Getting You There… US DOT Programs and Services Maryland Department of Transportation November 15, 2011 Tiffany King, Project Director Mid Atlantic SBTRC

Getting You There…

US DOTPrograms and Services

Maryland Department of TransportationNovember 15, 2011

Tiffany King, Project DirectorMid Atlantic SBTRC/ GPMBSAPaul Erdosy, Project Coordinator Mid Atlantic SBTRC

Key Topics

• Overview of the US DOT & OSDBU• The SBTRCs

– What Role Do the Small Business Transportation Resource Centers Play?

• Who Do the SBTRCs Serve?• SBTRC Programs & Services

– Bonding Education Program– Women & Girls Internship Program– Short Term Lending Program– Additional Technical Assistance Services

(Financial Counseling, Procurement, Certification, Business Development, etc.)

US DOT AND OSDBUOVERVIEW

US DOT Overview

Mission• Serve the United States by ensuring a fast, safe, efficient,

accessible and convenient transportation system that meets our vital national interests and enhances the quality of life of the American people, today and into the future.

Statutory Authority• The Department of Transportation was established by an

act of Congress on October 15, 1966. The Department’s first official day of operation was April 1, 1967.

DOT Organizational Structure

• 11 Contracting Organizations• Approximately 60,0000 employees nationwide• Office of the Secretary of Transportation (OST)

Secretary Ray LaHood (16th Secretary)• 10 Operating Administrations (OAs)• The OAs are focused on a particular

transportation mode (mass transit) or activity (safety)

DOT Operating Administrations

1. Federal Aviation Administration (FAA)

2. Federal Highway Administration (FHWA)

3. Federal Motor Carrier Safety Administration (FMCSA)

4. Federal Railroad Administration (FRA)

5. Federal Transit Administration (FTA)

6. Maritime Administration (MARAD)

7. National Highway Traffic Safety

Administration (NHTSA) 8. Pipeline and Hazardous

Materials Safety Administration (PHMSA)

9. Research and Innovative Technology Administration (RITA)

10. Saint Lawrence Seaway Development Corporation (SLSDC)

OSDBU MISSION

• To ensure that small business policies and goals of the Secretary of Transportation are implemented in a fair, efficient, and effective manner to serve small businesses.

• To implement DOT's activities on behalf of small businesses, in accordance with Sections 8, 15, and 31 of the SBA, as amended.

• To provide opportunities, technical assistance, and financial services to the small business community.

OSDBU STRUCTURE

4 Divisions to Ensure Contract Fairness

1. Procurement Assistance

2. Financial Assistance

3. National Information Clearing House

4. Regional Partnership Division

• Oversees the SBTRCs - Small Business Transportation Resource Centers

• SBTRCs prepare businesses to compete for federal, state and local transportation contracts.

• We also work closely with State DOTs and local transportation agencies to assist businesses.

Regional Partnership Division

Mid-Atlantic Small Business Transportation

Resource Center

-Headquartered in Philadelphia- Operated by the Greater Philadelphia Minority Business Strategic Alliance (GPMBSA)-Serving small and disadvantaged businesses in Pennsylvania, Delaware, Maryland, Washington DC, and Ohio-Provides assistance with OSDBU programs, i.e. STLP and DBE BEP-Provides counseling, technical assistance, training, and information dissemination to businesses that have or have the potential to do business with public and private entities in the transportation industry

Who Do SBTRCs Serve?

• Our Primary Customers:

• Small Businesses (SB) • Small Disadvantaged Businesses (SDB) • 8(a) firms • Woman-Owned Businesses (WOB) • Historically Underutilized Business Zone (HUB Zone) Businesses • Veteran-Owned Small Businesses (VOSB) • Service-Disabled Veteran-Owned Small Businesses (SDVOSB) • Disadvantaged Business Enterprises (DBE)

We also assist businesses seeking these certifications

DBE Program

Unique to transportation sector and under the jurisdiction of the US Department of Transportation

Federal law mandates that DBE goals are set when federal funds are utilized for transportation projects

Certification is done by transportation and/or certification agencies in each state

Doing Business with DOTTwo Distinct Contracting Programs

Direct Contracting

Federal Financial Assistance to State and Local Transportation Agencies

DBE Program

State and Local Transportation Agencies

US DOT Procurement Forecast www.osdbu.dot.gov/procurement/

US DOT Procurement Forecast by category

BONDING EDUCATION PROGRAM (BEP) PROGRAM OVERVIEW

US DOT has developed this program to:

• Help disadvantaged businesses become bondable

• Increase the number of small and disadvantaged business who can compete for contracts

• Help small businesses GROW

The BEP seeks to improve bondability through assisting contractors in better addressing the 3 Cs:

• Capacity– Ability to Perform

• Character– References and Reputation

• Capital– Financial Strength

Bonding Success!• Hayden Hall,

President of Trinmar Contracting Services, Inc., a DBE & 8(a) firm

• Obtained a bond for a $3.2 million project, (previous largest bond was $1 million)

• Tom Le, President of SCW an HVAC, plumbing and electrical Company in Maryland

• SCW, Inc. increased its bonding capacity from $350,000 to $1 million

Bonding Resources

• National Association of Surety Bond Producers (NASBP)– www.nasbp.org

• Surety Information Office (SIO)-– www.sio.org

• Surety and Fidelity Association of America (SFAA)-– www.surety.org

US DOT Entrepreneurial Training Women and Girls Internship Program

Entrepreneurial Training Women and Girls Internship Program

History • Initiative from White House Council on

Women and Girls • Pilot program implemented by U. S.

