The American Recovery and Reinvestment Act

PARTNERSHIPS FOR LINKAGES TOPROCUREMENT OPPORTUNITY

December 4, 2009

Presented by: Patricia Hanes, Regional Director

U.S. Department of Commerce/ Minority Business Development Agency

Atlanta, GA

AgendaAgenda

The Minority Business Development Agency (MBDA)

Why is MBDA Important?

Today…why are we here?

Facts About “ARRA”(Stimulus) & MBEs

Next Steps

Q & A

“What I need from all of you is unprecedentedresponsibility and accountability…The

American people are watching”.President Barack Obama

February 20, 2009

QuoteQuote

The AgencyThe AgencyThe Minority Business Development Agency (MBDA) is tasked with promoting the growth and competitiveness of minority-owned businesses nationwide.

By Executive Order 11625, MBDA conducts the following:

Coordinate the plans, programs and operations of Federal agencies to strengthen minority business enterprises (MBEs).

Promote the mobilization of activities and resources of State and local governments, businesses and trade associations, universities, foundations, professional organizations towards the growth of MBEs.

Establish a center for the development, collection, summarization and dissemination of information for and about minority businesses.

Provide financial assistance to public and private organizations so they may render business consulting services to MBEs.

The AgencyThe Agency

Our VisionOur VisionMBDA’s vision is economic prosperity for all American

business enterprises.

Our MissionOur MissionTo foster the growth and global competitiveness of U.S.

businesses that are minority-owned.

Why is MBDA Important?Why is MBDA Important?

The U.S. needs strong minority-owned firms to achieve maximum economic growth.

Minority businesses are twice as likely to generate sales through exports compared to non-minority firms.

Minority-owned firms create job opportunities for all Americans.

In 2050, the minority community will represent 54% of total U.S. population.

MBDA is a catalyst to build minority-owned firms of size, scale and capacity.

MBDA StatisticsMBDA Statistics

Source: U.S. Census Bureau, 2002 Survey of Business Owners, August 2006, and 2007 Special Tabulation on total minority firms for 2002.

Summary of Business Statistics by Group - 2002Group Number of

FirmsTotal Gross

ReceiptsAverage Gross

ReceiptsPaid

EmployeesAfrican American 1,198,000 $88.8 billion $74,000 757,000

American Indian & Alaska Native 201,000 $26.9 billion $133,000 191,000

Asian 1,104,000 $326.4 billion $296,000 2,213,000

Hispanic 1,574,000 $222.0 billion $141,000 1,538,000

Native Hawaiian and Other Pacific Islander 29,000 $4.3 billion $148,000 29,000

All Minority 3,958,000 $661.1billion $167,000 4,675,000

All U.S. Firms (excludes publicly-held and other non-classifiable firms)

22,480,000 $8.8 trillion $391,000 55,368,000

Our Clients

Native Americans

Hasidic Jewish Americans

Native Hawaiians

Asian Americans

Alaska Natives

Pacific Islanders

Hispanic Americans

African Americans

Our Clients The core MBDA client is a firm that generates $500,000 in annual revenue. These firms have the following characteristics:

− Represent only 5% of all minority firms − Generate 75% of all minority-owned firms gross receipts− Provide 73% of all paid employees

Source: U.S. Census Bureau, 2007 Special Tabulation for Minority Firms in 2002, “2002 Survey of Business Owners.”

5%

75% 73%

95%

25% 27%

0%

20%

40%

60%

80%

100%

120%

Number of Firms Gross Receipts Paid employees

Minorityf irms($500,000and above)

Minorityf irms(Under$500,000)

MBDA provides nationwide reach through five regional offices.

MBDA StructureMBDA Structure

New Orleans REC

Services Services

Business Consulting

Procurement Matching

Private Equity and Venture Capital Sourcing

Bonding Assistance and Loan Packaging

Strategic Partnering (e.g, Business-to Business, Teaming, Joint Ventures, etc.)

Market Promotion of Clients to Prime Contractors and Other Buyers

Based upon result of systems-integrated review, MBDA provides the following services:

The American Recovery and Reinvestment Act (ARRA) provides a historic opportunity to stimulate economy, create jobs and drives economic activity. It also boosts quality of life and economic growth.

State and local governments will spend twice as much as federal agencies on stimulus-funded contracts.

MBDA is authorized to prescribe additional arrangements for developing and coordinating a national program for minority business enterprises.

The American Recovery and Reinvestment Act of 2009 is viewed as a nationwide effort to create jobs, jumpstart growth and transform the economy for the 21st century.

ARRA FactsARRA Facts

Southeast Region Minority Business Enterprises (MBEs)

MBDA ATLANTA NATIONAL ENTERPRISE CENTER

Funded CentersLocal and state chief procurement officers,

government contracting officers, and all other procurement decision makers in municipalities including schools.

Who?Who?

Involvement at the front end of the stimulus procurements to identify and assist in the procurement strategy prior to the release of the solicitation.

Pool Knowledge - work collaboratively to create the most effective solicitations for MBE inclusion.

Compile items in a spreadsheet and develop a procurement strategy for commodity or services needed.

Match identified vetted “shovel ready” minority businesses to ARRA opportunities.

How

MBDA LOCATIONS IN FLORIDA

• Florida MBOCOrlando, FL407-245-6495www.floridamboc.org

• Miami/Ft. Lauderdale MBECMiami, FL768-316-0888

THANK YOU!