Winning the Bid Jeanne Day-La Bo, DBE Program Specialist Michigan Department of Transportation (MDOT)

1
Winning the BidJeanne Day-La Bo, DBE Program
SpecialistMichigan Department of Transportation
(MDOT)
Federal Transit Administration (FTA)Opening
DOORS Program
2
Dont put all your bid eggs in one basket bid
to a variety of clients

• Work with small business assistance centers and
  get to know their staff. Procurement and
  Technical Assistance Centers (PTACs), for
  example, provide many free or low-cost services,
  such as e-mailing targeted bid opportunities to
  vendors.
• Minnesota PTAC Web address ptac-meda.net
• Web search for other small business help, like
• myminnesotabusiness.com
• positivelyminnesota.com/Business

3
Network!

• My most successful clients take every opportunity
  to build relationships.
• Join professional associations. Attend their
  meetings, for fun outings and conferences.
• Subscribe to list-serve notices attend events
  and training.
• Share your business cards.
• Develop a brief brag sheet highlighting what
  you do and your most successful jobs.
• Keep in touch with DBE/SBE offices and other
  partners.

4
Dont bite off morethan you can chew!

• Expanding into new types of work is smart
  business. But first,
• Be the best at what you do!
• Successful DBEs may quote work higher than
  others, yet primes pick them. Why? They do great
  work, communicate and coordinate well with
  others, are efficient, have fewer job problems
  and regularly get their work done early or on
  time.

5
Dont bite off more than you can chew!

• Distance matters
• For many businesses, the farther away a client
  is, the more it costs to provide goods or
  services. In a low bid environment, your bid may
  be less competitive.
• Be realistic
• Its easy to get carried away and bid more than
  you can accomplish.
• Its hard to fix a bad reputation.

6
Ok, I found a great job opportunity. What do I
do?

• Assuming anything is bad practice.
• Dont assume you know what wages are, or that you
  know the schedule and all it entails, what the
  job site covers, or that material suppliers can
  provide goods without plenty of advance notice.
• Understand bid procedures.
• Know what it takes to get a contract awarded.
• Have required bonding/finances in place.

7
Ok, I found a great job opportunity. What do I
do?

• Study the entire proposal
• carefully, even if you think some parts dont
  apply! Be aware of all project-specific
  conditions and requirements.
• Federal wage rates may be higher than what you
  normally pay workers.
• Is there a penalty if a project runs late?
• Are there special or unusual requirements?
• Is there anything you must do before the bid
  submission date?

8
If youre not sure, ask the experts!

• Dont guess!
• If you are not 100 certain about anything you
  are bidding on, ask questions.
• Talk with the designated contact person listed in
  the proposal.
• When pre-bid meetings are set up, go to them.

9
OK, you want the job. Now what?

• Prepare!
• If the work is site-specific, a facility
  renovation for example, always take the time to
  physically go to the job site to study site and
  local conditions before putting together your bid.

10
OK You want the job, now what?

• Get to know the key players
• Schedule an appointment to discuss project
  details with the project manager.
• You may learn something that will make your bid
  more competitive.
• Youre building a relationship for future jobs.

11
Get to know the key players

• Attend pre-bid meetings and networking sessions.
• You may hear answers to questions you never
  thought to ask.
• Meet your competition.
• Build relationships to develop strategic
  partnerships that will help with current and
  future jobs.

12
Dont take no for an answer.

• What do you do when a prime tells you your bid is
  high? Dont walk away! NEGOTIATE!
• Look at your bid is there something the prime
  could do with resources he or she will have on
  the job?
• For example, a landscaping company may be able to
  obtain and plant trees and shrubs cheaper than
  the prime can, but the prime can put in required
  topsoil cheaper than the landscaper.
• Consider breaking your bid up into smaller
  chunks.

13
Never take a job you wontmake money on!

• Many small business owners have asked me if they
  should take a job they know they will lose money
  on, just to get some work. My response
• ARE YOU NUTS????
• Taking a job where you will simply break even, or
  without any profit can put your business in a
  hole you may not be able to get out of.

14
I got the job!

• Winning a bid is the first step.
• Once you get a job, schedule reminders to chat
  with key players, even if its just to say hello.
• By keeping in regular contact, you will know
  about changes that may affect your work.
  Relationships built today can translate into more
  work tomorrow.
• No job is finished until the paperwork is done!
  Avoid payment delays. Be sure to get required
  paperwork in on time.

15
Questions?

• Jeanne Day-La Bo
• DBE Program Specialist
• Office of Business Development
• Michigan Department of Transportation
• P.O. Box 30050
• Lansing, MI 48909
• Phone [phone]
• E-mail day-laboj_at_michigan.gov