCP) partners and other agencies throughout the State

of Colorado. CDOT, Denver Public Schools, and RTD are just a few of the agencies which utilize our

database of capable certified firms.

DSBO performed a total of 211 certification revisits in 2016.

0

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Jan Feb Mar Arp May Jun Jul Aug Sept Oct Nov Dec

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Certifications 2016

Days to Certify Federal Timeframe New Certified Firms

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10

20

30

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Jan Feb Mar Arp May Jun Jul Aug Sept Oct Nov Dec

2016

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Certification Revisits


DSBO Certifications Through 2016

The certification program consists of six different certification types administered by DSBO. There are

currently a total of 1,278 unique certified firms through DSBO. These unique certified firms can be

certified in multiple certification types.

Quantities of certifications by type are listed below to show certified firm capacity in each certification

type. The construction and professional services industries are covered by M/WBE, SBE, EBE, and

DBE certification types. Procurement includes M/WBE and SBE certification types only. Concessions

are covered by SBEC and ACDBE certification types only:

*This number does not include firms which are DBE certified through United Certification Program partner CDOT.

Certification Type Total Active Certification

Types 2016

Minority/Women Business Enterprise (M/WBE) 829

Small Business Enterprise (SBE) 1,033

Small Business Enterprise Concessions (SBEC) 27

Emerging Business Enterprise (EBE) 592

Disadvantaged Business Enterprise (DBE) 967

Airport Concessions Disadvantaged Business

Enterprise (ACDBE) 301

Total Active Certification Types Held by all Vendors* 3,749


Certified Firm Growth Through the Years

This chart shows the aggregate gross revenues of certified firms from 2010-2014, illustrating overall

growth. 2015 and 2016 values have been excluded to account for firms that filed for tax extensions.

Firms reporting $0 revenue have not been included in these numbers.

Promoting the Growth of Certified Firms

Our certifications are accepted throughout Colorado. As a result, more dollars were paid to certified

firms for local program-specific projects. Per the charts below, a substantial amount of dollars for

projects was paid to certified firms in Colorado. In addition, Denver paid more dollars to certified firms

than all other Colorado cities combined:

Dollars to Certified Firms - State

Dollars to

Certified Firms

% of Total to

Certified Firms

Colorado $ 95,606,178 95%

All Other States $ 5,031,904 5%

Dollars to Certified Firms – Colorado Cities

Dollars to

Certified Firms

% of Total to

Certified Firms

Denver $ 54,495,521 57%

All Other Colorado Cities $ 41,110,656 43%

$2,017,676 $2,077,261 $2,235,969

$2,415,383

$2,952,403

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

2010 | 926 Firms 2011 | 1027 Firms 2012 |1009 Firms 2013 | 1067 Firms 2014 | 1184 Firms

2010-2014 Averaged Gross Revenues for

Certified Firms


Certified Firms and Denver International Airport

The Airport Concessions Business Enterprise (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. As

required by the Federal Aviation Administration, DEN and DSBO have established an ACDBE

aspirational goal on overall concessions gross revenue of 33%. With roughly $384 million in annual

concessions revenue, this translates to over $148 million in opportunity for certified ACDBE

businesses. DEN exceeded the aspirational goal by achieving 39% ACDBE participation in 2016.

DEN Concessions Revenue FY 2015-2016

Total Revenue Earned by ACDBE

Firms ACDBE %

Concessions $ 384,008,106 $ 148,032,996 39%

Growing ACDBE Firms

Midfield Concession Enterprises, Inc. is owned by Andrea Hachem, a seasoned restaurant owner and

operator. With concession locations in seven other airports, the Hotel and Transit Center (HTC) multi-

location package is the first for Midfield at DEN. Midfield’s extensive experience at other airports

allows the company to be a 100% ACDBE certified concessionaire on this contract. It is also joint

venturing for additional ACDBE participation with Pangea Concession Group, LLC, at 10% and Simrae

Solutions, LLC, at 15% ACDBE participation. There will be a full-service restaurant and bar located on

the west side of the new Westin Hotel. Midfield Concession Enterprises will also have a branded craft

gourmet burger concept on both concourses B and C. In addition, a coffee concessions will greet

guests utilizing the RTD train and bus services to DEN.


Tenant Finish at Denver International Airport

The Tenant Finish program at Denver International Airport (DEN) consists of projects for DEN tenants

that 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 & County of Denver’s property, Denver ordinances as well as DEN and city

construction and design standards apply.

