Houston OBO - Insights to Opportunity - July/August 2020

INSIGHTS TO OPPORTUNITY July / August 2020 | Vol 21 | Issue 1

News & Events from Houston OBO | houstontx.gov/obo

Global Export Fuels City’s Economy By: Enzo Mungu

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n 2018, Houston exported more than $120.7 billion worth of goods, making it the top exporting metropolitan area in the United States, followed by New York with $97.7 billion and Los Angeles with $69.8 billion.

That same year, an estimated 320.9 million metric tons of goods also went through Houston/Galveston ports.

With more than 183 trading partners, with the top three being Mexico, Brazil and China, and over 45 countries with more than $1 billion in bilateral trade, the City of Houston is a behemoth in global trade.

Thanks to such partnerships, more than 11,000 exporters linked to the City of Houston can find ready

markets for their revenue-generating products, which enables the city’s economy to thrive.

As the COVID-19 pandemic has resulted in tremendous losses globally, in various industries, global trade has been hit especially hard, resulting in an unprecedented drop in global export. However, as the fourth and soon to be third largest city in the United States, Houston’s economy remains resilient.

Even with the pandemic, local business owners can still look toward exporting their goods globally, said Raoul Keddy, an international business consultant and president of the Africa International Chamber of ComGo to EXPORT, page 5

TRADING HUB: An estimated 320.9 million metric tons of goods went through Houston/Galveston ports in 2018.

WHAT’S INSIDE

Learn About Contract Compliance at OBO

Small Businesses Can Get COVID-19 Grants

The Contract Compliance Division works to ensure equitable access to fair wages and contracting opportunities within the City of Houston.

Small businesses and chambers of commerce can get up to $50,000 with the Houston Small Business Economic Relief Program.

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FROM THE DIRECTOR Greetings!

As OBO’s new director, I’m very pleased to present to you this edition of our e-newsletter, Insights to Opportunity. We have revamped Insights to Opportunity to offer you rich content on a variety of topics in an easy-toread format.

With all of us having to embrace what appears, for now, to be a “new normal” due to COVID-19, OBO remains committed to supporting the needs of local small businesses. Indisputably, COVID-19 has had a major impact on Houston’s small business community’s operations, employees, and revenues.

As a result, our office has focused on providing the community with timely and vital health and business support resources through our COVID-19 Business Resource Hub on our website. Responding to your call for economic relief, OBO has spearGo to DIRECTOR, page 6

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DIVISION HIGHLIGHT - CONTRACT COMPLIANCE

OBO Protects Small Businesses, Local Workers By: Niyonsaba Magnifique

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he Office of Business Opportunity’s (OBO) Contract Compliance Division ensures that Minority, Women Owned, and Small Business Enterprises (MWSBEs) have equitable access to City of Houston (COH) contracting opportunities and that they are utilized to the full extent possible on contracts where they are listed. As OBO is committed to ensuring that workers are protected, the division also monitors labor standards on contracts and monitors the payment of proper wages on contracts.

Johnnie Burns, Contract Compliance Division Manager, grew up on the north side of Milwaukee, where he experienced the effect of a lack of opportunities in the African-American community. This experience motivated him to seek a career in government where he could be part of an institution committed to diversity and inclusion. With over 20 years of experience in government equal opportunity, supplier diversity, certification, compliance and Title VI programs, he now leads a team of 10 individuals in OBO’s Contract Compliance Division.

for MWSBE goal credit on the contract.

The compliance team then works with the prime contractor that enters into a contract directly with the City of Houston to ensure that they are making good faith efforts to utilize all subcontracting firms approved in the MWSBE plan that was submitted in the prime’s bid response. If prime contractors need to add, reduce, or remove subcontractors on their contracts, they must submit a formal Deviation Request, accompanied by strong evidence showing good cause why the changes should be made.

Compliance officers also evaluate certified payrolls submitted by contractors working on COH construction contracts weekly, to ensure that workers are paid according to the prevailing wage scale in-effect.

And, they conduct project site visits on construction-related contracts where they observe employees at work, take pictures, and interview employees to gather infor-

mation regarding their treatment, work classification, and compensation.

