The Richmond Bay Campus Report
Strategic Business Plan and Marketing Strategy
Positioning Richmond for Success
Fanzi Mao | Sophia Le | Jenna Goodward | Suguru Kitagaki | Louis Caditz-Peck
Social Sector Solutions
RICHMOND BAY CAMPUS REPORT 1
Acknowledgements
Throughout this project, our work has been advanced from many people who have contributed their time and invaluable knowledge. We would like to acknowledge the following people in particular. The input of those mentioned, and many others, have informed our understanding of the context for this project and enriched our analysis:
Hanh Kent (LBNL) Gala Vaught (Craneway Pavilion) Mary Maxon (LBNL) Lance Miller (Craneway Pavilion) David Skinner (LBNL) Jude Heller (Craneway Pavilion) Sam Chapman (LBNL) Anders Swahn (Alion) Julie Sinai (UCB) Guillermo Mazier (Atlas Advertising) Dave Johnson (UCB) Rauly Butler (Mechanics Bank) Doug Crawford (QB3) Hunter Zhou (JOINN) Scott Wilson (LVOC) Laura Adler Camille Bibeau (LVOC) Whitney Berry Elizabeth Cantwell (Lawrence Livermore Michael Katz National Lab) Chris Schildt Bandon Cardwell (iGATE) Dave Tischler Carla Din (East Bay Green Corridor) Jordan Simmons (East Bay Center for the Michael Caplan (Berkeley) Performing Arts) Jennifer Cogley (Berkeley) Judy Morgan (Richmond Chamber of Janet Johnson (City of Richmond) Commerce) Jim Goins (City of Richmond) Dr. Denise Noland (Contra Costa College) Gina Baker (City of Richmond) Dr. Seti Sidharta (Center for Science Rosemary Viramontes (City of Richmond) Excellence, Contra Costa College) Richard Mitchell (City of Richmond) Lori Lindburg (BayBio) Sue Hartman (City of Richmond) Gail Maderis (BayBio) Gene Russell (Manex Consulting) Misha Tsirulnikov (BayBio) Rich Vila (Vila Construction) Travis Blaschek-Miller (BayBio) Bob Alten (Alten Construction) Bethany Weiss-Floraday (PR Consultant) Larry Etcheverry (Overaa) Lynn Upsahw (UC Berkeley Haas) Julie Hadnot (Kaiser)
We would like to thank Haas Professors Paul Jansen and Nora Silver for sharing with us their impressive experience and expertise, and providing incredible support and guidance throughout our research.
Finally, we would like to thank our clients at the City of Richmond for the opportunity to conduct this research. Bill Lindsay and Jennifer Ly in particular provided us with the real-world perspective that made our work meaningful and relevant. We wish them all the best with the Richmond Bay Campus and continuing to promote the economic development of Richmond.
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Table of Contents
1. Executive Summary ...... 5 2. Background on the Richmond Bay Campus and Richmond ...... 6 3. Richmond Bay Campus Development Phases ...... 7
Phase I: Construction [2015 - 2018] 7 The General Contractor Perspective 9
Phase II: Lab Operations & Growth [2018+] 11 Procurement at Lawrence Berkeley National Labs 11 How to Participate LBNL Procurement Process 11 Procurement Systems at UC Berkeley 12 How to Participate UCB Procurement Process 12 Procurement Analysis 15 Framework for Procurement Prioritization 20 4. Long Term Economic Development: Lab Expansion & Cluster Formation ...... 22
Cluster Scenarios 22 Recommendations to Support Cluster Development 23 Overall Leadership & Vision 23 Budget & Direct Funding for Cluster Organization 25 Zoning Recommendations 26 Case Study: QB3 and Mission Bay 26 Leadership & Vision Recommendations 30 Workforce Development Recommendations 30 5. Policy Levers for Richmond Economic Development Procedures ...... 33
Federal and State Business Preference Programs 33 Community Benefits Agreement / Community Support Commitment 34 6. Appendices ...... 40
Appendix A: Sources 40 Appendix B: Doing Business with UC Berkeley 41 Appendix C: Sample LBNL Capital Projects Prequalification Requirements 43 Appendix D. The Livermore Valley Open Campus and iGate Innovation Hub 45
RICHMOND BAY CAMPUS REPORT 3
Policy Lessons & Tools 52
Appendix E: The Richmond Economy 55 Construction Procurement 55 Direct Procurement 57 Indirect Procurement: Retail Establishments in Richmond 57
Appendix F: Regional Bioscience Developers 59 Appendix G: Draft of LBNL’s Needs and Opportunities for Cluster Visioning Council 60
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1. Executive Summary
Background
The Lawrence Berkeley National Lab (LBNL) and UC Berkeley (UCB) have proposed to establish a second campus in Richmond to centralize and expand existing research programs. The proposed campus is expected to accelerate scientific innovation, technology transfer and commercialization, while creating new jobs. Construction on the Richmond Bay Campus (RBC) is expected to begin in 2015 and is projected to produce between $520 - $900 million in direct spending. After initial construction is complete, the RBC is expected to open in 2018 with an initial staff of some 800 employees. Once operational, direct procurement from RBC will begin. Direct procurement spending from LBNL alone is estimated to be $76 million per year, with additional direct procurement spending from UCB operations. In the longer term, the RBC may attract related or supporting businesses and foster the development of a bioscience cluster in Richmond. Cluster development around the RBC could produce between $41 million and $2.4 billion in direct spending and 140 – 7,500 jobs.
While the RBC offers a tremendous opportunity to drive regional economic expansion and job creation for Richmond, it also poses challenges never faced before by the City of Richmond or its constituents. Thus, the City Manager’s Office has engaged the Haas School of Business Social Sector Solutions to design a strategic business plan to capture the economic benefits of the RBC for the local Richmond community. This remainder of this paper will layout a strategic business plan with a focus on two key areas of analysis: a Supply Chain & Procurement Model supporting the RBC, and a Marketing Strategy for the City of Richmond.
Recommendations
Economic development from the RBC can best be targeted based on stages of development: Construction, Direct Procurement, and Cluster Development. Within each of these areas, we recommend the City act to position existing Richmond businesses for success, collaborate with partner organizations, and attract new businesses to Richmond. A summary of our key recommendations is included below.
RICHMOND BAY CAMPUS REPORT 5
2. Background on the Richmond Bay Campus and Richmond
Richmond Bay Campus Research Focus
The RBC is expected to catalyze economic development in Richmond by accelerating scientific innovation, technology transfer, and commercialization. However, economic development and job creation in Richmond would ultimately stem from advanced science taking place at the RBC. Thus, we first examine the research institutions and major categories of research and development currently anticipated for the RBC.
LBNL lignocellulosic biomass into biofuels that can directly Widely recognized as one of the world's premier replace gasoline. research institutes, the Lawrence Berkeley National Lab (LBNL) is a U.S. Department of Energy (DOE) UCB national laboratory managed by the University of UC Berkeley (UCB) is a world-class education California (UC). As the nation’s oldest DOE lab, energy institution engaging in cutting-edge research through has been a primary focus of LBNL research. At many top-ranked departments. However, the present, LBNL plans to relocate the following research university is still in early planning stages for the initiatives to the RBC: Joint Genome Institute (JGI), research facilities to be developed at the RBC. Thus Joint BioEnergy Institute (JBEI), Advanced Biofuels far, UCB intends to focus is R&D efforts on advanced Process Development Unit (ABPDU), Knowledge Base manufacturing. (KBase), Life Sciences, Earth Sciences. Advanced Manufacturing Biotechnology and Biofuels Advanced manufacturing is the process of mass- Recent research at LBNL has focused on the producing products on demand, using the latest development of biotechnology & biofuels. technology. Though most manufacturing processes Biotechnology is "any technological application that can be easily executed by what has been traditionally uses biological systems, living organisms or derivatives referred to as "unskilled labor," this higher level of thereof, to make or modify products or processes for manufacturing requires specialized training. specific use". In traditional manufacturing, the manufacturer, Biofuels are solid, liquid, and gas fuels produced from wholesaler or retailer may have to rely on stockpiled organic materials. Scientists at LBNL are also working quantities to meet temporary increases in demand, or on third generation biofuels, often referred to as shutdown plants or layoff workers if demand drops “future fuels.” These fuels typically involved advanced down. Advanced manufacturing is a more flexible chemical or biological processes and generated fuels technique that can be specifically adjusted to changing beyond ethanol such as butanol and crude oil like fuel needs. Instead of building in orders to put products from alternative sources such as waste, algae and into stock for later sale, advanced manufacturing takes cellulosic feedstocks. As a joint project with DOE a different approach. It builds for immediate, or nearly (JBEI), for example, Berkeley National Lab has immediate, sale. This means products being produced developed biochemical processes using microbes and are not months or years old out of the box. Rather, enzymes to process the complex sugars of they may be just days or weeks old, depending on how far they must travel to get to their final destinations.
6 RICHMOND BAY CAMPUS REPORT
3. Richmond Bay Campus Development Phases
The RBC is projected to continue growing over the next 40 years as the campus develops. Our report focuses on the early development from present day through 2020, with a particular focus on construction, direct RBC procurement, and business development and cluster formation around the RBC. It should be noted that there are additional indirect and induced impact that will result from the RBC.1 We focus on the direct procurement, the source of indirect and induced spending, to enable the City of Richmond to most directly impact the economic benefits.
Phase I: Construction [2015 - 2018]
The first phase of development, to break ground as early as 2015, is expected to result in $105 million in direct and indirect purchasing per year during construction.
2014: Design underway and site preparation begins
2015-16: Construction occurs
2017-2018: Complete construction and occupy buildings
At present, Phase I plans are to develop facilities for the following LBNL and UC institutions:
Joint Genome Institute (JGI), which UC LBNL manages for the U.S. DOE
Joint BioEnergy Institute (JBEI), a multi-institutional partnership led by UC LBNL
Advanced Biofuels Process Development Unit (ABPDU), which UC LBNL manages for DOE
Knowledge Base (KBase), a multi-institutional collaboration led by UC LBNL
College of Engineering facilities related to Advanced Manufacturing
During Phase I of RBC Development, three buildings will be constructed. Two buildings are planned to be approximately 110,000 to 150,000 gross square feet (gsf) each, with a remaining larger building planned to be up to 300,000 gsf, for a total of up to 600,000 gsf.
In terms of construction management and development, the three RBC buildings will be separately constructed and managed. The first building will be developed by LBNL, the second building will be developed by UCB, and a third building will be developed by a third party to be determined. While the LBNL building will be financed by federal (DOE) funds, it is still possible that this project could be managed by UCB Capital Projects or by a third- party.
1 This report focuses on direct impact from procurement only. “Indirect” impacts result from inter-industry purchases as new demand increases in directly affected industries. “Induced” impacts typically reflect changes in spending from households as income increases due to additional production. In the case of the Lab, indirect impacts occur when the Lab’s suppliers make when purchasing goods and services from second, third, and fourth generation suppliers in order to meet the demand generated by the Lab. In the case of the Lab, induced impacts reflect the additional spending by the employees of Lab suppliers. For example, when the Lab constructs a new lab building, the general contractor purchases lumber, rents construction equipment, hires engineers, and employs construction workers to build the lab. The spending on the raw materials, equipment rentals, engineer fees and employee payroll that is generated by the Lab contract reflects the indirect impacts of Lab construction spending. The additional wages received by the employees of the general contractor, lumberyard, equipment rental company and engineering firm “induce” spending at the grocery store, and clothing store. The jobs and income that result from these consumer purchases are considered induced employment and personal income impacts. RICHMOND BAY CAMPUS REPORT 7
Capital Projects at UC Berkeley Capital Projects at LBNL
The Capital Projects Department at UC Berkeley The Capital Projects Division of the Facilities organizes procurement for all construction and O&M at Department at LBNL manages all construction bidding UCB and affiliates. According to Dave Johnson, and implementation. The Request for Qualifications Assistant Director of UC Berkeley Capital Projects, (RFQ) for Architectural and Engineering services to construction projects managed by the UC system complete the Conceptual Design of the Bioscience previously had requirements for small business, but the Integration Facility (BIF, the LBNL building at RBC) UC Regents eliminated this requirement in recent closed on 2/8/13 but due to budgetary uncertainty at years. Dave also highlighted that relative to new the federal level, has not yet been awarded. construction, there is more ongoing maintenance of Construction companies interested in general or sub- UCB facilities - this is a current opportunity for constracting pre-qualifications can network early with Richmond employment. Scott Shakleton, the College of the A/E firm chosen to do the design and with the Engineering Associate Dean is involved in overseeing Project Manager at LBNL, George Sanen maintenance plans, and the Richmond Field Station. ([email protected]).
