King County Program Promotes Small Business Development

Most government agencies have programs aimed at providing opportunities to facilitate the growth and development of small businesses in our region.

The passage of Initiative 200 almost five years ago required that government agencies implement new race and gender-neutral policies on recruitment, employment and contracting. Since that time, King County and other government agencies in our state, have witnessed a sharp decline in small business participation. The decrease in participation is a result of the “chilling” effect that I-200 has had on the ability of these agencies to identify and use small disadvantaged businesses at levels achieved before passage of this initiative. Many of these public entities have implemented programs to redress the declining pattern of utilization.

One of the more comprehensive and effective government programs locally is King County’s “Contracting Opportunities Program.”

Administered by the County’s Office of Business Relations and Economic Development (BRED), the Contracting Opportunities Program focuses on business development and has the goal of creating “opportunities under which King County and its contractors are encouraged to make use of Small Economically Disadvantaged Businesses (SEDBs) on county contracts. The program supports the County’s historical interest in increasing the competitiveness of these firms. The program applies to goods & services, construction, and consulting, contracts.

"Small businesses are vital to the health of our economy. They are major employers and provide essential products and services to our communities. The Contracting Opportunities Program is designed to increase the access to opportunities for small businesses" states George Northcroft, BRED's Director.

A Directory that includes the names of businesses that apply for SEDB status and meet the eligibility criteria is available for use by prime contractors, pubic and private owners and others seeking to identify these businesses for inclusion in their outreach efforts for upcoming contract opportunities. The Program provides various incentives in the public competitive bidding process to encourage the participation of SEDBs as prime and subcontractors on county funded contracts.

What is an SEDB?
The cornerstone of the Contracting Opportunities Program is the definition of SEDB. In general, the county defines an SEDB, “as a business owned and controlled by a person or persons who are in a financial condition which puts the business at a substantial disadvantage in attempting to compete for public contracts.”

Specific eligibility criteria are as follows:

• Owners’ personal net worth of less than $750,000
• 50% of the business size thresholds established by the U.S. Small Business Administration (for example, the SBA size threshold in gross annual revenues is $4,000,000, while the King County threshold is $2,000,000)
• Agreement by the applicant to participate in technical assistance or business development training
• Agreement by the applicant to participate in technical assistance or business development training

Says Northcroft, “The Program provides a more definitive framework for working to enhance the capabilities of those firms interested in securing contracts with King County, and strives to enhance opportunities for business owners who pursue relevant technical and entrepreneurial training to become better competitors. Still in its infancy, the County’s Contracting Opportunities Program has certified more than 300 businesses to participate in the program, and generated greater than $1 million dollars in contract awards to certified SEDBs.”

One small business owner, Irene Reyes, owner of Excel Gloves, and the recipient of a contract as a direct result of the Program incentives comments that, “There is now a ‘comfort zone’ for the small business with regards to price. It [the Program incentives] provides price leverage against the big players of the market. I now have a better chance of winning a contract.”

For more information on the King County Contracting Opportunities Program, or to obtain an application packet, email Mary Rainey or phone (206) 205-0711, or visit www.metrokc.gov/exec/bred/bdcc/prog/kccontractopp.htm.