Year

Total Awarded

Tenant: M/WBE

Contracts

Total Awarded to

M/WBE Certified

Firms

M/WBE

Certified Firms

%

2016 $ 13,431,354 $ 5,454,601 41%

2015 $ 26,419,342 $ 10,462,748 40%

2014 $ 24,535,913 $ 8,072,334 33%


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) and 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 program applies to specific categories of goods and services identified:

Covered Goods Covered Services

Electronic Parts & Equipment Building Management & Maintenance Services

(includes Janitorial Services)

Office Equipment Parking Services

Machinery, Equipment & Supplies Security Services

Electrical and Industrial Equipment including

Parts and Supplies

Maintenance & Repair Services

(includes Landscaping)

Communication Equipment Communication Equipment Related Services

Advertising Materials, commercial printing,

without publishing

General Business Services (staffing,

interpretation, graphic design, printing and

photocopying, transportation and courier

delivery services)

*The above is an example of some of the Goods and Services covered by the Ordinance.

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 services contracts, as well

as Denver International Airport concession contracts. The

main priority for the compliance unit is to ensure that

contract goals are met, while addressing any issues or

discrepancies which may arise throughout the life of the

project.


2016 Statistics

On the following pages, DSBO provides annual statistics on goal awards and achievement. The

compliance team works closely with the City Agencies, primes, and subcontractors to monitor contracts

with established goals. This information is separated by City & County of Denver and Denver

International Airport (DEN) contracts.

Project Awards provides details on how an awarded prime intends to meet the goal set on a contract

by Certification type.

Project Payments provides details on how the prime achieved the goal set on the contract by

Certification type.


2016 Project Awards (M/WBE)

The following data represent project award totals for contracts with M/WBE goals in 2016 for City &

County of Denver & DEN.

City & County of Denver: Minority/Women Business Enterprise (M/WBE)

Contract Type Award Total

M/WBE Prime

Commitment

Total

M/WBE

Prime %

M/WBE Sub

Commitment

Total

M/WBE

Sub %

Construction $ 109,474,511 $ 10,248,471 9% $ 9,501,577 9%

Construction

Tenant $ 4,123,089 $ 0 0% $ 343,287

8%

Voluntary

Participation -

Construction $ 0 $ 0 0% $ 0

0%

Professional

Services $ 22,159,912 $ 117,931 1% $ 3,263,269

15%

This award information represents all City & County of Denver projects excluding DEN (Airport)

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


M/WBE Prime

Commitment

Total

M/WBE

Prime %

M/WBE Sub

Commitment

Total

M/WBE

Sub %

Construction $ 120,080,144 $ 4,283,278 4% $ 25,510,133

21%

Construction

Tenant $ 13,431,354 $ 1,146,231 9% $ 4,308,370

32%

Voluntary

Participation -

Construction $ 0 $ 0 0% $ 0

0%

Professional

Services $ 36,454,792 $ 12,510,519 34% $ 3,154,101

9%

This award information represents only DEN (Airport) projects


2016 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 for exclusive bidding by SBEs. This is defined in Article VII, Section 28-204 of the

Denver Revised Municipal Code (DRMC). The intention of this program is to provide a SBE experience

working as a prime with a portion of the work being allocated to additional SBE firms as its

subcontractors.

The following data represent project award totals for construction and professional service contracts

with SBE Defined Selection Pool goals in 2016 for City & County of Denver and DEN.

City & County of Denver: Small Business Enterprise (SBE Defined Selection Pool)


SBE Prime

Commitment

Total SBE Prime %

SBE Sub

Commitment

Total

SBE Sub %

Construction $ 4,378,542 $ 3,109,796 71% $ 365,687 8%

Professional

Services $ 0 $ 0 0% $ 0

0%


DEN (Airport): Small Business Enterprise (SBE Defined Selection Pool)


SBE Prime

Commitment

Total SBE Prime %

SBE Sub

Commitment

Total

SBE Sub %

Construction $ 0 $ 0 0% $ 0 0%

Professional

Services $ 259,495 $ 168,940 65% $ 90,555

35%



2016 Project Awards - DEN (Airport) Tenant Finish – SBE

The following data represent project award totals for small tenant finish projects (all projects less than

$150,000) at DEN (Airport) with SBE goals in 2016. Tenant finish projects at DEN (Airport) which are

greater than $150,000 are assigned M/WBE goals and are included with DEN (Airport) M/WBE goal

information for awards and payments.

DEN (Airport): Small Business Enterprise Concessions Program (SBE)*

Contract Type Award Total Commitment Total SBE %

Construction $ 1,405,013 $ 193,694 14%

*DEN (Airport) Tenant Finish projects are for construction projects only


2016 Project Awards – DBE

The following data represent project award totals for contracts with DBE goals in 2016 for City & County

of Denver and DEN (Airport).