“Construction subcontracts for $3M or less shall be set-aside for small business concerns, provided they are able to meet the Lab's requirements and the award can be made at fair market prices”.
-LBNL Procurement Standard Practices, Section 19.32
This means that for any project where the total value is less than $3 million, small business contractors have priority. For projects over $3 million, including the RBC, project sponsors must submit a subcontracting plan stating the percentage of subcontracts that could potentially sub out to small businesses. Once awarded, LBNL plans to post the large business contacts on the web so the subs can reach out directly to them.3
[Key Takeaways]
The City of Richmond should help position Richmond businesses for success in procurement & collaborate with RBC partners. Establishing a central point of contact in Richmond responsible for regular communication between RBC partners & Richmond businesses will be critical.
Keep contractors informed of ongoing bid opportunities for both new construction and maintenance When the A/E design firm has been announced for the RBC building(s), invite LBNL and UCB Capital Projects Staff (starting with Dave Johson, George Sanen, and Hanh Le) to a workshop presentation on project needs, prequalification, and bid requirements. This should be done at the “matchmaking workshop” described below to make it a more productive event. Key Sites & Contacts UCB Capital Projects Bid Opportunities are listed at: http://www.cp.berkeley.edu/AdsForBids.html Sample UCB contracts: http://www.cp.berkeley.edu/ContractsAgreemnts.html Contact: Dave Johnson, UC Capital Projects: 510-642-7533, [email protected] LBNL Capital Projects Bid Opportunities are listed at: http://facilitiesprojects.LBNL.gov/ RFQ for the Design of the RBC LBNL Biosciences Integration Facility: 2 Set-asides and non-competitive awards as provided by Hanh Kent, Small Business Representative at LBNL. 3 Provided byhttp://facilitiesprojects. Hanh Kent, LBNL Small BusinessLBNL.gov/details.php?p=180 Representative. Review LBNL pre-qualification requirements: sample in the Appendix of this report. 8 RICHMOND Contact: George BAY Sanen,CAMPUS Project REPORT Manager: 510-486-6332; [email protected]
The General Contractor Perspective
To understand the Construction opportunity at the RBC, one should understand that the General Contractor (GC) on this job will likely only capture about 10-15% of the total project cost, while sub-contractors will earn about 85-90% of the total revenues.4 While Richmond has a number of GC’s who may successfully win the overall bid, we recommend that Richmond focus its efforts on helping sub-contractors compete in the process and connect to the GC’s who may ultimately be managing the project and subs.
We interviewed three Richmond general contractors to get their perspective on the existing Richmond subcontractor base, and what would help them work with more Richmond subs. These three Richmond general contractors are large contractors who have managed large-scale construction projects similar to the RBC in the past. Our interviews were with Larry Etchevarry (Overaa), Rich Vila (Vila Construction), and Bob Alten (Alten Construction).
Views on the Richmond Subcontractor Pool
These GCs were generally aware of the RBC project opportunity and interested in the work. While three is a small sample of GC’s, their comments are informative:
1. In general, these GCs described working with Richmond subs to be challenging, in part because the pool of commercial (not residential) contractors of adequate size is limited. However, most of them said that they felt they could increase local usage at least somewhat moderately.
2. The most common limitation was simply scale: GCs desire subs with experience working on projects of similar scale and scope. Moreover, scale impacts working capital requirements as well.
3. For subs inexperienced with public works projects, the additional administrative requirements of projects are challenges that place large public projects out of their reach.
4. Many of the subs are non-union, which can limit their opportunities5.
5. Certain trades were called out as lacking, namely electrical and plumbing and mechanical was also highlighted as a small pool.
6. Bonding was not seen to be a major issue limiting usage of Richmond subcontractors; these GCs generally are given a fair amount of leeway from their surety companies about passing down the bidding requirements to subs. They sometimes require bonding from subs that they have not worked with before for large jobs. At least one noted that they work with subs who could not afford bonding, and they simply exercise more oversight there. However, this issue is nuanced and it also seems that in the construction trade, boding requirements can be something of a screening tool to disqualify certain subs.
4 Interview with Dave Johnson, UCB Capital Projects Assistant Director. 5 Interview with Rich Vila, Vila Construction. RICHMOND BAY CAMPUS REPORT 9
Best Practices and Recommendations
The GC’s described some helpful practices they used to work with smaller subs:
Expand mentor-protégé programs: Alten Construction participates fairly extensive as a mentor for smaller subs, bringing them in to work on jobs above their normal experience level.
Lessen bonding requirements: If allowed by the surety company and project sponsor, eliminate bonding requirements from subs who cannot afford it, or require bonding on the labor portion of contract only.
More frequent payment: Accommodate small companies with constrained working capital by offering payments 2 times a month instead of once a month.
Hold preconstruction workshops: Outreach before a bid to network and learn about subs capabilities.
The GC’s also described policies and practices that project sponsors often use to encourage use of local labor. Not all of these are applicable to the RBC, but they may be useful requirements for Richmond to use in its own bids or encourage others to use more broadly:
Bid issuers (project sponsor or A/E company depending on the situation) can cut jobs down into smaller and varied sizes to accommodate subs that can only claim prior experience on jobs up to smaller sizes. For example, instead of bidding out all the electrical together, the job could be divided into several jobs with contract values between $1-5 million, $5-15 million and >$15 million.6
Arrange for earlier or more frequent pay schedule for small subs with serious working capital limitations.
Assign a 5% bonus adder on bids that use greater than an assigned % local labor (they did a school district job w this provision).7
Require or request participation for large companies in mentor-protégé program so smaller subs can be teamed with them.
Require First Source Hiring within Project Labor Agreements.
[Key Takeaways]
The City of Richmond should host a preconstruction workshop to allow GC’s and subs to meet each other and prepare for the RBC bids. The event should be timed just after the Conceptual Design is finalized, leaving as much time as possible ahead of the bidding on construction to facilitate companies in getting organized and cementing partnerships. The event should include
Information session on the RBC design, construction opportunity, and prequalification requirements. GC to Sub “matchmaking” workshop. All participants should fill out a brief profile ahead of time (or at event entry) that will be distributed to all other participants and kept on record as data on the construction base in Richmond. Arrange rotating “face-to-face” meetings of subs/GCs at the event.
6 Interview with Larry Etchevarry, Overaa. 7 Interview with Bob Alten, Alten Construction. 10 RICHMOND BAY CAMPUS REPORT
Phase II: Lab Operations & Growth [2018+]
The eventual co-location of related and complementary businesses and expansion of the Lab is estimated to result in an economic output of $879 million. The direct campus procurement expected from LBNL alone is $76 million annually. We analyze the direct spending patterns at LBNL to determine priority areas for Richmond businesses to work with the RBC, and the systems and procedures used to make register and select suppliers.
Procurement at Lawrence Berkeley National Labs
LBNL and UCB both express interest in procuring from local, small businesses, where possible. Local procurement programs of LBNL and UCB involve the purchasing choices of many different decisions makers. Discussions with LBNL and UCB procurement staff suggest that success in procurement will require significant relationship building on the part of the City of Richmond, local business associations, and individual Richmond businesses seeking to supply RBC.
LBNL Small Business Preference Guidelines
As a federally funded agency, LBNL is prohibited from favoring local businesses in procurement. However, LBNL has set internal goals for small business procurement and dedicated full time staff to small business outreach. These small businesses are based on the Small Business administration (SBA) qualifications and tend Small Business Guidelines to be both small and local to California. LBNL sets ambitious small business procurement goals each year Purchase • Mandatory set-aside for small business with the DOE. In 2012, LBNL exceeded its goal of Orders < $150K 50.2% procurement from small businesses and Purchase Orders • Designated for small business if competition reached 52.5% procurement. As a result, its goal for >$150K < $499K exists the FY 2013 has been increased to its 52.5%. Purchase Orders > • Advance Acquisition Alert process is required Whenever possible, LBNL adheres to the following $500K formal guidelines exist for small business procurement based on project size: Subcontracts < • Can be sole-sourced for Hubzone, Service- $3M Disabled Vet, and 8(a) with some exceptions
LBNL’s FY13 Small Business Goal: 52.5% July 12, 2012 – Berkeley Community Advisory Group How to Participate LBNL Procurement Process 13
The City of Richmond should help position Richmond businesses for success by helping them navigate the official registration systems and steps at LBNL and UCB. The following information should be communicated to small businesses in Richmond.
Official Registration Systems
1. Register in the System for Award Management (SAM) required for Federal Procurement - www.sam.gov 2. Certify as a small business with the State of California - www.sba.gov 3. Register as a Small Business in the LBNL Outreach Procurement Directory - www.LBNL.gov/Workplace/CFO/pro/small-bus 4. Fill out the Berkeley Lab Supplier Registration Form
RICHMOND BAY CAMPUS REPORT 11
Check for Opportunities
Contracting Opportunities at http://www.LBNL.gov/Workplace/CFO/pro/small-bus Construction & A/E Division Opportunities at facilities.lbnl.gov
Guidance and Contacts
Contact a Subcontract Administrator o Procurement Information Desk, (510) 486-4571 Contact an End User within a technical division if referred; Schedule a visit to the Laboratory; Send literature to either Subcontract Administrators or End Users directly; Contact the Laboratory’s Small Business Liaison Officer if you are a Small, Hubzone, Veteran-Owned, Small Disadvantaged or Woman-Owned Business; or All of the above. o Small Business Representative, Hanh Kent, (510) 486-4596 Other Subcontract Administrator contact information is included in the appendix and the following LBNL website: http://www.LBNL.gov/Workplace/CFO/pro/business.html
Procurement Systems at UC Berkeley
UC Small Business Guidelines
As a state-funded education institution, the UC System is increasingly price-sensitive and focused on cost savings due to budget constraints. The UC has eliminated previous requirements for local or small business procurement, and awards contracts and bids based on competitive prices.
However, individual buyers in the UC system may still prefer to buy from small or minority owned businesses, and UC procurement systems include information to identify qualifying businesses as small or minority owned. Small or minority owned businesses can use the Small Business Administration (SBA) website and the State of California Department of General Services website to determine if they meet the criteria to certify as small or minority owned businesses.
How to Participate UCB Procurement Process
1. Register in the System for Award Management (SAM) required for Federal Procurement - www.sam.gov 2. Certify as a small business with the State of California - www.sba.gov 3. Register in the Supplier Registration and Sourcing (SRS) System - https://suppliers.sciquest.com/UCOP/Supplier/Supplier_Faq.aspx
Check for Opportunities
Construction Opportunities at www.cp.berkeley.edu/AdsForBids.html Contracting Opportunities at procurement.berkeley.edu/bid-opportunities/campus-bid-opportunities and https://suppliers.sciquest.com/UCOP/Rfx/BidOpp_List.aspx
Guidance and Contacts
Review official guidance: procurement.berkeley.edu/doing-business-uc-berkeley Contact Procurement Services Help Desk: (510) 643-8201 or [email protected] Sample construction agreements - http://www.cp.berkeley.edu/ContractsAgreemnts.html
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Official Procurement Registration Systems at a Glance
OFFICIAL SYSTEMS GUIDANCE & CONTACTS
LBNL Register in the System for Award Review official guidance: Management (SAM) required for Federal http://www.lbl.gov/Workplace/CFO/pro/small-business.html Procurement: www.sam.gov Contact the LBNL Small Business Office:
Certify as a small business with the State of Small Business Liaison Officer, Hahn Kent California: www.sba.gov [email protected] 510.486.4596
Register as a Small Business in the LBNL Subcontract Administrator Procurement Outreach Procurement Directory: Information Desk, 510.486.4571 www.lbl.gov/Workplace/CFO/pro/small-bus
Fill out the Berkeley Lab Supplier Registration Form
Check for Contracting Opportunities at http://www.lbl.gov/Workplace/CFO/pro/small-bus
Check for Construction & A/E Division Opportunities at facilities.lbnl.gov
UCB Register in the System for Award Review official guidance: Management (SAM) required for Federal procurement.berkeley.edu/doing-business-uc-berkeley www.sam.gov Procurement: Contact Procurement Services Help Desk: Certify as a small business with the State of [email protected] 510. 643.8201 California: www.sba.gov Sample construction agreements: Register in the Supplier Registration and http://www.cp.berkeley.edu/ContractsAgreemnts.html Sourcing (SRS) System:https://suppliers.sciquest.com/UCOP/Sup plier/Supplier_Faq.aspx
Check for Construction Opportunities at www.cp.berkeley.edu/AdsForBids.html
Check for Contracting Opportunities:
procurement.berkeley.edu/bid- opportunities/campus-bid-opportunities
https://suppliers.sciquest.com/UCOP/Rfx/BidO pp_List.aspx
RICHMOND BAY CAMPUS REPORT 13
BearBuy
BearBuy is a new online purchasing website that launched in June 2012 for UC faculty and staff. It was created with the goal of consolidating UC purchasing power to lower system-wide procurement costs. BearBuy streamlines purchasing and payment, but is not required or mandatory. Although BearBuy is still a very new system that is still being adopted by UC users, future RBC procurement for UC divisions may occur increasingly through BearBuy.
