April 22, 2023

SMALL BUSINESS NETWORK

Skip Powe, P.E.2006 Trns*port User Group Conference

Portland, Maine

OVERVIEW What is It? Concept Development Process Training & Implementation Modifications & Enhancements My 2¢ Worth & The Future Conclusion & Demonstration

WHAT IS IT?

The Small Business Network is anenhancement of

The SBN is a tool for DBEs, prime contractors, subcontractors, and vendors to solicit and exchange quotes regarding upcoming bid projects.

WHAT IS IT?

The SBN is a mechanism that basically extends the tools of Bid X, including Bid Tab Analysis, to the DBE and subcontracting community, thus allowing greater access and involvement in the bid letting process.

WHAT IS IT?

Bid X is a web-based bidding information service developed by ITI exclusively for the road construction industry.

It is used by 23 state transportation agencies in the US, including ALDOT.

CONCEPT

ALDOT’s involvement in SBN came about due to an inquiry from the Bid X team in the Fall of 2005 concerning our perception of interest in the contracting/subcontracting community for internet based software to facilitate soliciting and submitting quotes.

The Bid X team saw the demise of the opportunity for the subcontractors being able to meet directly with plan holders due to the increase in electronic bidding.

CONCEPT

Demise? ALDOT begun using Bid X with the

January 2006 letting. Since then, more prime contractors

have begun utilizing electronic bidding as compared to the traditional paper method.

CONCEPT

During the July, August and September lettings, the attendance for the pre-letting reception at the “Hotel” has been greatly diminished due to the increase in electronic bidding.

In fact, the reception and the letting-morning breakfast have been cancelled for the remainder of the year.

CONCEPT

Why ALDOT? ALDOT’s Current Trns*port Usage:

BAMS/DSS Estimator Expedite PES/LAS SiteManager SitePad CRLMS JAD Participant

CONCEPT

In addition, we have good communication between our DBE and Construction offices.

So, ALDOT partnered with Bid X on the initial development, principally because we saw a great opportunity.

CONCEPT

Alton Treadway serves as the Asst. Bureau Chief for Computer Services, the Trns*port User Representative, and the DBE Program Administrator (Certifications and Goals).

I serve as the DBE Contract Administrator (Enforcement and Credit) in the Construction Bureau.

CONCEPT

Utilizing Alton’s knowledge and background, coupled with my contract admin experience and industry contacts, we were able to provide significant guidance to the Bid X team to make the initial release of the SBN capable of providing worth to both the prime contractors and potential subcontractors.

CONCEPT

ALDOT provided no money for software development, but we will be subscribing to the service for certified DBEs who bid on ALDOT contracts.

Why?

CONCEPT1. To help remove barriers to the participation

of DBEs in DOT-assisted contracts.2. To assist the development of firms that can

compete successfully in the marketplace outside the DBE program.

3. To create a level playing field on which small businesses (i.e. DBEs) can compete fairly for DOT-assisted contracts.

4. To provide appropriate flexibility to recipients of Federal financial assistance in establishing and providing opportunities for DBEs.

CONCEPT

5. To meet our overall DBE goal using Race Neutral means as outlined in 49 CFR 26.51, specifically subparts (b)(1), (3), (4), (6) & (9).

DEVELOPMENT PROCESSDecember 2005: Conference calls to discuss the system

requirements and to “brainstorm” what the system should do

February 2006: Webinar/Conference call to view progress

and to discuss functions such as partial quotes, remarks/comments, quote submittals, good faith efforts, and administration capabilities

DEVELOPMENT PROCESSJune 2006: Webinar/Conference call to view alpha

version of the system and to discuss functions for posting documents, search tools, quantity/unit requirements, account tracking/monitoring, and training format

Early July 2006: Webinar/Conference call to discuss status of

pending tasks, long-range development, training sessions, beta testing/usage and implementation

DEVELOPMENT PROCESSMid July 2006: Initial training of DBEs and prime contractors Additional modifications and enhancements

as a result of the prime contractors’ training Follow-up communication and email with

industry representatives Beta testing/usage begins

DEVELOPMENT PROCESSSeptember 2006: Second round of training of DBEs and prime

contractors More modifications and enhancements as a

result of the prime contractors’ training Solicitations being posted, even by firms who

have not been trained Beta testing/usage continues Develop implementation plan for DBEs

TRAININGDBEs: July and September in ALDOT classroom

July – 19 firms September – 16 firms

Webinar and Conference call July thru present – approx. 30 firms contacted

Entrepreneurial Development Institute (DBE Supportive Services business training) October – 15 firms

TRAININGPrime Contractors: July and September in ALDOT classroom

11 trained to date, but industry associations are forwarding brochures and emails describing the SBN and its capabilities to their members.

