If you've been doing business in the commercial contracting world you may have been involved with one of several local or regional minority certification programs. These programs are set up to give deserving contractors a "foot in the door" on contracts that, prior to the programs, they may have had no chance of winning.
In the Federal contracting arena, there are also minority certifications for which a contractor can qualify. The Federal programs offer Set-Aside projects that ONLY those with the proper certification can bid on. It allows the contractor not to be just a subcontractor helping a non-minority firm reach it's "good faith" goals, it gives them an opportunity to be the Prime Contractor in charge of the entire contract.
The key Federal minority certifications are Small Business, 8(a), Hubzone (different from the local/regional HUB programs), and Service Disabled Veteran Owned Small Business. The Small Business designation usually refers to businesses whose gross income is below a certain 3 year average. 8(a) refers to a program set up for ethnic minority firms to help them attain Federal contracts, it has a set time limit in which a contractor will eventually "graduate" from the program. The Hubzone program was set up to favor companies whose primary office location is within a federally designated HUB (Historically Underutilized Business) Zone, and a percentage of the company's employees must also reside in the Zone. Lastly, the Service Disabled Veteran Owned Small Business (SDVOSB) was set up to allow Veterans who were wounded/disabled in the service of their country to gain special status in the pursuit of Government contracts.
Having one of the above certifications will help you gain work as a subcontractor on "non set-aside" or "Full and Open" contracts, as the Prime contractor is still bound by law to subcontract a percentage of the work to minority firms. But the most lucrative contract is the Small Business Set-Aside, 8(a) Set-Aside, etc. It can shorten the list of bidders, it certainly puts everyone on a level playing field, and allows opportunities that would otherwise be unavailable.
If you are just venturing into the world of Federal minority contracting or have gotten into it and are struggling with all of the rules, paperwork, proposals, etc. our company is here to assist and support you. We can explain the process of getting set up to pursue set-aside projects. We offer a teaming approach where we will partner with you, allowing you to use our extensive resume of Past Performance along with preparing proposals, project management, etc. We can be your point of contact with the Government handling all of the management/paperwork issues and allowing you to focus on your particular area of work. Or we can support/advise you in specific areas in which you may be having difficulty.
If you want to know more, please go to our website: http://www.advan-con.net/
Saturday, November 28, 2009
Thursday, November 19, 2009
Federal vs Commercial Contracting; Is There A Difference?
Many commercial contractors have recently had to face the hard truth that there is not enough work out there to go around. Some have closed their doors, others have tried to find ways to diversify the services they offer in other markets. One of the markets that is still thriving is the federal market, but many shy away from doing work for the Government because of the many horror stories they have heard.
Is federal contracting that much different than commercial? The answer is both yes and no. As in any project, the rules change depending on the environment set by the Owner. The rules for doing school work are different from the rules for building churches. The rules for building private offices are different from the rules for building hospitals. In each situation, different types of construction produce different rules that have to be followed. It is the same in federal contracting.
One of the things you can count on in federal construction is that YOU WILL follow the rules. Where you might be able to freely substitute materials and systems on commercial work you better not go into a federal contract thinking that you are going to get by with anything less than what is called for. You will be held accountable for everything in the Contract Documents whether you picked it up or not.
Are there more rules to follow in federal work? Possibly. One of the most stringent projects in regards to rules that I have been involved with was in the building of the Dallas Cowboy's Stadium in Arlington, Texas. Our company had a very small contract compared to the overall scope of this billion dollar project. However the rules just for being able to walk onto the jobsite were like nothing we had ever seen in our years of doing work for the Government. Insurance requirements were much more stringent, safety requirements were above and beyond what we were used to (and we were used to complying with the Corps of Engineers Safety and Health Manual), and payroll reporting was ever bit as thorough as any federal job. So in comparison to this particular project are there more rules on federal jobs? The answer would be, No.
Now the stadium project is an exception. On most commercial work the paperwork, safety, insurance, etc. pretty much follow standard criteria. But, if you have never dealt with payroll reporting, cost loaded CPM scheduling that becomes your basis for payment, safety regulations out the wazoo, and submittal registers that include certifications on every bolt and screw country of origin, then you are in for a shock. And if you haven't allowed for these little nuances in you bid, you may end up spending a lot of your general conditions just in chasing down paperwork.
Then there are the Government Inspectors. Depending on the size of the contract, most project will have a team of Inspectors. Will they be tough? Are they sticklers for making you comply with every aspect of the Contract Docs? Well, in a word...Yes. That's their job. If you don't like it, if you try to get by with not following the Docs, it will not be a pleasant experience. Do you have to stand your ground when you are following the Docs and they are incorrectly interpreting something? Absolutely! The trick is in knowing what battles to fight and when to keep your mouth shut and do the work. It will always be a love/hate relationship, but we have been doing business with some of the same Government Agencies and Inspectors for many years and, even though we have come to blows on many occasions, they still give us favorable performance ratings because we have done them a good job, complied with the Docs, and have never left them out to dry.
Lastly there are the staff requirements that, if missed in your general conditions, will come back to haunt you. Qulaity Control Managers, Quality Control Team, Safety Manager, etc. are but a few of the stipulated personnel that will be required on any given federal project.
Bottom line, there are significant differences between federal and commercial work. Some contractors learn these differences the hard way and end up losing money on their first few Government contracts. Or, they do one project and have such a bad experience, they just give it up.