Campus departments use the online procurement system, BearBuy, to place purchases with outside suppliers. The first supplier launch phase of BearBuy within web-based catalog suppliers focused on office supplies. With two years of advance notice and small business outreach, only 5 local office supply businesses were qualified to supply on BearBuy. Of these five, the lowest priced supplier, Giving Something Back Office Supplies, was selected as the featured and flagged as a small business office supplier.
BearBuy plans to expand the online procurement for catering in the spring or summer of 2013, but is not live or accepting catering menus yet.
The system offers UCB staff the opportunity to purchase through online catalogs with strategically sourced suppliers. BearBuy flags small, diverse, or sustainable business suppliers to help identify priority suppliers. Purchasing transactions for UC Berkeley staff starts in the BearBuy procurement system where they use the BearBuy online catalogs or by simply complete a BearBuy form.
In general, businesses should meet these requirements to sell to UCB8:
Maintain a company website that is current and regularly update
Hold insurance which meets the University requirements
Accept credit card payment for purchases less than $5,000
Generate online invoices (preferably an electronic invoicing system for computer generated invoices) that can be accessed through the university's online portal; and,
Offer a desktop delivery system with business processes to support that system, which can accommodate the University's numerous locations.
For additional information, see Appendix B: Doing Business with UC Berkeley.
UC Berkeley makes the following recommendations for suppliers, which should be shared with Richmond businesses though outreach and a registration drive:
Market your goods and/or services directly to UCB departments
Develop relationships with departmental purchasing staff and business managers. Provide information to departments about new offerings that your business can provide.
Advertise and/or participate in University sponsored marketing events
8 http://procurement.berkeley.edu/doing-business-uc-berkeley 14 RICHMOND BAY CAMPUS REPORT
When a department wants to purchase goods and/or services, you will need to fill out a Business
Information Form (BIF). The information is then entered into the UC Berkeley financial system, so that a purchase order can be created and payment can be made to the supplier.
Complete a Business Information Form (BIF) - Fax: (510) 642-8604 or mail to Vendoring, 1995 University Avenue, Suite114, Berkeley, CA 94704-5600
Supplier Registration System Hosts All Public Bid Opportunities & Information
As of November 16, 2012, the University of California also has new Electronic Supplier Registration and Sourcing System (SRS). The site will publicly list bid opportunities for all 10 UC campuses, allow suppliers to create a profile for their business, and flag qualified businesses based on diversity status and small business status.
• Previously: transactional registration, need to get selected, will only register if we need to pay you, not helpful for searching for suppliers
• Goal: database of potential supplier
• Not fully utilized as a resource today (300 vendors registered), but will grow over time
• Website for SRS Registration: https://suppliers.sciquest.com/UCOP/Supplier/Supplier_Faq.aspx
• Bid Opportunities: https://suppliers.sciquest.com/UCOP/Rfx/BidOpp_List.aspx
According to Justin Sullivan, this system is new and under-utilized, with a limited number of suppliers registered.
Richmond businesses should become registered as a first step in developing a procurement relationship with UC Berkeley and the rest of the UC System.
According to Gina Baker, past in-person registration drives in Richmond have been successful in certifying a large number of Richmond businesses with official small business status.
Procurement Analysis
In order to create a supply chain and procurement model tailored for the RBC, we gathered historical spend for the LBNL and UC Berkeley divisions that will likely operate at the RBC.
UC Spending
Spending data from UC Berkeley shows that $841.6 million in 2012. At present, the College of Engineering operates a small facility in the Richmond Field Station. Total spending for the entire College of Engineering shows it ranks second compared to other UCB departments.
Since the departments that will be moving to the RBC are uncertain, spending in 2012 for all departments is included below, excluding administrative and facility department spending:
RICHMOND BAY CAMPUS REPORT 15
Organization Total Spending %
VC Res Other Research Units $51,000,691 6.1%
College of Engineering $46,983,930 5.6%
School of Social Welfare $28,069,790 3.3%
VC Res Organized Rsearch Units $26,343,270 3.1%
School of Public Health $25,959,696 3.1%
Haas School of Business $22,498,737 2.7%
L&S Biological Sciences $22,124,357 2.6%
Boalt School of Law $13,276,761 1.6%
LIB UC Library $13,114,741 1.6%
VP Tch, Lrn, Acad Plan & Fac $12,878,573 1.5%
College of Chemistry $11,078,075 1.3%
L&S Math & Physical Sci $10,688,541 1.3%
College of Natural Resources $9,535,404 1.1%
Cal Performances/SMA $7,925,263 0.9%
VC Res Administrative Units $6,837,986 0.8%
School of Optometry $6,162,614 0.7%
Graduate School of Education $5,157,874 0.6%
L&S Arts & Humanities $4,488,296 0.5%
L&S Social Sciences $3,478,695 0.4%
VC Res Museum & Field Stations $2,087,388 0.2%
Art Mus & Pacific Film Archive $2,040,902 0.2%
16 RICHMOND BAY CAMPUS REPORT
Col of Environmental Design $1,412,078 0.2%
School of Journalism $1,245,295 0.1%
L&S Col of Letters & Sci Dean $871,795 0.1%
VC Research $712,430 0.1%
Goldman Sch of Public Policy $579,405 0.1%
School of Information $576,385 0.1%
L&S Undergraduate Division $541,646 0.1%
Graduate Division $513,230 0.1%
Exec Vice Chanc & Prov $450,260 0.1%
VP Acad Affairs & Fac Welfare $188,536 0.0%
Academic Senate $122,221 0.0%
The College of Engineering advanced manufacturing operations within the RBC in the future. Thus, we include a summary of the most recent year of Engineering spending in this report.
UCB Spend Data for 2012 shows that the College of Engineering spent $46,983,930 or 5.6% of the total UC Berkeley spending of $841,628,265.9
A closer examination of the Engineering spending based on UNSPSC codes (a worldwide classification system for products and service managed by the United Nations) shows the breakdown of spending for 2012.
9 UC Berkeley Spending Data obtained from Andrew Clark, Sourcing Data Supervisor for UC Berkeley and UCSF, Campus Procurement and Contracting, for 1/1/2012 - 12/31/12. RICHMOND BAY CAMPUS REPORT 17
Spending at LBNL
Historical procurement data from 2010-2012 was obtained from LBNL and segmented to isolate the spending for labs moving to the RBC.10 LBNL Spend Data from October 2009 to September 2012 shows that annual spending was $76M. A detailed breakdown of spending by year and NAICS category is detailed in the chart below:
10 LBNL Spending Data obtained from Hanh Le, Small Business Liaison Officer, LBNL Emeryville, for 2010-2012. 18 RICHMOND BAY CAMPUS REPORT
AREAS OF PROCUREMENT OPPORTUNITY 1% Professional, Scientific, and 1% 1% Technical Services 2% 0% 1% Manufacturing 6% Wholesale Trade $76M 11% 44% Real Estate and Rental and Breakdown 13% Leasing by Industry Educational Services
20% Other Services (except Public Administration)
Administrative and Support and Waste Management and Remediation Services (Based on historical average for FY10-FY12 by NAICS Code)
Of the $76 million, $26 million was purchased from small business entities.
SMALL BUSINESS PROCUREMENT
3% 4% Wholesale Trade
7% Real Estate and Rental and 37% Leasing 15% $26M Manufacturing Breakdown by Category Professional, Scientific, and Technical Services 34% Administrative and Support and Waste Management and Remediation Services Others
(Based on historical average for FY10-FY12 by NAICS Code and Entity Code)
RICHMOND BAY CAMPUS REPORT 19
Framework for Procurement Prioritization
Richmond can use a prioritization framework to filter the expected spending and economic opportunity areas, and identify where the City should effectively focus its efforts. The criteria include: a) overlap with existing Richmond business and b) advantages of co-location near RBC as well as small business procurement size. a) Overlap with existing Richmond business
Manufacturing and Wholesale Trade are the top two categories that Richmond should focus on, because of a certain level of overlap with existing Richmond Business as well as the size of opportunity. While “Real Estate and Rental and Leasing” was previously a large spending category, it will cease to exist after LBNL moves out of its existing rental agreements and onto the RBC campus, which is owned by UC Berkeley.
For additional detail about the number of Richmond businesses broken down by overlap with the RBC development, see Appendix E: The Richmond Economy.
LBNL Spending Segment $M/year Richmond Industry # of Businesses
Real Estate and Rental and Leasing $9.6 Real Estate 181
Manufacturing
- electronic computer $8.6 Manufacturing 61 - computer storage device
- other communication equipment etc.
Wholesale Trade
- printing paper merchant wholesalers $3.9 Whole Sale 51
- office supplies etc.
Professional, Scientific, and Technical Services
- landscape architectural
- drafting $1.7 Consulting Service 235
- geophysical survey and mapping
- HR consulting etc.
Grand Total $26 Grand Total 3,300
20 RICHMOND BAY CAMPUS REPORT
Small Business Vendor RBC Spending b) Advantage of co-location near RBC ($M/year) Businesses that need close communication with RBC or in-person communication to RBC will be #1 ES EAST LLC 7.1 willing to relocate their business in closed place to RBC. These businesses can be those not just need #2 GOVERNMENT SCIENTIFIC SOURCE INC 5.0 supply but also need maintenance. The top spending vendors in small business entity by #3 INTEGRATED ARCHIVE SYSTEMS 1.6 category are detailed in the table. #4 CASTLEROCK I LP 1.5
#5 G2 TECHNOLOGIES 1.1
Biofuels may not be the best option for cluster #6 ABEC INC 0.7 production because land intensive feedstocks, but other industries like biomedical and #7 USFALCON INC 0.6 biopharmeceutical production are more likely to want to be close to areas of primary research. #8 PACIFIC BIOSCIENCES INC 0.6
#9 ACTIVE MOTIF LLC01 0.5 Recommendation: City can target high priority businesses and companies for cluster #10 FINE TEC COMPUTER 0.5 development in this category
In the long term, promising businesses with co-location advantages would be ideal industry partners to target for a Richmond cluster. The next section of the report details how the City of Richmond could assist in developing a cluster anchored around the RBC.