Bid X users who have not been trained are soliciting quotes in the Beta period.

IMPLEMENTATIONDBEs: After a DBE firm is trained, Bid X establishes

one account for the firm. ALDOT will pay the subscription fee for the

basic SBN features (Bid X subscription, Bid Tab Analysis, and SBN).

Fee is paid using designated Supportive Services funds.

ALDOT and Bid X have established a discounted rate schedule depending on the number of accounts.

IMPLEMENTATIONDBEs: We have already established 37 accounts. Some of the accounts established are the

result of the recommendations from prime contractors.

Our goal is to have an account for each of our 98 “Ready, Willing, and Able” DBEs.

IMPLEMENTATIONDBEs: DBE is expected to use the account. Bid X

has developed a report in the Admin section that lists the accounts and the last access date.

Any DBE’s account that remains inactive for 3-6 months is subject to cancellation (Note: we will provide sufficient warning and

allow DBE chance to explain inactivity).

IMPLEMENTATIONDBEs: DBE may add additional functions such as

Internet Bidding (as a prime), Digital ID Certificate, and On-Line Plan Sheets, but the DBE will pay for these functions themselves.

IMPLEMENTATIONPrime Contractors: Industry Associations have been receptive to

distributing brochures and emails. Alabama Road Builders Association Alabama Asphalt Pavement Association Alabama Bridge Construction Association American Concrete Pavement Association

IMPLEMENTATIONPrime Contractors: During the Beta period, existing Bid X users

can utilize the SBN free of charge. After the Beta period, prime contractors and

non-DBE subcontractors who choose to subscribe will pay a small monthly fee.

To assist the solicitation process, ALDOT maintains a link to a pdf file that lists all the DBE Bid X accounts and the DBE’s contact information.

MODIFICATIONS As the system has developed, we

and/or the contractors have recommended the following modifications and enhancements to improve the SBN: Made Unit field an editable field. Add “Work Type” comment field to

Solicitation Search.

MODIFICATIONS Add County information next to Project

Number for Item Search and Search Summary.

Modify the SBN to allow the subcontractor to reply to a solicitation via a button rather than start a new quote.

Sort solicitation item searches by Item Number.

Add mechanism to allow prime contractors to withdraw a solicitation.

ENHANCEMENTS

“Boiler-Plate” quote stipulations: Add a general quote comments field as

shown on the handout. This general comments field will allow for

more detailed quote stipulations and for information that applies to all the items being quoted such as including GRT, bond, engineering, etc.

ENHANCEMENTSAdmin Solicitation Report: Create an administrative report to search

solicitation history by Contract ID or Prime Contractor.

Data will include: Contract ID County Contractor Name Work Type Date Posted Date Withdrawn (if applicable) Link to the items that a quote is needed.

ENHANCEMENTS

Admin Solicitation Report: Data will remain in the system regardless if

the prime contractor has withdrawn his solicitation.

This report can be utilized in Good Faith Effort reviews.

MY 2¢ WORTH My Experience is in Contract Admin and not

Civil Rights. I negotiated approx. 260 Change Orders over

a 6 year period, so I am well aware of contract problems and bidding/quoting methods.

Divisions and their varying interpretations and enforcement of specifications and requirements have led to inconsistencies, which I was a part of for years.

MY 2¢ WORTH The Road Builders’ Executive Director and I

have discussed these inconsistencies several times, especially those involving paperwork submittals and reviews (and interpretation of data).

We both see advances in technology and new tools as a means to minimize inconsistencies, which will save ALDOT and the contractors time and money.

These types of savings will, in turn, be reflected in bid prices.

THE FUTURE Continue to spread the word

throughout the industry. Continue to train both DBEs and prime

contractors on how to use the system. Continue to work with the Bid X team

to finish the modifications and enhancements.

Develop an action plan for Phase 2 needs such as direct quote submittals.

CONCLUSION The SBN is the next step in the electronic

bidding process. The SBN will give DBEs more opportunities

to bid. The format should save primes and

subcontractors time and money, which the state should see in their bids.

The SBN can be used for GFE documentation.

The SBN is a Race Neutral means for the state to meet their overall DBE goal.

CONCLUSIONIf your state wants to implement SBN,

you need to: Open your communication between

Construction, Contract, and DBE offices. Get your Industry Associations on-board. Encourage the DBEs to use the system.

Explain the benefits. Provide them opportunities. Make it worth their while.

And you will benefit in the end!

CONTACT INFORMATIONSkip Powe, P.E.

DBE Contract AdministratorALDOT Construction BureauPhone: (334) 353-6302Fax: (334) 264-3727E-mail: powes@dot.state.al.us

Q&A

DEMONSTRATION

Mike Self