BOSTON - Wednesday, May 25, 2011 - Secretary of Administration and Finance Jay Gonzalez today announced several reforms which will standardize and streamline the Commonwealth's procurement process and help contain health care costs for small businesses.

"The Patrick-Murray Administration is implementing reforms to make it easier for small businesses to compete and succeed in Massachusetts," said Secretary Gonzalez. "Governor Patrick is focused on creating opportunities for small businesses, creating jobs for our residents, and containing health care costs so businesses can survive and thrive."

Removing Barriers to Procurement
Effective July 1st the Operational Services Division (OSD) will stop collecting the annual vendor registration fee of $275 charged to businesses participating in Comm-PASS, the Commonwealth's procurement bidding system, which will result in more competition and lower costs for doing business.

In addition to lifting the annual vendor registration fee, the Operational Services Division is increasing the competitive bidding range for Massachusetts registered small businesses from $5,000 to $150,000 for department specific solicitations. Previously, the high end of the threshold was $50,000. This change will help small business compete for larger bids and spur additional hiring among smaller companies as they take on additional business.

The Operational Services Division has also streamlined access to a variety of minority, women, small and disadvantaged businesses by centralizing the management for a variety of diversity programs and initiatives within its Supplier Diversity Office.

Helping Small Businesses Contain Health Care Costs

In July, the Health Connector will eliminate the fee it currently charges small businesses to shop through Commonwealth Choice. This fee was already significantly lower than those charged when small businesses shopped through other intermediaries, and will now be waived to further promote the use of Commonwealth Choice.

The Patrick-Murray Administration also remains focused on reducing premiums for small businesses across the Commonwealth. The Administration's FY12 budget includes $10 million (including $2.5 million contribution from the Health Connector) for the Health Connector to implement a provision of Chapter 288 to offer premium discounts for certain small businesses which purchase coverage through Commonwealth Choice and set up wellness programs for their employees. This will reduce premiums for qualifying small businesses by up to 5 percent.

In addition, The Health Connector will update its Commonwealth Choice program to allow small businesses and individuals to search if a desired hospital or doctor is covered through the health plans they are considering.

The Patrick-Murray Administration's ongoing efforts to lower health care costs for small businesses and families continued this month as the Division of Insurance instituted the creation of limited network plans, which will cost 12 percent less than "normal" plans, and group purchasing cooperatives, which will allow businesses and individuals to combine market buying power. The Division of Insurance will hold informational sessions around the state for organizations interested in applying for cooperative status, starting June 13, with meetings in Lowell, Worcester, Bridgewater and Amherst.

The Administration has also supported small business growth through a number of economic development programs including: the Massachusetts Growth Capital Corporation, created and capitalized with $35 million through the Economic Development Reorganization Act to serve as a one stop resource for small businesses seeking capital and advice; the Massachusetts Technology Development Corporation, which provides funding for start-up and expansion of early-stage technology companies in the Commonwealth; and the Business Development Corporation's state-funded Capital Access Program, which has provided loans to community-based, small businesses in every one of the 351 cities and towns in Massachusetts.

Export Opportunities in Africa and Minority-owned Businesses
by Ronald Marlow
Assistant Secretary for the Office of Access and Opportunity

In 2010, South Africa’s ambassador to the United States, Ebrahim Rasool, issued a challenge to minority-owned business enterprises to bury pessimism about Africa and take advantage of the continent’s tremendous opportunities. In most respects, the opportunities that Ambassador Rasool spoke of then remain alive and well today, and economic forecasts predict that they will continue to be alive and well for the foreseeable future.

Rapid decreases in the costs of international communication and transport, coupled with the growth of many international markets through the enactment of free trade agreements and other laws meant to facilitate access to new markets – for example the African Growth and Opportunity Act (AGOA) – are allowing more and more American companies to begin to realize a myriad of business opportunities that lie outside the United States’ borders. However, in spite of significant increases in minority populations and minority entrepreneurship in America, few minority-owned businesses are taking advantage of existing opportunities in the global marketplace.

Minority-owned businesses, if they can gain access to global business opportunities and information on how to pursue them, may be able to create a presence that has been sorely lacking. Furthermore, minority-owned business may actually have an advantage in certain global markets, especially developing or transition economies, if they can utilize and capitalize upon their unique competitive strengths, including often over looked cultural and family ties. In fact, this opportunity is not as elusive as one might think. According to a 2008 report issued by the Minority Business Development Agency (MBDA), minority-owned firms (2.5%) were twice as likely to generate 10% or more of its sales via export activity as non-minority businesses (1.2%).