RICHMOND BAY CAMPUS REPORT 21
TABLE 15. Top 10 sectors for employment, modest Comparison of Impacts cluster scenario Sector Jobs These scenarios re ect the assumption that any signi - 4. LongManagemen Termt of companies Economic and enter Development:prises 720 Labcan tExpansion amount of clust &er Clusterdevelopmen Formationt will provide mor e employment than possible from the Lab alone. A recent GreatScien potentialti c resear existsch and for devtheelopmen growth tof ser avic biosciencees or 713energy relatedreport oneconomic the Lab “cluster” also not aroundes that the the Richmond economic impacts of the Lab’s spin-o companies “exceed the impacts of the Bay Campus. A cluster is a concentration of related businesses in a supply chain. This concentration can create Wholesale trade businesses 565 Lab itself” due to the greater number of aggregate jobs.1 momentum driving further economic development, by facilitatingThe the IMPLAN commercialization results provide of LBNL us with and aUC new research, insight about facilitatingFood ser collaborationvices and drink anding knowledgeplaces sharing between140 businessesthe impor and tancresearche of balanc institutions,ed clust creatinger developmen an t. innovation ecosystem that attracts businesses to Richmond, developing a workforce with industry specialization, Real estate establishments 136 Figure 144 compares the job impacts of the two Second creating opportunities to coordinate through discounted buying Cprograms,ampus sc enarand iosother with opportunities. that of var ious scales of cluster ClustersEmplo ymenexhibitt ser avic “networkes effect.” The more companies80 dev participate,elopment. B ythe compar moreing valuable the impac thets cluster for the LBNL Second Campus to the Modest Cluster (Scenario 2), it is Services to buildings and dwellings is to all62 involved.clear that the induced and indirect employment impacts Three types of complementary businesses should come to createar ea prhealthyoportionally cluster ecosystemgreater for. theEach M hasodest different Cluster than O ces of physicians, dentists, and other health 55 for the Second Campus scenarios. In other words, the job needs,prac andtitioners must be attracted with a different economic developmentmultiplier strategy. is higher for the cluster scenarios—with 1 in- 1.Pr ivaStteart hospitals-ups may develop by “spinning out” from LBNL49 research,duced oror indirmoveec tot job Richmond created ftoor workeach withdirec LBNLt job—than for the Lab, which results in only 0.4 induced or indirect jobs Managemenresearcht, inscien anti incubator.c, and technical consulting 45 created for each direct job. Thus, the IMPLAN results sug- 2.ser vicSmalles or medium sized “expanders” may be attracted togest Richmond that a clust for affordableer with a mix real of estate sectors nearby provide other mor e eco- nomic bene ts for a given amount of spending than the energy or bioscience innovators. To attract these businesses,Lab alone promote. This undersc Richmond’sores theavailable impor sitestanc e of fostering a Clustthrougher emplo regionalymen economict and sp endingdevelopment organizations andclust prominentlyer ecosyst em. on the website. The Easy Bay Green Corridor keeps a list of “opportunity sites” online, which currently lists two locations.11 All cluster scenarios result in a job multiplier of ap- In terms of the bioscience rms that will populate the clus- pr3.o ximaLargetely or 2.0. medium That issized, for “innovationevery job in seekers” the clust mayer, anbe- attractedter, our by analy accesssis ofresearch LBNL’s commercializationhistory of technology transfer otheropportunities. job is created This thr oughwhy Pfizer spending and Johnson by clust &er Johnson sup- suggestshave representatives that the clust ater Mission will need Bay t oin a Santtrac t a signi cant pliers or cluster employees. Table 13 summarizes the number of companies in addition to LBNL spin-o s. Francisco, for example. To attract these businesses, flexible zoning should promote bioscience and office direct, indirect and induced jobs created in each scenario. Each developmentdollar of output on bRBC’sy a rsitem in or the as clustnearer as r esultspossible. in ap The- 1degree CB richar LBNLd Ellis focuses 2010. on commercializing research proximawillt alsoely $0.65 be a significantof output bfactor.y other rms in the region due to indirect and induced impacts, as shown in Table 14. FIGURE 14. Comparison of employment impacts for Cluster Scenarios Second Campus and cluster scenarios. Table 155 shows the top ten industries for employment in Direct jobs Indirect and induced jobs Modeledour medium Potential spino Impacts scfromenar $69Mio, based – 3.97B on Dep a totalending of ondir Sizeect, indirect and induced jobs in each sector. (These top ten 16,000 & Compositionsectors are the same for both the high and low scenarios, 14,000 Scenariothough 1: theScattered order isSpin sligh-offstly Fivechanged spinoffs,, and with of caourse small the employment numbers are di erent.) As expected, the top researchthree secoutfit,tors a ar couplee the samesmall seclabs,tors and which a couple we speci mediumed -f or 12,000 sizeddir firms.ect emplo yment. Food services and drinking places, as well as real estate establishments have the next highest 10,000 Scenarioemplo 2:ymen Modestt, with Cluster a total 20 of firms,140 and including 136 jobs a rcoupleespectiv bouely-. tiqueThese firms, ar esome sect orsmedium that -likelysized firrecms,eiv eone business Amyris -frlevelom both 8,000 biosciencerms and success, households and two. co-locating offices. 6,000 Scenario 3: Major Regional Cluster Mix of research centers, start-ups, successful companies, major player relocations, 4,000 co-locating firms, and retail and entertainment. 2,000
- Second Campus Second Campus Scattered Modest Major Regional Phase 1 Phase 2 Spin-o s Cluster Cluster 11 http://www.ebgreencorridor.org/opportunity_sites.php 2237 RICHMOND BAY CAMPUS REPORT
Recommendations to Support Cluster Development
The City of Richmond can develop strategies in 3 key areas to support a bioscience cluster: Overall Leadership & Vision, Workforce Development, and Zoning.
Overall Leadership & Vision
The City of Richmond plays a critical role in overall leadership and vision for a Richmond-based cluster but it cannot create a cluster on its own. Rather, cluster development may occur by convening the businesses, regional organizations, and research institutions that have an interest in cluster development in Richmond. Below are suggested steps towards convening a cluster.
1) LBNL and UC would anchor any bioscience cluster in Richmond. The first step in to ask their explicit commitment to help develop vision for a bioscience economic cluster in Richmond, collaborate with businesses seeking to engage their research, and potentially host incubator or open R&D prototype development space.
2) Solicit the input of bioscience developers in for the South Shoreline Specific Plan. As a starting point, we have provided a database of developers in Appendix F: Regional Bioscience Developers.
3) Form a Cluster Visioning Council, including industry representatives as well as UC and LBNL.12 Interviews with some cluster development organizations suggested that, for a cluster leadership organization to build strong relationships with industry and recruit business to Richmond, that organization should be led
12 Potential organizations include LBNL (Mary Maxon would be a great candidate), UC, Biorad, Chevron, Department of Justice Labs, Joinn, Firstenberg Machinery, MTI Corporation, Estes Commercial Refrigeration, CytoCulture Environmental Biotechnology, Sunpower, Interllergy, Heliodyne, Vetrazzo, and Pax Water Technologies.
RICHMOND BAY CAMPUS REPORT 23
by businesses rather than the City. Industry may be skeptical that a group led by the City shares their perspective and interests. (One comment: “Everyone looks beautiful to their mother.”)
a. For the first meetings, the goal of gathering is to agree that there is an opportunity, and participants want to be a part of realizing it. Start with small group of champions, ten or fewer, to best come to consensus and initial strategy. In initial meetings, this group would consider:
. Who would want to move to RBC?
. What do parties want from a cluster?
. Who wants to work with LBNL?
LBNL representative David Skinner began a process of compiling the needs LBNL will have at RBC that local companies may be able to fill, and the opportunities that LBNL may be able to offer to local companies. A draft of this plan is included in Appendix G. We recommend that prior to meetings, the City work with LNBL to complete this document, and use it as the basis for a discussion of how local industry could interact with LBNL. Companies involved could then prepare similar documents explaining their own needs and opportunities for the RBC partners to consider.
b. In the short term, this group would help form the vision for the Richmond cluster, reach out to other companies and regional groups, and help influence LBNL and UC’s RBC plans.
4) Expand the Cluster Visioning Council through a Request for Information (RFI) process: To reach a larger group, start with a RFI survey asking energy and bioscience businesses whether interested in supporting a bioscience and energy cluster. For key players, direct phone calls may be best.
a. Ask developers: What would you want to develop here?
b. Ask companies: Are you interested in Richmond developing a concentration of bioscience and energy businesses, with the opportunity for collaboration with each other, shared services, and LBNL and UC? Would you be interested in locating in Richmond?
c. Lay groundwork for RFI in advance, by talking with a few companies and developers who will commit to responding to the RFI.13
d. In the RFI, present a value proposition indicating how they'll benefit from cluster development. Benefits include: Better access to LBNL and UC research, attracting investment capital, attracting suppliers, developing a pool of workforce talent, developing Richmond's appeal to potential employees to help attract talent, building an environment of innovation where ideas thrive and connectivity creates opportunities.
5) In the medium term, this Cluster Visioning Council should become a steering committee for cluster leadership nonprofit, analogous to i-Gate at LVOC, to champion cluster development. This organization would brand and market the cluster, potentially coordinate buying groups if this need in unmet by Bay
13 For more ideas on the RFI, talk with Camille Bibeau at Lawrence Livermore National [email protected], 925-442-7798
24 RICHMOND BAY CAMPUS REPORT
Bio, and host MeetUps, workshops, trainings, and events. It would operate the incubator discussed above, and engage the host of regional economic development organizations. These include:
a. BayBio - http://baybio.org/
b. East Bay Green Corridor - http://www.ebgreencorridor.org/
c. East Bay Economic Development Alliance - http://www.eastbayeda.org/
d. Manex - http://www.manexconsulting.com/
e. Berkeley Emeryville BioNexus – Jennifer Cogley at the City of Berkeley is the contact
f. Energy Bioscience Institute - http://www.energybiosciencesinstitute.org/
g. AM2PED Advanced Manufacturing Cluster
Budget & Direct Funding for Cluster Organization
Nonprofit Cluster Leadership Organization: Brandon Cardwell of i-Gate estimated it would take an annual budget of at least $500k to run a robust nonprofit that can be influential and impactful, although that does not include the provision of extensive business services or the ability to offer subsidized office/lab space to start-ups. i-GATE is an example of a cluster non-profit funded largely (70% currently) by municipal governments.
Many clusters (Purdue Research Park, UCSF Mission Bay, and others) were partially funded through special assessments and/or tax increment financing (TIF).
With the dissolution of CA RDA’s, replicating those policies appears infeasible, but the city should follow and support legislation that could reinstate some of these options. Currently, Assembly Bill 690 in the CA Assembly is promising, as it would create similar “Jobs and Infrastructure Districts” where TIF would be permitted.14
Policy Toolkit for Cluster Support
14 For more information, see http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB690 RICHMOND BAY CAMPUS REPORT 25
In-Kind Support
Where direct funding or special assessments are not possible to support cluster upfront investment, the City of Richmond should consider the in-kind support it may be able to provide or arrange for the cluster.
Zoning Recommendations
Create flexible zoning in the area surrounding the RBC that allows for a mix of uses under a master use agreement
Create flexible zoning which explicitly allows in its language the most common research practices and equipment. Allow for supporting uses like light manufacturing, offices, and wholesaling in the same zone as research.
Zone for amenities (retail, residential) as close as possible to encourage RBC staff to move to Richmond. Include this on the map and outreach to developers.
Example: The Purdue Research Park is composed to two main types of zoning:15
Office Research zones permit any mix of experiemental labs, support facilities, and light manufacturing;
Neighborhood Business zones support all standard housing and amenities, retail.
Develop a guide or map of the area around RBC that trasnaprently shows the zoning and highlights:
o where zoning and infrastructure are best suited to bioscience companies uses
o where Enterprise zones may provide financial incentives
Connect developers and potential tenants so developers can see demand, hear needs for space build out
o Host a developer-tenant networking or ‘speed dating’ event
Provide clear communication and education to citizens to fend off any fears of bioscience being a hazard
o The Community Benefits Agreement could be an avenue to ensure that concerns about negative health or safety impacts are addressed formally
Case Study: QB3 and Mission Bay
QB3 Overview
QB3 was founded by the University of California in 2000 to create economic development in California though UC scientific research in quantitative biosciences.16 It is a joint venture between UC San Francisco, UC Berkeley, and UC Santa Cruz. QB3 connects researchers with commercialization support, companies, and capital, in an integrated approach designed to “decrease the friction for commercialization.” QB3’s locations include a research building on each of the three university’s campuses, as well as three incubator sites at Mission Bay and
15 http://purdueresearchpark.com/sites/default/files/covenants-rv0501101.pdf 16 Addition detail on nine themes for research within quantitative biosciences is here:
26 RICHMOND BAY CAMPUS REPORT
two in Berkeley. Today, 61 companies rent space in the incubator network. QB3 launched companies have created 280 direct jobs and raised $230 million in venture financing.17 Moreover, QB3 has been a key component supporting the broader redevelopment of the Mission Bay neighborhood.
Programs
The central goal of QB3 is to facilitate the commercialization of UC bioscience research. To support this process, QB3 provides an integrated set of services.
1. Research – The research taking place at UCSF, UC Berkeley, and UC Santa Cruz is the source of commercial opportunities that QB3 takes place.
