Funding, Budgets, and Market Pricing for New

OpportunitiesThe process to take on a new

opportunity and what to do once you have that new opportunity

Your Presenters

Ken Shipman – Senior Program Manager NISH National Office

Ace Burt – President & CEOEnterprise Professional Services, Inc.

Roy Hung – Vice President, Operations Goodwill Industries of Hawaii, Inc.

Objectives

• Describe some of the environmental factors that effect market pricing.

• Use web sites to help identify funding sources such as grants.

• Define internal and external sources of funding for a project or contract.

• Discuss a process to make a decision to enter a new line of business.

• Integrate an operation and financial plan to implement the project. What happens when all the rules change?

After this session you will be able to:

Environmental Scan

Federal Government Grants and Contracts (All figures are in billions of dollars)

2005 2006 2007 2008 2009 2010

Grants 441.6 489.9 429.7 418.2 663.8 550.3

Contracts 391.5 430.1 475.2 541.5 540.9 536.5

• What are the future trends for Federal Grants and contracts?

• How will state and local governments be impacted.

Environmental Scan

Environmental Scan

Environmental Scan

Environmental Scan

Economic Trends Which Will Affect Market Pricing and Competition

• Increasing Total Federal Government Deficit.• Devaluation of the Dollar. Inflation Will Grow.• Large Cuts to Many Portions of the Federal Budget. Many

Sacred “Cows” Will Face Cuts.• Federal Government Departments and Agencies Will

Experience Cuts in Funding and Budgets.• Contractors Will Have To Decrease Contract Prices and

Contract Costs to Meet Budgets and Stay Competitive. • Market Based on Price not Cost. Market Research Prevails.

Know thyself.

http://www.grants.gov/Provides "one-stop shopping" that will allow you to review synopses of all available competing funding opportunities for grants and cooperative agreements (and other types of financial assistance if the funding agency chooses) under the hundreds of discretionary grant programs. You can search by agency, category of activity to be funded, Catalog of Federal Domestic Assistance number, and other parameters. You also can sign up for email notification of newly posted opportunities based on parameters it provides. Grants.gov FIND will include a link to the full funding opportunity announcement. Depending on the agency, these still may be published in the Federal Register or be posted on a website.

http://www.usa.gov/Business/NonprofitThis website has information in three major categories; – Grants, Loans, and Other Assistance– Management and Operations– Tax information

Sources of Funding External - Grants

http://www.foundation-grants.com/This is a subscription service website for $39.99 that gives tips on applying for grants and searching for grants. You can search by keyword, Zip Code, State, Subject or Donor. This site also provides phone based technical support with the subscription.

http://www.grantgopher.com/our_services.aspxA subscription service that costs $50.00 per year and allows you to set up grant search criteria including deadlinedates. You receive email updates on grants meeting yourRequirements.

http://www.fundsnetservices.com/A website with an abundance of information about grants and information and links to other websites that provide information about grants.

Sources of Funding External – NISH Loans

Resource Maximum $Pay Back Terms

Up to 5 years $100,000 (cost of project equipment)

Equipment Loan

6 months$200,000Working Capital Short-Term

$50,000** up to $100,000 or 15 percent of projects annual PL value

Maximum $Up to 3 years Unsecured LoanPay Back TermsResource

Up to 5 years $100,000 (cost of project equipment)

Equipment Loan

6 months$200,000Working Capital Short-Term

$50,000** up to $100,000 or 15 percent of projects annual PL value

Maximum $Up to 3 years Unsecured LoanPay Back TermsResource

Strategic Growth Loan $500,000 Up to 5 years

Capital Equipment Lease $500,000 Up to 5 years

Capacity Building Lease $500,000 Up to 5 years (PL add within 2 years)

Sources of Funding External – NISH GrantsResource Maximum $ Pay Back Terms

Management Assistance Grant $22,000 N/A

Professional Development Grant

$11,500 N/A

AbilityOne CRP Worker Support Grant (Disability Documentation

and Security Clearances)

$500 per potential worker

N/A

Quality Work Environment (QWE) Resource Fund

$10,000 per CRP per year

N/A

Applications: www.nish.org Click on tab: For NonprofitsClick on link: Financial Assistance

Lorretta Stevenslstevens@nish.org

571-226-4501

Sources of Funding Internal

• Income from Current Operations or Contracts• Investment Income• Endowments• Fund Raisers/Donors• Lines of Credit from Bank• Bank Loans• Sale of Assets• Current Cash Flow

Some of these sources of funding will be covered by our two presenters as a part of their presentations.