Policymakers and programmatic staff of Massachusetts state government recognize the role that we can play in assisting minority-owned businesses learn about global business opportunities and how to pursue them. It is in this spirit that the Office of Access and Opportunity, the Supplier Diversity Office, the Office of Small Business and Entrepreneurship, the Massachusetts Office of International Trade and Investment and the Massachusetts Export Center have partnered to sponsor a seminar entitled “Export Opportunities in Africa”.

The seminar, which will take place Thursday, June 23, 2011, is targeted to minority owned businesses whose owners are interested in learning about business opportunities in Africa. The seminar will provide basic information upon which businesses can ascertain if the opportunities present throughout the African continent are for them. To access the agenda for the day and/or to register for the event, go to https://africaexportopportunities.eventbrite.com. We hope to see you there.

Ron Marlow serves as the Assistant Secretary for Access and Opportunity for the Commonwealth of Massachusetts. Contact the Host

DBE/ACDBE/DBELO Training News Highlights:
The Massachusetts UCP program is ready for the significant changes in the world of DBE program planning and implementation with the recent announcement from DOT Secretary Ray LaHood concerning the new "Final Rule" for Part 26, which became effective 2-28-2011. Some highlights of this new rule are:
     • Updating of the Personal Net Worth level for DBEs to $1.32 million
     • Making it easier for DBEs to become certified in different states (Reciprocity)
     • Requiring more program oversight-mandated monitoring for compliance and meeting goals for each contract
     • Requiring documentation of "justification" when goals are not met
     • Requiring the development of a small business and DBE improvement plan

Undoubtedly, this final rule has changed the way we, as DBE/DBELO/UCP professionals, conduct our business.

The Supplier Diversity Office has arranged DBELO/ACDBE and DBE training in order to keep the Mass UCP informed on recent program changes as they emerge, the core training topics included:
     • History and Trends of the DBE program
     • DBELO Program Responsibilities and Administration
     • DBE and ACDBE Goal Setting Methodology (including the new 3-year goal submission requirement beginning in FY 2011)
     • UCP Certification Process and Requirements for DBE and ACDBE firms
     • Airport Concessions and Joint-Venture Guidance
     • Business and Financial Structures
     • General Compliance and Monitoring

The Trainers:
Ken Weeden & Associates, Inc. (KWA) is nationally recognized as experts in all phases of program development and service delivery in the areas of Disadvantaged Business Enterprise (DBE) program management and implementation.

Founded in 1989, KWA developed the National DBE Training Institute out of concern for the continued professionalism of DBE/HUBMWBE personnel, especially for those newly appointed to such positions.

Each of the trainers is an experienced professional in the area of DBE/ MWBE/ HUB program implementation. They are not a team of lecturers; they are veterans in every aspect of DBE/MWBE/ HUB program administration from goal development to business certification and site visits.

Each session was a comprehensive, content-rich 2 day course designed to provide in-depth training to DBE/ACDBE and DBELO professionals from "Beginners" through "Intermediate" experience levels. In this seminar the Mass UCP came away with a working understanding of the following topics:

     • History and Trends of the DBE Program - Why are we "here"?
     • Knowing Your Role: Organizing a DBE/ACDBE Office
     • DBELO - DBE Program Responsibilities
     • DBE and ACDBE Goal Setting Methodologies (including the new 3-year goal requirement effective March 2010)
     • DBE Regulation Review (49 CFR part 26) and USDOT Guidance
     • Airport Concession and Joint Venture Guidance
     • Conducting Site Visits and Fraud Detection
     • UCP Certification Process and Requirements for DBE/ACDBE Firms
     • General Compliance and Monitoring
     • Calculating Personal Net Worth
     • Business 101: Legal Structure and Financial Matters
     • Good Faith Effort Reviews - How to Conduct Them
     • Plus…Real Case Studies and Time for Peer-to-Peer Sharing

       Spectrum Broadcasting Corporation

In May the DBE SS team positioned itself for a very busy fourth quarter of events, meetings, and conclusions. In the Business Development Tract portion of the program, class participants learned how to position their businesses within a competitive landscape and different sales strategies, systems and processes. Class participants further explored human resource issues, policies, and how to build a resilient organization by managing talent. The month closed with class members delving into human resources with respect to community responsibility and leadership.