Want to avoid the many pitfalls that may await your venture into the federal sector? Are you a minority contractor trying to get established in the U.S. Government contracting world? If so, we can help.
Go to our website: http://www.advan-con.net/
Is federal contracting that much different than commercial? The answer is both yes and no. As in any project, the rules change depending on the environment set by the Owner. The rules for doing school work are different from the rules for building churches. The rules for building private offices are different from the rules for building hospitals. In each situation, different types of construction produce different rules that have to be followed. It is the same in federal contracting.
One of the things you can count on in federal construction is that YOU WILL follow the rules. Where you might be able to freely substitute materials and systems on commercial work you better not go into a federal contract thinking that you are going to get by with anything less than what is called for. You will be held accountable for everything in the Contract Documents whether you picked it up or not.
Are there more rules to follow in federal work? Possibly. One of the most stringent projects in regards to rules that I have been involved with was in the building of the Dallas Cowboy's Stadium in Arlington, Texas. Our company had a very small contract compared to the overall scope of this billion dollar project. However the rules just for being able to walk onto the jobsite were like nothing we had ever seen in our years of doing work for the Government. Insurance requirements were much more stringent, safety requirements were above and beyond what we were used to (and we were used to complying with the Corps of Engineers Safety and Health Manual), and payroll reporting was ever bit as thorough as any federal job. So in comparison to this particular project are there more rules on federal jobs? The answer would be, No.
Now the stadium project is an exception. On most commercial work the paperwork, safety, insurance, etc. pretty much follow standard criteria. But, if you have never dealt with payroll reporting, cost loaded CPM scheduling that becomes your basis for payment, safety regulations out the wazoo, and submittal registers that include certifications on every bolt and screw country of origin, then you are in for a shock. And if you haven't allowed for these little nuances in you bid, you may end up spending a lot of your general conditions just in chasing down paperwork.
Then there are the Government Inspectors. Depending on the size of the contract, most project will have a team of Inspectors. Will they be tough? Are they sticklers for making you comply with every aspect of the Contract Docs? Well, in a word...Yes. That's their job. If you don't like it, if you try to get by with not following the Docs, it will not be a pleasant experience. Do you have to stand your ground when you are following the Docs and they are incorrectly interpreting something? Absolutely! The trick is in knowing what battles to fight and when to keep your mouth shut and do the work. It will always be a love/hate relationship, but we have been doing business with some of the same Government Agencies and Inspectors for many years and, even though we have come to blows on many occasions, they still give us favorable performance ratings because we have done them a good job, complied with the Docs, and have never left them out to dry.
Lastly there are the staff requirements that, if missed in your general conditions, will come back to haunt you. Qulaity Control Managers, Quality Control Team, Safety Manager, etc. are but a few of the stipulated personnel that will be required on any given federal project.
Bottom line, there are significant differences between federal and commercial work. Some contractors learn these differences the hard way and end up losing money on their first few Government contracts. Or, they do one project and have such a bad experience, they just give it up.
Want to avoid the many pitfalls that may await your venture into the federal sector? Are you a minority contractor trying to get established in the U.S. Government contracting world? If so, we can help.
Go to our website: http://www.advan-con.net/
Wednesday, November 18, 2009
Why Federal Contracting
With more and more of the commercial and private construction projects drying up there is an ever increasing trend for contractors to make a venture into the federal contracting arena. For many, they have dabbled in the federal market a few times but ultimately opted out due to the seemingly overwhelming amount of rules and paperwork. Not to mention the Government Inspectors who stand their ground no matter how shifty their ground becomes.
Contracting with the U.S. Government does not have to be as frightful or mysterious as you may think or may have been told. Once you learn the basic processes and become familiar with your contractual rights as well as the Government's rights, the results of establishing yourself in this market can be quite rewarding.
Of particular interest would be those companies who hold some sort of minority status. In the federal world the most recognized minority certifications are Small Business, 8(a), HUBZone, and Service Disabled Veteran Owned Small Business (SDVOSB). If you qualify for any of these designations you significantly increase your chances of winning federal contracts.
Right now is an opportune time to get into the federal contracting business. Billions of dollars of Stimulus money has been earmarked for Government construction projects and, of these billions, a large amount has been set aside for contractors with one of the above minority certifications. There has never been a better time to break into this field of work.
How do you know if you are qualified for one of these certifications? How do you get started? Want to know more from someone who has been doing business in this industry for over 30 years?
Check out our website: http://www.advan-con.net/
We are here to help your venture into this market easy and profitable.
Contracting with the U.S. Government does not have to be as frightful or mysterious as you may think or may have been told. Once you learn the basic processes and become familiar with your contractual rights as well as the Government's rights, the results of establishing yourself in this market can be quite rewarding.
Of particular interest would be those companies who hold some sort of minority status. In the federal world the most recognized minority certifications are Small Business, 8(a), HUBZone, and Service Disabled Veteran Owned Small Business (SDVOSB). If you qualify for any of these designations you significantly increase your chances of winning federal contracts.
Right now is an opportune time to get into the federal contracting business. Billions of dollars of Stimulus money has been earmarked for Government construction projects and, of these billions, a large amount has been set aside for contractors with one of the above minority certifications. There has never been a better time to break into this field of work.
How do you know if you are qualified for one of these certifications? How do you get started? Want to know more from someone who has been doing business in this industry for over 30 years?
Check out our website: http://www.advan-con.net/
We are here to help your venture into this market easy and profitable.
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