Total Facilities Maintenance

Does it make sense for you?

Ace Burt, President and CEO

Enterprise Professional Services, Inc.

How Do We Get There?

Step 1: Board Support

• Will your Board support “new, higher functioning” lines of business

• Will your Board support cash intensive lines of business?• What affect will it have on the remainder of the

organizations mission?• What controls will be in place to ensure the current mission

elements do not suffer?• What should the be CEO’s level of authority to commit the

organization?

Step 2: Business Plan

• Over what period of time do you want to enter this business?

• At what level can/do you want to start?• Do your cash flow projections support the costs?• Are your prepared to make the “up front” investments to

enter this line of business?• Do the jobs created warrant the risk and cost to the

organization?• Will your current infrastructure support an additional line of

business?• Have you done a gap analysis on infrastructure to identify

any areas that will likely require increased resources?

Step 3: Finance

• What is your current financial status and how much can you afford to invest?

• Is it enough?• What are your current banking credit line terms? • Do you have an equipment credit line at the Bank?• What is the likelihood of getting an increase in your

credit lines if required? • By who or how will the new bank notes be signed?• Will the bank support this expansion?• Do you have a plan to present to the bank?

Personnel

• Do you have the management in place with the proper skill sets to grow into this line of business?

• Do you have the ability to measure output and quality in this new line of business?

• Do you have a staffing plan in place to identify the individuals you will need to enter this line of business?

• Do you have a recruiting plan to find these individuals?

• Are your prepared to pay these individuals what it will cost to hire them?

Considerations:

• Develop subcontractor relations for specialty items• Rule of thumb: If we cannot cost effectively do it

ourselves consider subcontracting.• Give small business preference• Examples:

– Boiler certifications– Elevator maintenance and certifications– Fire alarm maintenance and inspections– Chiller annual stop inspections– Generator stop inspections

Decision Point

• Can we do this as an organization?• How many jobs can we create and at what

cost?• Why we should do this• Why we should not do this?• Does it make sense to do this?• Yes• No

First Sergeant Barracks Program

Realities of Funding, Budgets, and Market Pricing in

Sustaining a New Opportunity

Roy Hung, Vice President of Operations

Goodwill Industries of Hawaii, Inc.

We Are There. Now What?

Success Matrix in Contracts Management

• Progressive Agency Culture

o Capacity building through training and certifications.

o Strong Management Team supported by• Fiscal responsibility • Embrace value and quality in services provided• Accountability of performance• Candid / Positive Communication• An agency culture of “success”

Success Matrix for Contract Management

• Customer Relations

o Partnering posture with customer.

o Open and Candid Communication even in difficult situations.

o Be solution driven to meet customers requirements.

Success Matrix for Contract Management

• Review Project Viabilityo Financial review / evaluationo Mission review / evaluationo Evaluation of long term desired outcome for project.

First Sergeants Barrack Program

• Provide 24/7 barracks management for the single soldiers housing at U.S. Army Garrison Hawaii bases serving 5 brigades with over 6,000 rooms.

• Initial services included:o 24/7 Barracks managemento Record retention / Utilization Reportingo Building Maintenance / Service Call trackingo Janitorial / Groundso Deployment / Redeployment Surge Coverage

FSBP Program Development

• First FSBP program initiated:o Total operating plan developed for the Army.

– Communications plan to initiate services.

– Standard Operating Procedures developed.

– Data tracking system to account for all services performed.

– Key control / security procedures.

– Deployment / redeployment surges

– Marketing / Branding of Program; including signing, stationary, uniforms, and customer satisfaction surveys.

– Quality Control Matrix and monitoring system.

Funding, Budgets, and Customer Needs

• Reality of current economic conditions dictate a strong commitment to continue program in light of:o Reduction in scope of services as a result of funding cuts

and focus of funding in support of requirements on the front line.

o Resolve issues associated with reduction in scope of services:

– Staff reduction

– Re-evaluating work requirements and propose staffing models.

– Support of partnering with the customer to position new service levels.

o Evaluation of Financial and Mission consequences of project outcome.

Funding, Budgets, and Customer Needs

• Agency Commitment to stay the course on FSBPo Positive Outcomes

– Established rapport and relationship.

– Posturing for future work as a known “partner”.

– Continue to build capacity and expansion of mission.

– Promote Ability One as vendor of choice.

Questions for the Panel

Session Evaluation Information

SESSION TITLE: Funding

SESSION CODE: BD-T900