City & County of Denver: Disadvantaged Business Enterprise (DBE)


DBE Prime

Commitment

Total DBE Prime %

DBE Sub

Commitment

Total

DBE Sub %

Construction $ 13,300,695 $ 0 0% $ 2,695,111 20%

Professional

Services $ 8,222,217 $ 620,235 8% $ 1,380,168

17%


DEN (Airport): Disadvantaged Business Enterprise (DBE)


DBE Prime

Commitment

Total DBEP Prime %

DBE Sub

Commitment

Total

DBE Sub

%

Construction $ 12,060,958 $ 0 0% $ 2,160,773 18%

Professional

Services $ 0 $ 0 0% $ 0

0%



2016 Project Awards – Goods & Services: SBE & M/WBE

The following data represent project award totals for goods & services covered contracts in 2016 for

City & County of 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.

City & County of Denver: Goods & Services (SBE, M/WBE)

Contract Type Award Total Commitment Total

Certified

Firms %

Goods (M/WBE) $ 0 $ 0 0%

Services (M/WBE) $ 1,337,508 $ 1,337,508 100%

Goods (SBE) $ 0 $ 0 0%

Services (SBE) $ 0 $ 0 0%

Goods (DSP SBE) $ 0 $ 0 0%

Services (DSP SBE) $ 53,180 $ 53,180 100%

Independent

Partnerships -Goods $ 223,824 $ 0 0%

Independent

Partnerships - Services $ 939,076 $ 0 0%


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

Contract Type Award Total Commitment Total

Certified

Firms %

Goods (M/WBE) $ 1,500,000 $ 0 0%

Services (M/WBE) $ 0 $ 0 0%

Goods (SBE) $ 0 $ 0 0%



Services (DSP SBE) $ 0 $ 0 0%

Independent

Partnerships – Goods $ 0 $ 0 0%

Independent

Partnerships – Services $ 800,000 $ 0 0%



2016 Project Payments – M/WBE: Prime & Subcontractor Payment Breakout

The following data represent project payment breakouts for primes and subcontractors on contracts

with M/WBE goals in 2016 for City & County of Denver & DEN. Payments in 2016 reflect payments for

contracts awarded in 2016 as well as payments from contracts awarded in prior years which are

ongoing.

City & County of Denver: Minority/Women Business Enterprise (M/WBE)

Project Type Total Payments

Amounts

Retained by

MWBE Primes

MWBE

Prime

%

MWBE Subs Paid MWBE Subs

%

Construction $ 77,589,876 $ 8,298,491 11% $ 11,369,525 15%

Tenant Finish –

Construction $ 5,790,360 $ 0 0% $ 620,236 11%

Voluntary

Participation –

Construction $ 34,911,879 $ 0 0% $ 2,374,470 7%

Tenant Finish –

Professional

Services $ 562,931 $ 0 0% $ 106,177 19%

Professional

Services $ 19,377,739 $ 431,427 2% $ 1,332,434 7%

This payment information represents all City & County of Denver projects excluding DEN (Airport)

DEN (Airport) – Minority/Women Business Enterprise (M/WBE)

Project Type Total

Payments

Amounts

Retained by

MWBE Primes

MWBE

Prime % MWBE Subs Paid

MWBE Subs

%

Construction $ 152,376,254 $ 2,570,431 2% $ 35,043,567 23%

Tenant Finish -

Construction $ 12,874,761 $ 2,021,736 16% $ 3,664,778 28%

Voluntary

Participation -

Construction $ 22,701,639 $ 0 0% $ 5,489,124 24%

Professional

Services $ 38,352,285 $ 3,390,242 9% $ 12,256,938 32%

This payment information represents only DEN (Airport) projects


2016 Project Payments – SBE Defined Selection Pool

The following data represent project payments for contracts with SBE-DSP goals in 2016 for City &

County of Denver & DEN. Payments in 2016 reflect payments for contracts awarded in 2016 as well

as payments from contracts awarded in years prior which are ongoing.