If workers are not being classified and paid appropriately on contracts, the contract compliance team issues a sanction to the prime contractor in the form of an underpayment notice. Following receipt of an underpayment notice, the prime contractor must ensure that all wages are paid to workers. Additionally, as a result of the underpayment, contractors are charged a penalty of $60 per day, per employee, for failing to pay the worker the appropriate wages at payroll.

According to Burns, his team is motivated by their collective understanding of the impact they can make in Houston.

“If we didn’t do our job, individuals would not get access to contracts and employees wouldn’t get paid the appropriate wages on job sites,” he said.

The team currently monitors and enforces City rules and regulations on over 1,300 contracts with an overall value of $8 billion. To manage the high volume of contracts effectively, the division has implemented a system to perform compliance audits at set intervals - during 20%, 50%, and 75% of contract completion.

One of the main functions of the division is advocating for MWSBE firms. After a contract is approved by City Council, a letter is sent to each MWSBE subcontractor notifying them that they have been listed

New B2G-POP Module Provides Efficiencies

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he new Pay or Play Management System (B2G-POP Module) is now available at https://houston.mwdbe.com/. B2G-POP Module will provide Pay or Play Program (POP) participating contractors the efficiency of electronically submitting POP forms and reports. B2GPOP Module will provide direct linkage to

MAKING AN IMPACT: Contract Compliance Division Manager Johnnie Burns trains Compliance Officer Angel Rodriguez.

JP Morgan Chase Pay Connexion portal that will allow “PAY” contractors to submit POP payments electronically. Contractors may utilize Automated Clearing House (ACH), Electronic Check (e-check), Debit and/or Credit cards; Pay Connexion will charge a convenience fee to process payments. For more information, contact your contracting department’s POP Liaison. Contact information is at www. houstontx.gov/obo/payorplay/contactlist. pdf. OBO is the administrator for the Pay

or Play program, which was implented in 2007. Through Executive Order 1-7, the City of Houston requires certain contractors to either contribute a designated amount to be used to offset the costs of providing healthcare to uninsured people in the Houston/Harris County area (PAY), or to require certain contractors to provide to certain employees a minimum level of healthcare benefits (PLAY). For more information, go to www.houstontx. gov/obo/popforms.html.

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that HR Green already believes in, but that doesn’t mean we stop with who we already know.”

HR Green continually seeks opportunities to help small businesses better address market needs, which in turn helps provide exceptional service to the City.

The company is eager to get involved with the Interagency Mentor-Protégé Program (IMPP), a business development initiative that aims to build capacity of historically underutilized businesses by pairing them with established firms.

ABOVE & BEYOND: HR Green has consistently exceeded the aspirational goal set by the City of Houston for professional service contracts. The project team meets pre-COVID.

BUSINESS PROFILE

HR Green Shows Steadfast Commitment to City of Houston’s MWBE Program By: Pearl K. Cajoles

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ince securing its first professional service contract with the City of Houston, civil engineering firm HR Green has been a champion for providing subcontracting opportunities for small businesses owned by entrepreneurs of historically underutilized groups, including women and people of color.

For every $1 million that the City has awarded to HR Green, the company has consistently subcontracted approximately $300,000, or 30%, of the contract value to Minority and Women Owned Business Enterprises (MWBE firms). This exceeds the 24% aspirational goal set by the City for professional service contracts.

EMPLOYEE SPOTLIGHT: VANESSA APLON-LETSON By: Enzo Mungu Because of the COVID-19 pandemic, the Office of Business Opportunity had to make major adjustments, including taking its in-person workshops to a virtual space.

In OBO’s Certification Division, Senior Business Development Coordinator Vanessa Aplon–Letson, who has worked with OBO since March 2007,

HR Green’s work with the City includes floodplain management, stormwater drainage and paving projects, lift station renewal and replacement, and other improvements to wastewater treatment plants.

“Our overall intent is to always go beyond what is required, and we are focused on providing meaningful assignment opportunities, not just exceeding utilization goals,” said Eric Hall, Regional Director, Water, for HR Green.

“Our ability to exceed our MWBE participation goals stems from the collaborative relationships of trust that we have built with small, minority-owned firms.

When a bid solicitation comes up, it’s easy for us to find a preferred partner

stepped in to implement measures which enabled the program to remain active.

In addition to processing applications for the six certifications provided by OBO and helping train new certification team employees, Aplon-Letson also recorded online certification workshop videos for on-demand viewing, conducted site audits via virtual interface, and handled administrative duties. Aplon recently shared her thoughts about what drives her caGo to APLON-LETSON, page 5

IMPP, which was cancelled this year due to COVID-19, is set to resume in 2021.