2. Developing an idea – In order to help identify opportunities to commercialize research, QB3 brings researchers into conversations with each other and with industry, through shared space, events, and seminars. Industry partnerships connect UC researchers, entrepreneurs, and industry scientists to exchange info, mentor each other, and identify funding opportunities. Grants of $100,000, provided by the Rogers Family Foundation are designed for “bridging the gap” between research funding and start-up funding.
3. Forming a business – Once an idea has been identified, QB3 assists entrepreneurs in forming their business through the “Startup-In-A-Box” program. This provides assistance with legal steps such as incorporation, mentorship, assistance applying for Small Business Innovation Research (SBIR) grants that similarly “bridge the gap”, coaching, development of a pitch deck, and other key start-up activities which may appear to be significant hurdles for scientists without previous experience launching a start-up.18
4. Starting operations – Business that have been formed can be provided bioscience real estate space at the QB3 Garage@Berkeley and QB3 Garage@Mission Bay incubators, the QB3/PharmChem Digital Garage at Mission Bay, QB3 East Bay Innovation Center in West Berkleley, or connected to space provided by private developers at Mission Bay.19 In addition to the connectivity benefits, incubation through QB3 provides access to UC equipment which is generally to expensive for a single small lab to purchase. This includes MRI scanners, genome sequencers, supercomputers, and other expensive hardware.
5. Accessing capital– QB3 founded its own venture capital firm, Mission Bay Capital, to grow QB3 companies and provide returns to the University of California. In addition, the concentration of start-ups and networking opportunities have drawn other VC to have a presence at Mission Bay. Pfizer, the most prominent of several industry partners, makes seed stage investments.
17 This excludes the indirect and induced economic development which would increase these figures. 18 http://www.qb3.org/startups/box 19 http://www.qb3.org/startups/qb3-garage RICHMOND BAY CAMPUS REPORT 27
6. Business acceleration – Once a business is ready to grow, QB3’s Accelerator program connects business with contractors who provide business services such as accounting, HR, legal, lab supplies, and other needs.20
Cluster Focus
Rather than branding around specific research that was taking place at UCSF Mission Bay, QB3 maintained a broad focus on quantitative biosciences. QB3 Associate Director Douglas Crawford explained that, “We’re terrible at predicting where innovation will go.” His recommendation that a cluster avoid narrow focus was shared by iGate, which has struggled with an initially narrow focus on cleantech transportation, but found that much of the interest it found was in unrelated hardware businesses.
Future Partnership Opportunities: QB3 Garage@RBC
QB3 is interested in considering a role at the RBC development and possibly operating an incubator there, according to Douglas Crawford. This could take place as 20,000sf – 30,000sf building at RBC, or be located inside an LBNL lab. A very rough estimate of start-up costs suggests that an incubator could cost $10M, including $5M in tenant up-fit and $5M in start-up operations. 21
QB3’s Economic Development Role
In considering the potential benefit of an incubator located at RBC, comparing QB3’s Berkeley and San Francisco locations is illustrative of the difference between a bioscience incubator and a well-funded and ambitious neighborhood revitalization program supported in part by a bioscience incubator.
The QB3 Garage@Berkeley is located inside Stanley Hall on UC Berkeley’s campus. Stanley Hall houses the Department of Bioengineering, classrooms, auditoriums, faculty research labs, and a relatively modest 950 square feet of shared laboratory space. This includes eight incubator stations, which provide desk space and network connections. Tenants also share a prep bench with standard lab facilities. Being located on campus in a fully developed area of Berkeley, the QB3 Garage@Berkeley has served its incubation function but has not spurred major neighborhood redevelopment.
QB3’s programs at Mission Bay, on the other hand, have been a part of that neighborhood’s redevelopment from underutilized industrial space to a vibrant neighborhood anchored around medical research. Mission Bay now offers luxury and affordable condominiums, restaurants, and the commercial space that includes the headquarters of Old Navy clothing company and Salesforce.com. As a reflection of its role in branding Mission Bay as an exciting innovative environment, the San Francisco Chronicle described QB3 as “a widely publicized cornerstone of Mission Bay.”22
In collaboration with the now-closed San Francisco Redevelopment Agency, Mission Bay was developed privately by the Mission Bay Development Group (MBDG). MBDG is a spin-off of real estate developer Catellus, which owned the land. The project is entitled to include:
20 http://www.qb3.org/startups/accelerator/partners 21 According to Crawford, the City of San Jose spent a similar amount founding the San Jose BioCenter. 22 “UCSF Mission Bay marks 10 years,” Erin Allday, SF Chronicle, January 23, 2013. 28 RICHMOND BAY CAMPUS REPORT
• 6,000 housing units, including 1,700 (28%) affordable. • 4.4 million sq. ft. of office and biotechnology commercial space, • 500,000 sq. ft. retail space, • A new UCSF research campus containing 2.65 million sq. ft. of building space on 43 acres of land donated by the developer and City, • UCSF hospital complex • A 500-room hotel • 50 acres of parks and open space. 23
In addition, the City of San Francisco is providing a new 500-student public school, a public library, fire and police stations, and other community facilities.24
Mission Bay is expected to create more than 30,000 new permanent jobs, in addition to hundreds of ongoing construction jobs. Development began in 2000 and will take place over 20 to 30 years. Total development cost for Mission Bay is expected to exceed $4 billion.”
As of January 2010, 3,126 housing units, including 674 affordable units, have been constructed in Mission Bay. An additional 319 units are under construction. More than 1.7 million of commercial office and biotechnology lab space has been built, with five additional projects totaling 1.3 million square feet in predevelopment. Seven buildings have been constructed on the UCSF campus, including five research buildings, a campus community center, and a university housing development. More than 12 acres of new parks and open space have also been completed.”25
Conclusion
The greatest economic development benefit of QB3 has been the attractive force it has provided to the wider Mission Bay redevelopment effort. Mission Bay’s tremendous success presents a best possible scenario for any cluster, supported the unusual combination of an extremely attractive San Francisco location and significant vacant land and. It is not likely that Richmond will be able to achieve the scale of a Mission Bay. From the QB3 and Mission Bay example, we conclude that an incubator alone will not create significant jobs. But the excitement, business opportunities, and branding zip an incubator could create have the help innovation-focused development take place around RBC.
Development Timeline
Mission Bay Entitled 1998 Established in 2000, QB3 is one of four Governor Gray Davis Institutes for Science and Innovation established to accelerate discovery and innovation. In 2006, QB3 launched QB3 Garage, the first startup incubator within the University of California. 2013 3,400 people live and work at Mission Bay, and the campus still has at least another decade of growth before it's filled out residential growth completely. 26 2 million square feet of lab and office space occupied
23 http://catellus.com/wp-content/uploads/2011/02/Mission-Bay-PE.pdf 24 http://www.sfredevelopment.org/index.aspx?page=61 25 http://www.sfredevelopment.org/index.aspx?page=61 26 “UCSF Mission Bay marks 10 years,” Erin Allday, SF Chronicle, January 23, 2013. RICHMOND BAY CAMPUS REPORT 29
As of January 2010, 3,126 housing units, including 674 affordable units, have been constructed in Mission Bay. An additional 319 units are under construction. More than 1.7 million of commercial office and biotechnology lab space has been built, with five additional projects totaling 1.3 million square feet in predevelopment. Seven buildings have been constructed on the UCSF campus, including five research buildings, a campus community center, and a university housing development. More than 12 acres of new parks and open space have also been completed.
Future Expansion
Goal of 4 million square feet of lab and office space
» Case Study: Purdue Research Park Location: Purdue Research Park, Indiana, managed by Purdue Research Foundation
The case study of the Purdue Research Park suggests some additional types of support and strategies for Richmond – possible organizational model, with TIF for the roads, sewers, lighting, and trails.
Leadership & Vision Recommendations
1) Steward a vision – with input from stakeholder, create forums for networks of different actors to come together regularly in Richmond to refine/enact the vision.
2) Build the supply chain – connect local business with LBNL for procurement opportunities within LBNL and other National labs. Support relevant types of businesses to add to the supply chain. accounting, telecommunications, information technology, law, and human resources could all benefit from a growing bioscience company’s business.
3) Making the rules clear: bioscience R&D and business is extraordinarily complicated, and help navigating the many local, regional, and state regulations can help busi- nesses decide where to locate.
4) Branding and advertising: the world should know that the East Bay is growing an innovation cluster.
Workforce Development Recommendations
• Implement an initiative to track educational and workforce outcomes across programs in the region
• Fund public-private employment support services including: a managed online internship and job clearinghouse and social media-based services, and coordination of job fairs
• Support and encourage school to career training partnerships with strong industry involvement to keep pace with rapidly changing industry needs.
• Engage local firms in advanced biosciences curriculum development and provision of internship opportunities.
• Take a proactive role as “regional labor market developers” by directly supporting new or growing bioscience firms seeking to hire locally
30 RICHMOND BAY CAMPUS REPORT
RICHMOND BAY CAMPUS REPORT 31
» Case Study: The Livermore Valley Open Campus (LVOC) and i-GATE Location: Livermore, California
Cluster Summary
LVOC and the i-GATE Innovation Hub are two organizations working to create an innovation cluster around two national labs in Livermore: the Lawrence Livermore (LLNL) and Sandia Lab/California (SNL). They are separate entities with related missions, and their progress can inform efforts in Richmond.
Cluster Mission
LVOC i-GATE
Enhance the two laboratories' national “Maximize the economic impact of.. technologies security missions by substantially increasing through expedited technology transfer, engagement with the private sector and entrepreneurial assistance, collaboration academic community. opportunities, academic alliances, and a technology incubator for the development of high- Stay at the forefront of the science, growth…businesses”1 technology and engineering fields.
Ensure a quality future workforce by expanding opportunities for open engagement of the broader scientific community.
Key Partners
Both LVOC and i-GATE are public-private partnerships that include a wide diversity of stakeholders (including each other) who have coalesced around a common mission. i-GATE partners include 11 City governments, financiers, academia, and Sandia and Industry partners (see appendix for detailed description).
LVOC is a joint collaboration of Sandia and LLNL with support of U.S. Department of Energy's National Nuclear Security Administration and Office of Science. Thus far they have partnered with 8 companies through their High Performance Computing for Energy program, including UTC, IBM, PG&E, and others.
Services Provided i-GATE provides a number of services across the business development cycle and value chain to its client companies:
Mentoring
Business Plan Development
Access to Investment Capital
Technical Assistance/ Technical Transfer Assistance
Intern Support
Manufacturing Process Improvement Consulting
Discounted Contract Engineering/Prototyping
32 RICHMOND BAY CAMPUS REPORT
5. Policy Levers for Richmond Economic Development Procedures
In order to capture the economic potential of the RBC, the City of Richmond must be aware of existing federal policies for procurement that LBNL and UCB must follow, and try to enact new policies to maximize economic development for Richmond. In the following section, we discuss existing federal incentive programs for procurement and potential new agreements and terms Richmond could create with LBNL and UCB to help local Richmond businesses and residents.
Federal and State Business Preference Programs
HUBZones
Historically Underutilized Business Zones (HUBZones) are a US Small Business Administration (SBA) program for small companies. US federal agencies are required to contract with HUBZone certified small businesses for 3% of their budget. As a result, Richmond businesses located within a HUB Zone are at an advantage for federal procurement. The City of Richmond contains the following HUBZones, and would like to expand or change HUBZone boundaries to include the area around the Richmond Bay Campus.
However, the standard process for qualifying as a HUBZone is based on Census Tracts and income levels. Because the Census Tract surrounding the RBC includes the Richmond Marina Bay neighborhoods with higher- income residents, existing Census Tracts are unlikely to be HUBZone eligible. Changing HUBZone boundaries as part of the next 2020 census would require significant effort from the City to engage the Census Bureau, with support of a council of governments and associations in a Participant Statistical Areas Program (PSAP). The census boundary in question already runs along a road, which is considered a clear landmark, so the Census bureau may not be receptive to changing the census tract boundary.
Recommendation: Efforts to expand or change HUBZone boundaries are unlikely to be successful. The City of Richmond should focus on other efforts that would yield greater benefits for Richmond businesses.
Enterprise Zones
The State of California awards financial incentives and tax breaks to under-developed areas within California to incentivize business development. The City of Richmond contains areas that qualify for Enterprise Zone benefits. Since these financial incentives and tax breaks are for the operating business or financing for the business, these programs will provide financial incentives for local Richmond businesses, but will not induce LBNL or UCB to procure for Richmond businesses.