City & County of Denver SBE Defined Selection Pool (SBE-DSP)


Amounts

Retained by

SBE-DSP Primes

SBE-DSP

Prime % SBE Subs Paid SBE Subs %

Construction $ 7,528,351 $ 5,073,967 67% $ 457,332 7%

Professional

Services $ 6,075 $ 6,075 100% $ 0 0%


DEN (Airport) 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 $ 61,783 ($49,526)* (80%) $ 18,803 30%

Professional

Services $ 1,243,153 $ 770,978 62% $ 356,478 29%


* The ($49,526) means that the prime had made payments prior to funding from the City & County of Denver


2016 Project Payments – Denver International Airport SBE

The following data represent project payments for DEN SBE projects awarded prior to the

establishment of the SBE-Defined Selection Pool program in 2008. The payments below represent

2016 payments on projects still ongoing under the older SBE program.

DEN (Airport) - Small Business Enterprise (SBE)


Amounts

Retained by SBE

Primes

SBE Prime

% SBE Subs Paid SBE Subs %

Tenant Finish $ 1,600,957 $ 0 0% $ 357,792 22%

Professional Services $ 251,132 $ 0 0% $ 138 0%


2016 Project Payments – DBE

The following data represent project payment breakouts for primes and subcontractors on contracts

with DBE goals in 2016 for City & County of Denver & DEN. Payments in 2016 reflect payments for

contracts awarded in 2016 as well as payments from contracts awarded in years prior which are

ongoing.

City & County of Denver - Disadvantaged Business Enterprise (DBE)


Amounts

Retained by

DBE Primes

DBE

Prime % DBE Subs Paid

DBE Subs

%

Construction $ 11,650,072 $ 0 0% $ 1,045,778 9%

Professional

Services $ 4,543,003 $ 954,292 21% $ 791,488 17%


DEN (Airport) - Disadvantaged Business Enterprise (DBE)


Amounts

Retained by

DBE Primes

DBE

Prime % DBE Subs Paid

DBE Subs

%

Construction $ 21,172,387 $ 0 0% $ 5,133,612 24%

Professional

Services $ 140,958 $ 0 0% $ 0 0%



2016 Project Payments – Goods & Services

The following data represent project payments for contracts for goods & services in 2016 for City &

County of Denver & DEN. Payments in 2016 reflect payments for goods & service projects awarded in

2016 as well as payments from projects awarded in years prior which are ongoing.

City & County of Denver - Goods & Services (SBE, M/WBE)

Contract Type Payments Total

Payments to Certified

Firms Total

Certified

Firms %

Goods (M/WBE) $ 0 $ 0 0%

Services (M/WBE) $ 7,495,726 $ 4,368,423 58%

Goods (SBE) $ 0 $ 0 0%

Services (SBE) $ 156,007 $ 153,907 99%


Services (DSP SBE) $ 14,500 $ 14,500 100%

Independent

Partnerships - Goods $ 897,150 $ 0 0%

Independent



DEN (Airport) - Goods & Services (SBE, M/WBE)

Contract Type

Payments

Total

Payments to Certified

Firms Total

Certified

Firms %

Goods (M/WBE) $ 714,323 $ 0 0%

Services (M/WBE) $ 0 $ 0 0%

Goods (SBE) $ 139,639 $ 139,639 100%



Services (DSP SBE) $ 0 $ 0 0%

Independent

Partnerships – Goods $ 87,245 $ 0 0%

Independent




Contact DSBO

Newsletter: The public is encouraged to sign up for DSBO’s monthly electronic newsletter, filled with

current news, events, highlights, community organization links, and upcoming bidding opportunities.

Please put “Newsletter” in your subject line to subscribe. Questions, concerns, and comments may

also be sent to:

[email protected]

Websites:

www.denvergov.org/DSBO

www.flydenver.com

Physical Addresses:

Downtown Office: Airport Office:

201 W. Colfax Ave, Dept. 907 Denver International Airport

Denver, CO 80202 AOB, Suite 7810

p: 720.913.1999 8500 Peña Boulevard

f: 720.913.1809 Denver, CO 80249

p: 303-342-2180

f: 303-342-2190

mailto:[email protected]


http://www.flydenver.com/


Appendix A

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.

Definition: Economically disadvantaged – The personal net worth of an owner(s) must not exceed

$1.32 million, excluding ownership in his/her 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 manufacturers’ 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 fewer 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 its 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 not exceed established size

standards (listed at http://www.sba.gov/size).

Definition: Voluntary Participation - Voluntary Participation means the project is not on Denver

property or paid for by city or federal funds, but the project voluntarily adheres 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.

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 & County 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- and 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 & County of Denver to ensure

that ACDBEs have an equal opportunity to receive and participate in concession opportunities.

http://www.sba.gov/size


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 Services – 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, SBE and MWBE ordinances apply.

2016 annual report - denver · 2016 annual report – dsbo 8 aspirational goals per ordinance #85...

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