DOT/OSDBU in Fall 2009

Entrepreneurial Training Women and Girls Internship Program

Goals of the Program:• To increase the participation of women in the transportation

industry • The program was designed to educate young women on

the exciting opportunities available in the transportation infrastructure industry and inspire them to enter the science, engineering, and technology fields.

Entrepreneurial Training Women and Girls Internship Program

Impact of the Program

– 250 Women have participated in the program – 115 of transportation-related businesses and

organizations have participated – 6 Program participants have received full-time

employment opportunities

PROGRAM OVERVIEW

Short Term Lending Program (STLP)

Getting You There Means “What?”

How do we get there with USDOT Small Business Programs and Services?

• Identifying Contracting Opportunities• Providing Access to Capital Resources• Taking Advantage of Educational Training• Leveraging the SBTRC National Network

SHORT TERM LENDING PROGRAM (STLP) DESCRIPTION

PROVIDES A LOAN GUARANTEE ON A REVOLVING LINE OF CREDIT

PRIMARY COLLATERAL IS RECEIVABLES FROM TRANSPORTATION CONTRACT(S)

PARTICIPANTS CAN APPLY FOR RENEWAL FOR UP TO 5 YEARS

Cont. STLP Program Description

• MAXIMUM LOAN AMOUNT $750,000

• SUBCONTRACT AT ANY TIER IN TRANSPORTATION RELATED FIELD

• APPLICATION FEE OF $150.00 PAYABLE TO THE BANK

• INTEREST RATE IS CURRENTLY 6-6.5%

STLP ELIGIBILITY REQUIREMENTS

(a) CERTIFIED AS A DBE UNDER THE DOT CERTIFICATION GUIDELINES (49 CFR, PART 23 & 26) OR CERTIFIED BY THE U.S. SMALL BUSINESS ADMINISTRATION

SECTION 8(A) PROGRAM, HUBZONE, DISABLED VETERAN OR SERVICE DISABLED VETERAN OWNED BUSINESS

(b) HAVE A CURRENT TRANSPORTATION-RELATED CONTRACT

(c) MUST BE CURRENT ON FEDERAL TAXES

STLP ELIGIBLE ACTIVITIES

Maintenance, rehabilitation, restructuring, improvements, or revitalization of any of the nation’s transportation modes – public, commercial, Federal, State, or local agency

Funds may NOT be used for: contract mobilization; equipment purchases or other long term uses; refinance of existing debts; payment of non-current taxes; distributions or other payments to stock holders

The STLP is administered by the DOT OSDBU through cooperative agreements between DOT and several STLP Participating Lenders (PLs)

Loan documentation and financing transactions are performed by the Participating Lender (PL)

Loan application processing turnaround is 30-60 days

PROGRAM ADMINISTRATION

Funds are borrowed against each invoice of the contract (s)

Repayment occurs as the project owner or prime contractor pays the invoice.

Payment is made jointly to the borrower and to the PL Bank and is sent to the bank, which repays the amount borrowed against the invoice and transmits the balance to the borrower

FUNDS ADMINISTRATION

HOW TO APPLY: KEY STEPS

ESTABLISHELIGIBILITY

COMPLETE APPLICATION & PREPARE PROPER

DOCUMENTATION

SUBMITCOMPLETED

APPLICATION & FEE TO PARTICIPATING LENDER

Best Practices for Success

• Character• Communication• Develop and maintain your banking relationship• Check your credit score

(STLP) Short Term Lending Program Participating Lenders

Industrial BankSharon B. Zimmerman, Vice President 8700 Georgia Avenue, Suite 305Silver Spring, MD 20910Telephone: 202-722-2000 ext. 3122E-mail: [email protected]: www.industrial-bank.com

Cardinal BankKathy SpeakmanVP, Commercial Lending1776 K Street, NWWashington, DC 20006Telephone: (202) 331-3957Email: [email protected]: www.cardinalbank.com

Virginia Commerce BankK. Russell Marsh, Vice PresidentGovernment Contract Lending4221 Walney Road, Suite 3000Chantilly, VA 20151Telephone: (703) 961-2562Fax: (703) 378-2942Email: [email protected]: www.vcbonline.com

OSBDU Website Resources

US DOT OSDBU Websitewww.osdbu.dot.gov

US DOT Small Business Procurement Forecasthttp://osdbuweb.dot.gov/Procurement/index.cfm

Bonding http://osdbu.dot.gov/bap/bep_main.cfm

Financial Assistancehttp://osdbuweb.dot.gov/financial/index.cfm

Women & Girls Internship Programhttp://osdbu.dot.gov/WG/

Short Term Loan Programhttp://osdbu.dot.gov/financial/stlp.cfm

For more information:

Tiffany KingGPMBSA / Mid Atlantic SBTRCEmail: [email protected]

Paul ErdosyMid Atlantic SBTRCEmail: [email protected]

Call: 215-399-0062