However, these enterprise zone benefits can be helpful for bringing new businesses to Richmond, and should be better communicated as part of Richmond’s future marketing. We recommend marketing the following enterprise
RICHMOND BAY CAMPUS REPORT 33
zone benefits which will be particularly attractive to prospective bioscience and advanced manufacturing firms moving into Richmond:
Benefit Relevancy for Target Businesses
A California income tax credit based on the High sales/use tax paid on purchases of certain qualified equipment
A business expense deduction for business High property
A net operating loss carryover High
Enterprise Zone companies can earn Medium preference points on state contracts
A California income tax credit based on Medium wages paid to qualified employees
An employee tax credit for low wage Low employees
A net interest deduction for lenders Low
Community Benefits Agreement / Community Support Commitment
One tool for drawing economic development benefit from the development of the Richmond Bay Campus is a Community Benefits Agreement (CBA), legally obligating LBNL and UC to provide specific community benefits. Effectively utilizing a CBA tool poses a significant challenge for the City of Richmond to use for the RBC development because of the lack of leverage the City brings to negotiation, and the limits LBNL and UC face as governmental organizations. We have proposed three sets the benefits the City might pursue through a CBA
CBAs are legally binding and enforceable contracts stipulating community benefits provided by a developer in conjunction with a development they are pursuing.27 They traditionally are negotiated between three parties: local government, the private developer, and a coalition of community organizations and organized residents. 28
27 The Community Benefits Law Center, based in San Francisco, can be a resource a resource on this topic.
The goal of a CBA-like agreement for the RBC development is to insure that the RBC partners continue to be committed to supporting economic development in Richmond far into the future. It would codify benefits that LBNL and UC are willing to offer, and create a legally binding commitment to continue this support even if leadership changes, budgets become tighter, or other obstacles arise.
The City lacks leverage traditionally used to obtain legally binding commitments. Cities generally play a key role in CBA negotiations by withholding permitting approval or subsidy until a CBA is agreed upon. In the case of RBC, the RBC development is not receiving subsidy from the City and City has actively campaigned for RBC’s development. Three possible points of negotiating leverage include:
1. the City’s provision of and/or bonding for financing RBC infrastructure such as road, sewage, and utility connections
2. Ease and speed of development approval, and
3. the City’s public support for the project.
Ultimately however, the City’s ability to negotiating exists only to the extent that he City willing to obstruct development at RBC. Presuming the City is not willing with prevent RBC’s development, it may be difficult to obtain legally binding commitments for community benefits that LBNL or UC find to be costly or even inconvenient. During a time of significant budgetary constraints for both the University of California and DOE- funded LBNL, these organizations are likely to be very sensitive about committing to provide costly community benefits.
Alternative approach: Community Support Commitment
We recommend an approach to negotiation that focuses primarily on creating value for the Richmond and the RBC partners. This document could be called a “Community Support Commitment.” Because this situation differs from the traditional CBA situation in important ways, the CBA name may create two types of adverse effects. First, it may create the expectation that the City may find it difficult to meet. Community residents may expect more significant concessions that are possible to obtain. If community groups are not involved in a broad and inclusive way, some may object to being excluded. Previous CBAs have been criticized when Cities take the lead role in negotiation, rather than serving primarily as brokers between community groups and the developer.
More importantly, CBA negotiations are generally adversarial. There is some risk that pursuit of a CBA could introduce an unnecessarily adversarial element to the City/RBC partner relationship and encourage residents to see the RBC development in an oppositional way. We recommend that “Community Support Commitment” be considered instead. This title acknowledges that RBC partners have taken proactive steps to support the community, rather than reluctantly agreed to benefits extracted.
Opportunities to for the Community Support Commitment to create value for RBC partners include:
1) Improved opportunities for research commercialization through spin-offs and partnerships
28 There is precedent for CBAs to be utilized by communities concerned about development by a public entity. For example, CBAs were negotiated around the development of the LAX Airport, which developed by Los Angeles World Airports, a subsidiary of city government. A copy of that CBA is available here:
2) Development a local workforce to serve UC and LBNL
3) The opportunity to develop and then live up to community support and enthusiasm for RBC development
4) Attraction of local suppliers serving RBC
5) Ability to tout benefits that RBC is providing. Increases employee moral and public support
6) The opportunity to build Richmond’s economy—which will ultimately make the area around RBC a more attractive place for RBC employees to live and work.
A Community Support Commitment could be drawn to apply to both LBNL and UC, or to each separately. If one RBC partners is more enthusiastic about participating in a Community Support Commitment, it may be advantageous to negotiate with that party first, then ask the second party to join the agreement.
Community Support Commitment Potential Benefits
Local Cluster Category Employment Education Local Procurement & Contracting Development
*Construction bids of different sizes
*Construction pay earlier/more frequent LBNL Programs expanded to *LBNL: 50% of larger firms as Mentors in Mentor/Protégé programs. UC form a Likely Richmond program, modeled off of LBNL’s. LBNL Internships for HS and CCCC *Outreach programs for local suppliers. *On-site restaurants and retail spaces be leased to local businesses
Compliance with Host incubator Funding for Richmond Local at LBNL Demanding expansion of Biotech Employment Partners nonprofit Fund incubator Program at LBNL
Fund cluster Sponsor a science- Future contractors required to have an leadership Reach focused charter office in Richmond nonprofit (like school i-Gate)
Detailed Potential Benefits to Include in a Richmond Community Support Commitment:
1. Compliance with Local Employment Program – Demanding Ask
36 RICHMOND BAY CAMPUS REPORT
o LBNL & UCB agree to comply with Municipal Code Chapter 2.56, the Local Employment Program, and that RBC construction contractors they hire will also comply. Construction hires represent the greatest job-creation component here. If possible, on-site vendors (cafeteria operators, janitorial services, on- site retail, etc) will also required to apply, though this represents fewer jobs.
o For LBNL and UCB, it seems unlikely that requirement for total local employment (20% work hours in contracting, 30% workforce in retail or office) would be met by or acceptable to LBNL or UCB, who will be moving their Richmond workforce from other locations. It seems possible that the ordinance could be accommodated with regard to LBNL and UCB office and administrative roles, though not for the academic or science positions for which recruiting is national or international.
o The financial penalties for non-compliance may be objectionable to LBNL and UC, though they might find it acceptable to apply the penalty system to their contractors.
o Because compliance would slow and complicate hiring, slow construction processes, potentially limit the choice of retail, service and construction contractors, and create compliance costs, this would be considered a demanding ask.
2) Education – Extension Existing Program to Richmond – Easier Ask
o LBNL’s Center for Science and Engineering Education already offers a range of programs for K-12 students, teachers, and undergraduates. These include internships, workshops, school visits, and events. A complete listing can be found here: http://csee.LBNL.gov/Programs/index.html
o An easy ask would be for LBNL to form a plan to engage Richmond with these programs, or work with the City to do so. For internships and teacher trainings, perhaps a certain number of seats could be set aside for Richmond residents. See Appendix H for a description of these education opportunities.
3) Education – Support for Biotech Partners – Demanding Ask
o Biotech Partners is a science education nonprofit operating in Berkeley and Oakland. With financial or other support, or maybe a simple ask, perhaps it could expand to Richmond. Biotech Partners’ mission is “to help youth from populations underrepresented in the sciences navigate the worlds of work, school and life through a biotechnology-focused curriculum, including job training and internships, that provides access to fulfilling well-paid careers in bioscience and increases opportunities for higher education.”29
4) Education – Support a science school at RBC – Reach Ask
o A bioscience focused charter school located at RBC could engage Richmond students in the bioscience industry, be an attractive amenity to RBC employees, and catalyze further development. High Tech High can serve as a model. It operates three elementary, four middle, and five high schools in the San Diego area.
o LBNL might provide financial support, and work closely with the school on curricular development and operation.
29 http://www.biotechpartners.org/ RICHMOND BAY CAMPUS REPORT 37
5) Local Procurement and Contracting - Mentor/Protégé programs – Easier Ask
o LBNL procurement already makes use of Mentor/Protégé programs, which give smaller businesses a share of contracts that would otherwise go to larger companies by developing a collaborative relationship between the two. 30 These programs require effort from both parties, and so are not a fit in many cases. A goal of 50% participation could be set for LBNL’s larger suppliers. UC procurement does not have a of Mentor/Protégé program like LBNL’s, and could be asked to create one
6) Local Procurement and Contracting - Outreach programs to Richmond suppliers – Easier Ask
o Procurement success requires relationships to be built between businesses and procurement decision makers, enrolment in supplier databases, awareness of procurement opportunities, and active sales efforts. LBNL and UC could commit to a 4 workshops or networking events annually addressing these needs.
7) Local Procurement and Contracting - Construction bids of different sizes – Easier Ask
o Subcontractors are generally required to show a record of success on jobs of a similar size to the proposed job. To create access for small subcontractors, and build subcontractor experience, RBC partners can split larger contracts. Categories of <$5M, <$10M, <$15M, and $15M+ are recommended.
8) Local Procurement and Contracting – Contractor Payment Frequency – Easier Ask
o Small subcontractors often struggle with cashflow problems. RBC and UC can assist by processing constriction payments twice a month rather than monthly, or pay earlier in the month.
9) Local Procurement and Contracting – Contractors Located in Richmond – Reach Ask
o The LBNL RFQ for architectural and engineering services for their first proposed building at RBC included the requirement that the primary firm and major subs have an office located w/in 75 miles of Berkeley, including one firm principal. (Lab Design was excluded from this requirement.) Potentially firms working at the RBC site could be required to have or open an office in Richmond. While this might favor Richmond firms, it is not clear that firms opening an temporary office in Richmond would create lasting economic development benefit, and it would a difficult requirement for contractors located elsewhere in the Bay Area. UC previously offered a preference to local contractors, but this was recently overturned by the UC regents out of a preference for cost savings.
10) Cluster Development - Incubator hosted by LBNL – Demanding Ask
o An incubator at RBC campus could generate spin-off businesses, draw start-ups, and build excitement about innovation at RBC. Creation and operation of an incubator can be costly. In regards to real estate needs, Douglas Crawford, Associate Director of QB3, recommended $200- $250/sf in tenant upfit improvements, and an incubator 20,000sf to 30,000sf in size., or approximately $5M. Operation and services provided by the incubator are also a significant cost.
30 Additional information here: http://www.LBNL.gov/Workplace/CFO/pro/small-bus/education/presentations.html 38 RICHMOND BAY CAMPUS REPORT
QB3’s total budget over six sites is approximately $5M. We speculate that a successful incubator would need $200k-$800k in annual funding.
o LBNL Biosciences Director of Development Mary Maxon has expressed interest in hosting an incubator at RBC. Because of this interest, we consider this a demanding ask, rather than a reach ask.
11) Cluster Development - Funding for a cluster leadership nonprofit – Reach ask
o This could be the same organization that operates an incubator. Such an organization would be most likely to be effective with a budget of $500k. This would be costly, but may be of some interest to LBNL nonetheless. Funding would optimally come from a range of supporters. Livermore’s i-Gate program is currently funded approximately 70% by local government and 30% by industry.
A Community Support Commitment between LBNL, UC, and the City of Richmond can advance economic development in Richmond by offering a combination of these potential types of support.
RICHMOND BAY CAMPUS REPORT 39
6. Appendices
Appendix A: Sources
Leveraging LBNL’s Second Campus for Regional Economic Development
Richmond Bay Campus, 2013 Long Range Development Plan and Phase 1 Development
http://genomicscience.energy.gov/centers/jbei.shtml
http://www.wisegeek.com/what-is-advanced-manufacturing.htm
The National Citizen Survey, City of Richmond, CA, 2011.