The program is a collaboration among the City of Houston, the Metropolitan Transit Authority of Harris County (METRO), Houston Independent School District, Port Houston, Houston Community College, and Houston First Corporation.

“A lot of firms exceed participation goals like we do, but there is a shorter list of companies that are willing to commit to formal agreements like IMPP,” Hall said.

“Involvement in this program will further solidify our commitment to MWBE participation, and we are always looking for ways in which to help smaller companies become our strategic partners.”

About HR Green: Founded in 1913, HR Green is one of the nation’s longest-operating engineering firms. Its Houston office has been serving the region since 1977, and the company now employs more than 500 professionals across the nation. HR Green is united in its mission to build communities and improve lives. To learn more about HR Green, go to www.hrgreen.com.

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OBO PROGRAMS & OPPORTUNITIES HOUSTON SMALL BUSINESS LEGAL CONSULTATIONS PROGRAM (HSBLC)

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mall businesses and nonprofits impacted by the COVID-19 pandemic now have a source for free legal advice with the Houston Small Business Legal Consultation (HSBLC) program, a collaboration among the City of Houston’s Office of Business Opportunity (OBO), Vinson & Elkins (V&E), and almost twenty additional top-tier private law firms.

HSBLC, which launched on May 5, aims to assist businesses with pandemic-related legal issues such as employment, contracts, real estate (commercial leases and mortgages), tax, intellectual property, finance, and other business issues.

Eligible individuals must be an operator of a sole proprietorship or be an owner or representative of a small business or nonprofit organization. Additionally,

the applicant must provide information about how the business has been affected by the pandemic.

After a screening process, the business will be matched with a volunteer attorney from one of the following participating law firms: Akin Gump, Arnold & Porter, Blank Rome, DLA Piper, Fish & Richardson, Greenberg Traurig, Hunton Andrews Kurth, Kilpatrick Townsend, Kirkland & Ellis, Latham & Watkins, Mayer Brown, Morgan Lewis, Norton Rose Fulbright, Orrick, Perkins Coie, Sidley Austin, Simpson Thacher, Weil, Gotshal & Manges, and Willkie Farr & Gallagher LLP. All consultations are covered by attorney-client privilege.

To date, the HSBLC program has helped approximately 38 businesses, helping them address various pandemic-related uncertainties and providing them with direction during these unprecedented times.

“V&E and all the organizations involved with the launch of HSBLC are dedicated to helping members of our community however we can as they navigate uncharted territory,” said Ellyn Haikin Josef, Pro Bono Counsel at V&E. “Small businesses are so vital and paramount to the City of Houston.”

To learn more or to apply for HSBLC, go to https://bit.ly/OBO-HSBLC.

DID YOU KNOW? 70% of employees say that mo➡ ➡ The three most common languagtivation and morale would improve es in the world are Mandarin Chinese, massively if managers said “thank you” more.

Spanish and English.

➡

Houston is the fourth most populous city in the United States, trailing only New York, Los Angeles and Chicago.

Adults who regularly get 7.5 to 9 hours of sleep per night are up to 20% more productive.

Tuesday is the most productive ➡ day of the week.

Unless food is mixed with saliva, ➡ you can’t taste it.

➡

There are no lyrics or words in the Spanish national anthem.

➡ ➡

Houston is home to the third largest concentration of Fortune 1000 companies in the country (47), according to the Greater Houston Partnership.

➡

Houston’s cultural events and exhibitions report 9.2 million visits per year.

HOUSTON SMALL BUSINESS ECONOMIC RELIEF PROGRAM

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ayor Sylvester Turner and members of Houston City Council passed the City’s Small Business Economic Relief Program (SBERP), which will be funded with $15 million of the City’s allocated CARES Act 2020 funds. The program is for small businesses that are most in financial need and exhibit a moderate to high likelihood of surviving the pandemic’s adverse impacts. The City also encourages local chambers of commerce to apply. The maximum amount a business or chamber can receive is $50,000.

Applications will open mid-August.

A business may use the funds for payroll, accounts payable, rent, mortgage, PPE for employees, marketing strategies, including creating an online presence and other sales alternatives.