If you are a RWA DBE and are interested in any portion of the DBE SS Program, please contact Brian Ross at 617-502-8843 or Mary Richmond at 617-502-8862.

DBE SS Advisory Board

The Advisory Board finalized its recommended change order and bid Checklist. The DBE SS team forwarded the checklist to approximately 120 RWA DDBE firms for their use and consideration when preparing quotes. The Board recommended that the Supplier Diversity Office include the checklist in all newly certified firms' information packets. This month the Advisory Board discussed the definition of under-utilized as it relates to MassDOT contracting opportunities and credit programs for primes using DBE firms. The Board will finalize its definition of under-utilized so it can be used to shape a credit program for primes. The final outcome of which will be the DBE SS Advisory Board recommending a prime credit program that will benefit all participants involved in Federally Aided Highway Construction Projects. The Board continues to add issues to it's parking lot so as not to lose track of important items on which they may be able to offer resources and assistance to the DBE Program overall. If you have any challenges, thoughts, or comments please contact Brian Ross at 617-502-8843.

Next month the Board is excited to welcome its newest member Bernard Brown, Manager of Compliance and Diversity at MassHousing.

Opportunity Database

The Opportunity Database tallies survey responses from DBEs and Prime Contractors. Scope of work items related to highway construction are listed for Primes and DBEs to enable SDO in matching Prime Contractors' needs with available DBEs and the DBEs' specific items of work. The goal of the database is to increase DBE participation on federally-funded highway construction. The database is posted for use by Prime Contractors and DBEs alike to promote new relationships and business activity. The database now lists nearly 300 prime contractors and close to 100 DBE firms! If you are interested in participating in the survey, complete the forms below and fax them to (617) 502-8841. Click on the icon for the survey tool

Up-Coming Events

Access to Accounting:                                                                                                                     June 13, 2011 09:30 a.m.
Understand your financial ratios and how they affect financing opportunities. Learn what to look for in a CPA and what services you might need. Learn how important balance sheets and income statements are. The DBE SS Program will sponsor "Get Connected: Access to Accounting" on Monday, June 13th, 2011 at 10:00 AM. Registration and networking will begin at 9:30 AM. Before and after the formal presentation there will be opportunities to meet 1-on-1 with key resource partners including prime contractors, bonding agents & brokers, MassDOT, and many more. Click Here to Register

Access to Human Resources:                                                                                                        June 27, 2011 09:30 a.m.
Know when enough is enough and other valuable information about employee handbooks. Learn and understand the different types of legally enacted leaves and the difference between employees and independent contractors so you can avoid tax and legal pitfalls. Learn everything you need to know about human resources when the DBE SS Program hosts "Get Connected: Access to Human Resources" on Monday, June 27th, 2011 at 10:00 AM. Registration and networking will begin at 9:30 AM. There will be opportunities to network 1-on-1 with other DBE firms and key resource partners including prime contractors, bonding agents & brokers, MassDOT, and many more before and after the formal presentations. Click Here to Register

All Get Connected events: Click Here to Register

Meet and Greet

Meet and Greet events that the DBE SS team will be hosting to foster new business relationships between prime contractors and DBE firms. Five or more prime contracting companies will give short presentations about their firms, address questions and concerns from DBEs, and meet one-on-one with over 30 DBE firms. DBEs will have the opportunity to present their work history, elevator pitch, and general information about their capacity, mission statement, etc. These are unique opportunities for networking so there are a limited number of spots available.                 

To register please contact: Margaux Whitney, Administrative Assistance
                                                   Margaux.whitney@state.ma.us
                                                   June 24th 10:00 AM - 2:00 PM, Registration 9:30 AM

Feedback
Feedback on our events continues to be positive. This is an excerpt from an exit survey taken at our March 14th, 2011 "Get Connected: Access to Sales and Marketing" event - "Thank you for the excellent meeting with Beth Goldstein . . . She was informative, helpful, and professional in every aspect . . . Still trying to navigate the many tendrils of the WBE/DBE programs . . . Your monthly newsletters have been helpful by keeping me pretty well informed."

U.S. Transportation Secretary Ray LaHood Expands Program to Help Small Businesses Participate in Transportation Programs

This rule improves the administration of the Disadvantaged Business Enterprise (DBE) program by increasing accountability for recipients with respect to meeting overall goals, modifying and updating certification requirements, adjusting the personal net worth (PNW) threshold for inflation, providing for expedited interstate certification, adding provisions to foster small business participation, improving post-award oversight, and addressing other issues. For the full Federal Register notice Download .