40 RICHMOND BAY CAMPUS REPORT
Appendix B: Doing Business with UC Berkeley
Direct from the University recommendation on “Doing Business with UC Berkeley”
Basic Requirements
The University highly recommends that your business:
Maintain a company website that is current and regularly updated Hold insurance which meets the University requirements Accept credit card payment for purchases less than $5,000 Generates online invoices (preferably an electronic invoicing system for computer generated invoices) that can be accesed through the university's online portal Offers a desktop delivery system with business processes to support that system, which can accommodate the University's numerous locations If your business is small and/or diverse: access the Small Business Administration (SBA) website and the State of California Department of General Services website to determine if your company meets the criteria for self-certifying as any of the following: Small business Disadvantaged business enterprise: small or large Woman-owned business: large or small Minority-owned business Historically underutilized small business Veteran or service-disabled veteran-owned business: large or small
If your business holds one or more of the above classifications, complete the requirements for self- certification o As required for the federal government on the System for Award Management (SAM) website. By self- certifying, your business will have greater access to potential opportunities with a number of federal agencies which search for businesses using this portal. Furthermore, the University checks this website to search for businesses as needed for federal contracts and grants, which require purchases from such businesses. If your business is primarily located in the State of California, self-certify on the Department of General Services website.
Access the following resources to learn more about how the University operates:
RICHMOND BAY CAMPUS REPORT 41
o Check out the Procurement Services website which includes: The Vendoriing process Strategic Sourcing Bid Opportunities Supplier Diversity University terms and conditions for purchase o Read campus newspapers to become more informed about planned and ongoing projects Market your goods and/or servcies to departments o Develop relationships with departmental purchasing staff and business managers. Provide information to departments about new offerings which your business can provide. o Advertise and/or participate in University sponsored marketing events
Start doing business with the University only when a department agrees to purchase and has the appropriate delegated authority. o The Department must process an order as as appropriate for the type of purchase to be made through either: BearBuy, the campus eProcurement system, BearBuy, so your business receives an purchase order or A bluCard, the campus procurement card,,so that your business receives a credit card order... o If your business has not previously done business with the University: Complete a Business Information Form (BIF) - Fax: (510) 642-8604 or mail to Vendoring, 1995 University Avenue, Suite114, Berkeley, CA 94704-5600 If your business has previously done business with the University and your company information has changed, send an updated BIF to Vendoring. To speed up payment, sign up for Electronic Funds Transfer (EFT).on the Controller's website. Payment will be directly dieposited into your bank account. Your will receive an emailed notice of payment Provide discounts for shorter payment terms Provide an invoice wihch matches the purchase order to ensure efficient and timely processing of the payment. If you have questions about why payment has not been received, contact the department to confirm receipt of goods or services and invoice. Contact the Disbursements Office of the department cannot resolve the open issue.
42 RICHMOND BAY CAMPUS REPORT
Appendix C:SAMPLE Sample ADVERTISEMENTLBNL Capital Projects FOR Prequalification PREQUALIFICATION Requirements
From https://www.LBNL.gov/wiki/pub/Main/FacilitiesDivision/PUB-3193_CP_Procedures_Manual_20090227.pdf
RICHMOND BAY CAMPUS REPORT 43
LBNL Facilities Division Capital Projects Procedures Manual A6-7 Rev.: 02/27/2009
LBNL Facilities Division Capital Projects Procedures Manual A6-8 Rev.: 02/27/2009 44 RICHMOND BAY CAMPUS REPORT
Appendix D. The Livermore Valley Open Campus and iGate Innovation Hub
Goals and Organizational Overview
This case study describes two initiatives working together to create public-private partnerships and economic development opportunities in the city of Livermore and region surround the Sandia and Livermore National Labs. It covers their organizational objectives and structures, programs, timelines, and enabling policies as well as lessons learned. We thank Scott Wilson (LNL), Brandon Cardwell (i-GATE), Camille Bibeau (LNL) and Elizabeth Cantwell (LNL) for welcoming our team to the LVOC. They shared very generously of their time and insights to make this case study possible.
Organizational Structure
Though LVOC and i-GATE share similar goals of expanding local and regional economic development, their organizational structures are quite different. LVOC is solely a partnership of two adjacent national laboratories, in order to create a more open and collaborative R&D space on their traditionally cloistered federal sites. i-GATE, however, is a public-private collaboration of a diverse set of regional stakeholders (including the Labs) working together for a common mission. Their organizational structures, though dissimilar, reflect the importance of partnerships.
LVOC Organizational Structure
LVOC is a joint collaboration of Sandia Labs/California and LLNL with the support of the U.S. Department of Energy's National Nuclear Security Administration (http://energy.gov/) and Office of Science (http://www.whitehouse.gov/administration/eop/ostp). i-GATE Organizational Structure
i-GATE Innovation Hub Organized as two separate 501c3 corporations with roles:
NEST – An incubator for start-ups and technology-based economic development
i-GATE Development Corporation Financing arm, focuses on providing facilities to ensure the NEST succeeds
RICHMOND BAY CAMPUS REPORT 45
Organizational Objectives LVOC i-GATE
The Livermore Valley Open Campus (LVOC) and Enhance the two laboratories' the i-GATE Innovation Hub are two national security missions by “Maximize the economic organizations working to create an innovation substantially increasing impact of…technologies engagement with the private cluster around two national labs in Livermore: through expedited technology sector and academic the Lawrence Livermore (LLNL) and Sandia transfer, entrepreneurial community. Lab/California (SNL). They are separate entities assistance, collaboration with related missions, and their progress can Stay at the forefront of the opportunities, academic inform efforts in Richmond. Their related science, technology and alliances, and a technology missions are as follows: engineering fields. incubator for the development i-GATE Partners of high-growth…businesses”32 Ensure a quality future The City of Livermore is the iHub Coordinator, workforce by expanding SNL will be the lead laboratory, and CITRIS at opportunities for open the University of California, Berkeley, will serve engagement of the broader as the supporting UC Institute for Science and scientific community.31 Innovation.33
31 LVOC website, “About LVOC” 32 http://www.cityoflivermore.net/civicax/filebank/documents/7420/ 33 http://www.cityoflivermore.net/civicax/filebank/documents/7420/ page 2 46 RICHMOND BAY CAMPUS REPORT
Development Process & Key Milestones for i-GATE and LVOC
Approximate Timeline and Development Process
LVOC
2009 – After several years of discussion, LVOC approved by the NNSA to create a shared space
and initiate collaborations34
2010 - Livermore and Sandia engaged Flad Architects to study development options and create
a master plan with different scenarios35
May 2010 – Appointment of Buck Koonce to lead LLNL’s LVOC efforts36. Sandia subsequently
appoints Andy Bischel to lead their program.
Late 2009 – 2011 – Phase I Construction of iInterim High Performance Computing Innovation
Center and visitor access area
2012 – Partnership announced between LLNL’s high performance computing center and 8
companies on energy innovation (hpc4energy)37
2013 – Break ground on interim High Performing Computing Innovation Center and LVOC hub
30 Year Plan – Extensive office, computing and light lab facilities on 110 acre site for LVOC
partners to occupy and work in together
i-GATE Development Plan
The following table describes the plan of work that i-GATE created to guide its development, to be carried out in three distinct phases. i-GATE was founded in 2010. Most, if not all, activities in Phase 1 have been
34 https://newsline.llnl.gov/_rev02/articles/2009/aug/08.07.09-open.php 35 https://str.llnl.gov/Mar11/koonce.html 36 https://newsline.llnl.gov/_rev02/articles/2010/may/05.07.10-koonce.php 37 https://www.llnl.gov/news/aroundthelab/2012/Nov/ATL-110712_hpc.html RICHMOND BAY CAMPUS REPORT 47
completed or are on-going. The original timeline envisioned for these three phases was Phase 1 (2010),
Phase 2 (2011-2012) and Phase III (2012 – ongoing), but this timeline has since been revised due to funding considerations. However, the order of operations is sound and this can serve as a useful plan to reference when planning cluster and incubator development at the RBC.
i-GATE38
PHASE 1 – ESTABLISH OPERATIONS (SITE #1) AND FUNDING
• Key stakeholders endorse technology incubator business plan
• Establish Board of Directors and Executive Director
• Establish Industry and Science Advisory Committee
• Establish operational support system, volunteers, create internship programs
• Finalize decision regarding 501(c)(3) structure and establish corporate entity
• Develop funding source commitments for incubator startup, seek industry sponsors
• Link to national lab user facility collaboration programs (CRF, computing, etc.)
• Finalize incubator service offerings and details
• Create legal agreement models for incubator startup companies, leases, etc.
• Build entrepreneurial service and funding network
• Source entrepreneurship and business training providers
• Establish links to universities/colleges for business, science, engineering students
• Establish commercialization model linked to national labs and universities
• Study mechanisms for licensing, IP bundling, marketing IP
• Implement marketing and PR plan to recruit incubator tenants, license IP
• Create and implement evaluation metrics for potential incubator tenants
38 http://www.cityoflivermore.net/civicax/filebank/documents/7420/ 48 RICHMOND BAY CAMPUS REPORT
• Initiate incubator services for startup clients
• Initiate planning for permanent incubator facility (office and lab space)
• Establish temporary incubator location (office space) at Site #1
PHASE 2 – EXPAND OPERATIONS AT SITE #2 AND FUNDING
• Evaluate and improve services, processes, success metrics
• Diversify funding sources, cultivate sponsorships
• Establish annual review of operations by Board of Directors
• Launch monthly speaker series and investor pitch sessions for client companies
• Expand service offerings for initial incubator companies
• Expand educational programs, grad student internships, university links
• Temporary Site #2 (office and lab space) established on LVOC
• Raise construction funds ($4.9 million) for permanent incubator location on LVOC
• Plan approximately 24,000 square feet of office and reconfigurable lab space
• Increase marketing to recruit internal lab and external entrepreneurs
PHASE 3 – PERMANENT SITE #3, STABLE FUNDING
• Evaluate and improve services, processes, success metrics
• Diversify funding sources, cultivate sponsorships
• Construct and launch new incubator facility (office and lab space) on LVOC
• Begin progress evaluations of incubator companies toward graduation
• After initial 3-5 year operational period, evaluate need to increase FTE staff
• Evaluate licensing/technology transfer mechanisms for success and speed
• Consider options for establishing second incubator program around new themes in support of evolving
RICHMOND BAY CAMPUS REPORT 49
LVOC programs
Programs to Support Innovation, Commercialization, & Collaboration
LVOC
Before the LVOC, Livermore and Sandia Labs were able to work with the private sector in more formal agreements such as Cooperative Research and Development Agreements (CRADAs) governing joint lab/private sector research, and Work-for-Others agreements when the lab is simply providing support from lab staff. However, with the more open environment of LVOC, which includes less extensive security and badging requirements, collaboration opportunities are significantly expanded and can allow potential outside partners, including foreign nationals, to more easily access the talent and capabilities of the Labs.
Collaboration is welcome in the main areas of science that Sandia & LLNL work in, including39:
Energy
Energy partnerships at the LVOC transform research discoveries into commercialized technologies. Work in this subject area, especially when focused on transportation issues, also influences local, state and national policy. New programs such as Research, Engineering, and Applications Center for Hydrogen (REACH) and Advanced
Systems for Power from Integrated Renewable Energy (ASPIRE) play a key role in LVOC energy-related activities. Partners of LVOC energy programs often include the Energy, Climate, and Infrastructure Security area of Sandia. Many partners are also part of the incubator program Innovation for Green Advanced Transportation
Excellence (i-GATE), a California state initiative for innovation based in Livermore.
Computing
In the computing realm, high-performance computing and cyber security are of particular interest. Partners in this subject area have access to world-class computing facilities at Sandia and Lawrence Livermore national laboratories. Ongoing programs include the Center for Cyber Defenders (CCD), a Sandia internship program that is growing the next generation of talent in cyber security, and the emerging Cybersecurity Technologies
Research Laboratory (CTRL), which is part of Sandia's Cyber Engineering Research Institute (CERI).
Bioscience
The understanding of biological systems and the ability to predict their behaviors is key to protecting our environment and defending against biothreats. Biothreat and bioenergy issues are particularly emphasized in LVOC bioscience programs, but a new program — the Institute for Translational Biomedicine — is a not-for- profit institute that significantly expedites the process of converting biomedical research into real-world pharmaceuticals and medical devices.