Working with the City’s Office of Business Opportunity, the Houston Business Development, Inc. (HBDi), will administer the program and develop a marketing strategy, accept and process applications electronically, develop a scoring matrix,w and provide regular progress reporting and metrics to OBO. To qualify for the SBERP, business owners must have a business whose principal place of business is located within city limits of the City of Houston; must have been in business for at least one (1) year for the last year; provide evidence of how business revenue has significantly decreased because of government restrictions or other challenges due to COVID-19; must have generated $2 million or less in gross annual revenue preCOVID-19; be in good standing regarding City requirements (e.g. property taxes, personal property, grounds for debarment, etc); and commit to completing the Recovery and Resiliency Technical Assistance component of the program.

These eligibility standards may be modified for applicants who are chambers of commerce.

To learn more about Houston’s Small Business Economic Relief Program, go to www.cityofhouston-sberp.com or contact 713-845-2462.

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APLON-LETSON: Her team works toward the same goal Continued from page 3 reer at OBO and about her life outside the office.

Q

How does what you do impact the small business community?

A: Goals that are put on City contracts require the use of certified companies. OBO offers six free certifications that can help small businesses get subcontracting opportunities on both City and airport contracts. You want to be certified in case an opportunity comes up. Also, certifications offered by OBO’s Certification Division are accepted by other agencies. This helps expand opportunities for certified firms, enabling them to grow with other agencies as well.

Q

Tell me more about the certification workshops.

A: Before the pandemic, we offered a live certification workshop on Thursdays and a virtual workshop on Tuesdays.

Because we are not currently receiving visitors due to the pandemic, we are only offering the workshop virtually on Tuesdays. And, we do have it on OBO’s YouTube channel (@houstontxOBO) where anyone can watch it on demand.

Q

What is your favorite part about working with OBO?

A: I have two! I do like the work in itself.

I enjoy combing through the documents and learning about the businesses.

We also have a strong team, and I love working with everyone. We are all on the same page and are all working towards a goal.

Q

What do you do when you’re not at work?

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A: Most of my time is spent with

my husband and my one and only child, Joshua. He’s 17 years old and falls on the autism spectrum. We do just anything he likes to do. If he wants to jump on the trampoline, we are jumping on the trampoline. If he wants to take a walk, we are taking a walk. Therefore, I will say my number one boss would be my son Joshua.

Autism is a big part of our lives, and Joshua is one of the most rewarding and funniest people to spend time with.

Q

What has kept you working at OBO for seven years?

A: I work with a strong team that has each other’s back and a great manager, Tim Warren, who knows the programs. It is always rewarding to have a good team, as well as a leader who does not mind teaching you. It is really a good balance.

EXPORT: Trade

More than 1,700 foreign-owned firms, 91 countries with official government offices, 56 international chambers, as well as numerous trade associations, commercial offices, and over 17 foreign banks are represented within the City.

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Several trade partnerships have been formed in recent years with these countries, whose markets can be tapped

by Houston exporters. And, thanks to Mayor Turner and various stakeholders to foreign trade partnerships, Houston has witnessed an increase in B2B relationships.

missions can foster new connections merce (AICC). To do this, they should understand how business is carried out in the country in which they intend to do business.

“Understand the culture and know that the process for one to do business in the United States is, for the most part, very different compared to outside the US,” Keddy said. “I highly emphazise the use of consultants who can guide business owners through establishing trade partnerships with other businesses abroad.”

In previous years, Keddy has been instrumental in planning and organizing meetings and trade missions, including the City of Houston/Port of Houston partnership with the Port of Gabon, and City of Houston partnerships with the City of Yaoundé 2 in Cameroon and the City of Niamey in Niger.

Keddy has also facilitated a partnership

Raoul Keddy between the City of Houston and the Republic of Guinea, where he organized a meeting between Mayor Sylvester Turner and the president of the Republic of Guinea – His Excellency Alpha Conde.

With the prospect of a partnership, Keddy also helped set a meeting between Mayor Turner and Ambassador Seydou Kabore from Burkina Faso.

Partnerships between the Greater Houston Partnership with the Port of Gabon as well as the City of Yaoundé 2 were also initiated by Keddy to encourage business-to-business (B2B) relationships between businesses in the city and those in various countries on the African continent.

In addition to Africa, there is no part of the world that Houston doesn’t touch.