39 Copied directly from http://www.sandia.gov/lvoc/partnership_opportunities.html 50 RICHMOND BAY CAMPUS REPORT
Detection technologies
The world faces a growing threat of nuclear proliferation, with bad actors motivated by geopolitical factors and potentially taking advantage of the expansion of nuclear power. Nonproliferation and arms limitation treaties, which aim for stability in the long term, depend on the development and implementation of new monitoring and verification technologies to be fully effective. Emerging collaborative programs at the LVOC, such as the National
Neutrino Detection Center (NDC), promote collaborative approaches to detection technologies.” i-GATE
I –GATE functions as a small business accelerator that provides facilities to its “client” companies. Equally important, it connects clients with integrated business services across the business lifecycle from concept, to planning, to prototyping, sales and fundraising. It does not have the bandwidth to provide all of these services on-site, rather it accomplishes this by referring them to “Innovation Partners” who provide a full range of services, including:
From the NEST Description of Services & Programs:
Mentoring
NEST partners and staff want to make sure our client companies succeed. Your success is our success. One of the keys to this process is focused and consistent mentoring opportunities from experienced business leaders. Some NEST clients may also qualify for specialized needs analysis and mentoring from our venture capital partners.
Business Plan Development
A credible business plan is a major factor in the success of small startup companies. NEST staff and partners provide assistance in developing a professional plan to guide the company and demonstrate to potential investors that our clients and their new products or services can succeed in the marketplace.
Market Analysis
One of the critical factors in startup success is the determination of market size, market fit, competition, and positioning for the new technologies, products, or services to be provided by a new business.
Access to Investment Capital
When client companies are properly prepared, NEST can provide introductions to a variety of angel and venture capital partners, lenders, and others who can provide growth capital.
Networking and the NEST Community
Networking events and introductions to the business and technical community in the Tri-Valley region and to NEST partners. NEST incubator tenants also benefit each other through regular interaction.
Entrepreneurship Training
Management and entrepreneurship training programs for busy startup managers.
RICHMOND BAY CAMPUS REPORT 51
Seminar Series
Expert seminars on a variety of business and technical topics.
Technical Assistance
In cases where NEST client companies are working in areas that are complementary to R&D being performed at Sandia and Lawrence Livermore National Laboratories, a limited amount of technical assistance and collaboration opportunities may be available. Companies interested in paying for national laboratory assistance have access through Work for Others (WFO) and Cooperative Research and Development Agreements (CRADA).
Technical Transfer Assistance
Sandia and Lawrence Livermore National Laboratories conduct ongoing R&D in numerous areas related to transportation and clean-energy technologies. NEST can provide access to appropriate contacts for assistance to small businesses seeking licensing and intellectual property development opportunities from the national laboratories in Livermore, the Joint BioEnergy Institute in Emeryville, and other partner laboratories in the i-GATE region.
Financial and Legal Consulting Services
NEST clients will have access to legal and accounting services. These NEST partners are screened to ensure a high level of value-added support at discounted rates.
Intern Support
Through our university partners, NEST provides access to a core group of graduate students to serve as interns for conducting research and to provide daily support as a staff extension for our clients.
Manufacturing Process Improvement Consulting
NEST partner Manex provides free and low-cost consulting for manufacturers connected with the NEST program. The Corporation for Manufacturing Excellence (Manex) helps manufacturers and distributors increase productivity, growth, and profitability. As a member of the National Institute of Standards and Technology (NIST) Manufacturing Extension Partnership, they help solve challenges and advance best practices in manufacturing operations, methods, and processes.
Discounted Contract Engineering/Prototyping
Contract engineering services are available from partners close to the NEST incubator in Livermore.
Policy Lessons & Tools
Role of City of Livermore in Supporting LVOC
The City of Livermore has supported both LVOC and i-GATE through several policy mechanisms: Funding, Political Support and Convening.
Funding: of i-GATE as well as funding for events and workshops of the LVOC. The i-GATE Funding Model is cross-sector and – 25-30% comes from private sector partners, 70% (the rest) comes from government partners
52 RICHMOND BAY CAMPUS REPORT
at local/county level. Being designated a CA iHUB is important designation but not a funding mechanism. Resident start-ups pay minimal fee per square foot / month and services at iGATE are at no cost.
Convening: Livermore has supported i-GATE and LVOC by convening both technical and stakeholder meetings around their missions.
Political Support: LVOC and i-GATE cannot lobby, but the city partners’ mayors can express support to DOE and NNSA leg offices based on value created by these key initiatives.
Role of DOE in Supporting LVOC
The Department of Energy and the Office of Science and Technology Policy have supported the LVOC in numerous ways. Two of these are: first, by apportioning 110 acres to the LVOC which can be developed in an open campus format and even include buildings owned by private companies. Secondly, the DOE is piloting a less stringent intellectual property regime at the LVOC called the Agreement for Commercializing Technology (ACT) which is meant to be much more industry-friendly. This may make it easier to yield spin-outs of technologies discovered in the lab. Currently spin-out companies are somewhat lean; 2012 was a banner year for them but there were still less than 5.
Lessons Learned
1. Don’t Overcommit. Be conservative in what you commit to in timelines and work plans – base them
on ground up analysis of what can feasibly be given partners’ capabilities and funding.
2. Brand the cluster broadly. Brand based on Richmond’s unique differentiators (for example: “room to
grow”). Don’t brand early based on specific technologies unless there is very strong evidence that
there will be a massive market ramp up in that industry in Richmond.
3. Know your lab. Understand the research objectives of the lab partner and align those objectives with
focus of the cluster. Talk with Mary Maxon at LBNL about this. Include her and the Technology
Transfer office in cluster visioning exercises to better understand lab’s legal ability to participate in
different activities.
4. Recruit an experienced Board. Emphasize industry members on the Board who (ideally) have some
similar prior experience. This needs to be a public private partnership, and private companies want to
hear from other companies so recruit “cluster champions”. They should be motivated to contribute by
having a real equity stake or pertinent business interest, their fortunes aligned with the fortunes of
the cluster.
5. Budget: A cluster intermediary organization will need funding if it is to be worth founding. There are
options of course, ranging from a very lean organization with 2-3 staff (i-GATE) to a larger
organization with a staff sufficient to provide almost all services in house (QB3 model).
RICHMOND BAY CAMPUS REPORT 53
6. Funding: Of course, it is wise to seek state and federal funding opportunities, but Board members
should be able to raise funds too. A potential guideline on funding model is 50% private, 25% city,
25% lab and representation on the Board accordingly.
7. Zoning & Land-Use: The City can help with flexible, transparent zoning to allow the types of light
manufacturing and research buildings that cluster members will seek. In terms of land use policy and
permitting, cities should always seek to decrease the cycle time to stand up a new business.
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Appendix E: The Richmond Economy
Richmond is located along the San Francisco Bay on the western shoreline of Contra Costa County. Richmond’s location with close proximity to San Francisco and access to the Bay led to early development of Richmond as a transcontinental rail terminal and ferry service destination. As early as 1900, the Santa Fe Railroad connected Richmond to the rest of the country, prompting companies like Standard Oil Company to build a Richmond refinery. “A growing economy, strong Richmond is best known for its unique history and role in the World War workforce, rich cultural diversity II wartime industry. The City was home to four Kaiser shipyards, as well and a great year-round living as 55 war-related industries. Richmond’s wartime past is still visible in environment are reasons to do historical sites like the Rosie the Riveter Museum. business in Richmond.” As a result of its industrial strength and transportation history, Richmond Business Resource Guide, East Bay EDA, 2011-2012 is still an important city for industry, particularly in oil refining, transportation, and shipping. Richmond’s shoreline enables international 2011 connections, particularly to Asia, via Richmond’s seaport, which helps drive the region’s strength in the transportation and warehousing sector. Richmond is a central transportation hub in the Bay Area, with two Interstate freeways (I-80 and 580), two railroads (Santa Fe and Southern Pacific), a deepwater shipping port, several AC Transit local bus lines, and Bay Area-wide rapid transit and USA-wideStudy passenger by rail service from the combined BART and AMTRAK station located in the heart of Richmond's downtown.
Richmond Industry Development Richmond continues to expand its economic base with the addition of “CounsellorsRichmond’s prominent business hundreds of new green economy and retail jobs created in recent years. sectors include biotech, health Other prominent business sectors include biotech, health science, oil scienceInternational and food and beverage refining, automobile imports and food and beverage production, production.” Business Resource Guide, importation and distribution. EastSeptember Bay EDA, 2011-2012 2011
2011
Richmond Small Businesses Richmond has a notable concentration of small businesses. Based on its currentStudy business by licenses, the Richmond business community has the following retail establishments that may be good candidates for direct and indirect procurement during the RBC development. A detailed Excel directory of all suchDevelopment Richmond businesses is available electronically with our report. Counsellors Construction Procurement
Architects International7
Carpentry 1 September 2011 Concrete 1
Construction 51
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Construction Supply 2
Contractor 155
Engineering 2
Fire Sprinkler 1
Hauling 6
Hauling/ Landscape 1
Landscaping 12
Painting 3
Roofing 1
Wholesale Laminate Surfaces 1
Wholesale Lumber And Building Materials 1
Construction Subtotal 245
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Direct Procurement
Other Miscellaneous Durable Goods Merchant Wholesalers 6 Analytical Laboratory Instrument Manufacturing 3
Biological Product (except Diagnostic) Manufacturing 3
Other Electronic and Precision Equipment Repair and 13 Maintenance Security Services 8
Landscaping Services 17
Cleaning/Janitorial Services 91
Catering Services 5
Office Services 4
Direct Procurement Subtotal 150
Indirect Procurement: Retail Establishments in Richmond
Restaurant 153 Wine/Bar 3
Grocery Stores 61
Clothing and Shoes 55
Computer and Electronics 2
Household Services or Items 20
Music/Video 1
Bookstores/Newsstands 5
Childcare 14
Preschool 1
Auto 106
Smog Check 9
Boat 8
Accountant 7
Attorney 42
Dental 21
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Petcare 8
Recreation 1
Outdoor gear 1
Indirect Subtotal 518
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Appendix F: Regional Bioscience Developers
Name Contact Info Notes
Wareham WAREHAM DEVELOPMENT Developer of Aquatic Park and Emeryville Life Sciences, and East Bay QB3 1120 Nye Street, Suite 400 San Rafael, CA 94901 http://www.warehamproperties.com/type- T - 415 457 4964 lifesciences.html F - 415 459 4605
E - Judith Wetterer - [email protected]
Forest City http://www.forestcityscience.net/about_people.shtml Primarily East Coast. Headquartered in Cambridge, MA.
Jones Lang http://umlsp.com/upload/news/49/7.1.10- Lasalle Bioscience-Real-Estate-Insights.-Jones-Lang- LaSalle-selected-for-U.-of-Miami-park.pdf
BioMed Bay Area Region Boston, San Francisco, San Diego, Maryland, Realty 7677 Gateway Blvd New York/New Jersey, Pennsylvania, and Suite 100 Seattle (BMR) Newark, CA 94560
Phone:510.505.6046 Fax:510.795.2985
Alexandria Stephen A. Richardson Active at UCSF Mission Bay Real Estate Chief Operating Officer & Regional Market Director http://www.are.com/global-properties.html
1700 Owens Street, Suite 590 San Francisco, California 94158
T. 415.554.8848 E. [email protected]
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Appendix G: Draft of LBNL’s Needs and Opportunities for Cluster Visioning Council
Requests and opportunities to consider for the LBNL Cluster Visioning Council. We recommend that you work the LBNL to complete this document for the proposed Cluster Visioning Council to discuss. The City, UC and companies in the Council would prepare and share similar documents. This draft was created with input from David Skinner at LBNL ([email protected]).
Document Goal: Define the Capacities, Interests, and Needs of RBC parties, in order to identify potential partnership opportunities. Document will start with LBNL as a model, and will be presented to businesses that may participate in cluster development around RBC.
Connecting Cluster Development around the Richmond Bay Campus
Lawrence Berkeley Lab Capacities Research projects
Life Sciences JGI
Equipment
Microscopes Beamlines HPC computing and data access
Abilities
LBNL can do massive computer simulations very fast RBC will have a world-class network capability making it a potential data-dock next to the ship dock. RBC will likely house a state of the art multi-modal bioimaging capability as a user center. LBNL math researchers have excelled in making cutting edge algorithms deliver for private industries (Jamie Sethian) Most LBNL user facilities have programs for DOE-aligned folks to get access to advanced microscopes, beamlines, and computers.
Interests
LBNL is interested in energy related research and technologies broadly. Excellent opportunities for LBNL generally look like XYZ and address mission topics XYZ
Needs
Biz partnership for X SBIR solicitations Biz partnerships for ______ Local business o Great restaurants and cafes nearby to fuel the science. o Places for the regular sorts of errands people run over lunch.
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