Those wanting to form new partnerships can look toward City of Houston leadership and collaboration with various chambers, business owners and consultants who understand the need for a continuous increase in trade partnership agreements. Consultants can also help forge and sustain such partnerships, which bolsters Houston’s economy.

“If possible – and when it is safe to travel again – jump into a trade mission so you can meet the people on the ground, including other business owners,” Keddy said. “Or, figure out a way to connect with a partner with whom you can exchange products.”

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CALENDAR OF EVENTS to talk about this City of Houston grant program that awards up to $50,000 to small business owners and chambers of commerce. Registration is required at https://www.eecoc.org/events.

Virtual Pre-Certification Workshop: 2 p.m. Tuesdays. This free workshop addresses certification requirements, procedures, and provides business owners with information on how to do business with the City of Houston. Registration is required at https://www.houstontx.gov/ obo/registrations.html. OBO certifies Minority, Women, and Small Business Enterprises (MWSBE), Persons with Disabilities Business Enterprises (PDBE), Disadvantaged Business Enterprises (DBE), and Airport Concessionaire Disadvantaged Business Enterprises (ACDBE).

Virtual Business Education Workshops: Weekly through Sept. 29. Topics will cover Starting a Business, Business Financials, Personal and Business Credit, Pitching Your Business, Access to Capital and best practices for businesses in the Service, Product and Innovation categories.

Workshops are part of the Liftoff Houston Startup Business Plan Competition, and are also free to the public. Go to www. liftoffhouston.smapply.org to register and to see times and dates.

Turner School of Construction Management: 5:30-8 p.m. Mondays beginning September 21. This eight-session program is designed to enhance the technical and managerial skills of small contractors and entrepreneurs in the construction industry. Registration and acceptance are required. Application is open now at tinyurl.com/TSCM2020 or contact Dr. Porscha Jackson at Porscha.

Jackson@houstontx.gov.

East End Chamber of Commerce Houston Small Business Economic Relief Program Webinar: 2:30-3:30 p.m. Friday, Aug. 14. OBO Director Marsha Murray will join Houston Business Development Inc. President/CEO Marlon Mitchell

Access Granted Small Business Resources Webinar - Houston’s Small Business Economic Relief Program : 2-3 p.m. Thursday, Aug. 27. Learn about the City’s $15 million grant program for small businesses and chambers of commerce. Register at tinyurl.com/accessgranted7 or call Dr. Porscha Jackson at 832-393-0935.

WHO WE ARE

DIRECTOR: City’s grant program championed by OBO Continued from page 1 headed the development of the City of Houston’s Small Business Economic Relief Program, which provides grants of up to $50,000 to local businesses in need. In addition, understanding that a strong business support ecosystem is essential to your development, we have opened up this grant program to local chambers of commerce who were financially impacted by COVID-19.

While there may be a strong desire to hunker down during this crisis and focus your attention on local opportunities, I want to remind you

about the role the global marketplace can play in the growth and success of your business. In this issue, we take a look at how Houston-area businesses can navigate the global arena through trade partnerships, business to-business relationships as well as exports.

Lastly, I encourage you to stay healthy and safe, and to continue to prioritize the health and safety of your employees and customers.

Sincerely, Marsha E. Murray Director, Houston OBO

Marsha E. Murray was appointed by Mayor Sylvester Turner and confirmed by City Council to serve as the Director of the City of Houston’s Office of Business Opportunity (OBO) in April 2020, after having served as OBO’s Interim Director.

Insights to Opportunity is produced by the City of Houston’s Office of Business Opportunity (OBO). OBO is committed to cultivating a competitive and diverse economic environment in the City of Houston by promoting the success of small businesses and developing Houston’s workforce, with special emphasis on historically underutilized businesses and disenfranchised individuals.

Executive Editors Marsha E. Murray, Esq. Lalla V. Morris, Esq. Managing Editors Pearl K. Cajoles Enzo Mungu Copy Editor Dr. Porscha Jackson Contributing Writers Niyonsaba Magnifique Brianna Maxwell Any information in this newsletter does not constitute the Office of Business Opportunity’s endorsement of any business or organization. If you have a story idea, e-mail pearl.cajoles@houstontx.gov. Follow @HoustonOBO on Twitter, Facebook and Instagram and @HoustontxOBO on YouTube.